UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-00834
Name of Registrant: | Vanguard Windsor Funds |
Address of Registrant: | P.O. Box 2600 |
Valley Forge, PA 19482
Name and address of agent for service: | John E. Schadl, Esquire |
P.O. Box 876
Valley Forge, PA 19482
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: October 31
Date of reporting period: November 1, 2023—April 30, 2024
Item 1: Reports to Shareholders
![](https://capedge.com/proxy/N-CSRS/0001104659-24-075124/tm2412031d1windfundi001.jpg)
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 18 |
Liquidity Risk Management | 20 |
• | 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. |
• | 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. |
Six Months Ended April 30, 2024 | |||
Beginning Account Value 10/31/2023 | Ending Account Value 4/30/2024 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Windsor Fund | |||
Investor Shares | $1,000.00 | $1,166.10 | $1.99 |
Admiral™ Shares | 1,000.00 | 1,167.00 | 1.45 |
Based on Hypothetical 5% Yearly Return | |||
Windsor Fund | |||
Investor Shares | $1,000.00 | $1,023.02 | $1.86 |
Admiral Shares | 1,000.00 | 1,023.52 | 1.36 |
Communication Services | 4.3% |
Consumer Discretionary | 5.5 |
Consumer Staples | 7.6 |
Energy | 8.8 |
Financials | 21.5 |
Health Care | 16.6 |
Industrials | 13.6 |
Information Technology | 9.1 |
Materials | 5.1 |
Real Estate | 3.7 |
Utilities | 4.2 |
Shares | Market Value• ($000) | ||
Common Stocks (96.7%) | |||
Communication Services (4.2%) | |||
T-Mobile US Inc. | 1,650,912 | 271,030 | |
Walt Disney Co. | 1,767,727 | 196,395 | |
* | Charter Communications Inc. Class A | 600,185 | 153,611 |
Electronic Arts Inc. | 1,013,509 | 128,533 | |
* | Alphabet Inc. Class A | 785,667 | 127,891 |
* | Live Nation Entertainment Inc. | 1,330,150 | 118,264 |
995,724 | |||
Consumer Discretionary (5.4%) | |||
Lear Corp. | 1,381,940 | 173,945 | |
Magna International Inc. | 3,499,754 | 167,288 | |
Gentex Corp. | 4,723,285 | 162,009 | |
Wyndham Hotels & Resorts Inc. | 2,059,304 | 151,379 | |
* | Mohawk Industries Inc. | 1,060,308 | 122,275 |
PVH Corp. | 1,007,007 | 109,562 | |
* | Amazon.com Inc. | 604,811 | 105,842 |
Newell Brands Inc. | 11,866,202 | 94,218 | |
Ross Stores Inc. | 720,745 | 93,372 | |
Las Vegas Sands Corp. | 1,821,840 | 80,817 | |
Gildan Activewear Inc. | 596,178 | 20,664 | |
1,281,371 | |||
Consumer Staples (7.3%) | |||
Tyson Foods Inc. Class A | 7,387,415 | 448,047 | |
Constellation Brands Inc. Class A | 968,178 | 245,394 | |
Unilever plc (XLON) | 4,517,785 | 233,709 | |
Kenvue Inc. | 11,641,055 | 219,085 | |
Keurig Dr Pepper Inc. | 6,105,818 | 205,766 | |
Sysco Corp. | 2,565,140 | 190,641 | |
Dollar General Corp. | 1,023,170 | 142,415 | |
* | Dollar Tree Inc. | 528,629 | 62,510 |
1,747,567 | |||
Energy (8.5%) | |||
Schlumberger NV | 7,491,478 | 355,695 | |
Canadian Natural Resources Ltd. | 3,758,568 | 284,975 | |
Williams Cos. Inc. | 6,768,571 | 259,643 | |
Halliburton Co. | 6,671,049 | 249,964 | |
Shell plc ADR | 2,806,534 | 201,116 | |
ConocoPhillips | 1,457,553 | 183,098 | |
Diamondback Energy Inc. | 861,424 | 173,258 |
Shares | Market Value• ($000) | ||
Enbridge Inc. | 4,620,791 | 164,303 | |
NOV Inc. | 4,383,136 | 81,044 | |
Exxon Mobil Corp. | 578,725 | 68,446 | |
2,021,542 | |||
Financials (20.8%) | |||
Morgan Stanley | 4,714,199 | 428,238 | |
MetLife Inc. | 5,244,795 | 372,800 | |
Voya Financial Inc. | 4,661,809 | 317,749 | |
Equitable Holdings Inc. | 8,582,729 | 316,789 | |
Allstate Corp. | 1,682,318 | 286,095 | |
Raymond James Financial Inc. | 2,209,663 | 269,579 | |
Wells Fargo & Co. | 4,481,987 | 265,872 | |
Capital One Financial Corp. | 1,761,259 | 252,617 | |
Citigroup Inc. | 4,035,906 | 247,522 | |
Bank of America Corp. | 6,677,685 | 247,141 | |
Charles Schwab Corp. | 3,184,261 | 235,476 | |
Chubb Ltd. | 933,705 | 232,156 | |
M&T Bank Corp. | 1,543,334 | 222,842 | |
Everest Group Ltd. | 599,084 | 219,510 | |
* | Corpay Inc. | 637,095 | 192,492 |
JPMorgan Chase & Co. | 921,354 | 176,661 | |
Global Payments Inc. | 1,188,645 | 145,930 | |
Goldman Sachs Group Inc. | 328,699 | 140,259 | |
Globe Life Inc. | 1,702,271 | 129,662 | |
UBS Group AG (Registered) | 4,155,129 | 111,565 | |
TPG Inc. | 2,530,563 | 109,067 | |
American International Group Inc. | 461,028 | 34,720 | |
Invesco Ltd. | 852,369 | 12,078 | |
4,966,820 | |||
Health Care (16.1%) | |||
Pfizer Inc. | 16,748,651 | 429,100 | |
AstraZeneca plc ADR | 4,117,382 | 312,427 | |
* | Centene Corp. | 3,448,068 | 251,916 |
Humana Inc. | 793,021 | 239,564 | |
Quest Diagnostics Inc. | 1,712,290 | 236,604 | |
UnitedHealth Group Inc. | 465,091 | 224,964 | |
Baxter International Inc. | 5,535,528 | 223,469 | |
Agilent Technologies Inc. | 1,463,061 | 200,498 | |
Novartis AG (Registered) | 2,052,073 | 199,169 | |
