Vanguard Variable Annuity - Balanced Portfolio
Holdings

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so that investors' shares, when sold, may be worth more or less than their original cost. See performance data current to the most recent month-end, which may be higher or lower than that cited.

Asset Allocation as of 06/30/2016


Fund Characteristics as of 06/30/2016
 VVA-BalancedComposite Stock/Bond Index (VVIF)*
Turnover Rate (Fiscal Year End December)45.3%
Short-Term Reserves1.0%
Total Net Assets$2.0 billion

Equity Characteristics as of 06/30/2016
 VVA-BalancedS&P 500 Index *
Number of Stocks93505
Median Market Cap$95.1 billion$78.7 billion
Price/Earnings Ratio 17.9x20.7x
Price/Book Ratio 2.2x2.8x
Return on Equity 16.7%17.3%
Earnings Growth Rate 4.1%7.0%
Foreign Holdings7.8%

Fixed-Income Characteristics as of 06/30/2016
 VVA-BalancedBarclays US Credit A or Better Idx *
Number of Bonds7473369
Yield to Maturity 2.4%2.3%
Average Coupon3.7%3.6%
Average Effective Maturity 10.2 years10.0
Average Duration 7.1 years7.1 years

Equity Sector Diversification as of 06/30/2016
 VVA-BalancedS&P 500 Index *
Consumer Discretionary7.40%12.30%
Consumer Staples9.10%10.60%
Energy10.60%7.40%
Financials22.10%15.70%
Health Care18.00%14.70%
Industrials11.10%10.20%
Information Technology12.70%19.80%
Materials2.00%2.80%
Other0.00%
Telecommunication Services2.70%2.90%
Utilities4.30%3.60%

Sector categories are based on the Global Industry Classification Standard system.

Month End Ten Largest Holdings as of 06/30/2016
RankHolding
1Wells Fargo & Co.
2Merck & Co. Inc.
3Microsoft Corp.
4Comcast Corp.
5Verizon Communications Inc.
6Chevron Corp.
7Alphabet Inc.
8JPMorgan Chase & Co.
9Chubb Ltd.
10Intel Corp.
Ten largest holdings = 17.7% of total net assets
Ten largest holdings = 27.1% of equities

Quarter-end top ten holdings with weighting

Portfolio holdings

Distribution By Issuer (% of bonds) as of 06/30/2016
 VVA-Balanced
Asset-Backed3.5%
Commercial Mortgage-Backed0.5%
Finance26.6%
Foreign3.9%
Government Mortgage-Backed1.3%
Industrial35.5%
Other5.3%
Treasury/Agency16.1%
Utilities7.3%
Total100.0%

Distribution By Credit Quality** (% of bonds) as of 06/30/2016
 VVA-Balanced
U.S. Government17.8%
Aaa4.2%
Aa11.1%
Aa23.0%
Aa39.9%
A112.5%
A212.7%
A320.1%
Baa111.5%
Baa25.5%
Baa31.7%
Total100.0%

* Made up of two unmanaged benchmarks, weighted 65% S&P 500 Index and 35% Barclays U.S. Credit A or Better Bond Index.

* Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). "NR" is used to classify securities for which a rating is not available. U.S. Treasury, U.S. Agency, and U.S. Agency mortgage-backed securities appear under "U.S. Government." Vanguard managed taxable index bond funds, balanced funds, ETFs, and annuity portfolios; and Wellington Management Company managed bond funds, balanced funds and annuity portfolios: Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody's Investors Service (Moody's), Fitch Ratings (Fitch), and Standard & Poor's (S&P). When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. When one rating is available, that rating is used. Vanguard managed taxable non-index bond funds, municipal bond funds, balanced funds and annuity portfolios: Credit-quality ratings for each issue are obtained from Moody's and S&P, and the higher rating for each issue is used. Oaktree Capital Management managed fund: Credit-quality ratings are obtained from S&P. Vanguard taxable and municipal money market funds; annuity money market portfolios; and cash management trusts: The Distribution by Credit Quality table includes tier ratings for consistency with SEC Rule 2a-7 under the Investment Company Act of 1940, which governs money market funds. A First Tier security is one that is eligible for money market funds and has been rated in the highest short-term rating category for debt obligations by the requisite nationally recognized statistical rating organizations. An unrated security is First Tier if it represents quality comparable to that of a rated security, as determined in accordance with SEC Rule 2a-7. A Second Tier security is one that is eligible for money market funds and is not a First Tier security.

Glossary