Contents

Your Fund’s Performance at a Glance	1
Advisor's Report	2
About Your Fund’s Expenses	4
California Municipal Money Market Fund	6
California Intermediate-Term Tax-Exempt Fund	19
California Long-Term Tax-Exempt Fund	125

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

Your Fund’s Performance at a Glance

•	Despite some relief toward the close of the period, the 12 months ended November 30, 2022, were a volatile, challenging period for financial markets. Vanguard California Intermediate-Term Tax-Exempt Fund returned –6.92% for Investor Shares and –6.85% for Admiral Shares. Vanguard California Long-Term Tax-Exempt Fund returned –9.88% for Investor Shares and –9.81% for Admiral Shares. Each fund lagged its benchmark index. Vanguard California Municipal Money Market Fund returned 0.72%.
•	The economic backdrop deteriorated early on as inflation soared to multidecade highs, fueled in part by higher energy and food prices in the wake of Russia’s invasion of Ukraine. Then price increases broadened to other categories of goods and services, adding to concerns that inflation would remain stubbornly high. That prompted aggressive tightening by the Federal Reserve to bring inflation back in check, which weighed on bond prices and increased fears of recession.
•	Munis were not immune to the run up in Treasury yields and the muni market experienced significant cash outflows. As a whole, however, their fundamentals remained solid, and they fared better than the taxable bond market.
•	The main driver of the Long-Term Tax-Exempt Fund’s relative underperformance came from its longer duration compared to that of its benchmark index. More exposure to credit-sensitive segments was a detractor for both bond funds.

Market Barometer

Average Annual Total Returns Periods Ended November 30, 2022
	One Year	Three Years	Five Years
Stocks
Russell 1000 Index (Large-caps)	-10.66%	10.56%	10.69%
Russell 2000 Index (Small-caps)	-13.01	6.44	5.45
Russell 3000 Index (Broad U.S. market)	-10.80	10.28	10.33
FTSE All-World ex US Index (International)	-11.40	2.23	1.86
Bonds
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market)	-12.91%	-2.56%	0.24%
Bloomberg Municipal Bond Index (Broad tax-exempt market)	-8.64	-0.77	1.40
FTSE Three-Month U.S. Treasury Bill Index	1.16	0.64	1.19
CPI
Consumer Price Index	7.11%	5.00%	3.83%

1

Advisor’s Report

For the 12 months ended November 30, 2022, Vanguard California Intermediate-Term Tax-Exempt Fund returned –6.92% for Investor Shares and –6.85% for Admiral Shares. Vanguard California Long-Term Tax-Exempt Fund returned –9.88% for Investor Shares and –9.81% for Admiral Shares. Each fund lagged its benchmark index.

For the 12 months, the 30-day SEC yield climbed from 0.85% to 3.23% for the Intermediate-Term Fund and from 1.20% to 3.53% for the Long-Term Fund. (Yields cited are for Admiral Shares.) The 30-day SEC yield is a proxy for a fund’s potential annualized rate of income.

Vanguard California Municipal Money Market Fund returned 0.72%. Its 7-day SEC yield rose over the period from 0.01% to 1.38%.

Please note that the funds are permitted to invest in securities that would generate income distributions subject to the alternative minimum tax (AMT). During the fiscal year, only the Money Market Fund owned such securities.

The investment environment

The period was defined by a historic rise in interest rates, which caused ripple effects across every sector of the financial markets and brought with it renewed volatility.

Concerns that had weighed on market sentiment in late 2021 carried into 2022. Supply-chain bottlenecks persisted, labor remained in short supply in some sectors

of the economy as unemployment rates continued to fall, and year-on-year inflation readings—which had been accelerating—climbed to multidecade highs across much of the world.

In late February, Russia’s invasion of Ukraine injected more uncertainty into the markets. Oil headed north of $100 per barrel and staple food prices soared. While energy prices eventually began to cool amid slowing economic growth and the U.S. government’s release of some of its strategic oil reserves to boost supply, price increases broadened to other categories of goods and services, heightening concerns that inflation might remain stubbornly high.

