Vanguard® Windsor™ II Fund
Schedule of Investments (unaudited)
As of January 31, 2023
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 (95.8%) | |||
Communication Services (6.5%) | |||
* | Alphabet Inc. Class A | 13,001,957 | 1,285,113 |
* | Alphabet Inc. Class C | 5,847,300 | 583,970 |
* | Meta Platforms Inc. Class A | 3,155,647 | 470,097 |
* | Walt Disney Co. | 2,718,432 | 294,923 |
Comcast Corp. Class A | 5,841,513 | 229,863 | |
* | Warner Bros Discovery Inc. | 11,109,848 | 164,648 |
News Corp. Class A | 6,280,710 | 127,247 | |
Vodafone Group plc ADR | 9,071,932 | 105,053 | |
1 | Paramount Global Inc. Class B | 4,333,600 | 100,366 |
Omnicom Group Inc. | 743,079 | 63,897 | |
* | Baidu Inc. ADR | 80,083 | 10,786 |
3,435,963 | |||
Consumer Discretionary (8.7%) | |||
* | Amazon.com Inc. | 7,679,323 | 791,969 |
McDonald's Corp. | 1,644,609 | 439,768 | |
Lennar Corp. Class A | 3,810,222 | 390,167 | |
General Motors Co. | 9,003,401 | 354,014 | |
* | Aptiv plc | 3,114,085 | 352,172 |
Home Depot Inc. | 831,083 | 269,412 | |
Sony Group Corp. ADR | 2,959,000 | 264,712 | |
Dollar General Corp. | 984,444 | 229,966 | |
NIKE Inc. Class B | 1,781,642 | 226,856 | |
Magna International Inc. | 3,333,632 | 216,486 | |
* | Booking Holdings Inc. | 86,500 | 210,550 |
Cie Generale des Etablissements Michelin SCA ADR | 13,221,000 | 208,627 | |
Bayerische Motoren Werke AG | 2,025,426 | 206,319 | |
Mercedes-Benz Group AG | 2,159,229 | 160,673 | |
DR Horton Inc. | 1,162,980 | 114,775 | |
Lear Corp. | 548,900 | 80,019 | |
* | Adient plc | 1,311,943 | 59,064 |
* | Goodyear Tire & Rubber Co. | 2,833,996 | 31,882 |
4,607,431 | |||
Consumer Staples (6.5%) | |||
Procter & Gamble Co. | 5,953,904 | 847,717 | |
Coca-Cola Co. | 10,604,095 | 650,243 | |
Sysco Corp. | 5,543,889 | 429,429 | |
PepsiCo Inc. | 1,632,445 | 279,181 | |
Estee Lauder Cos. Inc. Class A | 905,818 | 250,984 | |
Mondelez International Inc. Class A | 3,706,337 | 242,543 | |
Unilever plc ADR | 3,884,298 | 198,487 | |
Constellation Brands Inc. Class A | 846,000 | 195,866 | |
Unilever plc (XLON) | 3,390,000 | 172,548 |
Shares | Market Value ($000) | ||
Nestle SA (Registered) | 1,212,973 | 147,994 | |
3,414,992 | |||
Energy (5.8%) | |||
ConocoPhillips | 3,624,402 | 441,706 | |
Chevron Corp. | 1,916,495 | 333,508 | |
Halliburton Co. | 7,374,935 | 303,995 | |
APA Corp. | 6,429,377 | 285,014 | |
Suncor Energy Inc. | 7,518,132 | 261,030 | |
Coterra Energy Inc. | 9,614,000 | 240,638 | |
Shell plc ADR | 3,328,512 | 195,750 | |
Phillips 66 | 1,839,000 | 184,396 | |
NOV Inc. | 7,299,088 | 178,390 | |
Marathon Oil Corp. | 6,004,187 | 164,935 | |
Ovintiv Inc. (XNYS) | 2,905,110 | 143,019 | |
Murphy Oil Corp. | 2,420,952 | 105,578 | |
Cenovus Energy Inc. | 3,695,600 | 73,838 | |
Schlumberger NV | 1,083,800 | 61,755 | |
Baker Hughes Co. Class A | 1,760,800 | 55,888 | |
Hess Corp. | 368,467 | 55,329 | |
3,084,769 | |||
Financials (17.1%) | |||
Wells Fargo & Co. | 23,972,767 | 1,123,603 | |
Bank of America Corp. | 22,116,816 | 784,705 | |
Citigroup Inc. | 13,515,103 | 705,759 | |
American Express Co. | 3,432,583 | 600,462 | |
PNC Financial Services Group Inc. | 3,579,402 | 592,140 | |
Intercontinental Exchange Inc. | 5,052,565 | 543,403 | |
Marsh & McLennan Cos. Inc. | 2,264,390 | 396,064 | |
American International Group Inc. | 5,530,456 | 349,635 | |
