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, 2021—October 31, 2022
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 |
• | The 12 months ended October 31, 2022, were a volatile, challenging period for financial markets. In this environment, Vanguard Explorer Fund returned –23.09% for Investor Shares and –23.00% for Admiral Shares. The fund outpaced its benchmark, the Russell 2500 Growth Index, which returned –27.38%. |
• | The economic backdrop deteriorated as inflation soared to multidecade highs, fueled in part by higher energy and food prices in the wake of Russia’s invasion of Ukraine. Then price increases broadened to other categories of goods and services, adding to concerns that inflation would remain stubbornly high. That prompted aggressive tightening by the Federal Reserve to bring inflation back in check and increased fears of a recession. |
• | Value stocks outperformed their growth counterparts, while large-capitalization stocks held up slightly better than small- and mid-caps. |
• | Seven of the fund’s 11 sectors contributed positively to performance. Health care, industrials, and financials produced the strongest results. Energy and consumer discretionary were the biggest detractors. |
Average Annual Total Returns Periods Ended October 31, 2022 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | -16.38% | 9.99% | 10.19% |
Russell 2000 Index (Small-caps) | -18.54 | 7.05 | 5.56 |
Russell 3000 Index (Broad U.S. market) | -16.52 | 9.79 | 9.87 |
FTSE All-World ex US Index (International) | -24.20 | -1.16 | -0.18 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | -15.69% | -3.73% | -0.50% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | -11.98 | -2.18 | 0.37 |
FTSE Three-Month U.S. Treasury Bill Index | 0.88 | 0.59 | 1.15 |
CPI | |||
Consumer Price Index | 7.75% | 5.01% | 3.85% |
Head of Alpha Equity Investments
Chief Investment Officer
Fund Assets Managed | |||
Investment Advisor | % | $ Million | Investment Strategy |
Wellington Management Company LLP | 40 | 7,587 | 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. |
Vanguard Quantitative Equity Group | 15 | 3,013 | 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. |
ClearBridge Investments, LLC | 15 | 2,775 | 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 | 15 | 2,772 | 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. |
Fund Assets Managed | |||
Investment Advisor | % | $ Million | Investment Strategy |
ArrowMark Partners | 13 | 2,557 | 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 | 347 | These short-term reserves are invested by Vanguard in equity index products to simulate investment in stocks. Each advisor may also 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, 2022 | |||
Beginning Account Value 4/30/2022 | Ending Account Value 10/31/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Explorer Fund | |||
Investor Shares | $1,000.00 | $949.10 | $2.21 |
Admiral™ Shares | 1,000.00 | 949.60 | 1.67 |
Based on Hypothetical 5% Yearly Return | |||
Explorer Fund | |||
