Vanguard® Windsor™ II Fund
Schedule of Investments (unaudited)
As of July 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 (96.6%) | |||
Communication Services (6.4%) | |||
* | Alphabet Inc. Class A | 12,444,000 | 1,447,486 |
* | Alphabet Inc. Class C | 5,847,300 | 682,029 |
* | Meta Platforms Inc. Class A | 1,857,838 | 295,582 |
* | Warner Bros Discovery Inc. | 13,971,948 | 209,579 |
* | Walt Disney Co. | 1,946,654 | 206,540 |
Comcast Corp. Class A | 4,934,113 | 185,128 | |
Vodafone Group plc ADR | 9,071,932 | 133,902 | |
News Corp. Class A | 7,222,210 | 123,789 | |
Paramount Global Inc. Class B | 2,479,600 | 58,642 | |
Omnicom Group Inc. | 805,979 | 56,290 | |
3,398,967 | |||
Consumer Discretionary (9.1%) | |||
* | Amazon.com Inc. | 7,060,060 | 952,755 |
McDonald's Corp. | 1,681,397 | 442,830 | |
* | General Motors Co. | 9,829,201 | 356,407 |
Lennar Corp. Class A | 4,059,222 | 345,034 | |
* | Aptiv plc | 3,022,341 | 317,013 |
Sony Group Corp. ADR | 3,251,000 | 277,603 | |
Home Depot Inc. | 849,673 | 255,701 | |
Magna International Inc. | 3,725,732 | 237,925 | |
Lowe's Cos. Inc. | 1,172,488 | 224,567 | |
Dollar General Corp. | 902,521 | 224,213 | |
Cie Generale des Etablissements Michelin SCA ADR | 13,712,000 | 191,008 | |
NIKE Inc. Class B | 1,461,285 | 167,931 | |
Bayerische Motoren Werke AG | 2,025,426 | 165,504 | |
* | Booking Holdings Inc. | 83,000 | 160,662 |
Starbucks Corp. | 1,736,867 | 147,252 | |
Mercedes-Benz Group AG | 2,159,229 | 127,338 | |
DR Horton Inc. | 1,162,980 | 90,747 | |
Lear Corp. | 548,900 | 82,961 | |
* | Adient plc | 1,311,943 | 44,317 |
* | Goodyear Tire & Rubber Co. | 2,833,996 | 34,802 |
4,846,570 | |||
Consumer Staples (6.2%) | |||
Procter & Gamble Co. | 6,103,328 | 847,813 | |
Coca-Cola Co. | 11,007,972 | 706,382 | |
PepsiCo Inc. | 1,676,845 | 293,381 | |
Sysco Corp. | 3,037,344 | 257,870 | |
Constellation Brands Inc. Class A | 879,487 | 216,626 | |
Tyson Foods Inc. Class A | 2,404,064 | 211,582 | |
Unilever plc ADR | 3,884,298 | 189,010 | |
Unilever plc (XLON) | 3,390,000 | 165,103 |
Shares | Market Value ($000) | ||
Nestle SA (Registered) | 1,212,973 | 148,622 | |
Estee Lauder Cos. Inc. Class A | 454,100 | 124,015 | |
Mondelez International Inc. Class A | 1,814,640 | 116,209 | |
* | Haleon plc ADR | 1,959,894 | 13,778 |
3,290,391 | |||
Energy (5.3%) | |||
ConocoPhillips | 5,870,475 | 571,960 | |
Coterra Energy Inc. | 10,471,000 | 320,308 | |
Halliburton Co. | 9,017,335 | 264,208 | |
Suncor Energy Inc. | 7,518,132 | 255,165 | |
Marathon Oil Corp. | 9,962,987 | 247,082 | |
APA Corp. | 5,984,377 | 222,439 | |
Shell plc ADR | 3,650,412 | 194,859 | |
NOV Inc. | 10,181,888 | 189,485 | |
Phillips 66 | 1,990,000 | 177,110 | |
Hess Corp. | 1,145,867 | 128,876 | |
Murphy Oil Corp. | 2,797,252 | 98,295 | |
Cenovus Energy Inc. | 3,695,600 | 70,512 | |
Schlumberger NV | 1,307,200 | 48,406 | |
Baker Hughes Co. Class A | 1,863,000 | 47,861 | |
2,836,566 | |||
Financials (15.7%) | |||
Wells Fargo & Co. | 21,220,007 | 930,922 | |
Citigroup Inc. | 15,310,058 | 794,592 | |
Bank of America Corp. | 19,660,049 | 664,706 | |
PNC Financial Services Group Inc. | 3,626,810 | 601,833 | |
Intercontinental Exchange Inc. | 5,710,009 | 582,364 | |
American Express Co. | 3,360,106 | 517,524 | |
American International Group Inc. | 7,743,156 | 400,863 | |