Capital One Financial Corp. | 2,931,300 | 348,825 | |
JPMorgan Chase & Co. | 2,295,001 | 321,208 | |
Ameriprise Financial Inc. | 906,000 | 317,209 | |
Commerce Bancshares Inc. | 4,542,684 | 302,361 | |
Bank of New York Mellon Corp. | 4,933,734 | 249,499 | |
Goldman Sachs Group Inc. | 680,249 | 248,842 | |
BNP Paribas SA | 3,526,900 | 242,234 | |
Cincinnati Financial Corp. | 2,086,000 | 236,031 | |
Blackstone Inc. | 2,402,563 | 230,550 | |
Cullen/Frost Bankers Inc. | 1,577,000 | 205,451 | |
Citizens Financial Group Inc. | 4,234,551 | 183,441 | |
Hartford Financial Services Group Inc. | 2,248,500 | 174,506 | |
US Bancorp | 3,166,600 | 157,697 | |
Mitsubishi UFJ Financial Group Inc. ADR | 19,937,000 | 146,936 | |
Truist Financial Corp. | 2,831,319 | 139,839 | |
First Citizens BancShares Inc. Class A | 101,058 | 78,591 | |
NatWest Group plc | 19,290,743 | 73,595 | |
ING Groep NV | 4,579,533 | 66,313 | |
State Street Corp. | 665,188 | 60,752 | |
Equitable Holdings Inc. | 1,842,040 | 59,074 | |
Corebridge Financial Inc. | 2,694,200 | 58,626 | |
Sumitomo Mitsui Financial Group Inc. | 963,900 | 41,892 | |
China Construction Bank Corp. Class H | 51,864,000 | 33,571 | |
9,072,814 | |||
Health Care (15.9%) | |||
Johnson & Johnson | 5,256,926 | 859,087 | |
Medtronic plc | 9,241,880 | 773,453 | |
UnitedHealth Group Inc. | 1,470,864 | 734,241 |
Shares | Market Value ($000) | ||
Danaher Corp. | 2,658,310 | 702,804 | |
Elevance Health Inc. | 1,361,638 | 680,805 | |
HCA Healthcare Inc. | 2,593,800 | 661,600 | |
Cigna Corp. | 1,744,173 | 552,327 | |
Thermo Fisher Scientific Inc. | 804,094 | 458,599 | |
Humana Inc. | 654,541 | 334,929 | |
* | Boston Scientific Corp. | 6,849,195 | 316,775 |
Merck & Co. Inc. | 2,488,000 | 267,236 | |
Amgen Inc. | 1,055,000 | 266,282 | |
Roche Holding AG | 744,449 | 232,395 | |
* | IQVIA Holdings Inc. | 976,253 | 223,962 |
Alcon Inc. | 2,918,000 | 219,463 | |
Zoetis Inc. | 1,252,953 | 207,351 | |
CVS Health Corp. | 2,339,900 | 206,426 | |
* | GE Healthcare Inc. | 2,648,315 | 184,111 |
* | Centene Corp. | 1,832,688 | 139,724 |
Novartis AG ADR | 1,059,800 | 96,039 | |
AbbVie Inc. | 544,967 | 80,519 | |
Zimmer Biomet Holdings Inc. | 612,008 | 77,933 | |
Sanofi ADR | 1,320,391 | 64,884 | |
Gsk plc Spon ADR | 1,567,915 | 55,285 | |
8,396,230 | |||
Industrials (8.8%) | |||
Honeywell International Inc. | 3,870,119 | 806,843 | |
Northrop Grumman Corp. | 990,800 | 443,918 | |
General Electric Co. | 4,984,445 | 401,148 | |
Norfolk Southern Corp. | 1,356,930 | 333,547 | |
Parker-Hannifin Corp. | 964,000 | 314,264 | |
FedEx Corp. | 1,498,140 | 290,430 | |
Waste Management Inc. | 1,740,801 | 269,354 | |
Xylem Inc. | 2,310,000 | 240,263 | |
General Dynamics Corp. | 902,000 | 210,220 | |
Caterpillar Inc. | 709,795 | 179,074 | |
Oshkosh Corp. | 1,690,000 | 170,318 | |
HEICO Corp. | 967,178 | 165,339 | |
Cummins Inc. | 633,672 | 158,127 | |
* | Boeing Co. | 674,400 | 143,647 |
PACCAR Inc. | 1,127,320 | 123,227 | |
CNH Industrial NV | 6,800,299 | 120,501 | |
Raytheon Technologies Corp. | 1,170,100 | 116,835 | |
* | Daimler Truck Holding AG | 2,948,514 | 99,081 |
* | Fluor Corp. | 1,403,385 | 51,574 |
* | Siemens AG (Registered) | 193,374 | 30,206 |
4,667,916 | |||
Information Technology (19.9%) | |||
Microsoft Corp. | 10,826,849 | 2,683,001 | |
Visa Inc. Class A | 2,753,270 | 633,830 | |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 6,298,485 | 584,059 | |