In response, major central banks wound down their bond-purchasing programs and began raising short-term interest rates. The Federal Reserve was especially aggressive, raising the federal funds rate target by 3.75 percentage points in less than eight months.

That created a very challenging environment for bonds. Muni yields rose sharply even as the credit profile of many issuers remained solid overall. With muni returns turning negative in 2022, investors pulled large amounts of cash out of the asset class, which put additional pressure on muni prices. As a whole, the U.S. muni market finished the period down close to –9%, as measured by the Bloomberg Municipal Bond Index.

While revenues for the state of California have come in lower than last year, largely

due to the equity market downturn, its current budget includes raising the balance of its rainy day fund to the constitutional maximum of $23 billion. And the balance sheets of major cities remain strong due to the windfall of federal aid they received during the pandemic.

Management of the bond funds

The main driver of the Long-Term Fund’s relative underperformance was its longer duration relative to its benchmark index. (Duration is a measure of price sensitivity to movements in interest rates.) We were defensively positioned early in the period in the expectation that rates would rise and spreads would decompress. That positioning included a duration similar to the benchmark’s, which is generally shorter than the fund’s because it includes municipals across the maturity spectrum. While that worked out well during the first wave of rate increases, the fund’s duration then drifted longer as relative valuations improved, which weighed on performance as Fed rate hikes continued.

In both bond funds, we were lighter than we typically are on credit exposure early in the period but were still carrying more than the funds’ benchmarks. The widening in credit spreads that took place later on therefore dampened relative performance.

In the second half of the period, we seized some opportunities to cycle out of shorter call bonds and into longer call bonds, as they offer a better convexity profile, which will position the funds to capture more upside price performance in the future.

Both bond funds were well prepared in terms of liquidity going into 2022. With municipal bond valuations rich and the Fed expected to initiate a hiking cycle, we had increased our liquidity buffer because we anticipated that some investors could head for the exits. This move helped the fund, even as the outflows proved to be of a higher magnitude than we had expected.

Outlook

The recent significant negative annual returns have understandably been

Yields of Tax-Exempt Municipal Securities (National Averages, AAA-Rated General Obligation Issues)
Maturity	November 30, 2021	November 30, 2022
2 years	0.24%	2.59%
5 years	0.61	2.65
10 years	1.07	2.75
30 years	1.55	3.57
Source: Vanguard.

distressing for muni investors. With the repricing that has occurred, however, the outlook is substantially better than it was a year ago. That is likely to attract flows back into this asset class, especially given how strong fundamentals are from a credit standpoint.

Although the bond market may continue to see volatility given that the Fed is likely to make more rate hikes, today’s higher yields mean munis can offer more of a cushion against further price declines.

Energy supply-and-demand concerns, diminishing capital flows, declining trade volumes, and falling output per person in all likelihood will lead to a global recession in the coming year. California’s finances are generally hit harder during a recession than the rest of the U.S. given the state’s high reliance on top earners and their ties to the equity market. That being said, the bull market over the last decade, prudent fiscal management, and a healthy level of reserves have put the state on strong financial footing heading into this next downturn, which should blunt its impact.

While we had upgraded the portfolio’s credit quality given that outlook, we are open to opportunistically increasing our credit exposure given the widening in spreads that has taken place. At the same time, we are also favoring some sectors that tend to be more defensive in downturns.

Whatever the markets may bring, our experienced team of portfolio managers, traders, and credit analysts will continue to navigate this large, fragmented market to seek attractive investment opportunities that will add to the fund’s performance.

John M. Carbone, Principal, Portfolio Manager

Adam Ferguson, CFA, Portfolio Manager

Stephen McFee, CFA, Portfolio Manager

Vanguard Fixed Income Group

December 13, 2022

3

About Your Fund’s Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund’s costs in two ways:

•

Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During Period.“

•

Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.

