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: 811-01530
Name of Registrant: | Vanguard Explorer Fund |
Address of Registrant: | P.O. Box 2600 |
Valley Forge, PA 19482 |
Name and address of agent for service: | Anne E. Robinson, 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, 2019—October 31, 2020
Item 1: Reports to Shareholders
Your Fund’s Performance at a Glance | 1 |
Advisors' Report | 2 |
About Your Fund’s Expenses | 8 |
Performance Summary | 10 |
Financial Statements | 12 |
Trustees Approve Advisory Arrangements | 29 |
• | Vanguard Explorer Fund returned 14.08% for Investor Shares and 14.21% for Admiral Shares for the 12 months ended October 31, 2020. The fund trailed its benchmark, the Russell 2500 Growth Index, which returned 21.71%. |
• | The period was marked by the global spread of COVID-19 and efforts to contain it. However, responses from policymakers, the start of trials for vaccines and treatments, and the easing of some pandemic-related restrictions eventually lifted investor sentiment. |
• | Growth stocks outperformed their value counterparts, while large- and mid-capitalization stocks surpassed small-caps. |
• | Returns were positive for six of the fund’s 11 sectors. Stock selection in communication services and industrials and an underweight allocation to utilities boosted relative performance. Weak selection in health care, financials, and consumer discretionary detracted most. |
• | Over the decade ended October 31, 2020, the fund’s average annual return lagged that of its expense-free benchmark. |
Average Annual Total Returns Periods Ended October 31, 2020 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 10.87% | 10.63% | 11.79% |
Russell 2000 Index (Small-caps) | -0.14 | 2.19 | 7.27 |
Russell 3000 Index (Broad U.S. market) | 10.15 | 10.04 | 11.48 |
FTSE All-World ex US Index (International) | -2.17 | 0.13 | 4.52 |
Bonds | |||
Bloomberg Barclays U.S. Aggregate Bond Index (Broad taxable market) | 6.19% | 5.06% | 4.08% |
Bloomberg Barclays Municipal Bond Index (Broad tax-exempt market) | 3.59 | 4.09 | 3.70 |
FTSE Three-Month U.S. Treasury Bill Index | 0.86 | 1.62 | 1.15 |
CPI | |||
Consumer Price Index | 1.18% | 1.82% | 1.83% |
Fund Assets Managed | |||
Investment Advisor | % | $ Million | Investment Strategy |
Wellington Management Company LLP | 36 | 5,973 | Conducts research and analysis of individual companies to select stocks believed to have exceptional growth potential relative to their market valuations. Each stock is considered individually before purchase, and company developments are continually monitored for comparison with expectations for growth. |
ClearBridge Investments, LLC | 16 | 2,730 | The firm seeks to invest in cash-generative, quality growth companies that are category leaders (or have the ability to become market leaders), and display capital allocation discipline aimed at fueling long-term sustainable growth. ClearBridge focuses on cash-flow-based metrics to value companies, as well as revenue or earnings multiples, relying on the most appropriate valuation metrics for each company. This approach aligns with the team’s style of investing in cash generative, quality growth companies. The research process is disciplined and collaborative, with each member of the team executing on a shared investment philosophy and process. |
Stephens Investment Management Group, LLC | 16 | 2,557 | Employs a disciplined, bottom-up investment selection process that combines rigorous fundamental analysis with quantitative screening to identify companies with superior earnings growth potential. The approach screens for core growth stocks and for catalyst stocks. Core growth stocks have strong growth franchises, recurring revenue, and above-average growth rates; catalyst stocks are experiencing changes that could lead to accelerated earnings growth. |
Vanguard Quantitative Equity Group | 15 | 2,524 | Employs a quantitative fundamental management approach, using models that assess valuation, growth prospects, management decisions, market sentiment, and earnings and balance-sheet quality of companies as compared with their peers. |
ArrowMark Partners | 15 | 2,479 | The firm employs a “risk-before-reward“ investment strategy and in-depth fundamental research to uncover companies that, in its opinion, can control environments. The portfolio managers start by identifying businesses with strong competitive advantages in industries with high barriers to entry and then narrow their focus to companies with large potential markets and high-quality business models focused on the future. Across this entire investment process, the team takes steps to deliver strong downside protection, resulting in a diversified portfolio of 75–100 stocks. |
Cash Investments | 2 | 342 | These short-term reserves are invested by Vanguard in equity index products to simulate investment in stocks. Each advisor also may maintain a modest cash position. |
• | 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 October 31, 2020 | |||
Explorer Fund | Beginning Account Value 4/30/2020 | Ending Account Value 10/31/2020 | Expenses Paid During Period |
Based on Actual Fund Return | |||
Investor Shares | $1,000.00 | $1,236.32 | $2.25 |
Admiral™ Shares | 1,000.00 | 1,237.01 | 1.63 |
Based on Hypothetical 5% Yearly Return | |||
Investor Shares | $1,000.00 | $1,023.13 | $2.03 |
Admiral Shares | 1,000.00 | 1,023.68 | 1.48 |
Average Annual Total Returns Periods Ended October 31, 2020 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Explorer Fund Investor Shares | 14.08% | 12.91% | 12.82% | $33,413 | |
Russell 2500 Growth Index | 21.71 | 13.30 | 13.77 | 36,346 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 9.99 | 11.41 | 12.75 | 33,211 |
One Year | Five Year | Ten Years | Final Value of a $50,000 Investment | ||
Explorer Fund Admiral Shares | 14.21% | 13.04% | 12.97% | $169,351 | |
Russell 2500 Growth Index | 21.71 | 13.30 | 13.77 | 181,730 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 9.99 | 11.41 | 12.75 | 166,054 |
Communication Services | 2.7% |
Consumer Discretionary | 12.5 |
Consumer Staples | 2.8 |
Energy | 0.4 |
Financials | 6.8 |
Health Care | 26.1 |
Industrials | 17.9 |
Information Technology | 25.0 |
Materials | 2.0 |
Real Estate | 2.5 |
Utilities | 0.1 |
Other | 1.2 |
Shares | Market Value• ($000) | Percentage of Net Assets | ||
Common Stocks | ||||
†Communication Services* | 427,207 | 2.6% | ||
Consumer Discretionary | ||||
Etsy Inc.* | 1,193,264 | 145,089 | 0.9% | |
Burlington Stores Inc.* | 742,977 | 143,826 | 0.9% | |
Skechers USA Inc. Class A* | 3,870,401 | 122,730 | 0.7% | |
Carter's Inc. | 1,085,652 | 88,426 | 0.5% | |
Five Below Inc.* | 539,500 | 71,937 | 0.4% | |
Hanesbrands Inc. | 4,424,469 | 71,101 | 0.4% | |
Houghton Mifflin Harcourt Co.*,1 | 7,198,968 | 18,789 | 0.1% | |
† | Consumer Discretionary—Other*,2 | 1,349,649 | 8.2% | |
2,011,547 | 12.1% | |||
†Consumer Staples*,2 | 454,538 | 2.7% | ||
†Energy* | 58,191 | 0.4% | ||
Financials | ||||
LPL Financial Holdings Inc. | 1,148,104 | 91,768 | 0.6% | |
Hannon Armstrong Sustainable Infrastructure Capital Inc. | 2,098,984 | 87,842 | 0.5% | |
SVB Financial Group* | 288,603 | 83,897 | 0.5% | |
Western Alliance Bancorp | 1,742,071 | 71,773 | 0.4% | |
† | Financials—Other* | 749,574 | 4.5% | |
1,084,854 | 6.5% | |||
Health Care | ||||
Insulet Corp.* | 696,577 | 154,814 | 0.9% | |
ICON plc* | 780,991 | 140,813 | 0.9% | |
Penumbra Inc.* | 454,512 | 118,641 | 0.7% | |