Investor Shares | $1,000.00 | $1,022.94 | $2.29 |
Admiral Shares | 1,000.00 | 1,023.49 | 1.73 |
Average Annual Total Returns Periods Ended October 31, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Explorer Fund Investor Shares | -23.09% | 9.65% | 12.23% | $31,712 | |
Russell 2500 Growth Index | -27.38 | 7.41 | 11.38 | 29,379 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | -16.94 | 9.72 | 12.36 | 32,058 |
One Year | Five Years | Ten Years | Final Value of a $50,000 Investment | ||
Explorer Fund Admiral Shares | -23.00% | 9.77% | 12.38% | $160,593 | |
Russell 2500 Growth Index | -27.38 | 7.41 | 11.38 | 146,894 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | -16.94 | 9.72 | 12.36 | 160,289 |
Communication Services | 3.1% |
Consumer Discretionary | 10.9 |
Consumer Staples | 3.4 |
Energy | 4.4 |
Financials | 9.0 |
Health Care | 20.3 |
Industrials | 21.0 |
Information Technology | 19.6 |
Materials | 3.3 |
Real Estate | 2.8 |
Utilities | 1.0 |
Other | 1.2 |
Shares | Market Value• ($000) | ||
Common Stocks (96.0%) | |||
Communication Services (3.0%) | |||
* | Live Nation Entertainment Inc. | 994,380 | 79,163 |
* | Bumble Inc. Class A | 3,078,918 | 78,205 |
* | Ziff Davis Inc. | 985,437 | 76,263 |
New York Times Co. Class A | 2,437,511 | 70,590 | |
* | ZipRecruiter Inc. Class A | 2,805,568 | 47,049 |
* | Cinemark Holdings Inc. | 4,080,140 | 43,290 |
* | Take-Two Interactive Software Inc. | 340,634 | 40,358 |
Electronic Arts Inc. | 236,116 | 29,741 | |
Warner Music Group Corp. Class A | 1,063,704 | 27,678 | |
* | Yelp Inc. Class A | 539,541 | 20,724 |
* | Cargurus Inc. | 1,268,189 | 18,465 |
* | Iridium Communications Inc. | 352,316 | 18,155 |
Nexstar Media Group Inc. Class A | 22,914 | 3,925 | |
* | TechTarget Inc. | 54,080 | 3,491 |
* | Clear Channel Outdoor Holdings Inc. | 1,948,279 | 2,786 |
* | TripAdvisor Inc. | 97,344 | 2,299 |
Cable One Inc. | 2,166 | 1,862 | |
* | Playtika Holding Corp. | 140,251 | 1,325 |
Cogent Communications Holdings Inc. | 23,816 | 1,251 | |
* | WideOpenWest Inc. | 82,232 | 1,127 |
* | Globalstar Inc. | 427,603 | 928 |
* | Integral Ad Science Holding Corp. | 107,028 | 901 |
* | Vimeo Inc. | 190,905 | 725 |
* | PubMatic Inc. Class A | 35,045 | 610 |
* | EverQuote Inc. Class A | 47,437 | 289 |
*,1 | Starry Group Holdings Inc. | 28,010 | 6 |
571,206 | |||
Consumer Discretionary (10.4%) | |||
* | Burlington Stores Inc. | 897,090 | 128,248 |
Texas Roadhouse Inc. Class A | 1,125,849 | 111,403 | |
* | Skyline Champion Corp. | 1,789,017 | 104,139 |
Wingstop Inc. | 625,783 | 99,118 | |
* | Deckers Outdoor Corp. | 232,536 | 81,371 |
Shares | Market Value• ($000) | ||
Levi Strauss & Co. Class A | 5,006,792 | 74,902 | |
Steven Madden Ltd. | 2,432,771 | 72,667 | |
* | Five Below Inc. | 465,912 | 68,186 |
Acushnet Holdings Corp. | 1,427,601 | 66,483 | |
* | frontdoor Inc. | 2,882,768 | 63,594 |
Carter's Inc. | 891,261 | 60,490 | |
* | Sally Beauty Holdings Inc. | 3,721,900 | 47,305 |
* | YETI Holdings Inc. | 1,415,007 | 45,393 |