Six Months Ended November 30, 2022
	Beginning Account Value 5/31/2022	Ending Account Value 11/30/2022	Expenses Paid During Period
Based on Actual Fund Return
California Municipal Money Market Fund	$1,000.00	$1,006.30	$0.80
California Intermediate-Term Tax-Exempt Fund
Investor Shares	$1,000.00	$995.60	$0.85
Admiral™ Shares	1,000.00	996.00	0.45
California Long-Term Tax-Exempt Fund
Investor Shares	$1,000.00	$986.10	$0.85
Admiral Shares	1,000.00	986.50	0.45

4

Six Months Ended November 30, 2022
	Beginning Account Value 5/31/2022	Ending Account Value 11/30/2022	Expenses Paid During Period
Based on Hypothetical 5% Yearly Return
California Municipal Money Market Fund	$1,000.00	$1,024.27	$0.81
California Intermediate-Term Tax-Exempt Fund
Investor Shares	$1,000.00	$1,024.22	$0.86
Admiral Shares	1,000.00	1,024.62	0.46
California Long-Term Tax-Exempt Fund
Investor Shares	$1,000.00	$1,024.22	$0.86
Admiral Shares	1,000.00	1,024.62	0.46

The calculations are based on expenses incurred in the most recent six-month period. The funds' annualized six-month expense ratios for that period are: for the California Municipal Money Market Fund, 0.16%; for the California Intermediate-Term Tax-Exempt Fund, 0.17% for Investor Shares and 0.09% for Admiral Shares; and for the California Long-Term Tax-Exempt Fund, 0.17% for Investor Shares and 0.09% for Admiral Shares. The dollar amounts shown as “Expenses Paid" are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (183/365).

5

California Municipal Money Market Fund

Distribution by Effective Maturity¹

As of November 30, 2022

1 - 7 Days	92.5%
8 - 30 Days	5.1
31 - 60 Days	1.9
61 - 90 Days	0.3
91 - 180 Days	0.2

1 Percentage of investments.

6

California Municipal Money Market Fund

Financial Statements

Schedule of Investments

As of November 30, 2022

The fund publishes its holdings on a monthly basis on Vanguard’s website and files them with the Securities and Exchange Commission (SEC) on Form N-MFP. The fund’s Form N-MFP filings may be viewed via a link on the “Portfolio & Management” page at www.vanguard.com or on the SEC’s website at www.sec.gov.

		Coupon	Maturity Date	Face Amount ($000)	Market Value• ($000)
Tax-Exempt Municipal Bonds (99.9%)
California (99.9%)
1	ABAG Finance Authority for Nonprofit Corps. Health, Hospital, Nursing Home Revenue VRDO	1.400%	12/7/22	13,190	13,190
1	ABAG Finance Authority for Nonprofit Corps. Health, Hospital, Nursing Home Revenue VRDO	1.400%	12/7/22	27,615	27,615
1	ABAG Finance Authority for Nonprofit Corps. Local or Guaranteed Housing Revenue VRDO	1.470%	12/7/22	80,900	80,900
1	ABAG Finance Authority for Nonprofit Corps. Miscellaneous Revenue VRDO	1.650%	12/7/22	8,405	8,405
1	ABAG Finance Authority for Nonprofit Corps. Recreational Revenue VRDO	1.920%	12/7/22	7,000	7,000
1,2	Alameda CA Unified School District GO TOB VRDO	1.920%	12/7/22	4,000	4,000
1,2	Allan Hancock CA Joint Community College District GO TOB VRDO	1.930%	12/7/22	2,585	2,585
1	Antelope Valley-East Kern Water Agency Water Revenue VRDO	1.600%	12/7/22	15,775	15,775
1,2	Bay Area Toll Authority Highway Revenue TOB VRDO	1.930%	12/7/22	11,030	11,030
1,2	Bay Area Toll Authority Highway Revenue TOB VRDO	1.930%	12/7/22	4,475	4,475
1,2	Bay Area Toll Authority Highway Revenue TOB VRDO	1.930%	12/7/22	8,335	8,335
1,2	Bay Area Toll Authority Highway Revenue TOB VRDO	1.930%	12/7/22	5,250	5,250
1	Bay Area Toll Authority Highway Revenue VRDO	1.450%	12/7/22	7,250	7,250
1	Bay Area Toll Authority Highway Revenue VRDO	1.450%	12/7/22	19,710	19,710
1	Bay Area Toll Authority Highway Revenue VRDO	1.450%	12/7/22	11,980	11,980
1	Bay Area Toll Authority Highway Revenue VRDO	1.450%	12/7/22	19,765	19,765
1	Bay Area Toll Authority Highway Revenue VRDO	1.450%	12/7/22	21,500	21,500
1	Bay Area Toll Authority Highway Revenue VRDO	1.490%	12/7/22	13,045	13,045
1,2	Bay Area Toll Authority Toll Bridge Highway Revenue TOB VRDO	1.930%	12/7/22	14,015	14,015
1	Big Bear Lake CA Industrial Revenue VRDO	1.920%	12/7/22	36,250	36,250
1,2	Burbank Unified School District GO TOB VRDO	1.920%	12/7/22	5,520	5,520
	California CP GO	2.570%	12/6/22	11,500	11,500
	California CP GO	2.280%	12/9/22	4,850	4,850
	California CP GO	2.250%	12/12/22	8,800	8,800
	California CP GO	2.550%	12/14/22	8,000	8,000
	California CP GO	2.000%	12/15/22	4,415	4,415
	California CP GO	2.800%	1/18/23	27,000	27,000
	California CP GO	2.500%	1/19/23	38,000	38,000
	California CP GO	2.850%	2/2/23	13,000	13,000
	California Department of Water Resources Revenue CP	2.400%	12/16/22	14,529	14,529