Omnicell Inc.* | 1,216,331 | 105,273 | 0.6% | |
Hologic Inc.* | 1,529,196 | 105,239 | 0.6% |
Shares | Market Value• ($000) | Percentage of Net Assets | ||
Exact Sciences Corp.* | 736,303 | 91,176 | 0.6% | |
BioTelemetry Inc.*,1 | 2,044,965 | 87,075 | 0.5% | |
Amedisys Inc.* | 326,981 | 84,688 | 0.5% | |
Quidel Corp.* | 305,297 | 81,908 | 0.5% | |
LHC Group Inc.* | 361,825 | 78,353 | 0.5% | |
Acadia Healthcare Co. Inc.* | 2,164,918 | 77,179 | 0.5% | |
Hill-Rom Holdings Inc. | 816,269 | 74,338 | 0.5% | |
Haemonetics Corp.* | 710,545 | 71,829 | 0.4% | |
Globus Medical Inc. Class A* | 1,367,667 | 71,283 | 0.4% | |
† | Health Care—Other*,2 | 2,846,620 | 17.1% | |
4,189,229 | 25.2% | |||
Industrials | ||||
TriNet Group Inc.* | 2,223,867 | 153,269 | 0.9% | |
Trex Co. Inc.* | 1,753,194 | 121,917 | 0.7% | |
Clean Harbors Inc.* | 1,738,171 | 92,071 | 0.6% | |
Kennametal Inc. | 2,706,748 | 83,909 | 0.5% | |
Generac Holdings Inc.* | 379,736 | 79,802 | 0.5% | |
John Bean Technologies Corp. | 944,348 | 79,297 | 0.5% | |
Ritchie Bros Auctioneers Inc. | 1,289,658 | 78,192 | 0.5% | |
Rexnord Corp. | 2,383,097 | 76,450 | 0.5% | |
SPX FLOW Inc.* | 1,781,417 | 75,443 | 0.5% | |
Copart Inc.* | 667,339 | 73,648 | 0.4% | |
Chart Industries Inc.* | 859,742 | 72,605 | 0.4% | |
† | Industrials—Other*,2 | 1,892,034 | 11.3% | |
2,878,637 | 17.3% | |||
Information Technology | ||||
Five9 Inc.* | 1,115,049 | 169,175 | 1.0% | |
Wix.com Ltd.* | 466,604 | 115,400 | 0.7% | |
HubSpot Inc.* | 378,937 | 109,918 | 0.7% | |
SVMK Inc.* | 5,123,312 | 107,231 | 0.7% | |
DocuSign Inc. Class A* | 502,292 | 101,589 | 0.6% | |
Fortinet Inc.* | 848,038 | 93,598 | 0.6% | |
Teradyne Inc. | 950,624 | 83,512 | 0.5% | |
Power Integrations Inc. | 1,363,495 | 82,096 | 0.5% | |
Inphi Corp.* | 574,730 | 80,324 | 0.5% | |
Monolithic Power Systems Inc. | 245,304 | 78,399 | 0.5% | |
SunPower Corp.*,2 | 4,739,834 | 75,790 | 0.5% | |
First Solar Inc.* | 835,307 | 72,709 | 0.4% | |
Mimecast Ltd.* | 1,881,573 | 71,895 | 0.4% | |
Tower Semiconductor Ltd.* | 3,352,578 | 70,739 | 0.4% | |
Cardtronics plc Class A*,1 | 3,199,703 | 56,987 | 0.4% | |
† | Information Technology—Other*,2 | 2,640,100 | 15.8% | |
4,009,462 | 24.2% | |||
Materials | ||||
Smurfit Kappa Group plc | 1,917,978 | 72,368 | 0.4% | |
† | Materials—Other* | 253,481 | 1.6% | |
325,849 | 2.0% | |||
Other | ||||
Vanguard Small-Cap ETF2,3 | 1,249,629 | 196,329 | 1.2% | |
Real Estate | ||||
Life Storage Inc. | 613,138 | 69,990 | 0.4% | |
† | Real Estate—Other* | 336,665 | 2.1% | |
406,655 | 2.5% |
Shares | Market Value• ($000) | Percentage of Net Assets | ||
†Utilities | 24,043 | 0.1% | ||
Total Common Stocks (Cost $12,149,651) | 16,066,541 | 96.8% | ||
Temporary Cash Investments | ||||
Money Market Fund | ||||
Vanguard Market Liquidity Fund, 0.112%4,5 | 4,569,954 | 456,995 | 2.7% | |
Face Amount ($000) | ||||
Repurchase Agreement | ||||
Deutsche Bank Securities, Inc. 0.090%, 11/2/20 (Dated 10/31/20, Repurchase Value $9,700,000, collateralized by U.S. Treasury Bill, 0.000%, 11/5/20, with a value of $9,894,000) | 9,700 | 9,700 | 0.1% | |
†U.S. Government and Agency Obligations6 | 16,499 | 0.1% | ||
Total Temporary Cash Investments (Cost $483,060) | 483,194 | 2.9% | ||
Total Investments (Cost $12,632,711) | 16,549,735 | 99.7% | ||
Other Assets and Liabilities—Net | 54,979 | 0.3% | ||
Net Assets | 16,604,714 | 100.0% | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
† | Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets. |
* | Non-income-producing security. |
1 | Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. |
2 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $176,873,000. |
3 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
4 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
5 | Collateral of $188,089,000 was received for securities on loan. |
6 | Securities with a value of $16,463,000 have been segregated as initial margin for open futures contracts. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini Russell 2000 Index | December 2020 | 4,618 | 354,847 | (5,544) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $11,719,900) | 15,733,560 |
Affiliated Issuers (Cost $912,811) | 816,175 |
Total Investments in Securities | 16,549,735 |
Investment in Vanguard | 693 |
Cash | 1,868 |
Cash Collateral Pledged—Futures Contracts | 9,329 |
Foreign Currency, at Value (Cost $2) | 2 |
Receivables for Investment Securities Sold | 344,147 |
Receivables for Accrued Income | 1,583 |
Receivables for Capital Shares Issued | 4,626 |
Total Assets | 16,911,983 |
Liabilities | |
Payables for Investment Securities Purchased | 93,917 |
Collateral for Securities on Loan | 188,089 |
Payables to Investment Advisor | 6,398 |
Payables for Capital Shares Redeemed | 13,273 |
Payables to Vanguard | 1,328 |
Variation Margin Payable—Futures Contracts | 4,264 |
Total Liabilities | 307,269 |
Net Assets | 16,604,714 |
At October 31, 2020, net assets consisted of: | |
Paid-in Capital | 11,388,238 |
Total Distributable Earnings (Loss) | 5,216,476 |
Net Assets | 16,604,714 |
Investor Shares—Net Assets | |
Applicable to 30,110,640 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 3,325,356 |
Net Asset Value Per Share—Investor Shares | $110.44 |
Admiral Shares—Net Assets | |
Applicable to 129,153,156 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 13,279,358 |
Net Asset Value Per Share—Admiral Shares | $102.82 |
Year Ended October 31, 2020 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 96,008 |
Dividends—Affiliated Issuers | 2,309 |
Interest—Unaffiliated Issuers | 476 |
Interest—Affiliated Issuers | 3,829 |
Securities Lending—Net | 6,888 |
Total Income | 109,510 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 27,410 |
Performance Adjustment | (926) |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 7,797 |
Management and Administrative—Admiral Shares | 15,621 |
Marketing and Distribution—Investor Shares | 312 |
Marketing and Distribution—Admiral Shares | 715 |
Custodian Fees | 101 |
Auditing Fees | 39 |
Shareholders’ Reports—Investor Shares | 124 |
Shareholders’ Reports—Admiral Shares | 190 |
Trustees’ Fees and Expenses | 26 |
Total Expenses | 51,409 |
Net Investment Income | 58,101 |
Realized Net Gain (Loss) | |
Investment Securities Sold—Unaffiliated Issuers | 1,388,587 |
Investment Securities Sold—Affiliated Issuers | (48,495) |
Futures Contracts | 31,228 |
Foreign Currencies | 7 |
Realized Net Gain (Loss) | 1,371,327 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | 728,235 |
Investment Securities—Affiliated Issuers | (41,840) |
Futures Contracts | (10,931) |
Foreign Currencies | 2 |
Change in Unrealized Appreciation (Depreciation) | 675,466 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,104,894 |
1 | Dividends are net of foreign withholding taxes of $371,000. |
Year Ended October 31, | ||
2020 ($000) | 2019 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 58,101 | 65,903 |
Realized Net Gain (Loss) | 1,371,327 | 754,642 |
Change in Unrealized Appreciation (Depreciation) | 675,466 | 659,185 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,104,894 | 1,479,730 |
Distributions1 | ||
Investor Shares | (178,026) | (304,807) |
Admiral Shares | (652,715) | (1,054,055) |
Total Distributions | (830,741) | (1,358,862) |
Capital Share Transactions | ||
Investor Shares | (483,899) | 68,365 |
Admiral Shares | (274,035) | 862,924 |
Net Increase (Decrease) from Capital Share Transactions | (757,934) | 931,289 |
Total Increase (Decrease) | 516,219 | 1,052,157 |