1 | Fresenius Medical Care AG & Co. KGaA ADR | 8,204,589 | 172,625 |
Medtronic plc | 2,087,089 | 167,468 |
Shares | Market Value• ($000) | ||
Sanofi SA ADR | 3,036,984 | 149,511 | |
CVS Health Corp. | 1,895,016 | 128,311 | |
* | United Therapeutics Corp. | 536,229 | 125,655 |
Bristol-Myers Squibb Co. | 2,736,392 | 120,237 | |
Teleflex Inc. | 513,631 | 107,220 | |
Encompass Health Corp. | 1,281,613 | 106,861 | |
Cigna Group | 298,096 | 106,432 | |
Elevance Health Inc. | 186,825 | 98,752 | |
Zoetis Inc. | 560,505 | 89,255 | |
Cardinal Health Inc. | 643,114 | 66,266 | |
McKesson Corp. | 95,396 | 51,248 | |
Johnson & Johnson | 220,926 | 31,944 | |
3,839,496 | |||
Industrials (13.2%) | |||
Westinghouse Air Brake Technologies Corp. | 2,062,040 | 332,153 | |
United Parcel Service Inc. Class B (XNYS) | 1,994,247 | 294,112 | |
General Dynamics Corp. | 1,002,505 | 287,809 | |
Dover Corp. | 1,437,362 | 257,719 | |
Leidos Holdings Inc. | 1,774,060 | 248,759 | |
Delta Air Lines Inc. | 4,726,284 | 236,645 | |
SS&C Technologies Holdings Inc. | 3,635,214 | 224,983 | |
RTX Corp. | 2,186,460 | 221,969 | |
Techtronic Industries Co. Ltd. | 15,786,750 | 218,162 | |
Knight-Swift Transportation Holdings Inc. | 3,921,920 | 181,310 | |
* | AerCap Holdings NV | 2,100,399 | 177,463 |
Emerson Electric Co. | 1,337,800 | 144,188 | |
Toro Co. | 1,320,137 | 115,631 | |
Airbus SE | 701,295 | 115,403 | |
* | Middleby Corp. | 664,486 | 92,344 |
3,148,650 | |||
Information Technology (8.8%) | |||
NXP Semiconductors NV | 1,291,826 | 330,953 | |
QUALCOMM Inc. | 1,619,205 | 268,545 | |
* | Adobe Inc. | 498,890 | 230,901 |
Micron Technology Inc. | 1,625,456 | 183,612 | |
Cognizant Technology Solutions Corp. Class A | 2,620,169 | 172,093 | |
* | First Solar Inc. | 925,266 | 163,124 |
* | Enphase Energy Inc. | 1,487,307 | 161,760 |
TE Connectivity Ltd. | 1,059,573 | 149,908 | |
Skyworks Solutions Inc. | 1,367,874 | 145,802 | |
Amdocs Ltd. | 1,630,266 | 136,926 | |
* | ON Semiconductor Corp. | 1,226,290 | 86,036 |
Samsung Electronics Co. Ltd. (XKRX) | 913,912 | 50,801 | |
Cisco Systems Inc. | 556,397 | 26,140 | |
2,106,601 | |||
Materials (4.9%) | |||
Rio Tinto plc ADR | 3,343,497 | 226,789 | |
Dow Inc. | 3,814,708 | 217,057 | |
PPG Industries Inc. | 1,434,591 | 185,062 | |
Reliance Inc. | 619,923 | 176,505 | |
CRH plc (SGMX) | 1,669,783 | 129,309 | |
FMC Corp. | 2,145,562 | 126,610 |
Shares | Market Value• ($000) | ||
Freeport-McMoRan Inc. | 2,241,272 | 111,929 | |
1,173,261 | |||
Real Estate (3.5%) | |||
American Tower Corp. | 1,491,710 | 255,918 | |
UDR Inc. | 4,356,201 | 165,884 | |
Equinix Inc. | 225,688 | 160,489 | |
AvalonBay Communities Inc. | 663,112 | 125,706 | |
Extra Space Storage Inc. | 768,318 | 103,169 | |
* | CBRE Group Inc. Class A | 384,588 | 33,417 |
844,583 | |||
Utilities (4.0%) | |||
Edison International | 6,236,048 | 443,134 | |
Exelon Corp. | 8,072,734 | 303,373 | |
Iberdrola SA (XMAD) | 17,395,227 | 213,293 | |
959,800 | |||
Total Common Stocks (Cost $19,089,611) | 23,085,415 | ||
Temporary Cash Investments (3.2%) | |||
Money Market Fund (1.9%) | |||
2,3 | Vanguard Market Liquidity Fund, 5.394% | 4,473,605 | 447,316 |
Face Amount ($000) | |||
Repurchase Agreements (1.3%) | |||
Bank of America Securities LLC 5.320%, 5/1/24 (Dated 4/30/24, Repurchase Value $234,735,000, collateralized by Fannie Mae 1.500%–7.000%, 2/1/29–4/1/54, Freddie Mac 2.500%–7.500%, 2/1/26–3/1/54, and Ginnie Mae 3.500%–7.500%, 6/20/32–7/20/73, with a value of $239,394,000) | 234,700 | 234,700 |
Face Amount ($000) | Market Value• ($000) | ||
JP Morgan Securities LLC 5.310%, 5/1/24 (Dated 4/30/24, Repurchase Value $88,613,000, collateralized by U.S. Treasury Bill 0.000%, 2/20/25, U.S. Treasury Inflation Indexed Note/Bond 5.526%, 1/31/25, and U.S. Treasury Note/Bond 4.250%, 2/15/54, with a value of $90,372,000) | 88,600 | 88,600 | |
323,300 | |||
Total Temporary Cash Investments (Cost $770,565) | 770,616 | ||
Total Investments (99.9%) (Cost $19,860,176) | 23,856,031 | ||
Other Assets and Liabilities—Net (0.1%) | 22,649 | ||
Net Assets (100%) | 23,878,680 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $5,237,000. |
2 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
3 | Collateral of $5,476,000 was received for securities on loan, of which $4,440,000 is held in Vanguard Market Liquidity Fund and $1,036,000 is held in cash. |
ADR—American Depositary Receipt. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | June 2024 | 1,293 | 327,582 | (12,056) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $19,412,911) | 23,408,715 |
Affiliated Issuers (Cost $447,265) | 447,316 |
Total Investments in Securities | 23,856,031 |
Investment in Vanguard | 729 |
Cash | 1,036 |
Cash Collateral Pledged—Futures Contracts | 15,264 |