		Coupon	Maturity Date	Face Amount ($000)	Market Value• ($000)
1,2	California Educational Facilities Authority College & University Revenue TOB VRDO	1.910%	12/7/22	8,990	8,990
1,2	California Educational Facilities Authority College & University Revenue TOB VRDO	1.920%	12/7/22	13,875	13,875
1,2	California Educational Facilities Authority College & University Revenue TOB VRDO	1.930%	12/7/22	4,000	4,000
	California Educational Facilities Authority College & University Revenue VRDO	1.570%	12/7/22	12,890	12,890
	California Educational Facilities Authority Revenue CP	2.150%	12/15/22	37,950	37,903
1,2	California GO TOB VRDO	1.920%	12/7/22	4,640	4,640
1,2	California GO TOB VRDO	1.920%	12/7/22	3,650	3,650
1,2	California GO TOB VRDO	1.930%	12/7/22	7,300	7,300
1,2,3	California GO TOB VRDO	1.930%	12/7/22	5,005	5,005
1,2	California GO TOB VRDO	1.930%	12/7/22	3,450	3,450
1,2	California GO TOB VRDO	1.930%	12/7/22	13,545	13,545
1,2	California GO TOB VRDO	1.930%	12/7/22	5,300	5,300
1,2	California GO TOB VRDO	1.930%	12/7/22	3,000	3,000
1,2	California GO TOB VRDO	1.930%	12/7/22	3,650	3,650
1,2	California GO TOB VRDO	1.930%	12/7/22	1,315	1,315
1,2	California GO TOB VRDO	1.930%	12/7/22	2,170	2,170
1,2	California GO TOB VRDO	1.930%	12/7/22	1,705	1,705
1	California GO VRDO	0.550%	12/1/22	5,185	5,185
1	California GO VRDO	0.550%	12/1/22	3,665	3,665
1	California GO VRDO	1.350%	12/7/22	11,255	11,255
1	California GO VRDO	1.420%	12/7/22	12,400	12,400
1	California GO VRDO	1.470%	12/7/22	65,195	65,195
1,2	California Health Facilities Financing Authority Health, Hospital, Nursing Home Revenue TOB VRDO	1.930%	12/7/22	6,665	6,665
1,2	California Health Facilities Financing Authority Health, Hospital, Nursing Home Revenue TOB VRDO	1.930%	12/7/22	34,000	34,000
1,2	California Health Facilities Financing Authority Health, Hospital, Nursing Home Revenue TOB VRDO	1.930%	12/7/22	8,000	8,000
1,2	California Health Facilities Financing Authority Health, Hospital, Nursing Home Revenue TOB VRDO	1.950%	12/7/22	3,750	3,750
1,2	California Health Facilities Financing Authority Health, Hospital, Nursing Home Revenue TOB VRDO	1.960%	12/7/22	2,395	2,395
1,2,4	California Health Facilities Financing Authority Health, Hospital, Nursing Home Revenue TOB, SIFMA Municipal Swap Index Yield + 0.150%	2.050%	5/1/23	2,500	2,500
1	California Health Facilities Financing Authority Health, Hospital, Nursing Home Revenue VRDO	0.700%	12/1/22	6,405	6,405
1	California Health Facilities Financing Authority Health, Hospital, Nursing Home Revenue VRDO	0.700%	12/1/22	13,850	13,850