Net Assets | ||
Beginning of Period | 16,088,495 | 15,036,338 |
End of Period | 16,604,714 | 16,088,495 |
1 | Certain prior-period numbers have been reclassified to conform with the current-period presentation. |
Investor Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | |
Net Asset Value, Beginning of Period | $101.66 | $102.25 | $102.10 | $83.91 | $90.55 |
Investment Operations | |||||
Net Investment Income | .2841 | .3331 | .3251 | .4211 | .393 |
Net Realized and Unrealized Gain (Loss) on Investments | 13.688 | 8.234 | 11.192 | 21.657 | 1.581 |
Total from Investment Operations | 13.972 | 8.567 | 11.517 | 22.078 | 1.974 |
Distributions | |||||
Dividends from Net Investment Income | (.295) | (.286) | (.475) | (.318) | (.270) |
Distributions from Realized Capital Gains | (4.897) | (8.871) | (10.892) | (3.570) | (8.344) |
Total Distributions | (5.192) | (9.157) | (11.367) | (3.888) | (8.614) |
Net Asset Value, End of Period | $110.44 | $101.66 | $102.25 | $102.10 | $83.91 |
Total Return2 | 14.08% | 10.15% | 12.12% | 27.10% | 2.47% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $3,325 | $3,520 | $3,420 | $3,520 | $3,324 |
Ratio of Total Expenses to Average Net Assets3 | 0.41% | 0.45% | 0.44% | 0.43% | 0.45% |
Ratio of Net Investment Income to Average Net Assets | 0.28% | 0.33% | 0.31% | 0.45% | 0.46% |
Portfolio Turnover Rate | 43% | 41% | 50% | 76% | 66% |
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%), 0.03%, 0.02%, (0.01%), and (0.02%). |
Admiral Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | |
Net Asset Value, Beginning of Period | $94.64 | $95.24 | $94.99 | $78.07 | $84.28 |
Investment Operations | |||||
Net Investment Income | .3651 | .4091 | .4181 | .4951 | .473 |
Net Realized and Unrealized Gain (Loss) on Investments | 12.752 | 7.648 | 10.405 | 20.145 | 1.455 |
Total from Investment Operations | 13.117 | 8.057 | 10.823 | 20.640 | 1.928 |
Distributions | |||||
Dividends from Net Investment Income | (.378) | (.393) | (.438) | (.403) | (.383) |
Distributions from Realized Capital Gains | (4.559) | (8.264) | (10.135) | (3.317) | (7.755) |
Total Distributions | (4.937) | (8.657) | (10.573) | (3.720) | (8.138) |
Net Asset Value, End of Period | $102.82 | $94.64 | $95.24 | $94.99 | $78.07 |
Total Return2 | 14.21% | 10.27% | 12.24% | 27.25% | 2.60% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $13,279 | $12,569 | $11,616 | $9,514 | $7,496 |
Ratio of Total Expenses to Average Net Assets3 | 0.30% | 0.34% | 0.32% | 0.31% | 0.33% |
Ratio of Net Investment Income to Average Net Assets | 0.39% | 0.44% | 0.43% | 0.57% | 0.58% |
Portfolio Turnover Rate | 43% | 41% | 50% | 76% | 66% |
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%), 0.03%, 0.02%, (0.01%), and (0.02%). |
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, ClearBridge Investments, LLC, Stephens Investment Management Group, LLC, and ArrowMark Colorado Holdings, 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 fees of Wellington Management Company llp and ClearBridge Investments, LLC, are subject to quarterly adjustments based on performance relative to the Russell 2500 Growth Index for the preceding three years. The basic fees of Stephens Investment Management Group, LLC, and ArrowMark Colorado Holdings, LLC, are subject to quarterly adjustments based on performance relative to the Russell 2500 Growth Index for the preceding five 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. | 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 | 15,994,173 | 72,368 | — | 16,066,541 |
Temporary Cash Investments | 456,995 | 26,199 | — | 483,194 |
Total | 16,451,168 | 98,567 | — | 16,549,735 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Future Contracts1 | 4,264 | — | — | 4,264 |
1 | Represents variation margin on the last day of the reporting period. |
E. | Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for foreign currency transactions and distributions in connection with fund share redemptions were reclassified between the following accounts: |
Amount ($000) | |
Paid-in Capital | 79,491 |
Total Distributable Earnings (Loss) | (79,491) |
Amount ($000) | |
Undistributed Ordinary Income | 152,468 |
Undistributed Long-Term Gains | 1,181,913 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 3,882,095 |
Year Ended October 31, | ||
2020 Amount ($000) | 2019 Amount ($000) | |
Ordinary Income* | 60,023 | 348,717 |
Long-Term Capital Gains | 770,718 | 1,010,145 |
Total | 830,741 | 1,358,862 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 12,667,640 |
Gross Unrealized Appreciation | 5,175,312 |
Gross Unrealized Depreciation | (1,293,217) |
Net Unrealized Appreciation (Depreciation) | 3,882,095 |
F. | During the year ended October 31, 2020, the fund purchased $6,560,416,000 of investment securities and sold $7,907,387,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Year Ended October 31, | |||||
2020 | 2019 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 459,953 | 5,209 | 455,601 | 4,726 | |
Issued in Lieu of Cash Distributions | 173,422 | 1,675 | 297,042 | 3,500 | |
Redeemed | (1,117,274) | (11,398) | (684,278) | (7,051) | |
Net Increase (Decrease)—Investor Shares | (483,899) | (4,514) | 68,365 | 1,175 | |
Admiral Shares | |||||
Issued | 1,845,208 | 19,941 | 2,130,012 | 23,355 | |
Issued in Lieu of Cash Distributions | 603,114 | 6,261 | 976,574 | 12,373 | |
Redeemed | (2,722,357) | (29,848) | (2,243,662) | (24,896) | |
Net Increase (Decrease)—Admiral Shares | (274,035) | (3,646) | 862,924 | 10,832 |
H. | Certain of the fund’s investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company or the issuer is another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows: |
Current Period Transactions | ||||||||
Oct. 31, 2019 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Oct. 31, 2020 Market Value ($000) | |
BioTelemetry Inc. | NA1 | 27,401 | 3,348 | (1,166) | 7,153 | — | — | 87,075 |
Cardtronics plc Class A | 110,834 | 19,557 | 28,663 | (2,893) | (41,848) | — | — | 56,987 |
Endologix Inc. | 2,587 | — | 238 | (25,109) | 22,760 | — | — | — |
Houghton Mifflin Harcourt Co. | 45,222 | 1,255 | — | — | (27,688) | — | — | 18,789 |
Vanguard Market Liquidity Fund | 786,814 | NA2 | NA2 | 81 | 78 | 3,829 | — | 456,995 |
Vanguard Small-Cap ETF | 147,939 | 409,117 | 339,024 | (19,408) | (2,295) | 2,309 | — | 196,329 |
Total | 1,093,396 | (48,495) | (41,840) | 6,138 | — | 816,175 |
1 | Not applicable—at October 31, 2019, the issuer was not an affiliated company of the fund. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
I. | Management has determined that no events or transactions occurred subsequent to October 31, 2020, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
December 17, 2020
Joseph Brennan | James M. Norris |
Mortimer J. Buckley | Thomas M. Rampulla |
Gregory Davis | Karin A. Risi |
John James | Anne E. Robinson |
John T. Marcante | Michael Rollings |
Chris D. McIsaac | Lauren Valente |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics. The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.
Item 3: Audit Committee Financial Expert. All members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts and to be independent: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.
Item 4: Principal Accountant Fees and Services.
(a) Audit Fees.
Audit Fees of the Registrant.
Fiscal Year Ended October 31, 2020: $39,000
Fiscal Year Ended October 31, 2019: $40,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended October 31, 2020: $10,761,407