Foreign Currency, at Value (Cost $628) | 663 |
Receivables for Investment Securities Sold | 128,318 |
Receivables for Accrued Income | 15,444 |
Receivables for Capital Shares Issued | 2,460 |
Total Assets | 24,019,945 |
Liabilities | |
Due to Custodian | 154 |
Payables for Investment Securities Purchased | 114,832 |
Collateral for Securities on Loan | 5,476 |
Payables to Investment Advisor | 7,405 |
Payables for Capital Shares Redeemed | 6,750 |
Payables to Vanguard | 1,476 |
Variation Margin Payable—Futures Contracts | 5,172 |
Total Liabilities | 141,265 |
Net Assets | 23,878,680 |
1 Includes $5,237,000 of securities on loan. | |
At April 30, 2024, net assets consisted of: | |
Paid-in Capital | 18,954,544 |
Total Distributable Earnings (Loss) | 4,924,136 |
Net Assets | 23,878,680 |
Investor Shares—Net Assets | |
Applicable to 230,046,562 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 5,044,960 |
Net Asset Value Per Share—Investor Shares | $21.93 |
Admiral Shares—Net Assets | |
Applicable to 254,694,305 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 18,833,720 |
Net Asset Value Per Share—Admiral Shares | $73.95 |
Six Months Ended April 30, 2024 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 278,141 |
Interest2 | 16,005 |
Securities Lending—Net | 511 |
Total Income | 294,657 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 14,654 |
Performance Adjustment | 1,497 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 5,486 |
Management and Administrative—Admiral Shares | 11,477 |
Marketing and Distribution—Investor Shares | 120 |
Marketing and Distribution—Admiral Shares | 311 |
Custodian Fees | 63 |
Shareholders’ Reports—Investor Shares | 50 |
Shareholders’ Reports—Admiral Shares | 49 |
Trustees’ Fees and Expenses | 8 |
Other Expenses | 10 |
Total Expenses | 33,725 |
Expenses Paid Indirectly | (22) |
Net Expenses | 33,703 |
Net Investment Income | 260,954 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 767,238 |
Futures Contracts | 37,057 |
Foreign Currencies | 40 |
Realized Net Gain (Loss) | 804,335 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 2,432,786 |
Futures Contracts | (3,470) |
Foreign Currencies | (81) |
Change in Unrealized Appreciation (Depreciation) | 2,429,235 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,494,524 |
1 | Dividends are net of foreign withholding taxes of $4,463,000. |
2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $9,796,000, $21,000, $2,000, and $3,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 260,954 | 410,762 | |
Realized Net Gain (Loss) | 804,335 | 1,480,197 | |
Change in Unrealized Appreciation (Depreciation) | 2,429,235 | (1,186,358) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,494,524 | 704,601 | |
Distributions | |||
Investor Shares | (355,147) | (649,432) | |
Admiral Shares | (1,319,036) | (2,398,871) | |
Total Distributions | (1,674,183) | (3,048,303) | |
Capital Share Transactions | |||
Investor Shares | 150,314 | 210,390 | |
Admiral Shares | 681,129 | 1,264,284 | |
Net Increase (Decrease) from Capital Share Transactions | 831,443 | 1,474,674 | |
Total Increase (Decrease) | 2,651,784 | (869,028) | |
Net Assets | |||
Beginning of Period | 21,226,896 | 22,095,924 | |
End of Period | 23,878,680 | 21,226,896 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2024 | Year Ended October 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $20.22 | $22.74 | $26.24 | $18.55 | $21.76 | $22.02 |
Investment Operations | ||||||
Net Investment Income1 | .234 | .371 | .359 | .356 | .408 | .419 |
Net Realized and Unrealized Gain (Loss) on Investments | 3.083 | .236 | (1.131) | 9.122 | (1.412) | 1.700 |
Total from Investment Operations | 3.317 | .607 | (.772) | 9.478 | (1.004) | 2.119 |
Distributions | ||||||
Dividends from Net Investment Income | (.245) | (.358) | (.330) | (.411) | (.420) | (.426) |
Distributions from Realized Capital Gains | (1.362) | (2.769) | (2.398) | (1.377) | (1.786) | (1.953) |
Total Distributions | (1.607) | (3.127) | (2.728) | (1.788) | (2.206) | (2.379) |
Net Asset Value, End of Period | $21.93 | $20.22 | $22.74 | $26.24 | $18.55 | $21.76 |
Total Return2 | 16.61% | 2.99% | -2.97% | 53.49% | -5.64% | 11.59% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $5,045 | $4,506 | $4,796 | $5,728 | $4,570 | $4,549 |
Ratio of Total Expenses to Average Net Assets3 | 0.37%4 | 0.42%4 | 0.38%4 | 0.30% | 0.29% | 0.30% |
Ratio of Net Investment Income to Average Net Assets | 2.15% | 1.74% | 1.51% | 1.49% | 2.14% | 2.04% |
Portfolio Turnover Rate | 22% | 42% | 43% | 33% | 51% | 39% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | 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. |