7

California Municipal Money Market Fund

8

California Municipal Money Market Fund

9

California Municipal Money Market Fund

10

California Municipal Money Market Fund

11

California Municipal Money Market Fund

		Coupon	Maturity Date	Face Amount ($000)	Market Value• ($000)
	University of California Regents Medical Center Pooled Health, Hospital, Nursing Home Revenue VRDO	0.550%	12/1/22	9,300	9,300
	University of California Regents Medical Center Pooled Health, Hospital, Nursing Home Revenue VRDO	0.550%	12/1/22	7,100	7,100
	University of California Regents Medical Center Pooled Health, Hospital, Nursing Home Revenue VRDO	0.550%	12/1/22	66,605	66,605
	University of California Regents Medical Center Pooled Health, Hospital, Nursing Home Revenue VRDO	0.550%	12/1/22	2,645	2,645
1	Vacaville CA Local or Guaranteed Housing Revenue VRDO	1.500%	12/7/22	3,000	3,000
	Washington Township Health Care District GO TOB	1.930%	12/1/22	1,745	1,745
1,2	Yosemite CA Community College District GO TOB VRDO	1.930%	12/7/22	8,010	8,010
Total Tax-Exempt Municipal Bonds (Cost $4,173,571)					4,173,571
Total Investments (99.9%) (Cost $4,173,571)					4,173,571
Other Assets and Liabilities—Net (0.1%)					6,234
Net Assets (100%)					4,179,805
Cost is in $000.

•	See Note A in Notes to Financial Statements.
1	Scheduled principal and interest payments are guaranteed by bank letter of credit.
2	Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2022, the aggregate value was $1,196,126,000, representing 28.6% of net assets.
3	Scheduled principal and interest payments are guaranteed by Assured Guaranty Municipal Corp.
4	Variable-rate security; rate shown is effective rate at period end. Certain variable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.
5	Scheduled principal and interest payments are guaranteed by XL Capital Assurance Inc.
6	Scheduled principal and interest payments are guaranteed by Assured Guaranty Corp.
7	Scheduled principal and interest payments are guaranteed by Build America Mutual Assurance Co.
	COP—Certificate of Participation.
	CP—Commercial Paper.
	GO—General Obligation Bond.
	SIFMA—Securities Industry and Financial Markets Association.
	TOB—Tender Option Bond.
	VRDO—Variable Rate Demand Obligation.
	VRDP—Variable Rate Demand Preferred.

See accompanying Notes, which are an integral part of the Financial Statements.

12

California Municipal Money Market Fund

Statement of Assets and Liabilities

As of November 30, 2022

($000s, except shares and per-share amounts)	Amount
Assets
Investments in Securities, at Value—Unaffiliated Issuers (Cost $4,173,571)	4,173,571
Investment in Vanguard	164
Receivables for Investment Securities Sold	5,087
Receivables for Accrued Income	8,066
Receivables for Capital Shares Issued	6,457
Other Assets	2,146
Total Assets	4,195,491
Liabilities
Due to Custodian	3,044
Payables for Capital Shares Redeemed	11,720
Payables for Distributions	647
Payables to Vanguard	275
Total Liabilities	15,686
Net Assets	4,179,805
At November 30, 2022, net assets consisted of:
Paid-in Capital	4,179,558
Total Distributable Earnings (Loss)	247
Net Assets	4,179,805
Net Assets
Applicable to 4,178,562,155 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	4,179,805
Net Asset Value Per Share	$1.00

  

See accompanying Notes, which are an integral part of the Financial Statements.