Fiscal Year Ended October 31, 2019: $9,568,215
Includes fees billed in connection with audits of the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(b) Audit-Related Fees.
Fiscal Year Ended October 31, 2020: $2,915,863
Fiscal Year Ended October 31, 2019: $3,012,031
Includes fees billed in connection with assurance and related services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(c) Tax Fees.
Fiscal Year Ended October 31, 2020: $247,168
Fiscal Year Ended October 31, 2019: $357,238
Includes fees billed in connection with tax compliance, planning, and advice services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(d) All Other Fees.
Fiscal Year Ended October 31, 2020: $115,000
Fiscal Year Ended October 31, 2019: $0
Includes fees billed for services related to tax reported information provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(e) (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider, and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.
In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.
The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., or other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant.
(2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.
(g) Aggregate Non-Audit Fees.
Fiscal Year Ended October 31, 2020: $362,168
Fiscal Year Ended October 31, 2019: $357,238
Includes fees billed for non-audit services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
The Registrant is a listed issuer as defined in rule 10A-3 under the Securities Exchange Act of 1934 (“Exchange Act”). The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.
Item 6: Investments.
Shares | Market Value ($000) | ||
Common Stocks (96.8%) | |||
Communication Services (2.6%) | |||
* | Live Nation Entertainment Inc. | 1,292,255 | 63,062 |
New York Times Co. Class A | 1,406,601 | 55,786 | |
* | Match Group Inc. | 406,262 | 47,443 |
* | Bandwidth Inc. Class A | 259,216 | 41,567 |
* | Take-Two Interactive Software Inc. | 241,313 | 37,384 |
* | Roku Inc. | 175,734 | 35,568 |
Cinemark Holdings Inc. | 4,119,884 | 33,742 | |
* | IAC/Inter Active Corp. | 205,307 | 24,785 |
* | Electronic Arts Inc. | 191,163 | 22,907 |
Warner Music Group Corp. Class A | 457,214 | 12,130 | |
* | TechTarget Inc. | 246,070 | 10,778 |
* | Zynga Inc. Class A | 1,107,673 | 9,958 |
* | Cargurus Inc. | 492,074 | 9,807 |
* | Zillow Group Inc. Class A | 72,787 | 6,502 |
* | Boingo Wireless Inc. | 635,230 | 5,933 |
* | EverQuote Inc. Class A | 104,945 | 3,515 |
* | Glu Mobile Inc. | 424,579 | 3,040 |
Cable One Inc. | 1,181 | 2,045 | |
* | Cardlytics Inc. | 17,000 | 1,255 |
427,207 | |||
Consumer Discretionary (12.1%) | |||
* | Etsy Inc. | 1,193,264 | 145,089 |
* | Burlington Stores Inc. | 742,977 | 143,826 |
* | Skechers USA Inc. Class A | 3,870,401 | 122,730 |
Carter's Inc. | 1,085,652 | 88,426 | |
* | Five Below Inc. | 539,500 | 71,937 |
Hanesbrands Inc. | 4,424,469 | 71,101 | |
* | Under Armour Inc. Class C | 5,370,999 | 65,687 |
La-Z-Boy Inc. | 1,868,338 | 63,953 | |
Acushnet Holdings Corp. | 1,825,861 | 62,317 | |
Levi Strauss & Co. Class A | 3,855,312 | 60,837 | |
* | Skyline Champion Corp. | 2,308,259 | 59,207 |
* | Chewy Inc. Class A | 875,974 | 53,960 |
* | Carvana Co. Class A | 272,594 | 50,525 |
* | Chegg Inc. | 679,511 | 49,903 |
* | Deckers Outdoor Corp. | 187,742 | 47,568 |
Shutterstock Inc. | 677,225 | 44,324 | |
Domino's Pizza Inc. | 117,062 | 44,287 | |
* | frontdoor Inc. | 1,085,484 | 43,007 |
Wingstop Inc. | 360,066 | 41,886 | |
Aaron's Holdings Co. Inc. | 767,921 | 40,132 | |
* | Sally Beauty Holdings Inc. | 4,664,874 | 39,045 |
* | Ollie's Bargain Outlet Holdings Inc. | 403,331 | 35,126 |
* | Floor & Decor Holdings Inc. Class A | 429,047 | 31,320 |
* | Farfetch Ltd. Class A | 1,042,879 | 29,336 |
Core-Mark Holding Co. Inc. | 996,979 | 27,267 | |
* | Bright Horizons Family Solutions Inc. | 161,159 | 25,471 |
Pool Corp. | 70,570 | 24,688 | |
* | Vroom Inc. | 566,489 | 23,283 |
* | Dollar Tree Inc. | 250,741 | 22,647 |
* | Purple Innovation Inc. Class A | 786,732 | 22,320 |
* | TopBuild Corp. | 144,824 | 22,189 |
* | Ulta Beauty Inc. | 103,726 | 21,447 |
Polaris Inc. | 212,991 | 19,352 | |
*,1 | Houghton Mifflin Harcourt Co. | 7,198,968 | 18,789 |
Garmin Ltd. | 173,433 | 18,041 | |
Papa John's International Inc. | 226,981 | 17,354 | |
Monro Inc. | 390,730 | 16,434 |
Shares | Market Value ($000) | ||
* | Leslie's Inc. | 700,000 | 15,379 |
Rent-A-Center Inc. | 461,267 | 14,253 | |
Service Corp. International | 301,021 | 13,940 | |
* | Grand Canyon Education Inc. | 161,127 | 12,628 |
* | Lululemon Athletica Inc. | 36,861 | 11,769 |
* | Murphy USA Inc. | 90,760 | 11,099 |
* | Fox Factory Holding Corp. | 126,154 | 10,607 |
* | Planet Fitness Inc. Class A | 157,302 | 9,323 |
* | Stamps.com Inc. | 40,714 | 9,089 |
* | RH | 26,198 | 8,782 |
H&R Block Inc. | 446,342 | 7,704 | |
* | iRobot Corp. | 86,202 | 6,860 |
PulteGroup Inc. | 166,248 | 6,776 | |
* | Kontoor Brands Inc. | 160,536 | 5,282 |
* | Caesars Entertainment Inc. | 106,819 | 4,788 |
Lithia Motors Inc. Class A | 19,638 | 4,508 | |
* | Asbury Automotive Group Inc. | 43,357 | 4,465 |
Lear Corp. | 34,506 | 4,169 | |
Big Lots Inc. | 86,546 | 4,120 | |
* | Helen of Troy Ltd. | 20,425 | 3,873 |
* | Sportsman's Warehouse Holdings Inc. | 291,333 | 3,793 |
* | Tempur Sealy International Inc. | 42,560 | 3,788 |
Winnebago Industries Inc. | 68,381 | 3,211 | |
*,2 | GAN Ltd. | 224,914 | 3,196 |
* | NVR Inc. | 785 | 3,103 |
Gentex Corp. | 103,851 | 2,874 | |
* | Perdoceo Education Corp. | 240,852 | 2,719 |
* | Penn National Gaming Inc. | 47,868 | 2,584 |
* | Sleep Number Corp. | 39,959 | 2,532 |
* | Malibu Boats Inc. Class A | 48,595 | 2,470 |
* | CarParts.com Inc. | 187,789 | 2,383 |
Camping World Holdings Inc. Class A | 88,652 | 2,344 | |
* | Gentherm Inc. | 48,828 | 2,260 |
* | Dorman Products Inc. | 23,466 | 2,095 |
* | El Pollo Loco Holdings Inc. | 134,943 | 1,905 |
* | Lovesac Co. | 63,737 | 1,641 |
* | 1-800-Flowers.com Inc. Class A | 82,498 | 1,636 |
PetMed Express Inc. | 55,128 | 1,631 | |
Strategic Education Inc. | 17,268 | 1,434 | |
Standard Motor Products Inc. | 29,267 | 1,340 | |
* | Waitr Holdings Inc. | 518,275 | 1,322 |
Ruth's Hospitality Group Inc. | 95,207 | 1,064 | |
* | Scientific Games Corp. Class A | 28,632 | 913 |
Collectors Universe Inc. | 15,591 | 856 | |
* | Master Craft Boat Holdings Inc. | 34,475 | 711 |
Brinker International Inc. | 15,475 | 674 | |
* | Overstock.com Inc. | 11,845 | 665 |
* | Vivint Smart Home Inc. | 41,682 | 648 |
* | Everi Holdings Inc. | 58,754 | 506 |
* | WW International Inc. | 19,685 | 417 |
* | Accel Entertainment Inc. Class A | 41,119 | 395 |
* | MercadoLibre Inc. | 175 | 212 |
2,011,547 | |||
Consumer Staples (2.7%) | |||
Nu Skin Enterprises Inc. Class A | 1,412,345 | 69,699 | |
* | BJ's Wholesale Club Holdings Inc. | 1,624,266 | 62,193 |
* | Performance Food Group Co. | 1,743,091 | 58,585 |
* | Nomad Foods Ltd. | 2,407,962 | 58,393 |
Sanderson Farms Inc. | 391,981 | 50,162 | |
Casey's General Stores Inc. | 257,433 | 43,396 | |
Calavo Growers Inc. | 388,758 | 26,097 |
Shares | Market Value ($000) | ||
* | Monster Beverage Corp. | 310,321 | 23,761 |
Coca-Cola Consolidated Inc. | 59,895 | 13,713 | |
2 | B&G Foods Inc. | 437,593 | 11,623 |
* | Herbalife Nutrition Ltd. | 160,896 | 7,263 |
* | Beyond Meat Inc. | 32,829 | 4,676 |
*,2 | National Beverage Corp. | 52,458 | 4,107 |
John B Sanfilippo & Son Inc. | 53,555 | 3,897 | |
