Vanguard® Windsor™ II Fund
Schedule of Investments (unaudited)
As of January 31, 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.
Shares | Market Value ($000) | ||
Common Stocks (96.2%) | |||
Communication Services (7.3%) | |||
* | Alphabet Inc. Class A | 648,391 | 1,754,591 |
* | Alphabet Inc. Class C | 292,365 | 793,470 |
* | Meta Platforms Inc. Class A | 1,722,738 | 539,665 |
* | Discovery Inc. Class C | 11,148,648 | 304,916 |
* | Walt Disney Co. | 1,572,069 | 224,759 |
Vodafone Group plc ADR | 10,811,932 | 189,317 | |
* | Twitter Inc. | 4,540,000 | 170,295 |
News Corp. Class A | 7,309,310 | 162,559 | |
Comcast Corp. Class A | 3,150,413 | 157,489 | |
Omnicom Group Inc. | 913,679 | 68,855 | |
4,365,916 | |||
Consumer Discretionary (9.5%) | |||
* | Amazon.com Inc. | 284,567 | 851,274 |
McDonald's Corp. | 1,792,432 | 465,046 | |
* | General Motors Co. | 7,490,801 | 394,990 |
Lennar Corp. Class A | 4,059,222 | 390,132 | |
Sony Group Corp. ADR | 3,251,000 | 363,007 | |
Dollar General Corp. | 1,648,114 | 343,599 | |
Lowe's Cos. Inc. | 1,438,545 | 341,439 | |
Home Depot Inc. | 849,673 | 311,813 | |
Cie Generale des Etablissements Michelin SCA ADR | 8,570,000 | 285,981 | |
Magna International Inc. | 3,364,732 | 271,231 | |
* | Aptiv plc | 1,866,998 | 254,994 |
Starbucks Corp. | 2,511,201 | 246,901 | |
Bayerische Motoren Werke AG | 2,025,426 | 214,377 | |
* | Booking Holdings Inc. | 85,400 | 209,753 |
Daimler AG (Registered) | 2,159,229 | 172,293 | |
DR Horton Inc. | 1,162,980 | 103,761 | |
NIKE Inc. Class B | 698,425 | 103,416 | |
Ross Stores Inc. | 957,896 | 93,634 | |
Lear Corp. | 548,900 | 91,842 | |
* | Goodyear Tire & Rubber Co. | 3,226,296 | 66,881 |
* | Adient plc | 1,311,943 | 55,062 |
Harley-Davidson Inc. | 1,395,273 | 48,235 | |
5,679,661 | |||
Consumer Staples (6.1%) | |||
Procter & Gamble Co. | 5,856,904 | 939,740 | |
Coca-Cola Co. | 11,007,972 | 671,596 | |
PepsiCo Inc. | 2,663,288 | 462,134 | |
Sysco Corp. | 3,520,455 | 275,124 | |
Tyson Foods Inc. Class A | 2,404,064 | 218,506 | |
Constellation Brands Inc. Class A | 879,487 | 209,098 |
Shares | Market Value ($000) | ||
Unilever plc ADR | 3,871,398 | 198,951 | |
Unilever plc (XLON) | 3,390,000 | 173,846 | |
Nestle SA (Registered) | 1,212,973 | 156,641 | |
Colgate-Palmolive Co. | 1,677,908 | 138,344 | |
Mondelez International Inc. Class A | 2,026,888 | 135,862 | |
Walgreens Boots Alliance Inc. | 928,946 | 46,224 | |
3,626,066 | |||
Energy (5.6%) | |||
ConocoPhillips | 6,658,384 | 590,066 | |
Marathon Oil Corp. | 26,018,487 | 506,580 | |
Halliburton Co. | 11,140,235 | 342,451 | |
APA Corp. | 8,002,477 | 265,762 | |
Royal Dutch Shell plc Class A ADR | 4,824,512 | 247,980 | |
Coterra Energy Inc. | 10,471,000 | 229,315 | |
Hess Corp. | 2,481,967 | 229,061 | |
Suncor Energy Inc. | 7,518,132 | 214,793 | |
NOV Inc. | 10,727,388 | 176,144 | |
Phillips 66 | 1,990,000 | 168,732 | |
Schlumberger NV | 2,496,000 | 97,519 | |
Murphy Oil Corp. | 2,962,252 | 93,607 | |
Baker Hughes Co. Class A | 3,043,100 | 83,502 | |
Cenovus Energy Inc. | 5,672,300 | 82,532 | |
3,328,044 | |||
Financials (17.1%) | |||
Citigroup Inc. | 14,760,958 | 961,234 | |
Bank of America Corp. | 20,091,306 | 927,013 | |
Wells Fargo & Co. | 17,225,908 | 926,754 | |
PNC Financial Services Group Inc. | 3,626,810 | 747,087 | |
Intercontinental Exchange Inc. | 5,710,009 | 723,230 | |
American Express Co. | 3,508,556 | 630,908 | |
American International Group Inc. | 10,323,356 | 596,174 | |
Capital One Financial Corp. | 2,453,000 | 359,929 | |
Marsh & McLennan Cos. Inc. | 2,315,042 | 355,683 | |
Ameriprise Financial Inc. | 1,057,000 | 321,656 | |
Commerce Bancshares Inc. | 4,521,261 | 311,560 | |
Goldman Sachs Group Inc. | 829,249 | 294,118 | |