3 | Includes performance-based investment advisory fee increases (decreases) of 0.01%, 0.07%, 0.03%, (0.05%), (0.07%), and (0.05%). |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.37%, 0.42%, and 0.38%, respectively. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2024 | Year Ended October 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $68.17 | $76.67 | $88.50 | $62.58 | $73.41 | $74.29 |
Investment Operations | ||||||
Net Investment Income1 | .823 | 1.323 | 1.281 | 1.278 | 1.448 | 1.484 |
Net Realized and Unrealized Gain (Loss) on Investments | 10.414 | .794 | (3.820) | 30.747 | (4.770) | 5.735 |
Total from Investment Operations | 11.237 | 2.117 | (2.539) | 32.025 | (3.322) | 7.219 |
Distributions | ||||||
Dividends from Net Investment Income | (.862) | (1.281) | (1.203) | (1.460) | (1.485) | (1.509) |
Distributions from Realized Capital Gains | (4.595) | (9.336) | (8.088) | (4.645) | (6.023) | (6.590) |
Total Distributions | (5.457) | (10.617) | (9.291) | (6.105) | (7.508) | (8.099) |
Net Asset Value, End of Period | $73.95 | $68.17 | $76.67 | $88.50 | $62.58 | $73.41 |
Total Return2 | 16.70% | 3.08% | -2.89% | 53.60% | -5.55% | 11.71% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $18,834 | $16,721 | $17,300 | $18,541 | $12,695 | $14,647 |
Ratio of Total Expenses to Average Net Assets3 | 0.27%4 | 0.32%4 | 0.28%4 | 0.20% | 0.19% | 0.20% |
Ratio of Net Investment Income to Average Net Assets | 2.25% | 1.84% | 1.61% | 1.58% | 2.24% | 2.14% |
Portfolio Turnover Rate | 22% | 42% | 43% | 33% | 51% | 39% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | 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. |
3 | Includes performance-based investment advisory fee increases (decreases) of 0.01%, 0.07%, 0.03%, (0.05%), (0.07%), and (0.05%). |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.27%, 0.32%, and 0.28% respectively. |
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. |
B. | The investment advisory firms Wellington Management Company llp and Pzena Investment Management, LLC, each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fee of Wellington Management Company llp is subject to quarterly adjustments based on performance relative to the S&P 500 Index for the preceding three years. The basic fee of Pzena Investment Management, LLC, is subject to quarterly adjustments based on performance relative to the Russell 1000 Value Index for the preceding three years. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution and cash management 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. |
D. | The fund has asked its investment advisors to direct certain security trades, subject to obtaining the best price and execution, to brokers who have agreed to rebate to the fund part of the commissions generated. Such rebates are used solely to reduce the fund’s management and administrative expenses. For the six months ended April 30, 2024, these arrangements reduced the fund’s expenses by $22,000 (an annual rate of less than 0.01% of average net assets). |
E. | Various inputs may be used to determine the value of the fund’s investments and derivatives. 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 21,925,569 | 1,159,846 | — | 23,085,415 |
Temporary Cash Investments | 447,316 | 323,300 | — | 770,616 |
Total | 22,372,885 | 1,483,146 | — | 23,856,031 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 12,056 | — | — | 12,056 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
F. | As of April 30, 2024, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 19,926,241 |
Gross Unrealized Appreciation | 5,024,174 |
Gross Unrealized Depreciation | (1,106,440) |
Net Unrealized Appreciation (Depreciation) | 3,917,734 |
G. | During the six months ended April 30, 2024, the fund purchased $5,070,370,000 of investment securities and sold $5,874,062,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 163,553 | 7,590 | 245,400 | 11,408 | |
Issued in Lieu of Cash Distributions | 342,131 | 16,010 | 625,596 | 31,412 | |
Redeemed | (355,370) | (16,420) | (660,606) | (30,875) | |
Net Increase (Decrease)—Investor Shares | 150,314 | 7,180 | 210,390 | 11,945 | |
Admiral Shares | |||||
Issued | 748,936 | 10,167 | 1,004,026 | 13,860 | |
Issued in Lieu of Cash Distributions | 1,221,238 | 16,954 | 2,221,690 | 33,084 | |
Redeemed | (1,289,045) | (17,712) | (1,961,432) | (27,312) | |
Net Increase (Decrease)—Admiral Shares | 681,129 | 9,409 | 1,264,284 | 19,632 |
I. | Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, 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. |
J. | Management has determined that no other events or transactions occurred subsequent to April 30, 2024, that would require recognition or disclosure in these financial statements. |
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Vanguard Marketing Corporation, Distributor.