Reynolds Consumer Products Inc. | 114,685 | 3,239 | |
Medifast Inc. | 19,682 | 2,765 | |
Turning Point Brands Inc. | 59,064 | 2,213 | |
* | USANA Health Sciences Inc. | 27,272 | 2,063 |
* | Hostess Brands Inc. Class A | 157,207 | 1,987 |
* | TreeHouse Foods Inc. | 41,101 | 1,596 |
* | elf Beauty Inc. | 64,296 | 1,303 |
* | Sprouts Farmers Market Inc. | 60,480 | 1,152 |
Tootsie Roll Industries Inc. | 21,920 | 655 | |
454,538 | |||
Energy (0.4%) | |||
Delek US Holdings Inc. | 1,788,075 | 17,988 | |
Cabot Oil & Gas Corp. | 724,794 | 12,894 | |
Viper Energy Partners LP | 1,652,764 | 11,586 | |
* | ChampionX Corp. | 869,132 | 7,588 |
Pioneer Natural Resources Co. | 61,732 | 4,911 | |
* | Renewable Energy Group Inc. | 26,753 | 1,509 |
* | Magnolia Oil & Gas Corp. Class A | 315,461 | 1,369 |
* | CONSOL Energy Inc. | 91,268 | 346 |
58,191 | |||
Financials (6.5%) | |||
LPL Financial Holdings Inc. | 1,148,104 | 91,768 | |
Hannon Armstrong Sustainable Infrastructure Capital Inc. | 2,098,984 | 87,842 | |
* | SVB Financial Group | 288,603 | 83,897 |
Western Alliance Bancorp | 1,742,071 | 71,773 | |
Assurant Inc. | 562,139 | 69,913 | |
Tradeweb Markets Inc. Class A | 1,163,043 | 63,363 | |
Sterling Bancorp | 4,709,653 | 63,015 | |
Synovus Financial Corp. | 2,315,875 | 60,213 | |
RenaissanceRe Holdings Ltd. | 359,733 | 58,176 | |
Voya Financial Inc. | 1,190,033 | 57,038 | |
MarketAxess Holdings Inc. | 99,068 | 53,383 | |
Assured Guaranty Ltd. | 1,948,127 | 49,736 | |
* | Green Dot Corp. Class A | 740,137 | 39,464 |
* | Palomar Holdings Inc. | 332,105 | 29,614 |
* | PRA Group Inc. | 779,630 | 26,609 |
FirstCash Inc. | 386,223 | 20,099 | |
Piper Sandler Cos. | 231,143 | 19,289 | |
WisdomTree Investments Inc. | 5,210,024 | 18,964 | |
* | Encore Capital Group Inc. | 579,334 | 18,498 |
Primerica Inc. | 156,696 | 17,274 | |
MSCI Inc. Class A | 44,296 | 15,496 | |
Bank OZK | 619,601 | 15,354 | |
Walker & Dunlop Inc. | 112,381 | 7,067 | |
Erie Indemnity Co. Class A | 25,501 | 5,938 | |
* | Enova International Inc. | 304,985 | 4,682 |
Virtu Financial Inc. Class A | 201,061 | 4,299 | |
Kinsale Capital Group Inc. | 22,844 | 4,283 | |
* | eHealth Inc. | 43,761 | 2,937 |
Prosperity Bancshares Inc. | 45,843 | 2,526 | |
Cowen Inc. Class A | 113,508 | 2,436 | |
Artisan Partners Asset Management Inc. Class A | 60,138 | 2,409 | |
FactSet Research Systems Inc. | 7,846 | 2,405 |
Shares | Market Value ($000) | ||
Universal Insurance Holdings Inc. | 184,462 | 2,300 | |
* | Trupanion Inc. | 30,429 | 2,177 |
Brightsphere Investment Group Inc. | 152,337 | 2,102 | |
Virtus Investment Partners Inc. | 11,539 | 1,841 | |
Bank of NT Butterfield & Son Ltd. | 58,402 | 1,545 | |
First Financial Bankshares Inc. | 46,159 | 1,376 | |
Ares Management Corp. Class A | 25,371 | 1,073 | |
* | Selectquote Inc. | 57,471 | 990 |
SLM Corp. | 73,222 | 673 | |
PennyMac Financial Services Inc. | 12,454 | 633 | |
Cohen & Steers Inc. | 6,828 | 384 | |
1,084,854 | |||
Health Care (25.2%) | |||
* | Insulet Corp. | 696,577 | 154,814 |
* | ICON plc | 780,991 | 140,813 |
* | Penumbra Inc. | 454,512 | 118,641 |
* | Omnicell Inc. | 1,216,331 | 105,273 |
* | Hologic Inc. | 1,529,196 | 105,239 |
* | Exact Sciences Corp. | 736,303 | 91,176 |
*,1 | BioTelemetry Inc. | 2,044,965 | 87,075 |
* | Amedisys Inc. | 326,981 | 84,688 |
* | Quidel Corp. | 305,297 | 81,908 |
* | LHC Group Inc. | 361,825 | 78,353 |
* | Acadia Healthcare Co. Inc. | 2,164,918 | 77,179 |
Hill-Rom Holdings Inc. | 816,269 | 74,338 | |
* | Haemonetics Corp. | 710,545 | 71,829 |
* | Globus Medical Inc. Class A | 1,367,667 | 71,283 |
STERIS plc | 392,969 | 69,630 | |
* | Molina Healthcare Inc. | 364,956 | 68,053 |
* | ABIOMED Inc. | 251,423 | 63,328 |
Encompass Health Corp. | 1,021,343 | 62,619 | |
* | Catalent Inc. | 708,559 | 62,190 |
* | Kodiak Sciences Inc. | 683,335 | 62,054 |
* | Ultragenyx Pharmaceutical Inc. | 617,122 | 62,021 |
* | Mettler-Toledo International Inc. | 61,758 | 61,629 |
* | Varian Medical Systems Inc. | 349,592 | 60,410 |
* | Merit Medical Systems Inc. | 1,166,285 | 58,373 |
* | Charles River Laboratories International Inc. | 255,513 | 58,180 |
* | Repligen Corp. | 344,081 | 57,314 |
* | IDEXX Laboratories Inc. | 131,094 | 55,691 |
* | HealthEquity Inc. | 1,044,349 | 53,774 |
* | Avanos Medical Inc. | 1,388,472 | 49,082 |
* | Avantor Inc. | 2,036,867 | 47,398 |
* | Syneos Health Inc. | 886,186 | 47,039 |
Bio-Techne Corp. | 178,518 | 45,060 | |
* | ImmunoGen Inc. | 7,554,606 | 42,608 |
* | Neurocrine Biosciences Inc. | 413,824 | 40,832 |
* | PRA Health Sciences Inc. | 396,270 | 38,613 |
* | Integra LifeSciences Holdings Corp. | 874,876 | 38,582 |
* | DexCom Inc. | 119,295 | 38,124 |
* | Arena Pharmaceuticals Inc. | 436,917 | 37,453 |
* | Glaukos Corp. | 653,683 | 36,554 |
* | Horizon Therapeutics plc | 478,517 | 35,855 |
ResMed Inc. | 184,735 | 35,458 | |
* | Dicerna Pharmaceuticals Inc. | 1,673,053 | 35,117 |
* | Ascendis Pharma A/S ADR | 213,450 | 34,867 |
* | Veracyte Inc. | 976,256 | 33,837 |
* | PPD Inc. | 1,025,683 | 33,724 |
* | Tandem Diabetes Care Inc. | 305,177 | 33,264 |
* | Y-mAbs Therapeutics Inc. | 770,982 | 32,952 |
* | Biohaven Pharmaceutical Holding Co. Ltd. | 412,950 | 31,987 |
Shares | Market Value ($000) | ||
* | Mirati Therapeutics Inc. | 147,266 | 31,977 |
*,2 | CRISPR Therapeutics AG | 322,408 | 29,604 |
* | Turning Point Therapeutics Inc. | 317,544 | 29,274 |
Cooper Cos. Inc. | 88,562 | 28,256 | |
* | TG Therapeutics Inc. | 1,111,814 | 28,096 |
* | Deciphera Pharmaceuticals Inc. | 481,260 | 27,947 |
* | Apellis Pharmaceuticals Inc. | 839,571 | 26,782 |
* | AMN Healthcare Services Inc. | 405,167 | 26,449 |
* | Halozyme Therapeutics Inc. | 920,229 | 25,766 |
* | MEDNAX Inc. | 1,992,373 | 25,403 |
* | Sarepta Therapeutics Inc. | 183,531 | 24,944 |
*,2 | Ligand Pharmaceuticals Inc. | 297,263 | 24,509 |
* | Pacira BioSciences Inc. | 452,193 | 23,650 |
* | ChemoCentryx Inc. | 484,165 | 23,240 |
Chemed Corp. | 48,577 | 23,235 | |
* | Novocure Ltd. | 190,188 | 23,222 |
* | Neogen Corp. | 321,343 | 22,410 |
* | Heron Therapeutics Inc. | 1,360,094 | 22,183 |
* | Revance Therapeutics Inc. | 827,087 | 21,405 |
Cerner Corp. | 302,175 | 21,179 | |
* | Theravance Biopharma Inc. | 1,108,584 | 20,963 |
* | Axogen Inc. | 1,628,287 | 20,533 |
* | Constellation Pharmaceuticals Inc. | 1,018,874 | 19,990 |
* | Agios Pharmaceuticals Inc. | 494,620 | 19,819 |
* | HMS Holdings Corp. | 728,814 | 19,401 |
* | BioMarin Pharmaceutical Inc. | 257,872 | 19,193 |
* | Medpace Holdings Inc. | 171,414 | 19,017 |
* | Align Technology Inc. | 42,060 | 17,921 |
Bruker Corp. | 400,004 | 17,016 | |
* | Veeva Systems Inc. Class A | 61,250 | 16,541 |
*,2 | Ontrak Inc. | 264,000 | 16,167 |
* | Illumina Inc. | 53,148 | 15,556 |
* | Natera Inc. | 218,137 | 14,672 |
* | Acceleron Pharma Inc. | 128,713 | 13,461 |
* | Exelixis Inc. | 649,357 | 13,299 |
* | Nevro Corp. | 86,838 | 12,957 |
* | NuVasive Inc. | 285,233 | 12,673 |
*,2 | Viking Therapeutics Inc. | 2,242,589 | 12,626 |
PerkinElmer Inc. | 90,223 | 11,688 | |
* | Allakos Inc. | 118,383 | 11,262 |
* | SpringWorks Therapeutics Inc. | 186,351 | 10,807 |
* | Teladoc Health Inc. | 53,703 | 10,551 |
* | Pacific Biosciences of California Inc. | 793,203 | 10,399 |
* | Schrodinger Inc. | 213,002 | 10,390 |
* | Masimo Corp. | 46,385 | 10,382 |
* | Ironwood Pharmaceuticals Inc. Class A | 1,016,860 | 10,047 |
* | Guardant Health Inc. | 93,371 | 9,959 |
* | iRhythm Technologies Inc. | 44,229 | 9,352 |