* | Farfetch Ltd. Class A | 5,287,741 | 44,840 |
Churchill Downs Inc. | 214,990 | 44,699 | |
* | Skechers USA Inc. Class A | 1,289,969 | 44,414 |
*,1 | Leslie's Inc. | 2,759,406 | 38,742 |
* | Grand Canyon Education Inc. | 377,710 | 38,009 |
* | Dollar Tree Inc. | 234,794 | 37,215 |
* | Ulta Beauty Inc. | 83,722 | 35,110 |
* | Etsy Inc. | 352,305 | 33,085 |
Domino's Pizza Inc. | 99,384 | 33,019 | |
* | National Vision Holdings Inc. | 855,968 | 31,705 |
* | Floor & Decor Holdings Inc. Class A | 418,922 | 30,736 |
* | Callaway Golf Co. | 1,626,472 | 30,448 |
Papa John's International Inc. | 366,107 | 26,590 | |
Pool Corp. | 77,668 | 23,629 | |
* | Petco Health & Wellness Co. Inc. Class A | 2,082,802 | 21,932 |
Tractor Supply Co. | 93,861 | 20,628 | |
* | Revolve Group Inc. | 841,800 | 20,203 |
* | Fox Factory Holding Corp. | 213,478 | 18,754 |
Boyd Gaming Corp. | 319,271 | 18,441 | |
* | Under Armour Inc. Class C | 2,624,839 | 17,219 |
Hanesbrands Inc. | 2,438,470 | 16,630 | |
* | Chegg Inc. | 757,633 | 16,342 |
*,1 | Sportradar Holding AG Class A | 1,537,092 | 15,217 |
Buckle Inc. | 374,145 | 14,715 | |
Williams-Sonoma Inc. | 117,330 | 14,529 | |
* | Canada Goose Holdings Inc. | 841,009 | 13,759 |
* | Bright Horizons Family Solutions Inc. | 202,093 | 13,201 |
Shares | Market Value• ($000) | ||
Tapestry Inc. | 368,937 | 11,688 | |
Travel + Leisure Co. | 282,401 | 10,726 | |
* | SeaWorld Entertainment Inc. | 169,834 | 9,878 |
Signet Jewelers Ltd. | 141,385 | 9,224 | |
* | Tri Pointe Homes Inc. | 509,141 | 8,528 |
* | Cavco Industries Inc. | 37,066 | 8,402 |
Murphy USA Inc. | 26,088 | 8,205 | |
* | RH | 30,666 | 7,787 |
* | Six Flags Entertainment Corp. | 349,096 | 7,785 |
Toll Brothers Inc. | 170,875 | 7,361 | |
* | Everi Holdings Inc. | 387,131 | 7,348 |
* | American Axle & Manufacturing Holdings Inc. | 735,363 | 7,126 |
Caleres Inc. | 250,694 | 6,851 | |
PulteGroup Inc. | 169,565 | 6,781 | |
Shutterstock Inc. | 119,938 | 6,000 | |
* | Dave & Buster's Entertainment Inc. | 148,911 | 5,934 |
Oxford Industries Inc. | 55,871 | 5,684 | |
Patrick Industries Inc. | 114,991 | 5,256 | |
* | Stride Inc. | 156,285 | 5,237 |
* | Brinker International Inc. | 149,745 | 5,000 |
* | Boot Barn Holdings Inc. | 87,504 | 4,970 |
Ruth's Hospitality Group Inc. | 233,538 | 4,853 | |
* | Visteon Corp. | 32,991 | 4,304 |
* | Master Craft Boat Holdings Inc. | 194,458 | 4,231 |
* | Chico's FAS Inc. | 691,912 | 4,068 |
* | Perdoceo Education Corp. | 354,118 | 4,048 |
* | 2U Inc. | 629,550 | 3,897 |
* | Scientific Games Corp. Class A | 65,581 | 3,682 |
* | Golden Entertainment Inc. | 83,224 | 3,514 |
* | Dorman Products Inc. | 42,877 | 3,500 |
* | MarineMax Inc. | 106,970 | 3,456 |
* | Asbury Automotive Group Inc. | 21,641 | 3,414 |
Brunswick Corp. | 47,007 | 3,322 | |
Wendy's Co. | 153,173 | 3,183 | |
* | CarParts.com Inc. | 676,654 | 3,167 |
* | Taylor Morrison Home Corp. Class A | 119,320 | 3,143 |
* | Malibu Boats Inc. Class A | 58,153 | 3,076 |
* | WW International Inc. | 633,985 | 2,866 |
Winnebago Industries Inc. | 47,651 | 2,844 | |