13

California Municipal Money Market Fund

14

California Municipal Money Market Fund

Financial Highlights

For a Share Outstanding Throughout Each Period	Year Ended November 30,
	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$1.00	$1.00	$1.00	$1.00	$1.00
Investment Operations
Net Investment Income1	.0073	.0001	.005	.013	.012
Net Realized and Unrealized Gain (Loss) on Investments	(.0002)	—	—	—	—
Total from Investment Operations	.0071	.0001	.005	.013	.012
Distributions
Dividends from Net Investment Income	(.0071)	(.0001)	(.005)	(.013)	(.012)
Distributions from Realized Capital Gains	(.0000)2	—	—	—	—
Total Distributions	(.0071)	(.0001)	(.005)	(.013)	(.012)
Net Asset Value, End of Period	$1.00	$1.00	$1.00	$1.00	$1.00
Total Return3	0.72%	0.01%	0.47%	1.29%	1.18%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$4,180	$3,893	$4,595	$5,650	$5,349
Ratio of Total Expenses to Average Net Assets4	0.14%5	0.06%	0.16%	0.16%	0.16%
Ratio of Net Investment Income to Average Net Assets	0.73%	0.01%	0.49%	1.28%	1.18%

1	Calculated based on average shares outstanding.
2	Distribution was less than $.0001 per share.
3	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
4	Vanguard and the board of trustees have agreed to temporarily limit certain net operating expenses in excess of the fund’s daily yield in order to maintain a zero or positive yield for the fund. Vanguard and the board of trustees may terminate the temporary expense limitation at any time.  The fund is not obligated to repay this amount to Vanguard.  The ratio of total expenses to average net assets before an expense reduction was 0.16% for the years ended November 30, 2022, 2021, and 2020. For the years ended November 30, 2019, and 2018, there were no expense reductions.
5	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.14%.

  

See accompanying Notes, which are an integral part of the Financial Statements.

15

California Municipal Money Market Fund

Notes to Financial Statements

Vanguard California Municipal Money Market Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in debt instruments of municipal issuers whose ability to meet their obligations may be affected by economic and political developments in the state. Many municipalities insure repayment of their bonds. The insurance does not guarantee the market value of the municipal bonds. Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance.

A.	The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Securities are valued at amortized cost, which approximates market value.

2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.

3. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

4. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the year ended November 30, 2022, the fund did not utilize the credit facilities or the Interfund Lending Program.

5. Other: Interest income is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

B.	In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management,

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California Municipal Money Market Fund

administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At November 30, 2022, the fund had contributed to Vanguard capital in the amount of $164,000, representing less than 0.01% of the fund’s net assets and 0.07% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

Vanguard and the board of trustees have agreed to temporarily limit certain net operating expenses in excess of the fund’s daily yield in order to maintain a zero or positive yield for the fund. Vanguard and the board of trustees may terminate the temporary expense limitation at any time. For the year ended November 30, 2022, Vanguard's expenses were reduced by $660,000 (an effective annual rate of 0.02% of the fund’s average net assets); the fund is not obligated to repay this amount to Vanguard.

C.	The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended November 30, 2022, custodian fee offset arrangements reduced the fund’s expenses by $15,000 (an annual rate of less than 0.01% of average net assets).
D.	Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.

At November 30, 2022, 100% of the market value of the fund’s investments was determined using amortized cost, in accordance with rules under the Investment Company Act of 1940. Amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, securities valued at amortized cost are considered to be valued using Level 2 inputs.

E.	Permanent differences between book-basis and tax-basis components of net assets, if any, are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share.

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the inclusion of payables for distributions. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

	Amount ($000)
Undistributed Ordinary Income	18
Undistributed Tax-Exempt Income	767
Undistributed Long-Term Gains	109
Capital Loss Carryforwards	—
Qualified Late-Year Losses	—
Net Unrealized Gains (Losses)	—

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California Municipal Money Market Fund

The tax character of distributions paid was as follows:

	Year Ended November 30,
	2022 Amount ($000)	2021 Amount ($000)
Tax-Exempt Income	29,040	421
Ordinary Income*	69	—
Long-Term Capital Gains	47	—
Total	29,156	421

*	Includes short-term capital gains, if any.