* | Iovance Biotherapeutics Inc. | 257,417 | 9,185 |
* | Emergent BioSolutions Inc. | 101,805 | 9,159 |
* | Tenet Healthcare Corp. | 358,401 | 8,795 |
* | Ionis Pharmaceuticals Inc. | 185,258 | 8,698 |
* | Enanta Pharmaceuticals Inc. | 197,931 | 8,636 |
Ensign Group Inc. | 138,950 | 8,176 | |
* | Bluebird Bio Inc. | 156,164 | 8,075 |
* | Select Medical Holdings Corp. | 367,418 | 7,708 |
*,2 | Esperion Therapeutics Inc. | 251,311 | 7,532 |
* | Retrophin Inc. | 360,153 | 7,290 |
* | MacroGenics Inc. | 375,303 | 7,285 |
* | Inovalon Holdings Inc. Class A | 346,099 | 6,572 |
Luminex Corp. | 288,585 | 6,360 |
Shares | Market Value ($000) | ||
* | Puma Biotechnology Inc. | 749,514 | 6,273 |
* | Immunovant Inc. | 141,405 | 6,168 |
* | Akebia Therapeutics Inc. | 2,706,816 | 6,009 |
* | Corcept Therapeutics Inc. | 344,204 | 5,776 |
* | Vanda Pharmaceuticals Inc. | 516,657 | 5,523 |
* | Alkermes plc | 327,679 | 5,325 |
* | Integer Holdings Corp. | 85,540 | 5,000 |
* | Pennant Group Inc. | 112,640 | 4,693 |
* | Voyager Therapeutics Inc. | 423,207 | 4,499 |
* | Bioxcel Therapeutics Inc. | 96,958 | 4,430 |
* | Cytokinetics Inc. | 287,013 | 4,411 |
* | ACADIA Pharmaceuticals Inc. | 87,601 | 4,069 |
* | GenMark Diagnostics Inc. | 325,474 | 3,977 |
* | Reata Pharmaceuticals Inc. Class A | 33,435 | 3,902 |
West Pharmaceutical Services Inc. | 13,983 | 3,804 | |
* | BioCryst Pharmaceuticals Inc. | 976,071 | 3,729 |
*,2 | Inovio Pharmaceuticals Inc. | 361,812 | 3,564 |
* | Minerva Neurosciences Inc. | 1,090,295 | 3,500 |
* | Agenus Inc. | 927,100 | 3,421 |
*,2 | Inari Medical Inc. | 48,333 | 3,200 |
* | Tivity Health Inc. | 231,180 | 3,179 |
* | OraSure Technologies Inc. | 206,907 | 3,091 |
* | Meridian Bioscience Inc. | 177,936 | 3,052 |
* | Silk Road Medical Inc. | 47,078 | 2,853 |
* | Providence Service Corp. | 23,857 | 2,804 |
* | Kiniksa Pharmaceuticals Ltd. Class A | 176,349 | 2,762 |
* | CytomX Therapeutics Inc. | 386,011 | 2,555 |
US Physical Therapy Inc. | 31,926 | 2,533 | |
* | Editas Medicine Inc. | 81,620 | 2,525 |
* | Intercept Pharmaceuticals Inc. | 89,607 | 2,490 |
* | Novavax Inc. | 30,779 | 2,484 |
* | AdaptHealth Corp. Class A | 89,785 | 2,451 |
*,2 | VBI Vaccines Inc. | 1,033,230 | 2,428 |
* | Molecular Templates Inc. | 258,600 | 2,286 |
* | Karyopharm Therapeutics Inc. | 153,747 | 2,279 |
* | Selecta Biosciences Inc. | 762,646 | 2,257 |
* | CareDx Inc. | 45,030 | 2,209 |
* | Fortress Biotech Inc. | 1,001,176 | 2,203 |
*,2 | Sutro Biopharma Inc. | 169,896 | 2,185 |
*,2 | Fulgent Genetics Inc. | 63,902 | 2,079 |
* | Precision BioSciences Inc. | 329,369 | 2,078 |
* | Sangamo Therapeutics Inc. | 196,929 | 2,036 |
* | Seres Therapeutics Inc. | 72,617 | 2,025 |
* | Accolade Inc. | 55,602 | 1,947 |
* | Surgery Partners Inc. | 86,031 | 1,877 |
* | MannKind Corp. | 864,279 | 1,737 |
* | Intellia Therapeutics Inc. | 71,582 | 1,714 |
* | ICU Medical Inc. | 9,554 | 1,699 |
* | CryoPort Inc. | 42,135 | 1,691 |
* | Allscripts Healthcare Solutions Inc. | 167,460 | 1,688 |
* | Ovid therapeutics Inc. | 329,467 | 1,684 |
* | Xencor Inc. | 42,235 | 1,621 |
* | Radius Health Inc. | 116,111 | 1,557 |
* | Rocket Pharmaceuticals Inc. | 51,510 | 1,439 |
*,2 | NantKwest Inc. | 191,088 | 1,435 |
*,2 | Chembio Diagnostics Inc. | 300,381 | 1,424 |
* | Karuna Therapeutics Inc. | 16,539 | 1,343 |
* | Amicus Therapeutics Inc. | 74,098 | 1,321 |
*,2 | Zynex Inc. | 96,441 | 1,235 |
* | AtriCure Inc. | 35,257 | 1,218 |
* | Allogene Therapeutics Inc. | 35,132 | 1,192 |
Shares | Market Value ($000) | ||
* | Arcturus Therapeutics Holdings Inc. | 21,864 | 1,182 |
* | Innoviva Inc. | 107,580 | 1,163 |
* | Amphastar Pharmaceuticals Inc. | 59,325 | 1,162 |
* | Denali Therapeutics Inc. | 24,957 | 1,068 |
* | NextCure Inc. | 108,667 | 1,050 |
* | FibroGen Inc. | 25,369 | 974 |
* | Arvinas Inc. | 45,181 | 945 |
* | American Well Corp. Class A | 36,560 | 944 |
* | Evolent Health Inc. Class A | 94,300 | 937 |
*,2 | Co-Diagnostics Inc. | 67,528 | 906 |
*,2 | Accelerate Diagnostics Inc. | 95,838 | 903 |
* | Zogenix Inc. | 40,939 | 873 |
* | Protagonist Therapeutics Inc. | 39,674 | 752 |
* | Spero Therapeutics Inc. | 54,307 | 712 |
*,2 | Acorda Therapeutics Inc. | 775,332 | 678 |
* | Kadmon Holdings Inc. | 197,694 | 672 |
* | AVEO Pharmaceuticals Inc. | 123,820 | 672 |
* | Myriad Genetics Inc. | 53,493 | 665 |
* | Acutus Medical Inc. | 28,968 | 663 |
* | Beam Therapeutics Inc. | 18,469 | 631 |
*,2 | Vaxart Inc. | 126,018 | 620 |
* | Vocera Communications Inc. | 18,323 | 601 |
* | Cue Biopharma Inc. | 53,792 | 599 |
* | Syros Pharmaceuticals Inc. | 89,395 | 596 |
* | Castle Biosciences Inc. | 12,827 | 596 |
*,2 | Clovis Oncology Inc. | 117,481 | 579 |
* | Retractable Technologies Inc. | 76,472 | 561 |
* | Assertio Holdings Inc. | 879,479 | 545 |
* | ZIOPHARM Oncology Inc. | 253,023 | 529 |
* | Arrowhead Pharmaceuticals Inc. | 9,138 | 524 |
* | 1Life Healthcare Inc. | 17,616 | 497 |
*,2 | Affimed NV | 155,960 | 493 |
* | Ocular Therapeutix Inc. | 51,824 | 492 |
* | Albireo Pharma Inc. | 15,432 | 487 |
*,2 | Cassava Sciences Inc. | 58,739 | 482 |
*,2 | Kala Pharmaceuticals Inc. | 66,801 | 441 |
* | Amneal Pharmaceuticals Inc. | 100,443 | 418 |
* | Translate Bio Inc. | 29,452 | 378 |
* | Aquestive Therapeutics Inc. | 77,579 | 375 |
4,189,229 | |||
Industrials (17.3%) | |||
* | TriNet Group Inc. | 2,223,867 | 153,269 |
* | Trex Co. Inc. | 1,753,194 | 121,917 |
* | Clean Harbors Inc. | 1,738,171 | 92,071 |
Kennametal Inc. | 2,706,748 | 83,909 | |
* | Generac Holdings Inc. | 379,736 | 79,802 |
John Bean Technologies Corp. | 944,348 | 79,297 | |
Ritchie Bros Auctioneers Inc. | 1,289,658 | 78,192 | |
Rexnord Corp. | 2,383,097 | 76,450 | |
* | SPX FLOW Inc. | 1,781,417 | 75,443 |
* | Copart Inc. | 667,339 | 73,648 |
* | Chart Industries Inc. | 859,742 | 72,605 |
* | Kirby Corp. | 1,727,517 | 66,492 |
BWX Technologies Inc. | 1,205,936 | 66,339 | |
* | Ingersoll Rand Inc. | 1,890,008 | 66,037 |
Woodward Inc. | 818,518 | 65,113 | |
EnerSys | 890,982 | 63,794 | |
* | Sensata Technologies Holding plc | 1,436,386 | 62,784 |
Fortune Brands Home & Security Inc. | 760,391 | 61,493 | |
ABM Industries Inc. | 1,577,631 | 54,775 | |
Advanced Drainage Systems Inc. | 857,550 | 54,394 |
Shares | Market Value ($000) | ||
Enerpac Tool Group Corp. Class A | 2,954,892 | 52,686 | |
GATX Corp. | 738,559 | 50,429 | |
IDEX Corp. | 292,330 | 49,810 | |
* | BMC Stock Holdings Inc. | 1,243,254 | 49,220 |
Matson Inc. | 905,264 | 47,028 | |
TransUnion | 574,622 | 45,774 | |
* | Masonite International Corp. | 519,706 | 45,734 |
* | AerCap Holdings NV | 1,767,122 | 43,878 |
* | United Rentals Inc. | 245,230 | 43,722 |
Rush Enterprises Inc. Class A | 1,198,174 | 42,943 | |
* | XPO Logistics Inc. | 460,105 | 41,409 |
* | SiteOne Landscape Supply Inc. | 336,417 | 40,198 |
Verisk Analytics Inc. Class A | 220,310 | 39,209 | |
* | Middleby Corp. | 371,829 | 37,012 |
* | Axon Enterprise Inc. | 357,896 | 35,396 |
* | Kornit Digital Ltd. | 492,286 | 33,141 |
Tennant Co. | 536,828 | 32,006 | |
Forward Air Corp. | 505,816 | 31,851 | |
* | Teledyne Technologies Inc. | 101,980 | 31,527 |
* | RBC Bearings Inc. | 261,204 | 31,096 |
* | Kratos Defense & Security Solutions Inc. | 1,517,168 | 28,659 |
* | CoStar Group Inc. | 33,860 | 27,887 |
* | Proto Labs Inc. | 231,883 | 27,381 |
CH Robinson Worldwide Inc. | 289,056 | 25,561 | |
HEICO Corp. Class A | 246,777 | 23,074 | |
* | Cimpress plc | 313,857 | 23,037 |
* | Mercury Systems Inc. | 329,570 | 22,701 |