Vail Resorts Inc. | 12,771 | 2,798 | |
Hibbett Inc. | 40,557 | 2,532 | |
Academy Sports & Outdoors Inc. | 54,150 | 2,384 | |
H&R Block Inc. | 50,507 | 2,078 | |
Shoe Carnival Inc. | 83,511 | 2,003 | |
Carriage Services Inc. Class A | 80,893 | 1,975 | |
Dine Brands Global Inc. | 27,220 | 1,962 | |
* | Stitch Fix Inc. Class A | 434,650 | 1,739 |
* | Vivint Smart Home Inc. | 218,632 | 1,673 |
* | Monarch Casino & Resort Inc. | 20,376 | 1,618 |
Shares | Market Value• ($000) | ||
Standard Motor Products Inc. | 40,577 | 1,539 | |
* | Funko Inc. Class A | 64,269 | 1,327 |
*,1 | Workhorse Group Inc. | 481,001 | 1,299 |
* | Denny's Corp. | 109,135 | 1,236 |
* | Neogames SA | 59,624 | 1,025 |
LCI Industries | 7,977 | 846 | |
* | Target Hospitality Corp. | 69,273 | 843 |
* | Mattel Inc. | 42,175 | 800 |
*,1 | Torrid Holdings Inc. | 151,156 | 745 |
* | Quotient Technology Inc. | 290,641 | 715 |
* | Children's Place Inc. | 17,404 | 704 |
Aaron's Co. Inc. | 37,036 | 386 | |
* | Red Robin Gourmet Burgers Inc. | 39,006 | 321 |
1,989,997 | |||
Consumer Staples (3.3%) | |||
* | Performance Food Group Co. | 3,015,155 | 156,909 |
* | BJ's Wholesale Club Holdings Inc. | 1,637,860 | 126,770 |
Nu Skin Enterprises Inc. Class A | 1,894,154 | 72,338 | |
Casey's General Stores Inc. | 266,643 | 62,050 | |
MGP Ingredients Inc. | 406,194 | 45,514 | |
* | Celsius Holdings Inc. | 372,374 | 33,916 |
* | BellRing Brands Inc. | 837,355 | 20,281 |
Coca-Cola Consolidated Inc. | 34,925 | 17,009 | |
* | Darling Ingredients Inc. | 170,545 | 13,384 |
Cal-Maine Foods Inc. | 222,632 | 12,581 | |
* | Nomad Foods Ltd. | 800,000 | 12,320 |
* | elf Beauty Inc. | 252,486 | 10,923 |
* | Pilgrim's Pride Corp. | 429,437 | 9,899 |
* | Herbalife Nutrition Ltd. | 360,148 | 7,657 |
Lamb Weston Holdings Inc. | 65,932 | 5,685 | |
Medifast Inc. | 46,886 | 5,485 | |
Vector Group Ltd. | 332,622 | 3,532 | |
John B Sanfilippo & Son Inc. | 42,258 | 3,525 | |
* | USANA Health Sciences Inc. | 43,366 | 2,277 |
* | United Natural Foods Inc. | 44,737 | 1,897 |
Turning Point Brands Inc. | 75,086 | 1,769 | |
* | Olaplex Holdings Inc. | 179,724 | 791 |
* | Central Garden & Pet Co. Class A | 18,507 | 724 |
Inter Parfums Inc. | 7,931 | 641 | |
627,877 | |||
Energy (4.3%) | |||
Magnolia Oil & Gas Corp. Class A | 4,627,514 | 118,835 | |
Chord Energy Corp. | 763,612 | 116,901 | |
PDC Energy Inc. | 1,426,946 | 102,940 | |
Viper Energy Partners LP | 2,138,415 | 71,316 | |
ChampionX Corp. | 1,872,698 | 53,597 | |
* | Southwestern Energy Co. | 5,706,802 | 39,548 |
Matador Resources Co. | 558,620 | 37,120 | |
EQT Corp. | 752,900 | 31,501 | |
Cactus Inc. Class A | 588,610 | 30,443 |
Shares | Market Value• ($000) | ||
Coterra Energy Inc. | 884,713 | 27,541 | |
Diamondback Energy Inc. | 119,055 | 18,705 | |
Pioneer Natural Resources Co. | 67,346 | 17,268 | |
Texas Pacific Land Corp. | 7,002 | 16,132 | |
SM Energy Co. | 331,085 | 14,892 | |
* | Talos Energy Inc. | 527,691 | 11,229 |
* | Kosmos Energy Ltd. | 1,451,245 | 9,419 |
* | Nabors Industries Ltd. (XNYS) | 39,384 | 6,854 |