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About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 18 |
Liquidity Risk Management | 20 |
• | 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. |
• | 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. |
Six Months Ended April 30, 2024 | |||
Beginning Account Value 10/31/2023 | Ending Account Value 4/30/2024 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Windsor II Fund | |||
Investor Shares | $1,000.00 | $1,197.40 | $1.80 |
Admiral™ Shares | 1,000.00 | 1,197.80 | 1.37 |
Based on Hypothetical 5% Yearly Return | |||
Windsor II Fund | |||
Investor Shares | $1,000.00 | $1,023.22 | $1.66 |
Admiral Shares | 1,000.00 | 1,023.62 | 1.26 |
Communication Services | 6.9% |
Consumer Discretionary | 8.8 |
Consumer Staples | 6.0 |
Energy | 6.8 |
Financials | 18.9 |
Health Care | 15.4 |
Industrials | 10.2 |
Information Technology | 20.7 |
Materials | 3.1 |
Real Estate | 1.0 |
Utilities | 1.6 |
Other | 0.6 |
Shares | Market Value• ($000) | ||
Common Stocks (96.0%) | |||
Communication Services (6.7%) | |||
* | Alphabet Inc. Class A | 9,982,344 | 1,624,926 |
Meta Platforms Inc. Class A | 1,785,038 | 767,870 | |
* | Alphabet Inc. Class C | 4,354,150 | 716,867 |
Comcast Corp. Class A | 6,948,813 | 264,819 | |
Walt Disney Co. | 1,213,400 | 134,809 | |
1 | WPP plc ADR | 1,974,700 | 99,426 |
Vodafone Group plc ADR | 9,071,932 | 76,295 | |
* | Warner Bros Discovery Inc. | 10,268,148 | 75,573 |
Omnicom Group Inc. | 753,779 | 69,981 | |
Paramount Global Class B | 3,620,200 | 41,234 | |
* | Baidu Inc. ADR | 78,683 | 8,136 |
3,879,936 | |||
Consumer Discretionary (8.5%) | |||
* | Amazon.com Inc. | 9,766,967 | 1,709,219 |
General Motors Co. | 9,342,324 | 416,014 | |
Lennar Corp. Class A | 2,582,000 | 391,483 | |
McDonald's Corp. | 1,174,477 | 320,679 | |
Home Depot Inc. | 822,868 | 275,019 | |
1 | Cie Generale des Etablissements Michelin SCA ADR | 12,597,700 | 241,372 |
1 | Sony Group Corp. ADR | 2,875,000 | 237,389 |
Lowe's Cos. Inc. | 1,040,487 | 237,221 | |
Magna International Inc. | 4,385,932 | 209,648 | |
* | Aptiv plc | 2,935,404 | 208,414 |
Booking Holdings Inc. | 59,700 | 206,086 | |
NIKE Inc. Class B | 1,573,853 | 145,204 | |
Bayerische Motoren Werke AG (XETR) | 944,435 | 102,895 | |
Mercedes-Benz Group AG | 1,059,910 | 80,172 | |
Alibaba Group Holding Ltd. ADR | 832,401 | 62,305 | |
BorgWarner Inc. (XNYS) | 1,715,700 | 56,223 | |
* | Adient plc | 1,311,943 | 39,188 |
4,938,531 | |||
Consumer Staples (5.7%) | |||
Procter & Gamble Co. | 4,823,742 | 787,235 | |
Coca-Cola Co. | 9,311,523 | 575,173 | |
Unilever plc ADR | 5,145,498 | 266,794 | |
PepsiCo Inc. | 1,395,268 | 245,442 |
Shares | Market Value• ($000) | ||
Kroger Co. | 4,340,823 | 240,395 | |
Constellation Brands Inc. Class A | 822,000 | 208,344 | |
Sysco Corp. | 2,504,073 | 186,103 | |
Mondelez International Inc. Class A | 2,463,808 | 177,246 | |
Estee Lauder Cos. Inc. Class A | 1,156,557 | 169,678 | |
Unilever plc (XLON) | 3,212,400 | 166,180 | |
Nestle SA (Registered) | 1,245,887 | 125,087 | |
Conagra Brands Inc. | 3,377,300 | 103,953 | |
1 | Anheuser-Busch InBev SA ADR | 1,637,000 | 97,663 |
3,349,293 | |||
Energy (6.6%) | |||
Chevron Corp. | 3,307,152 | 533,345 | |
ConocoPhillips | 4,119,807 | 517,530 | |
APA Corp. | 12,432,667 | 390,883 | |
TotalEnergies SE ADR | 3,828,479 | 277,450 | |
Suncor Energy Inc. | 7,124,332 | 272,078 | |
Marathon Oil Corp. | 10,123,287 | 271,810 | |
Coterra Energy Inc. | 9,097,000 | 248,894 | |
Shell plc ADR | 3,417,012 | 244,863 | |
NOV Inc. | 12,376,888 | 228,849 | |
Halliburton Co. | 6,074,735 | 227,620 | |
Ovintiv Inc. (XNYS) | 2,921,110 | 149,911 | |
Pioneer Natural Resources Co. | 448,739 | 120,854 | |
Schlumberger NV | 2,479,166 | 117,711 | |
Baker Hughes Co. | 2,809,200 | 91,636 | |
Cenovus Energy Inc. | 4,153,200 | 85,390 | |
Murphy Oil Corp. | 1,372,052 | 61,249 | |
3,840,073 | |||
Financials (18.1%) | |||
Wells Fargo & Co. | 14,805,879 | 878,285 | |
Bank of America Corp. | 23,542,998 | 871,326 | |
Visa Inc. Class A | 2,628,758 | 706,111 | |
Citigroup Inc. | 10,713,803 | 657,077 | |
Intercontinental Exchange Inc. | 4,926,270 | 634,306 | |
US Bancorp | 12,704,700 | 516,192 | |
American Express Co. | 2,123,102 | 496,870 | |
Blackstone Inc. | 3,795,420 | 442,584 | |
Capital One Financial Corp. | 2,744,300 | 393,615 | |
Marsh & McLennan Cos. Inc. | 1,806,035 | 360,177 | |
Ameriprise Financial Inc. | 859,000 | 353,728 |
Shares | Market Value• ($000) | ||
JPMorgan Chase & Co. | 1,795,175 | 344,207 | |
American International Group Inc. | 3,921,056 | 295,295 | |
Charles Schwab Corp. | 3,928,018 | 290,477 | |
Hartford Financial Services Group Inc. | 2,987,000 | 289,410 | |
Citizens Financial Group Inc. | 8,248,251 | 281,348 | |
Fidelity National Information Services Inc. | 3,884,100 | 263,808 | |
Goldman Sachs Group Inc. | 614,349 | 262,149 | |
Commerce Bancshares Inc. | 4,656,319 | 254,607 | |
BNP Paribas SA | 3,342,100 | 240,504 | |
Bank of New York Mellon Corp. | 3,851,734 | 217,584 | |
Chubb Ltd. | 838,130 | 208,393 | |
PNC Financial Services Group Inc. | 1,352,000 | 207,207 | |
Mitsubishi UFJ Financial Group Inc. ADR | 19,328,000 | 192,314 | |
Truist Financial Corp. | 4,609,588 | 173,090 | |
Cullen/Frost Bankers Inc. | 1,577,000 | 164,544 | |
HSBC Holdings plc ADR | 2,888,300 | 125,872 | |
1 | Corebridge Financial Inc. | 4,644,000 | 123,345 |
Discover Financial Services | 652,800 | 82,729 | |
ING Groep NV | 4,497,433 | 71,106 | |
NatWest Group plc | 18,280,043 | 68,996 | |