Rockwell Automation Inc. | 84,009 | 19,920 | |
IHS Markit Ltd. | 230,596 | 18,648 | |
* | AZEK Co. Inc. Class A | 556,347 | 18,604 |
Landstar System Inc. | 144,043 | 17,962 | |
* | Array Technologies Inc. | 433,680 | 15,981 |
* | Vertiv Holdings Co. Class A | 807,784 | 14,257 |
JB Hunt Transport Services Inc. | 110,154 | 13,410 | |
UFP Industries Inc. | 263,471 | 13,150 | |
Heartland Express Inc. | 689,870 | 12,632 | |
Tetra Tech Inc. | 108,804 | 10,979 | |
* | Builders FirstSource Inc. | 361,490 | 10,953 |
* | Aerojet Rocketdyne Holdings Inc. | 303,690 | 9,846 |
EMCOR Group Inc. | 139,968 | 9,544 | |
* | GMS Inc. | 415,465 | 9,390 |
* | Atkore International Group Inc. | 422,125 | 8,734 |
Simpson Manufacturing Co. Inc. | 87,777 | 7,788 | |
* | HD Supply Holdings Inc. | 183,636 | 7,320 |
Albany International Corp. Class A | 126,862 | 6,462 | |
MSA Safety Inc. | 47,640 | 6,285 | |
Exponent Inc. | 89,232 | 6,210 | |
* | AeroVironment Inc. | 77,889 | 5,948 |
Allegion plc | 59,809 | 5,891 | |
* | MRC Global Inc. | 1,335,510 | 5,689 |
Terex Corp. | 223,073 | 5,508 | |
* | MasTec Inc. | 97,561 | 4,843 |
Applied Industrial Technologies Inc. | 69,760 | 4,259 | |
Allison Transmission Holdings Inc. | 109,115 | 3,945 | |
* | American Woodmark Corp. | 45,560 | 3,764 |
Franklin Electric Co. Inc. | 61,657 | 3,683 | |
* | SPX Corp. | 79,437 | 3,367 |
* | TrueBlue Inc. | 216,816 | 3,365 |
Werner Enterprises Inc. | 86,960 | 3,306 | |
* | Foundation Building Materials Inc. | 214,829 | 3,128 |
Acuity Brands Inc. | 35,085 | 3,127 |
Shares | Market Value ($000) | ||
Hubbell Inc. Class B | 20,831 | 3,031 | |
* | FTI Consulting Inc. | 30,647 | 3,018 |
* | Alpha Pro Tech Ltd. | 188,962 | 2,681 |
Nordson Corp. | 13,847 | 2,678 | |
* | Atlas Air Worldwide Holdings Inc. | 44,861 | 2,654 |
CoreLogic Inc. | 33,808 | 2,601 | |
Huntington Ingalls Industries Inc. | 12,221 | 1,802 | |
* | ASGN Inc. | 15,853 | 1,057 |
* | Gibraltar Industries Inc. | 18,302 | 1,051 |
AAON Inc. | 17,962 | 1,049 | |
* | WillScot Mobile Mini Holdings Corp. Class A | 54,142 | 1,006 |
* | Ameresco Inc. Class A | 25,333 | 973 |
* | Vicor Corp. | 11,759 | 917 |
Steelcase Inc. Class A | 83,445 | 871 | |
*,2 | ExOne Co. | 83,991 | 844 |
Graco Inc. | 13,387 | 829 | |
* | Cornerstone Building Brands Inc. | 85,085 | 653 |
Argan Inc. | 15,021 | 619 | |
* | Herc Holdings Inc. | 13,842 | 614 |
* | Dycom Industries Inc. | 8,455 | 549 |
Covanta Holding Corp. | 60,223 | 547 | |
ESCO Technologies Inc. | 6,001 | 502 | |
2,878,637 | |||
Information Technology (24.2%) | |||
* | Five9 Inc. | 1,115,049 | 169,175 |
* | Wix.com Ltd. | 466,604 | 115,400 |
* | HubSpot Inc. | 378,937 | 109,918 |
* | SVMK Inc. | 5,123,312 | 107,231 |
* | DocuSign Inc. Class A | 502,292 | 101,589 |
* | Fortinet Inc. | 848,038 | 93,598 |
Teradyne Inc. | 950,624 | 83,512 | |
Power Integrations Inc. | 1,363,495 | 82,096 | |
* | Inphi Corp. | 574,730 | 80,324 |
Monolithic Power Systems Inc. | 245,304 | 78,399 | |
*,2 | SunPower Corp. | 4,739,834 | 75,790 |
* | First Solar Inc. | 835,307 | 72,709 |
* | Mimecast Ltd. | 1,881,573 | 71,895 |
* | Tower Semiconductor Ltd. | 3,352,578 | 70,739 |
* | GoDaddy Inc. Class A | 958,928 | 67,835 |
* | ON Semiconductor Corp. | 2,702,759 | 67,812 |
* | Cadence Design Systems Inc. | 611,064 | 66,832 |
* | New Relic Inc. | 1,041,420 | 63,173 |
* | J2 Global Inc. | 912,597 | 61,947 |
* | SolarWinds Corp. | 2,949,028 | 60,249 |
* | Arrow Electronics Inc. | 746,484 | 58,144 |
Science Applications International Corp. | 759,235 | 57,983 | |
*,1 | Cardtronics plc Class A | 3,199,703 | 56,987 |
MKS Instruments Inc. | 521,340 | 56,508 | |
* | Medallia Inc. | 1,937,455 | 55,121 |
* | Cloudera Inc. | 5,574,066 | 54,180 |
* | Proofpoint Inc. | 562,711 | 53,874 |
* | Ciena Corp. | 1,352,738 | 53,284 |
* | Manhattan Associates Inc. | 607,005 | 51,899 |
* | 2U Inc. | 1,363,059 | 50,229 |
* | Cornerstone OnDemand Inc. | 1,318,299 | 50,082 |
* | Envestnet Inc. | 632,745 | 48,557 |
* | IPG Photonics Corp. | 248,747 | 46,257 |
* | Everbridge Inc. | 438,333 | 45,889 |
Entegris Inc. | 606,870 | 45,376 | |
MAXIMUS Inc. | 650,213 | 43,941 | |
* | RealPage Inc. | 768,906 | 42,820 |
Shares | Market Value ($000) | ||
* | FireEye Inc. | 3,058,246 | 42,326 |
* | Sprout Social Inc. Class A | 962,653 | 42,068 |
* | Slack Technologies Inc. Class A | 1,522,783 | 38,953 |
Jack Henry & Associates Inc. | 240,314 | 35,627 | |
* | Nuance Communications Inc. | 1,108,911 | 35,385 |
* | Pluralsight Inc. Class A | 2,188,534 | 34,360 |
* | RingCentral Inc. Class A | 132,015 | 34,105 |
* | Semtech Corp. | 594,548 | 32,635 |
Microchip Technology Inc. | 301,319 | 31,663 | |
* | Trimble Inc. | 651,768 | 31,370 |
* | Tyler Technologies Inc. | 78,438 | 30,150 |
* | Euronet Worldwide Inc. | 338,829 | 30,102 |
* | Smartsheet Inc. Class A | 577,490 | 28,788 |
* | Fair Isaac Corp. | 72,900 | 28,537 |
Belden Inc. | 890,852 | 27,510 | |
* | Silicon Laboratories Inc. | 262,322 | 26,878 |
Booz Allen Hamilton Holding Corp. Class A | 338,869 | 26,601 | |
* | Gartner Inc. | 215,506 | 25,882 |
Cognex Corp. | 378,041 | 24,913 | |
* | Black Knight Inc. | 272,988 | 24,009 |
* | Q2 Holdings Inc. | 256,314 | 23,386 |
* | Zendesk Inc. | 205,600 | 22,809 |
* | Dynatrace Inc. | 645,440 | 22,790 |
* | SolarEdge Technologies Inc. | 88,283 | 22,750 |
* | PTC Inc. | 267,458 | 22,434 |
* | ANSYS Inc. | 66,435 | 20,221 |
* | Workiva Inc. Class A | 362,633 | 20,057 |
* | Aspen Technology Inc. | 180,876 | 19,862 |
* | Anaplan Inc. | 358,639 | 19,851 |
* | Synaptics Inc. | 244,540 | 18,749 |
* | Enphase Energy Inc. | 189,565 | 18,594 |
* | Qualys Inc. | 200,927 | 17,651 |
* | Palo Alto Networks Inc. | 78,480 | 17,359 |
* | WEX Inc. | 135,015 | 17,086 |
* | Rapid7 Inc. | 273,459 | 16,935 |
* | ChannelAdvisor Corp. | 1,025,266 | 16,609 |
* | Atlassian Corp. plc Class A | 86,368 | 16,550 |
SS&C Technologies Holdings Inc. | 272,687 | 16,149 | |
* | EPAM Systems Inc. | 50,432 | 15,581 |
* | Guidewire Software Inc. | 152,587 | 14,665 |
* | 8x8 Inc. | 838,719 | 14,493 |
* | Avalara Inc. | 97,008 | 14,459 |
* | Box Inc. Class A | 910,598 | 14,114 |
* | CyberArk Software Ltd. | 141,015 | 13,982 |
National Instruments Corp. | 429,476 | 13,434 | |
* | Repay Holdings Corp. | 595,351 | 13,413 |
Jabil Inc. | 400,288 | 13,266 | |
* | Coupa Software Inc. | 48,862 | 13,080 |
* | Zscaler Inc. | 96,302 | 13,073 |
* | PROS Holdings Inc. | 431,144 | 12,145 |
TTEC Holdings Inc. | 221,177 | 12,116 | |
* | Zebra Technologies Corp. Class A | 41,004 | 11,630 |
*,2 | Sumo Logic Inc. | 671,185 | 11,598 |
*,2 | Maxeon Solar Technologies Ltd. | 674,524 | 10,927 |
CDW Corp. | 85,552 | 10,489 | |
* | Domo Inc. Class B | 327,817 | 10,415 |
* | Fastly Inc. Class A | 151,717 | 9,636 |
* | SPS Commerce Inc. | 106,036 | 9,076 |
* | Teradata Corp. | 455,795 | 8,373 |
* | Varonis Systems Inc. | 68,920 | 7,965 |
* | Diodes Inc. | 124,061 | 7,174 |
Shares | Market Value ($000) | ||
* | A10 Networks Inc. | 1,037,679 | 6,994 |
Brooks Automation Inc. | 148,949 | 6,956 | |
* | Cirrus Logic Inc. | 100,866 | 6,947 |
* | Alteryx Inc. Class A | 54,274 | 6,803 |
* | Unisys Corp. | 495,256 | 6,508 |
* | Lattice Semiconductor Corp. | 185,888 | 6,487 |
* | Lumentum Holdings Inc. | 77,496 | 6,408 |
* | eGain Corp. | 387,493 | 6,142 |
* | Model N Inc. | 169,702 | 5,979 |
* | Avaya Holdings Corp. | 313,115 | 5,386 |
* | Okta Inc. | 24,989 | 5,243 |
CSG Systems International Inc. | 134,663 | 5,101 | |
* | SMART Global Holdings Inc. | 186,620 | 4,925 |
* | Unity Software Inc. | 48,434 | 4,595 |