* | Liberty Energy Inc. Class A | 385,128 | 6,513 |
Range Resources Corp. | 215,158 | 6,128 | |
Delek US Holdings Inc. | 204,314 | 6,060 | |
* | Antero Resources Corp. | 148,713 | 5,452 |
* | Weatherford International plc | 129,018 | 5,377 |
* | Denbury Inc. | 58,214 | 5,321 |
* | W&T Offshore Inc. | 688,570 | 5,226 |
* | PBF Energy Inc. Class A | 115,182 | 5,097 |
Ovintiv Inc. (XNYS) | 97,759 | 4,951 | |
* | Amplify Energy Corp. | 458,191 | 4,531 |
* | Par Pacific Holdings Inc. | 171,747 | 3,930 |
CVR Energy Inc. | 98,722 | 3,856 | |
* | NexTier Oilfield Solutions Inc. | 308,839 | 3,113 |
* | US Silica Holdings Inc. | 208,045 | 2,994 |
Patterson-UTI Energy Inc. | 166,962 | 2,947 | |
* | TETRA Technologies Inc. | 525,793 | 2,597 |
* | Laredo Petroleum Inc. | 37,631 | 2,433 |
* | Callon Petroleum Co. | 54,997 | 2,418 |
CONSOL Energy Inc. | 35,759 | 2,254 | |
* | Comstock Resources Inc. | 116,325 | 2,185 |
* | Gulfport Energy Corp. | 21,775 | 1,949 |
Arch Resources Inc. | 8,036 | 1,224 | |
Solaris Oilfield Infrastructure Inc. Class A | 82,776 | 1,127 | |
811,924 | |||
Financials (8.6%) | |||
LPL Financial Holdings Inc. | 539,520 | 137,928 | |
Assured Guaranty Ltd. | 2,031,241 | 120,229 | |
Synovus Financial Corp. | 2,874,331 | 114,542 | |
Webster Financial Corp. | 2,013,220 | 109,237 | |
Prosperity Bancshares Inc. | 1,279,916 | 91,604 | |
Voya Financial Inc. | 1,328,464 | 90,814 | |
StepStone Group Inc. Class A | 2,756,956 | 81,385 | |
Valley National Bancorp | 6,325,793 | 75,087 | |
MGIC Investment Corp. | 5,437,907 | 74,227 | |
American Financial Group Inc. | 489,431 | 71,021 | |
Hannon Armstrong Sustainable Infrastructure Capital Inc. | 2,313,291 | 62,875 | |
Houlihan Lokey Inc. Class A | 666,420 | 59,525 | |
Tradeweb Markets Inc. Class A | 1,042,537 | 57,423 | |
FirstCash Holdings Inc. | 556,424 | 54,780 |
Shares | Market Value• ($000) | ||
Assurant Inc. | 335,685 | 45,606 | |
* | Palomar Holdings Inc. | 482,901 | 42,959 |
Western Alliance Bancorp | 601,235 | 40,385 | |
* | PRA Group Inc. | 963,562 | 32,279 |
WisdomTree Investments Inc. | 5,758,737 | 31,270 | |
MarketAxess Holdings Inc. | 122,223 | 29,827 | |
* | Ryan Specialty Holdings Inc. | 606,654 | 27,209 |
Piper Sandler Cos. | 183,011 | 23,420 | |
FactSet Research Systems Inc. | 55,014 | 23,408 | |
Everest Re Group Ltd. | 66,570 | 21,480 | |
Kinsale Capital Group Inc. | 65,261 | 20,568 | |
* | Silvergate Capital Corp. Class A | 356,542 | 20,237 |
* | SVB Financial Group | 77,022 | 17,789 |
Virtus Investment Partners Inc. | 60,974 | 10,457 | |
* | LendingClub Corp. | 950,006 | 10,108 |
RLI Corp. | 53,800 | 6,998 | |
* | Focus Financial Partners Inc. Class A | 135,567 | 4,716 |
* | Donnelley Financial Solutions Inc. | 102,942 | 4,162 |
First Citizens BancShares Inc. Class A | 4,911 | 4,038 | |
First BanCorp (XNYS) | 183,195 | 2,893 | |
Lincoln National Corp. | 49,653 | 2,675 | |
* | NMI Holdings Inc. Class A | 120,369 | 2,640 |
Brightsphere Investment Group Inc. | 127,564 | 2,401 | |