JPMorgan Chase & Co. | 1,897,901 | 282,028 | |
Cincinnati Financial Corp. | 2,192,000 | 258,283 | |
Cullen/Frost Bankers Inc. | 1,702,000 | 239,999 | |
Bank of New York Mellon Corp. | 4,029,434 | 238,784 | |
* | Berkshire Hathaway Inc. Class B | 728,900 | 228,160 |
Travelers Cos. Inc. | 1,204,992 | 200,246 | |
BNP Paribas SA | 2,782,700 | 198,655 | |
Truist Financial Corp. | 2,831,319 | 177,863 | |
Hartford Financial Services Group Inc. | 2,324,200 | 167,040 | |
Blackstone Inc. | 1,056,127 | 139,377 | |
First Citizens BancShares Inc. Class A | 177,858 | 138,566 | |
Citizens Financial Group Inc. | 2,572,951 | 132,430 | |
Credit Suisse Group AG ADR | 13,694,800 | 130,511 | |
Mitsubishi UFJ Financial Group Inc. ADR | 19,937,000 | 121,416 | |
Chubb Ltd. | 602,557 | 118,872 | |
Natwest Group plc | 20,774,647 | 68,282 | |
State Street Corp. | 665,188 | 62,860 | |
Equitable Holdings Inc. | 1,842,040 | 61,966 | |
China Construction Bank Corp. Class H | 51,864,000 | 39,798 | |
Sumitomo Mitsui Financial Group Inc. | 963,900 | 34,721 | |
10,195,203 |
Shares | Market Value ($000) | ||
Health Care (15.9%) | |||
Medtronic plc | 11,799,546 | 1,221,135 | |
Johnson & Johnson | 5,665,234 | 976,063 | |
UnitedHealth Group Inc. | 1,844,774 | 871,785 | |
Anthem Inc. | 1,891,938 | 834,326 | |
Danaher Corp. | 2,598,702 | 742,683 | |
HCA Healthcare Inc. | 2,488,100 | 597,268 | |
Thermo Fisher Scientific Inc. | 822,080 | 477,875 | |
Humana Inc. | 899,534 | 353,067 | |
Cigna Corp. | 1,502,773 | 346,329 | |
Roche Holding AG | 776,049 | 300,330 | |
* | Boston Scientific Corp. | 6,594,783 | 282,916 |
Zoetis Inc. | 1,280,980 | 255,927 | |
Amgen Inc. | 1,116,000 | 253,488 | |
Alcon Inc. | 3,105,000 | 238,402 | |
* | IQVIA Holdings Inc. | 942,510 | 230,821 |
CVS Health Corp. | 1,918,900 | 204,382 | |
1 | GlaxoSmithKline plc ADR | 4,176,194 | 187,177 |
* | Centene Corp. | 2,232,688 | 173,614 |
* | Elanco Animal Health Inc. (XNYS) | 6,499,000 | 169,234 |
* | Laboratory Corp. of America Holdings | 491,741 | 133,439 |
Pfizer Inc. | 2,262,928 | 119,234 | |
* | Vertex Pharmaceuticals Inc. | 488,247 | 118,668 |
Sanofi ADR | 2,209,191 | 114,878 | |
Zimmer Biomet Holdings Inc. | 679,808 | 83,630 | |
AbbVie Inc. | 544,967 | 74,601 | |
Bristol-Myers Squibb Co. | 1,123,900 | 72,930 | |
Novartis AG ADR | 96,076 | 8,350 | |
9,442,552 | |||
Industrials (8.9%) | |||
Honeywell International Inc. | 4,150,452 | 848,684 | |
General Electric Co. | 6,609,785 | 624,492 | |
FedEx Corp. | 1,847,236 | 454,161 | |
Norfolk Southern Corp. | 1,327,713 | 361,125 | |
Waste Management Inc. | 2,109,733 | 317,388 | |
Northrop Grumman Corp. | 848,274 | 313,777 | |
Parker-Hannifin Corp. | 979,000 | 303,500 | |
Johnson Controls International plc | 3,569,588 | 259,402 | |
Xylem Inc. | 2,400,000 | 252,048 | |
General Dynamics Corp. | 1,018,000 | 215,918 | |
1 | CNH Industrial NV | 13,389,999 | 202,591 |
Oshkosh Corp. | 1,690,000 | 192,339 | |
Cummins Inc. | 714,472 | 157,813 | |
Caterpillar Inc. | 725,672 | 146,266 | |
Raytheon Technologies Corp. | 1,531,400 | 138,117 | |
PACCAR Inc. | 1,427,720 | 132,764 | |
* | Daimler Truck Holding AG | 2,844,174 | 100,268 |
* | Southwest Airlines Co. | 1,758,703 | 78,720 |
HEICO Corp. | 468,193 | 63,857 | |
* | Fluor Corp. | 1,993,085 | 41,934 |
Stanley Black & Decker Inc. | 232,494 | 40,605 | |
* | Iveco Group NV | 2,678,000 | 28,491 |
5,274,260 | |||
Information Technology (20.2%) | |||
Microsoft Corp. | 9,711,887 | 3,020,203 | |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 6,298,485 | 772,383 | |
Apple Inc. | 3,764,348 | 657,933 |
Shares | Market Value ($000) | ||
Visa Inc. Class A | 2,814,858 | 636,637 | |
Micron Technology Inc. | 7,617,423 | 626,685 | |