Plantronics Inc. | 228,948 | 4,469 | |
* | NeoPhotonics Corp. | 621,892 | 4,235 |
* | Calix Inc. | 179,584 | 4,204 |
* | Digital Turbine Inc. | 131,927 | 3,781 |
* | Nutanix Inc. Class A | 152,860 | 3,721 |
* | Elastic NV | 36,477 | 3,699 |
* | Avid Technology Inc. | 389,501 | 3,630 |
* | Amkor Technology Inc. | 294,034 | 3,484 |
* | LivePerson Inc. | 64,427 | 3,444 |
* | Insight Enterprises Inc. | 62,524 | 3,336 |
Progress Software Corp. | 90,057 | 3,275 | |
* | MACOM Technology Solutions Holdings Inc. Class H | 88,427 | 3,228 |
* | Brightcove Inc. | 229,048 | 2,897 |
*,2 | Veritone Inc. | 304,820 | 2,859 |
* | ePlus Inc. | 40,614 | 2,742 |
Perspecta Inc. | 149,899 | 2,688 | |
Hackett Group Inc. | 201,447 | 2,603 | |
* | Altair Engineering Inc. Class A | 57,419 | 2,471 |
* | Sailpoint Technologies Holdings Inc. | 54,218 | 2,251 |
* | Fabrinet | 36,362 | 2,182 |
* | FormFactor Inc. | 74,156 | 2,102 |
* | Endurance International Group Holdings Inc. | 335,171 | 1,947 |
* | Sitime Corp. | 23,118 | 1,930 |
* | Diebold Nixdorf Inc. | 309,079 | 1,926 |
* | Ambarella Inc. | 34,776 | 1,901 |
* | Agilysys Inc. | 65,308 | 1,769 |
* | Comm Scope Holding Co. Inc. | 147,274 | 1,311 |
* | Mitek Systems Inc. | 98,264 | 1,223 |
* | BigCommerce Holdings Inc. Series 1 | 16,639 | 1,221 |
* | Ichor Holdings Ltd. | 51,246 | 1,192 |
* | Alarm.com Holdings Inc. | 20,361 | 1,188 |
* | Ultra Clean Holdings Inc. | 54,875 | 1,168 |
* | Zuora Inc. Class A | 117,052 | 1,126 |
*,2 | GTT Communications Inc. | 271,798 | 1,003 |
* | Infinera Corp. | 156,988 | 983 |
* | PagerDuty Inc. | 35,857 | 972 |
* | Perficient Inc. | 24,714 | 968 |
* | Bill.Com Holdings Inc. | 9,394 | 939 |
* | NCR Corp. | 45,818 | 931 |
* | International Money Express Inc. | 63,585 | 884 |
* | Zix Corp. | 132,359 | 811 |
* | Novanta Inc. | 6,815 | 741 |
Ubiquiti Inc. | 3,888 | 722 | |
* | Axcelis Technologies Inc. | 31,141 | 687 |
* | MicroStrategy Inc. Class A | 3,632 | 607 |
* | CEVA Inc. | 13,803 | 557 |
InterDigital Inc. | 8,970 | 502 |
Shares | Market Value ($000) | ||
* | CyberOptics Corp. | 13,732 | 316 |
4,009,462 | |||
Materials (2.0%) | |||
Smurfit Kappa Group plc | 1,917,978 | 72,368 | |
Louisiana-Pacific Corp. | 2,080,646 | 59,465 | |
Methanex Corp. | 1,859,454 | 55,170 | |
* | Summit Materials Inc. Class A | 1,736,811 | 30,724 |
Graphic Packaging Holding Co. | 1,218,440 | 16,193 | |
Scotts Miracle-Gro Co. | 96,491 | 14,478 | |
Royal Gold Inc. | 117,302 | 13,937 | |
Avery Dennison Corp. | 99,566 | 13,779 | |
Balchem Corp. | 137,755 | 13,769 | |
* | Element Solutions Inc. | 1,002,410 | 11,748 |
Boise Cascade Co. | 272,209 | 10,447 | |
RPM International Inc. | 64,360 | 5,449 | |
Sensient Technologies Corp. | 45,714 | 2,991 | |
* | Novagold Resources Inc. | 214,958 | 2,227 |
Verso Corp. Class A | 264,901 | 2,061 | |
* | Forterra Inc. | 44,663 | 583 |
O-I Glass Inc. | 48,771 | 460 | |
325,849 | |||
Other (1.2%) | |||
2,3 | Vanguard Small-Cap ETF | 1,249,629 | 196,329 |
Real Estate (2.5%) | |||
Life Storage Inc. | 613,138 | 69,990 | |
PS Business Parks Inc. | 555,279 | 63,318 | |
SBA Communications Corp. Class A | 161,314 | 46,841 | |
VICI Properties Inc. | 1,802,956 | 41,378 | |
JBG SMITH Properties | 1,521,422 | 35,525 | |
Essential Properties Realty Trust Inc. | 2,106,514 | 34,799 | |
CoreSite Realty Corp. | 188,410 | 22,489 | |
Xenia Hotels & Resorts Inc. | 2,529,999 | 20,847 | |
Americold Realty Trust | 459,680 | 16,654 | |
Iron Mountain Inc. | 571,935 | 14,905 | |
* | Redfin Corp. | 339,975 | 14,201 |
Uniti Group Inc. | 1,063,119 | 9,377 | |
GEO Group Inc. | 857,604 | 7,598 | |
National Health Investors Inc. | 92,254 | 5,171 | |
RMR Group Inc. Class A | 53,190 | 1,418 | |
Alexander's Inc. | 4,722 | 1,148 | |
Innovative Industrial Properties Inc. | 4,492 | 524 | |
American Finance Trust Inc. | 81,888 | 472 | |
406,655 | |||
Utilities (0.1%) | |||
NRG Energy Inc. | 350,556 | 11,085 | |
American States Water Co. | 74,655 | 5,576 | |
Ormat Technologies Inc. | 64,205 | 4,550 | |
Clearway Energy Inc. Class C | 75,258 | 2,119 | |
Brookfield Infrastructure Corp. Class A | 13,083 | 713 | |
24,043 | |||
Total Common Stocks (Cost $12,149,651) | 16,066,541 |
Shares | Market Value ($000) | ||
Temporary Cash Investments (2.9%) | |||
Money Market Fund (2.7%) | |||
4,5 | Vanguard Market Liquidity Fund, 0.112% | 4,569,954 | 456,995 |
Face Amount ($000) | |||
Repurchase Agreement (0.1%) | |||
Deutsche Bank Securities, Inc. 0.090%, 11/2/20 (Dated 10/31/20, Repurchase Value $$9,700,000, collateralized by U.S. Treasury Bill, 0.000%, 11/5/20, with a value of $9,894,000) | 9,700 | 9,700 | |
U.S. Government and Agency Obligations (0.1%) | |||
6 | U.S. Treasury Bill, 0.094%, 11/3/20 | 1,670 | 1,670 |
6 | U.S. Treasury Bill, 0.122%, 12/15/20 | 800 | 800 |
6 | U.S. Treasury Bill, 0.103%, 12/31/20 | 10,300 | 10,299 |
6 | U.S. Treasury Bill, 0.096%, 1/28/21 | 3,731 | 3,730 |
16,499 | |||
Total Temporary Cash Investments (Cost $483,060) | 483,194 | ||
Total Investments (99.7%) (Cost $12,632,711) | 16,549,735 | ||
Other Assets and Liabilities—Net (0.3%) | 54,979 | ||
Net Assets (100%) | 16,604,714 | ||
Cost is in $000. |
* | Non-income-producing security. |
1 | Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. |
2 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $176,873,000. |
3 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
4 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
5 | Collateral of $188,089,000 was received for securities on loan. |
6 | Securities with a value of $16,463,000 have been segregated as initial margin for open futures contracts. |
ADR—American Depositary Receipt. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Vanguard Explorer Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments—investments summary, of Vanguard Explorer Fund (the "Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statement of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2020 (included in Item 1 of this Form N-CSR) and the schedule of investments (included in Item 6 of this Form N-CSR) as of October 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the five years in the period ended October 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian and brokers and by agreement to the underlying ownership records of the transfer agent; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
December 17, 2020
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
PricewaterhouseCoopers LLP, Two Commerce Square, Suite 1800, 2001 Market Street, Philadelphia, PA 19103-7042 T: (267) 330 3000, F: (267) 330 3300, www.pwc.com/us
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 September 2020, a third-party service provider began performing certain administrative and accounting services for Vanguard Explorer Fund. There were no other significant changes in the Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a) | Code of Ethics. |
(b) | Certifications. |
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 EXPLORER FUND | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER | ||
Date: December 18, 2020
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 EXPLORER FUND | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: December 18, 2020
VANGUARD EXPLORER FUND | ||
BY: | /s/ JOHN BENDL* | |
JOHN BENDL | ||
CHIEF FINANCIAL OFFICER | ||
Date: December 18, 2020
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on December 18, 2020 (see File Number 33-64845), Incorporated by Reference.