As of November 30, 2022, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

	Amount ($000)
Tax Cost	4,173,571
Gross Unrealized Appreciation	—
Gross Unrealized Depreciation	—
Net Unrealized Appreciation (Depreciation)	—

F.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended November 30, 2022, such purchases were $1,231,905,000 and sales were $802,194,000, resulting in net realized gain (loss) of $0.

G.

Management has determined that no events or transactions occurred subsequent to November 30, 2022, that would require recognition or disclosure in these financial statements.

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California Intermediate-Term Tax-Exempt Fund

Performance Summary

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

Cumulative Performance: November 30, 2012, Through November 30, 2022

Initial Investment of $10,000

			Average Annual Total Returns Periods Ended November 30, 2022
		One Year	Five Years	Ten Years	Final Value of a $10,000 Investment
	California Intermediate-Term Tax-Exempt Fund Investor Shares	-6.92%	1.35%	1.93%	$12,102
	Bloomberg Municipal CA Intermediate Bond Index	-6.30	1.35	1.76	11,911
	Bloomberg Municipal Bond Index	-8.64	1.40	1.98	12,161

  

		One Year	Five Years	Ten Years	Final Value of a $50,000 Investment
California Intermediate-Term Tax-Exempt Fund Admiral Shares		-6.85%	1.43%	2.01%	$61,022
Bloomberg Municipal CA Intermediate Bond Index		-6.30	1.35	1.76	59,557
Bloomberg Municipal Bond Index		-8.64	1.40	1.98	60,804

See Financial Highlights for dividend and capital gains information.

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California Intermediate-Term Tax-Exempt Fund

Distribution by Stated Maturity

As of November 30, 2022

Under 1 Year	6.7%
1 - 3 Years	10.5
3 - 5 Years	10.2
5 - 10 Years	28.2
10 - 20 Years	43.0
20 - 30 Years	1.1
Over 30 Years	0.3

The table reflects the fund’s investments, except for short-term investments and derivatives.

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California Intermediate-Term Tax-Exempt Fund

Financial Statements

Schedule of Investments

As of November 30, 2022

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.

		Coupon	Maturity Date	Face Amount ($000)	Market Value• ($000)
Tax-Exempt Municipal Bonds (99.8%)
California (98.8%)
	91 Express Lanes Toll Road Highway Revenue	5.000%	8/15/29	100	102
	ABAG Finance Authority for Nonprofit Corps. Health, Hospital, Nursing Home Revenue	5.000%	8/1/31	1,000	1,010
	ABAG Finance Authority for Nonprofit Corps. Health, Hospital, Nursing Home Revenue	5.000%	8/1/32	1,000	1,009
	ABAG Finance Authority for Nonprofit Corps. Special Tax Revenue	5.000%	9/2/23	370	377
	ABAG Finance Authority for Nonprofit Corps. Special Tax Revenue	5.000%	9/2/24	395	411
	ABAG Finance Authority for Nonprofit Corps. Special Tax Revenue	5.000%	9/2/25	505	525
	ABAG Finance Authority for Nonprofit Corps. Special Tax Revenue	5.000%	9/2/26	675	701
	ABAG Finance Authority for Nonprofit Corps. Special Tax Revenue	5.000%	9/2/28	1,150	1,195
	ABAG Finance Authority for Nonprofit Corps. Special Tax Revenue	5.000%	9/2/29	985	1,022
	ABAG Finance Authority for Nonprofit Corps. Special Tax Revenue	5.000%	9/2/30	1,405	1,457
1	ABAG Finance Authority for Nonprofit Corps. Special Tax Revenue	5.000%	9/2/30	1,530	1,675
	ABAG Finance Authority for Nonprofit Corps. Special Tax Revenue	5.000%	9/2/31	495	513
	ABAG Finance Authority for Nonprofit Corps. Special Tax Revenue	5.000%	9/2/32	520	538
2	Alameda Community Improvement Commission Successor Agency Tax Allocation Revenue	5.000%	9/1/27	750	779
2	Alameda Community Improvement Commission Successor Agency Tax Allocation Revenue	5.000%	9/1/28	1,000	1,038
2	Alameda Community Improvement Commission Successor Agency Tax Allocation Revenue	5.000%	9/1/30	1,680	1,745
2	Alameda Community Improvement Commission Successor Agency Tax Allocation Revenue	5.000%	9/1/31	1,640	1,704
2	Alameda Community Improvement Commission Successor Agency Tax Allocation Revenue	5.000%	9/1/32	3,000	3,115