First Citizens BancShares Inc. Class A | 40,258 | 67,906 | |
State Street Corp. | 665,188 | 48,219 | |
10,583,381 | |||
Health Care (14.8%) | |||
Medtronic plc | 11,733,656 | 941,509 | |
Elevance Health Inc. | 1,634,738 | 864,090 | |
UnitedHealth Group Inc. | 1,775,372 | 858,747 | |
HCA Healthcare Inc. | 2,461,600 | 762,653 | |
Danaher Corp. | 2,553,977 | 629,862 | |
Cigna Group | 1,662,473 | 593,569 | |
Thermo Fisher Scientific Inc. | 767,731 | 436,624 | |
Johnson & Johnson | 3,019,294 | 436,560 | |
Merck & Co. Inc. | 2,389,000 | 308,707 | |
* | Boston Scientific Corp. | 4,132,829 | 297,026 |
Amgen Inc. | 990,000 | 271,201 | |
CVS Health Corp. | 3,640,900 | 246,525 | |
Alcon Inc. | 2,918,000 | 226,378 | |
* | IQVIA Holdings Inc. | 938,988 | 217,629 |
Humana Inc. | 712,164 | 215,138 | |
GE Healthcare Inc. | 2,678,115 | 204,179 | |
Zoetis Inc. | 1,196,290 | 190,497 | |
Roche Holding AG | 705,449 | 169,036 | |
* | Centene Corp. | 2,139,988 | 156,348 |
AstraZeneca plc ADR | 1,696,150 | 128,704 | |
Abbott Laboratories | 1,117,297 | 118,400 | |
AbbVie Inc. | 516,367 | 83,982 | |
Zimmer Biomet Holdings Inc. | 612,008 | 73,612 | |
Sanofi SA ADR | 1,320,391 | 65,003 | |
GSK plc ADR | 1,567,915 | 64,974 |
Shares | Market Value• ($000) | ||
Laboratory Corp. of America Holdings | 307,000 | 61,821 | |
EssilorLuxottica SA | 152,567 | 32,532 | |
8,655,306 | |||
Industrials (9.8%) | |||
General Dynamics Corp. | 2,036,471 | 584,650 | |
Honeywell International Inc. | 2,966,334 | 571,702 | |
Parker-Hannifin Corp. | 854,000 | 465,353 | |
RTX Corp. | 3,955,600 | 401,572 | |
Waste Management Inc. | 1,662,075 | 345,745 | |
Northrop Grumman Corp. | 692,542 | 335,904 | |
Norfolk Southern Corp. | 1,295,564 | 298,394 | |
Xylem Inc. | 2,194,000 | 286,756 | |
* | Boeing Co. | 1,609,614 | 270,158 |
FedEx Corp. | 873,840 | 228,754 | |
HEICO Corp. | 1,097,435 | 227,608 | |
Cummins Inc. | 696,672 | 196,803 | |
Oshkosh Corp. | 1,601,000 | 179,744 | |
Caterpillar Inc. | 509,223 | 170,371 | |
Delta Air Lines Inc. | 3,397,842 | 170,130 | |
General Electric Co. | 942,345 | 152,490 | |
Nordson Corp. | 570,593 | 147,321 | |
* | CNH Industrial NV | 11,343,899 | 129,320 |
Daimler Truck Holding AG | 2,794,014 | 125,999 | |
PACCAR Inc. | 957,580 | 101,609 | |
Rockwell Automation Inc. | 371,426 | 100,642 | |
Timken Co. | 737,700 | 65,818 | |
* | Fluor Corp. | 1,403,385 | 56,599 |
Siemens AG (Registered) | 189,874 | 35,570 | |
Veralto Corp. | 375,666 | 35,192 | |
* | Air Canada | 1,283,839 | 18,950 |
5,703,154 | |||
Information Technology (19.8%) | |||
Microsoft Corp. | 8,402,745 | 3,271,441 | |
Apple Inc. | 7,307,040 | 1,244,608 | |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 5,968,485 | 819,712 | |
* | Adobe Inc. | 1,067,390 | 494,020 |
Samsung Electronics Co. Ltd. (XKRX) | 8,361,400 | 464,782 | |
Amphenol Corp. Class A | 3,844,295 | 464,276 | |
Applied Materials Inc. | 2,130,143 | 423,153 | |
Broadcom Inc. | 284,751 | 370,253 | |
1 | Telefonaktiebolaget LM Ericsson ADR | 73,405,480 | 368,496 |
* | F5 Inc. | 2,096,600 | 346,589 |
Accenture plc Class A | 1,141,234 | 343,409 | |
Microchip Technology Inc. | 3,676,000 | 338,118 | |
Analog Devices Inc. | 1,654,376 | 331,884 | |
QUALCOMM Inc. | 1,879,000 | 311,632 | |
* | ANSYS Inc. | 942,000 | 306,037 |
Seagate Technology Holdings plc | 3,467,208 | 297,868 | |
* | Autodesk Inc. | 1,140,000 | 242,649 |
* | Teledyne Technologies Inc. | 540,000 | 205,999 |
Salesforce Inc. | 633,216 | 170,297 |
Shares | Market Value• ($000) | ||
Marvell Technology Inc. | 2,350,021 | 154,890 | |
TE Connectivity Ltd. | 902,266 | 127,653 | |
Corning Inc. | 3,320,051 | 110,823 | |
CDW Corp. | 393,538 | 95,181 | |
Micron Technology Inc. | 777,600 | 87,838 | |
Oracle Corp. | 751,125 | 85,440 | |
Cognizant Technology Solutions Corp. Class A | 866,500 | 56,912 | |
* | Snowflake Inc. Class A | 282,573 | 43,855 |
11,577,815 | |||
Materials (3.0%) | |||
Martin Marietta Materials Inc. | 720,000 | 422,690 | |
Corteva Inc. | 6,320,000 | 342,102 | |
Ecolab Inc. | 1,235,000 | 279,295 | |
RPM International Inc. | 2,351,000 | 251,346 | |
Avery Dennison Corp. | 1,063,528 | 231,083 | |
Olin Corp. | 3,080,200 | 161,033 | |
International Paper Co. | 1,016,629 | 35,521 | |
1,723,070 | |||
Other (0.5%) | |||
SPDR S&P 500 ETF Trust | 621,072 | 311,766 | |
Real Estate (0.9%) | |||
Prologis Inc. | 3,594,091 | 366,777 | |
Equity LifeStyle Properties Inc. | 2,830,000 | 170,621 | |
537,398 | |||
Utilities (1.6%) | |||
Atmos Energy Corp. | 2,210,000 | 260,559 | |
PPL Corp. | 8,773,815 | 240,929 |
Shares | Market Value• ($000) | ||
American Water Works Co. Inc. | 1,872,493 | 229,043 | |
Xcel Energy Inc. | 3,638,000 | 195,470 | |
926,001 | |||
Total Common Stocks (Cost $36,045,258) | 56,025,724 | ||
Temporary Cash Investments (4.0%) | |||
Money Market Fund (4.0%) | |||
2,3 | Vanguard Market Liquidity Fund, 5.394% (Cost $2,320,060) | 23,206,677 | 2,320,435 |
Total Investments (100.0%) (Cost $38,365,318) | 58,346,159 | ||
Other Assets and Liabilities—Net (0.0%) | (10,840) | ||
Net Assets (100%) | 58,335,319 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $112,701,000. |
2 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
3 | Collateral of $117,854,000 was received for securities on loan. |
ADR—American Depositary Receipt. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | June 2024 | 2,900 | 734,715 | (7,122) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $36,045,258) | 56,025,724 |