* | Adobe Inc. | 1,136,322 | 607,137 |
Cisco Systems Inc. | 10,355,817 | 576,508 | |
Samsung Electronics Co. Ltd. | 8,514,100 | 529,569 | |
Analog Devices Inc. | 2,279,722 | 373,806 | |
QUALCOMM Inc. | 2,123,000 | 373,139 | |
* | ANSYS Inc. | 1,025,000 | 348,510 |
* | F5 Inc. | 1,610,300 | 334,331 |
Texas Instruments Inc. | 1,824,299 | 327,443 | |
Microchip Technology Inc. | 4,061,000 | 314,646 | |
* | salesforce.com Inc. | 1,303,805 | 303,304 |
Oracle Corp. | 3,250,525 | 263,813 | |
Amphenol Corp. Class A | 3,309,146 | 263,375 | |
Accenture plc Class A | 708,590 | 250,543 | |
Corning Inc. | 4,483,651 | 188,493 | |
* | PayPal Holdings Inc. | 1,068,000 | 183,632 |
Fidelity National Information Services Inc. | 1,367,812 | 164,028 | |
TE Connectivity Ltd. | 1,017,366 | 145,494 | |
Telefonaktiebolaget LM Ericsson ADR | 11,420,180 | 141,382 | |
* | Palo Alto Networks Inc. | 270,908 | 140,168 |
Applied Materials Inc. | 921,480 | 127,330 | |
CDW Corp. | 449,312 | 84,942 | |
Cognizant Technology Solutions Corp. Class A | 937,900 | 80,115 | |
Seagate Technology Holdings plc | 504,698 | 54,078 | |
Hewlett Packard Enterprise Co. | 3,291,941 | 53,757 | |
* | Western Digital Corp. | 971,636 | 50,273 |
11,993,657 | |||
Materials (2.2%) | |||
Corteva Inc. | 6,961,000 | 334,685 | |
Martin Marietta Materials Inc. | 786,000 | 305,848 | |
Ecolab Inc. | 1,293,000 | 244,959 | |
RPM International Inc. | 2,570,000 | 227,728 | |
Avery Dennison Corp. | 687,556 | 141,238 | |
International Paper Co. | 1,051,929 | 50,755 | |
1,305,213 | |||
Other (0.9%) | |||
SPDR S&P 500 ETF Trust | 1,236,073 | 556,122 | |
Real Estate (1.7%) | |||
Prologis Inc. | 3,107,070 | 487,251 | |
Crown Castle International Corp. | 1,560,000 | 284,715 | |
Sun Communities Inc. | 720,000 | 136,051 | |
Equity LifeStyle Properties Inc. | 1,600,000 | 125,264 | |
1,033,281 | |||
Utilities (0.8%) | |||
PPL Corp. | 11,229,703 | 333,297 | |
Southern Co. | 994,110 | 69,081 | |
Xcel Energy Inc. | 713,029 | 49,670 | |
Atmos Energy Corp. | 376,216 | 40,338 | |
492,386 | |||
Total Common Stocks (Cost $35,469,229) | 57,292,361 |
Shares | Market Value ($000) | ||
Temporary Cash Investments (3.8%) | |||
Money Market Fund (3.8%) | |||
2,3 | Vanguard Market Liquidity Fund, 0.120% (Cost $2,227,567) | 22,278,531 | 2,227,630 |
Total Investments (100.0%) (Cost $37,696,796) | 59,519,991 | ||
Other Assets and Liabilities—Net (0.0%) | 10,020 | ||
Net Assets (100%) | 59,530,011 | ||
Cost is in $000. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $77,179,000. |
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 $81,219,000 was received for securities on loan. |
ADR—American Depositary Receipt. |
Derivative Financial Instruments Outstanding as of Period End
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 | March 2022 | 3,417 | 769,551 | (38,739) |
A. 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. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities.
Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with
the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. Fluctuations in the value of the contracts are recorded as an asset (liability).
D. 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—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 and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of January 31, 2022, based on the inputs used to value them:
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 55,275,090 | 2,017,271 | — | 57,292,361 |
Temporary Cash Investments | 2,227,630 | — | — | 2,227,630 |
Total | 57,502,720 | 2,017,271 | — | 59,519,991 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 38,739 | — | — | 38,739 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. |