Marsh & McLennan Cos. Inc. | 2,315,042 | 379,574 | |
Commerce Bancshares Inc. | 4,521,261 | 314,182 | |
Ameriprise Financial Inc. | 1,057,000 | 285,305 | |
Goldman Sachs Group Inc. | 853,549 | 284,565 | |
Capital One Financial Corp. | 2,453,000 | 269,413 | |
JPMorgan Chase & Co. | 2,295,001 | 264,751 | |
Blackstone Inc. | 2,402,563 | 245,230 | |
Bank of New York Mellon Corp. | 5,516,134 | 239,731 | |
Cullen/Frost Bankers Inc. | 1,702,000 | 221,941 | |
Cincinnati Financial Corp. | 2,192,000 | 213,369 | |
Hartford Financial Services Group Inc. | 2,768,600 | 178,492 | |
Truist Financial Corp. | 2,831,319 | 142,897 | |
First Citizens BancShares Inc. Class A | 185,158 | 140,105 | |
BNP Paribas SA | 2,782,700 | 131,475 | |
Citizens Financial Group Inc. | 3,090,151 | 117,333 | |
1 | Mitsubishi UFJ Financial Group Inc. ADR | 19,937,000 | 113,043 |
Credit Suisse Group AG ADR | 13,694,800 | 79,430 | |
Natwest Group plc | 20,774,647 | 63,098 | |
Equitable Holdings Inc. | 1,842,040 | 52,369 | |
Travelers Cos. Inc. | 315,692 | 50,100 | |
State Street Corp. | 665,188 | 47,255 | |
China Construction Bank Corp. Class H | 51,864,000 | 33,121 | |
Sumitomo Mitsui Financial Group Inc. | 963,900 | 30,240 | |
8,389,823 | |||
Health Care (16.7%) | |||
Medtronic plc | 11,744,725 | 1,086,622 | |
Johnson & Johnson | 5,665,234 | 988,697 | |
UnitedHealth Group Inc. | 1,637,274 | 887,959 |
Shares | Market Value ($000) | ||
Danaher Corp. | 2,788,377 | 812,728 | |
Elevance Health Inc. | 1,502,338 | 716,765 | |
HCA Healthcare Inc. | 2,728,700 | 579,630 | |
Thermo Fisher Scientific Inc. | 822,080 | 491,941 | |
Humana Inc. | 890,734 | 429,334 | |
Cigna Corp. | 1,502,773 | 413,804 | |
* | Boston Scientific Corp. | 7,002,404 | 287,449 |
Amgen Inc. | 1,116,000 | 276,176 | |
Roche Holding AG | 776,049 | 257,652 | |
Alcon Inc. | 3,105,000 | 242,469 | |
Zoetis Inc. | 1,280,980 | 233,843 | |
* | IQVIA Holdings Inc. | 942,510 | 226,457 |
* | Centene Corp. | 1,936,788 | 180,063 |
CVS Health Corp. | 1,686,300 | 161,345 | |
* | Elanco Animal Health Inc. (XNYS) | 5,787,272 | 117,250 |
* | Vertex Pharmaceuticals Inc. | 338,166 | 94,825 |
Novartis AG ADR | 1,059,800 | 90,963 | |
Sanofi ADR | 1,769,691 | 87,954 | |
AbbVie Inc. | 544,967 | 78,208 | |
Zimmer Biomet Holdings Inc. | 676,708 | 74,702 | |
Gsk plc Spon ADR | 1,567,915 | 66,119 | |
Merck & Co. Inc. | 294,746 | 26,333 | |
8,909,288 | |||
Industrials (9.2%) | |||
Honeywell International Inc. | 4,150,452 | 798,796 | |
General Electric Co. | 8,369,545 | 618,593 | |
Northrop Grumman Corp. | 1,014,374 | 485,784 | |
Norfolk Southern Corp. | 1,387,283 | 348,444 | |
Waste Management Inc. | 1,779,741 | 292,874 | |
Parker-Hannifin Corp. | 979,000 | 283,019 | |
FedEx Corp. | 1,178,790 | 274,764 | |
General Dynamics Corp. | 1,018,000 | 230,750 | |
Xylem Inc. | 2,400,000 | 220,872 | |
Cummins Inc. | 727,872 | 161,085 | |
CNH Industrial NV | 12,026,699 | 155,385 | |
Oshkosh Corp. | 1,690,000 | 145,509 | |
HEICO Corp. | 920,762 | 145,213 | |
Caterpillar Inc. | 725,672 | 143,865 | |
* | Boeing Co. | 895,000 | 142,582 |
PACCAR Inc. | 1,367,620 | 125,165 | |
Raytheon Technologies Corp. | 1,291,800 | 120,409 | |
* | Southwest Airlines Co. | 2,314,940 | 88,246 |
* | Daimler Truck Holding AG | 2,948,514 | 80,568 |
* | Fluor Corp. | 1,403,385 | 35,660 |
* | Iveco Group NV | 2,677,999 | 16,396 |
4,913,979 | |||