Affiliated Issuers (Cost $2,320,060) | 2,320,435 |
Total Investments in Securities | 58,346,159 |
Investment in Vanguard | 1,795 |
Cash | 580 |
Cash Collateral Pledged—Futures Contracts | 34,850 |
Foreign Currency, at Value (Cost $684) | 663 |
Receivables for Investment Securities Sold | 114,698 |
Receivables for Accrued Income | 62,294 |
Receivables for Capital Shares Issued | 8,276 |
Total Assets | 58,569,315 |
Liabilities | |
Payables for Investment Securities Purchased | 62,558 |
Collateral for Securities on Loan | 117,854 |
Payables to Investment Advisor | 16,304 |
Payables for Capital Shares Redeemed | 21,672 |
Payables to Vanguard | 3,793 |
Variation Margin Payable—Futures Contracts | 11,815 |
Total Liabilities | 233,996 |
Net Assets | 58,335,319 |
1 Includes $112,701,000 of securities on loan. | |
At April 30, 2024, net assets consisted of: | |
Paid-in Capital | 35,492,360 |
Total Distributable Earnings (Loss) | 22,842,959 |
Net Assets | 58,335,319 |
Investor Shares—Net Assets | |
Applicable to 263,396,145 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 11,851,922 |
Net Asset Value Per Share—Investor Shares | $45.00 |
Admiral Shares—Net Assets | |
Applicable to 582,256,484 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 46,483,397 |
Net Asset Value Per Share—Admiral Shares | $79.83 |
Six Months Ended April 30, 2024 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 480,344 |
Interest2 | 60,181 |
Securities Lending—Net | 1,227 |
Total Income | 541,752 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 35,353 |
Performance Adjustment | (3,580) |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 11,950 |
Management and Administrative—Admiral Shares | 29,391 |
Marketing and Distribution—Investor Shares | 268 |
Marketing and Distribution—Admiral Shares | 753 |
Custodian Fees | 1,539 |
Shareholders’ Reports—Investor Shares | 223 |
Shareholders’ Reports—Admiral Shares | 132 |
Trustees’ Fees and Expenses | 20 |
Other Expenses | 12 |
Total Expenses | 76,061 |
Expenses Paid Indirectly | (30) |
Net Expenses | 76,031 |
Net Investment Income | 465,721 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 2,548,047 |
Futures Contracts | 98,017 |
Foreign Currencies | (85) |
Realized Net Gain (Loss) | 2,645,979 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers2 | 6,743,897 |
Futures Contracts | 13,520 |
Foreign Currencies | (171) |
Change in Unrealized Appreciation (Depreciation) | 6,757,246 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 9,868,946 |
1 | Dividends are net of foreign withholding taxes of $8,575,000. |
2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $59,438,000, $31,000, $15,000, and $59,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 465,721 | 911,330 | |
Realized Net Gain (Loss) | 2,645,979 | 1,984,493 | |
Change in Unrealized Appreciation (Depreciation) | 6,757,246 | 656,367 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 9,868,946 | 3,552,190 | |
Distributions | |||
Investor Shares | (492,089) | (743,361) | |
Admiral Shares | (1,904,025) | (2,794,952) | |
Total Distributions | (2,396,114) | (3,538,313) | |
Capital Share Transactions | |||
Investor Shares | (70,956) | (380,550) | |
Admiral Shares | 623,228 | 253,217 | |
Net Increase (Decrease) from Capital Share Transactions | 552,272 | (127,333) | |
Total Increase (Decrease) | 8,025,104 | (113,456) | |
Net Assets | |||
Beginning of Period | 50,310,215 | 50,423,671 | |
End of Period | 58,335,319 | 50,310,215 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2024 | Year Ended October 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $39.23 | $39.39 | $48.48 | $34.85 | $37.22 | $37.39 |
Investment Operations | ||||||
Net Investment Income1 | .344 | .672 | .585 | .502 | .551 | .775 |
Net Realized and Unrealized Gain (Loss) on Investments | 7.295 | 1.923 | (6.039) | 15.971 | .607 | 2.628 |
Total from Investment Operations | 7.639 | 2.595 | (5.454) | 16.473 | 1.158 | 3.403 |
Distributions | ||||||
Dividends from Net Investment Income | (.382) | (.647) | (.566) | (.516) | (.635) | (.844) |
Distributions from Realized Capital Gains | (1.487) | (2.108) | (3.070) | (2.327) | (2.893) | (2.729) |
Total Distributions | (1.869) | (2.755) | (3.636) | (2.843) | (3.528) | (3.573) |
Net Asset Value, End of Period | $45.00 | $39.23 | $39.39 | $48.48 | $34.85 | $37.22 |
Total Return2 | 19.74% | 7.02% | -11.93% | 49.42% | 2.93% | 10.82% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $11,852 | $10,381 | $10,747 | $13,734 | $10,997 | $12,119 |
Ratio of Total Expenses to Average Net Assets3 | 0.33%4 | 0.34%4 | 0.34%4 | 0.34% | 0.34% | 0.33% |
Ratio of Net Investment Income to Average Net Assets | 1.57% | 1.69% | 1.38% | 1.15% | 1.61% | 2.20% |
Portfolio Turnover Rate | 10% | 17% | 18% | 20% | 61% | 32% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | 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. |
3 | Includes performance-based investment advisory fee increases (decreases) of (0.01%), (0.01%), (0.01%), (0.00%), (0.01%), and (0.03%). |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.33%, 0.34%, and 0.34%, respectively. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2024 | Year Ended October 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $69.60 | $69.89 | $86.03 | $61.84 | $66.06 | $66.35 |
Investment Operations | ||||||
Net Investment Income1 | .641 | 1.248 | 1.098 | .950 | 1.027 | 1.426 |
Net Realized and Unrealized Gain (Loss) on Investments | 12.936 | 3.406 | (10.716) | 28.341 | 1.065 | 4.675 |