* | Green Dot Corp. Class A | 124,400 | 2,367 |
* | Bancorp Inc. | 58,461 | 1,612 |
PJT Partners Inc. Class A | 20,413 | 1,519 | |
Westamerica BanCorp | 23,839 | 1,495 | |
Hamilton Lane Inc. Class A | 23,878 | 1,428 | |
Pathward Financial Inc. | 33,491 | 1,408 | |
* | Blucora Inc. | 60,995 | 1,344 |
* | Metropolitan Bank Holding Corp. | 17,549 | 1,158 |
Brown & Brown Inc. | 17,926 | 1,054 | |
Cohen & Steers Inc. | 11,210 | 674 | |
* | Open Lending Corp. Class A | 87,853 | 630 |
1,642,891 | |||
Health Care (19.5%) | |||
* | ICON plc | 837,697 | 165,730 |
* | Acadia Healthcare Co. Inc. | 1,478,417 | 120,195 |
* | Haemonetics Corp. | 1,293,349 | 109,870 |
* | Omnicell Inc. | 1,251,891 | 96,796 |
* | Globus Medical Inc. Class A | 1,410,607 | 94,511 |
* | HealthEquity Inc. | 1,093,384 | 85,186 |
* | QuidelOrtho Corp. | 925,946 | 83,168 |
*,2 | Veracyte Inc. | 3,935,004 | 79,133 |
Shares | Market Value• ($000) | ||
* | Charles River Laboratories International Inc. | 358,108 | 76,008 |
* | Merit Medical Systems Inc. | 1,083,586 | 74,518 |
* | ABIOMED Inc. | 291,706 | 73,533 |
* | Insulet Corp. | 274,127 | 70,947 |
* | Amedisys Inc. | 719,496 | 70,216 |
* | Glaukos Corp. | 1,219,173 | 68,359 |
* | ICU Medical Inc. | 457,762 | 67,936 |
Bio-Techne Corp. | 228,193 | 67,604 | |
* | Molina Healthcare Inc. | 187,612 | 67,326 |
Encompass Health Corp. | 1,189,573 | 64,760 | |
* | Myriad Genetics Inc. | 3,121,439 | 64,739 |
* | Ultragenyx Pharmaceutical Inc. | 1,491,686 | 60,354 |
* | Penumbra Inc. | 321,791 | 55,178 |
* | Repligen Corp. | 297,236 | 54,243 |
* | Ascendis Pharma A/S ADR | 449,286 | 51,668 |
STERIS plc | 288,157 | 49,730 | |
* | DexCom Inc. | 397,861 | 48,054 |
* | Apellis Pharmaceuticals Inc. | 713,166 | 43,139 |
* | Cytokinetics Inc. | 985,482 | 43,026 |
* | Catalent Inc. | 648,178 | 42,605 |
* | Zentalis Pharmaceuticals Inc. | 1,678,842 | 42,122 |
* | Exelixis Inc. | 2,471,158 | 40,972 |
ResMed Inc. | 171,664 | 38,400 | |
* | Kymera Therapeutics Inc. | 1,229,527 | 37,304 |
* | REVOLUTION Medicines Inc. | 1,809,574 | 36,662 |
* | Intra-Cellular Therapies Inc. | 781,072 | 35,672 |
* | Mirati Therapeutics Inc. | 521,801 | 35,128 |
Cooper Cos. Inc. | 128,390 | 35,101 | |
* | Integra LifeSciences Holdings Corp. | 690,369 | 34,691 |
* | Neurocrine Biosciences Inc. | 293,810 | 33,823 |
* | Henry Schein Inc. | 488,765 | 33,461 |
Stevanato Group SpA | 1,969,395 | 33,165 | |
* | Horizon Therapeutics plc | 530,704 | 33,073 |
* | Mettler-Toledo International Inc. | 25,875 | 32,730 |
* | Hologic Inc. | 479,970 | 32,542 |
* | Halozyme Therapeutics Inc. | 666,081 | 31,845 |
* | Celldex Therapeutics Inc. | 824,050 | 28,949 |
* | Pacira BioSciences Inc. | 557,637 | 28,863 |
* | Pediatrix Medical Group Inc. | 1,478,259 | 28,678 |
* | Supernus Pharmaceuticals Inc. | 810,645 | 27,781 |
* | Tandem Diabetes Care Inc. | 483,476 | 27,147 |
Teleflex Inc. | 122,849 | 26,358 | |
* | Nevro Corp. | 685,608 | 26,286 |
* | CareDx Inc. | 1,292,738 | 25,738 |
*,1 | Doximity Inc. Class A | 950,993 | 25,173 |
* | NuVasive Inc. | 561,402 | 24,775 |