Information Technology (20.8%) | |||
Microsoft Corp. | 10,230,650 | 2,872,153 | |
Apple Inc. | 3,764,348 | 611,744 | |
Visa Inc. Class A | 2,814,858 | 597,059 | |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 6,298,485 | 557,290 | |
* | Adobe Inc. | 1,328,124 | 544,690 |
Micron Technology Inc. | 8,303,923 | 513,681 | |
Analog Devices Inc. | 2,424,692 | 416,950 | |
Samsung Electronics Co. Ltd. | 8,514,100 | 403,016 | |
Cisco Systems Inc. | 8,750,081 | 396,991 | |
Oracle Corp. | 4,270,625 | 332,425 |
Shares | Market Value ($000) | ||
* | Salesforce Inc. | 1,731,313 | 318,596 |
QUALCOMM Inc. | 2,123,000 | 307,962 | |
* | ANSYS Inc. | 1,025,000 | 285,965 |
Microchip Technology Inc. | 4,061,000 | 279,640 | |
* | F5 Inc. | 1,651,600 | 276,412 |
Amphenol Corp. Class A | 3,454,961 | 266,481 | |
* | Autodesk Inc. | 1,216,128 | 263,073 |
* | Workday Inc. Class A | 1,673,500 | 259,560 |
Accenture plc Class A | 785,717 | 240,634 | |
Texas Instruments Inc. | 1,168,232 | 208,985 | |
Applied Materials Inc. | 1,829,676 | 193,909 | |
* | PayPal Holdings Inc. | 1,994,991 | 172,627 |
Corning Inc. | 4,228,051 | 155,423 | |
TE Connectivity Ltd. | 961,966 | 128,644 | |
Telefonaktiebolaget LM Ericsson ADR | 15,748,780 | 118,746 | |
Seagate Technology Holdings plc | 1,149,198 | 91,913 | |
* | Western Digital Corp. | 1,765,936 | 86,707 |
* | Fiserv Inc. | 648,800 | 68,565 |
Cognizant Technology Solutions Corp. Class A | 937,900 | 63,740 | |
Cognex Corp. | 1,202,862 | 61,322 | |
11,094,903 | |||
Materials (2.8%) | |||
Corteva Inc. | 6,961,000 | 400,606 | |
Martin Marietta Materials Inc. | 786,000 | 276,735 | |
RPM International Inc. | 2,570,000 | 232,328 | |
Ecolab Inc. | 1,293,000 | 213,565 | |
Avery Dennison Corp. | 1,075,806 | 204,898 | |
Olin Corp. | 2,815,600 | 147,171 | |
International Paper Co. | 1,016,629 | 43,481 | |
1,518,784 | |||
Other (0.9%) | |||
SPDR S&P 500 ETF Trust | 1,236,073 | 509,250 | |
Real Estate (1.9%) | |||
Prologis Inc. | 3,709,135 | 491,683 | |
Crown Castle International Corp. | 1,560,000 | 281,830 | |
Equity LifeStyle Properties Inc. | 1,692,714 | 124,448 | |
Sun Communities Inc. | 603,626 | 98,970 | |
996,931 | |||
Utilities (1.6%) | |||
PPL Corp. | 10,566,903 | 307,286 | |
Xcel Energy Inc. | 3,913,704 | 286,405 | |
Atmos Energy Corp. | 2,332,700 | 283,166 | |
876,857 | |||
Total Common Stocks (Cost $36,232,612) | 51,582,309 |
Shares | Market Value ($000) | ||
Temporary Cash Investments (3.3%) | |||
Money Market Fund (3.3%) | |||
2,3 | Vanguard Market Liquidity Fund, 1.903% (Cost $1,744,000) | 17,445,527 | 1,743,855 |
Total Investments (99.9%) (Cost $37,976,612) | 53,326,164 | ||
Other Assets and Liabilities—Net (0.1%) | 59,615 | ||
Net Assets (100%) | 53,385,779 | ||
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 $7,641,000. |
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 $8,086,000 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 | September 2022 | 2,081 | 430,091 | 32,632 |
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 July 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 | 49,960,176 | 1,622,133 | — | 51,582,309 |
Temporary Cash Investments | 1,743,855 | — | — | 1,743,855 |
Total | 51,704,031 | 1,622,133 | — | 53,326,164 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 32,632 | — | — | 32,632 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. |