		Coupon	Maturity Date	Face Amount ($000)	Market Value• ($000)
2	Alameda Community Improvement Commission Successor Agency Tax Allocation Revenue	5.000%	9/1/33	2,375	2,465
	Alameda Corridor Transportation Authority Port, Airport & Marina Revenue	4.000%	10/1/23	3,265	3,283
	Alameda Corridor Transportation Authority Port, Airport & Marina Revenue	5.000%	10/1/24	2,755	2,839
	Alameda Corridor Transportation Authority Port, Airport & Marina Revenue	5.000%	10/1/25	4,185	4,323
3	Alameda Corridor Transportation Authority Transit Revenue	0.000%	10/1/29	30,365	23,943
3	Alameda Corridor Transportation Authority Transit Revenue	0.000%	10/1/30	10,220	7,729
1	Alameda Corridor Transportation Authority Transit Revenue	3.000%	10/1/34	100	90
	Alameda Corridor Transportation Authority Transit Revenue	5.000%	10/1/34	16,135	16,594
	Alameda Corridor Transportation Authority Transit Revenue	5.000%	10/1/35	20,580	21,101
1	Alameda Corridor Transportation Authority Transit Revenue	5.000%	10/1/35	3,660	3,813
1	Alameda Corridor Transportation Authority Transit Revenue	3.125%	10/1/36	265	234
	Alameda Corridor Transportation Authority Transit Revenue	5.000%	10/1/36	13,670	13,998
1	Alameda Corridor Transportation Authority Transit Revenue	5.000%	10/1/36	1,330	1,379
	Alameda Corridor Transportation Authority Transit Revenue	5.000%	10/1/37	5,110	5,222
1	Alameda Corridor Transportation Authority Transit Revenue	5.000%	10/1/37	1,250	1,293
	Alameda County CA Fremont Unified School District GO	4.000%	8/1/43	7,790	7,725
	Alameda County CA Unified School District GO	4.000%	8/1/28	500	526
	Alameda County CA Unified School District GO	4.000%	8/1/29	350	367
	Alameda County CA Unified School District GO	4.000%	8/1/30	520	545
	Alameda County CA Unified School District GO	4.000%	8/1/31	480	502
	Alameda County CA Unified School District GO	4.000%	8/1/32	710	742
	Alameda County CA Unified School District GO	4.000%	8/1/33	500	520
	Alameda County CA Unified School District GO	5.000%	8/1/34	2,890	3,049
	Alameda County CA Unified School District GO	3.000%	8/1/38	1,000	854
	Alameda County Joint Powers Authority Lease (Abatement) Revenue	4.000%	12/1/34	16,125	16,379
2	Alum Rock Union Elementary School District GO	5.000%	8/1/23	800	813
2	Alum Rock Union Elementary School District GO	5.000%	8/1/25	1,275	1,351
2	Alum Rock Union Elementary School District GO	5.000%	8/1/26	1,180	1,249

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California Intermediate-Term Tax-Exempt Fund

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California Intermediate-Term Tax-Exempt Fund

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California Intermediate-Term Tax-Exempt Fund

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California Intermediate-Term Tax-Exempt Fund

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California Intermediate-Term Tax-Exempt Fund

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California Intermediate-Term Tax-Exempt Fund

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California Intermediate-Term Tax-Exempt Fund

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California Intermediate-Term Tax-Exempt Fund