* | IDEXX Laboratories Inc. | 68,300 | 24,566 |
Shares | Market Value• ($000) | ||
* | AMN Healthcare Services Inc. | 194,215 | 24,374 |
* | iRhythm Technologies Inc. | 186,561 | 23,785 |
* | Blueprint Medicines Corp. | 453,707 | 23,520 |
* | Syneos Health Inc. | 454,479 | 22,897 |
Bruker Corp. | 367,278 | 22,712 | |
* | Certara Inc. | 1,739,436 | 21,273 |
* | Maravai LifeSciences Holdings Inc. Class A | 1,231,667 | 20,446 |
*,1 | Immatics NV | 1,786,300 | 20,185 |
* | Shockwave Medical Inc. | 68,696 | 20,138 |
* | Ligand Pharmaceuticals Inc. | 222,433 | 19,496 |
Chemed Corp. | 40,811 | 19,053 | |
* | Sage Therapeutics Inc. | 478,803 | 18,032 |
* | Medpace Holdings Inc. | 79,001 | 17,537 |
* | Agios Pharmaceuticals Inc. | 627,486 | 17,281 |
* | SpringWorks Therapeutics Inc. | 704,117 | 16,906 |
* | Legend Biotech Corp. ADR | 338,682 | 16,873 |
* | Axogen Inc. | 1,471,843 | 16,808 |
* | C4 Therapeutics Inc. | 1,744,173 | 16,779 |
* | Sarepta Therapeutics Inc. | 147,130 | 16,776 |
* | Alkermes plc | 721,459 | 16,377 |
* | Arvinas Inc. | 322,484 | 16,031 |
* | Ionis Pharmaceuticals Inc. | 361,752 | 15,989 |
* | Inspire Medical Systems Inc. | 81,567 | 15,901 |
* | Relay Therapeutics Inc. | 697,883 | 15,507 |
* | Illumina Inc. | 66,053 | 15,114 |
* | STAAR Surgical Co. | 211,256 | 14,972 |
* | Evolent Health Inc. Class A | 441,936 | 14,058 |
* | Lantheus Holdings Inc. | 184,963 | 13,685 |
Azenta Inc. | 291,735 | 12,953 | |
* | Neogen Corp. | 968,623 | 12,786 |
* | FibroGen Inc. | 776,938 | 12,649 |
* | Definitive Healthcare Corp. Class A | 699,500 | 11,038 |
* | Sotera Health Co. | 1,520,246 | 10,459 |
* | Deciphera Pharmaceuticals Inc. | 612,863 | 9,941 |
* | Avantor Inc. | 490,642 | 9,896 |
* | Masimo Corp. | 72,490 | 9,540 |
*,1 | Heron Therapeutics Inc. | 2,311,586 | 8,900 |
* | Veeva Systems Inc. Class A | 48,445 | 8,136 |
* | Schrodinger Inc. | 337,465 | 8,089 |
* | Agenus Inc. | 2,872,264 | 7,209 |
Ensign Group Inc. | 80,101 | 7,191 | |
* | CorVel Corp. | 40,848 | 6,708 |
* | ACADIA Pharmaceuticals Inc. | 401,224 | 6,432 |
* | Seres Therapeutics Inc. | 703,652 | 6,234 |
* | Intercept Pharmaceuticals Inc. | 391,323 | 5,428 |
*,1 | Esperion Therapeutics Inc. | 665,738 | 5,412 |
* | Sangamo Therapeutics Inc. | 1,171,270 | 5,142 |
* | Tenet Healthcare Corp. | 115,643 | 5,130 |
Shares | Market Value• ($000) | ||
* | TG Therapeutics Inc. | 837,278 | 4,873 |
* | Natera Inc. | 100,273 | 4,709 |
* | Atara Biotherapeutics Inc. | 1,002,856 | 4,673 |
* | Arrowhead Pharmaceuticals Inc. | 128,416 | 4,470 |
* | PTC Therapeutics Inc. | 117,544 | 4,446 |
* | Karyopharm Therapeutics Inc. | 927,587 | 4,415 |
* | AtriCure Inc. | 97,699 | 4,115 |
* | Exact Sciences Corp. | 114,372 | 3,978 |
* | Novocure Ltd. | 56,067 | 3,962 |
* | Option Care Health Inc. | 129,218 | 3,910 |
* | Novavax Inc. | 169,683 | 3,779 |
* | ViewRay Inc. | 800,777 | 3,435 |
* | Y-mAbs Therapeutics Inc. | 912,362 | 3,294 |
* | Inogen Inc. | 140,851 | 3,192 |
* | Theravance Biopharma Inc. | 317,371 | 3,164 |