Apple Inc. | 3,764,348 | 543,158 | |
Micron Technology Inc. | 8,303,923 | 500,727 | |
* | Adobe Inc. | 1,195,680 | 442,808 |
Samsung Electronics Co. Ltd. | 8,514,100 | 424,090 | |
* | Workday Inc. Class A | 1,922,500 | 348,799 |
Analog Devices Inc. | 2,017,991 | 346,025 | |
* | Salesforce Inc. | 1,922,283 | 322,886 |
Amphenol Corp. Class A | 3,791,085 | 302,415 | |
Microchip Technology Inc. | 3,874,000 | 300,700 |
Shares | Market Value ($000) | ||
* | F5 Inc. | 1,943,900 | 287,036 |
QUALCOMM Inc. | 2,036,500 | 271,282 | |
* | ANSYS Inc. | 1,000,000 | 266,360 |
Applied Materials Inc. | 2,349,605 | 261,957 | |
* | Autodesk Inc. | 1,170,000 | 251,737 |
Cisco Systems Inc. | 5,084,860 | 247,480 | |
Oracle Corp. | 2,587,625 | 228,901 | |
Accenture plc Class A | 768,526 | 214,457 | |
* | PayPal Holdings Inc. | 2,181,523 | 177,772 |
Seagate Technology Holdings plc | 2,373,398 | 160,869 | |
1 | Telefonaktiebolaget LM Ericsson ADR | 20,290,580 | 117,077 |
Corning Inc. | 3,320,051 | 114,907 | |
TE Connectivity Ltd. | 902,266 | 114,723 | |
Cognex Corp. | 1,852,681 | 101,416 | |
Fidelity National Information Services Inc. | 1,193,200 | 89,538 | |
* | Fiserv Inc. | 586,700 | 62,589 |
Lam Research Corp. | 123,521 | 61,773 | |
Cognizant Technology Solutions Corp. Class A | 866,500 | 57,839 | |
10,520,211 | |||
Materials (2.9%) | |||
Corteva Inc. | 6,320,000 | 407,324 | |
Martin Marietta Materials Inc. | 731,000 | 262,897 | |
RPM International Inc. | 2,399,000 | 215,694 | |
Avery Dennison Corp. | 1,127,728 | 213,637 | |
Ecolab Inc. | 1,258,000 | 194,776 | |
Olin Corp. | 2,625,900 | 169,607 | |
International Paper Co. | 1,016,629 | 42,515 | |
1,506,450 | |||
Other (0.7%) | |||
SPDR S&P 500 ETF Trust | 902,573 | 366,878 | |
Real Estate (1.6%) | |||
Prologis Inc. | 3,627,981 | 469,025 | |
Crown Castle Inc. | 1,560,000 | 231,052 | |
Equity LifeStyle Properties Inc. | 2,142,000 | 153,753 | |
853,830 | |||
Utilities (1.4%) | |||
Atmos Energy Corp. | 2,210,000 | 259,764 | |
Xcel Energy Inc. | 3,638,000 | 250,185 | |
PPL Corp. | 8,270,715 | 244,813 | |
754,762 | |||
Total Common Stocks (Cost $34,882,446) | 50,682,246 |
Shares | Market Value ($000) | ||
Temporary Cash Investments (4.0%) | |||
Money Market Fund (4.0%) | |||
2,3 | Vanguard Market Liquidity Fund, 4.437% (Cost $2,148,324) | 21,488,984 | 2,148,684 |
Total Investments (99.8%) (Cost $37,030,770) | 52,830,930 | ||
Other Assets and Liabilities—Net (0.2%) | 85,946 | ||
Net Assets (100%) | 52,916,876 | ||
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 $30,043,000. |
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 $31,141,000 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 2023 | 2,490 | 509,205 | 32,227 |
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 by methods deemed by the valuation designee to represent fair value and subject to oversight 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, 2023, based on the inputs used to value them:
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 48,751,335 | 1,930,911 | — | 50,682,246 |
Temporary Cash Investments | 2,148,684 | — | — | 2,148,684 |
Total | 50,900,019 | 1,930,911 | — | 52,830,930 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 32,227 | — | — | 32,227 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. |