Total from Investment Operations | 13.577 | 4.654 | (9.618) | 29.291 | 2.092 | 6.101 |
Distributions | ||||||
Dividends from Net Investment Income | (.708) | (1.204) | (1.074) | (.972) | (1.178) | (1.547) |
Distributions from Realized Capital Gains | (2.639) | (3.740) | (5.448) | (4.129) | (5.134) | (4.844) |
Total Distributions | (3.347) | (4.944) | (6.522) | (5.101) | (6.312) | (6.391) |
Net Asset Value, End of Period | $79.83 | $69.60 | $69.89 | $86.03 | $61.84 | $66.06 |
Total Return2 | 19.78% | 7.09% | -11.86% | 49.55% | 3.00% | 10.93% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $46,483 | $39,929 | $39,677 | $46,833 | $30,992 | $34,022 |
Ratio of Total Expenses to Average Net Assets3 | 0.25%4 | 0.26%4 | 0.26%4 | 0.26% | 0.26% | 0.25% |
Ratio of Net Investment Income to Average Net Assets | 1.65% | 1.77% | 1.46% | 1.22% | 1.69% | 2.28% |
Portfolio Turnover Rate | 10% | 17% | 18% | 20% | 61% | 32% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | 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. |
3 | Includes performance-based investment advisory fee increases (decreases) of (0.01%), (0.01%), (0.01%), (0.00%), (0.01%), and (0.03%). |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.25%, 0.26%, and 0.26% respectively. |
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. |
B. | The investment advisory firms Lazard Asset Management LLC, Hotchkis and Wiley Capital Management, LLC, Sanders Capital, LLC, and Aristotle Capital Management, LLC, each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fee of Lazard Asset Management LLC is subject to quarterly adjustments based on performance relative to the S&P 500 Index for the preceding three years. The basic fee of Hotchkis and Wiley Capital Management, LLC, is subject to quarterly adjustments based on performance relative to the MSCI US Investable Market 2500 Index for the preceding five years. The basic fee of Sanders Capital, LLC, is subject to |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution and cash management 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. |
D. | The fund has asked its investment advisors to direct certain security trades, subject to obtaining the best price and execution, to brokers who have agreed to rebate to the fund part of the commissions generated. Such rebates are used solely to reduce the fund’s management and administrative expenses. For the six months ended April 30, 2024, these arrangements reduced the fund’s expenses by $30,000 (an annual rate of less than 0.01% of average net assets). |
E. | Various inputs may be used to determine the value of the fund’s investments and derivatives. 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 54,342,865 | 1,682,859 | — | 56,025,724 |
Temporary Cash Investments | 2,320,435 | — | — | 2,320,435 |
Total | 56,663,300 | 1,682,859 | — | 58,346,159 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 7,122 | — | — | 7,122 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
F. | As of April 30, 2024, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 38,436,563 |
Gross Unrealized Appreciation | 20,819,180 |
Gross Unrealized Depreciation | (916,706) |
Net Unrealized Appreciation (Depreciation) | 19,902,474 |
G. | During the six months ended April 30, 2024, the fund purchased $5,445,334,000 of investment securities and sold $6,977,932,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 332,629 | 7,756 | 321,789 | 8,059 | |
Issued in Lieu of Cash Distributions | 479,226 | 11,244 | 725,857 | 19,498 | |
Redeemed | (882,811) | (20,223) | (1,428,196) | (35,765) | |
Net Increase (Decrease)—Investor Shares | (70,956) | (1,223) | (380,550) | (8,208) |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Admiral Shares | |||||
Issued | 1,203,249 | 15,530 | 1,703,062 | 24,125 | |
Issued in Lieu of Cash Distributions | 1,784,469 | 23,607 | 2,612,310 | 39,534 | |
Redeemed | (2,364,490) | (30,557) | (4,062,155) | (57,683) | |
Net Increase (Decrease)—Admiral Shares | 623,228 | 8,580 | 253,217 | 5,976 |
I. | Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, 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. |
J. | Management has determined that no events or transactions occurred subsequent to April 30, 2024, that would require recognition or disclosure in these financial statements. |
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Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Investments.
Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. In February 2024, a third-party service provider began performing security pricing services for the Registrant. There were no other changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a)(1) | Code of Ethics filed herewith. |
(a)(2) | Certifications filed herewith. |
(a)(2) | Certifications filed herewith. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD WINDSOR FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: June 20, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
VANGUARD WINDSOR FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: June 20, 2024
VANGUARD WINDSOR FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: June 20, 2024
* By: | /s/ John E. Schadl |
John E. Schadl, pursuant to a Power of Attorney filed on January 11, 2024 (see File Number 33-34494); a Power of Attorney filed on July 21, 2023 (see File Number 33-53683), Incorporated by Reference; and a Power of Attorney filed on March 29, 2023 (see File Number 2-11444), Incorporated by Reference.