* | ImmunoGen Inc. | 492,039 | 2,923 |
Embecta Corp. | 78,523 | 2,428 | |
* | Bridgebio Pharma Inc. | 228,201 | 2,380 |
* | Voyager Therapeutics Inc. | 457,063 | 2,368 |
* | Alector Inc. | 236,904 | 2,180 |
* | Kiniksa Pharmaceuticals Ltd. Class A | 169,216 | 1,932 |
* | Alignment Healthcare Inc. | 145,837 | 1,931 |
* | LivaNova plc | 38,414 | 1,809 |
* | MacroGenics Inc. | 352,568 | 1,805 |
* | Phreesia Inc. | 62,880 | 1,718 |
* | Puma Biotechnology Inc. | 777,390 | 1,695 |
* | Allscripts Healthcare Solutions Inc. | 115,239 | 1,694 |
* | Cerus Corp. | 440,840 | 1,613 |
* | Protagonist Therapeutics Inc. | 196,775 | 1,594 |
* | Morphic Holding Inc. | 55,959 | 1,567 |
* | Health Catalyst Inc. | 169,456 | 1,495 |
*,1 | Clovis Oncology Inc. | 1,439,253 | 1,482 |
* | Fortress Biotech Inc. | 1,732,308 | 1,438 |
* | CytomX Therapeutics Inc. | 1,067,482 | 1,398 |
US Physical Therapy Inc. | 15,439 | 1,371 | |
* | Coherus Biosciences Inc. | 154,730 | 1,346 |
* | Joint Corp. | 81,335 | 1,344 |
* | Infinity Pharmaceuticals Inc. | 1,053,408 | 1,306 |
* | Privia Health Group Inc. | 36,950 | 1,237 |
*,1 | Akebia Therapeutics Inc. | 4,698,164 | 1,196 |
* | Lexicon Pharmaceuticals Inc. | 542,066 | 1,165 |
* | Axonics Inc. | 14,816 | 1,084 |
* | Codexis Inc. | 186,328 | 1,047 |
* | Affimed NV | 585,546 | 1,031 |
* | ModivCare Inc. | 9,225 | 897 |
* | DaVita Inc. | 12,140 | 886 |
* | Travere Thrapeutics Inc. | 40,706 | 883 |
* | Multiplan Corp. | 302,330 | 868 |
* | Selecta Biosciences Inc. | 528,838 | 836 |
* | Sesen Bio Inc. | 1,476,709 | 824 |
Shares | Market Value• ($000) | ||
* | Pennant Group Inc. | 66,647 | 820 |
* | Arcturus Therapeutics Holdings Inc. | 43,485 | 770 |
West Pharmaceutical Services Inc. | 3,141 | 723 | |
* | Cano Health Inc. | 183,286 | 656 |
* | RadNet Inc. | 32,572 | 623 |
* | Vanda Pharmaceuticals Inc. | 54,899 | 575 |
* | Amneal Pharmaceuticals Inc. | 244,539 | 538 |
* | Atea Pharmaceuticals Inc. | 81,077 | 486 |
* | Precision BioSciences Inc. | 342,301 | 479 |
* | Enanta Pharmaceuticals Inc. | 9,843 | 444 |
* | NextCure Inc. | 171,519 | 429 |
* | MEI Pharma Inc. | 1,232,433 | 419 |
* | Organogenesis Holdings Inc. Class A | 126,114 | 414 |
* | Retractable Technologies Inc. | 107,784 | 260 |
* | Personalis Inc. | 96,118 | 257 |
* | Molecular Templates Inc. | 424,818 | 252 |
* | Tactile Systems Technology Inc. | 22,060 | 164 |
* | Cue Biopharma Inc. | 46,345 | 123 |
* | Syros Pharmaceuticals Inc. | 23,659 | 119 |
* | Athenex Inc. | 602,458 | 116 |
3,713,168 | |||
Industrials (20.1%) | |||
* | Kirby Corp. | 1,893,859 | 132,097 |
* | AerCap Holdings NV | 2,292,700 | 122,453 |
* | RBC Bearings Inc. | 479,572 | 121,586 |
* | Middleby Corp. | 824,654 | 115,336 |
Science Applications International Corp. | 1,057,228 | 114,540 | |
* | Fluor Corp. | 3,780,898 | 114,410 |
* | Chart Industries Inc. | 496,615 | 110,686 |
* | Builders FirstSource Inc. | 1,606,793 | 99,075 |
* | TriNet Group Inc. | 1,508,975 | 98,053 |
* | Sterling Check Corp. | 4,751,231 | 92,792 |
Rush Enterprises Inc. Class A | 1,773,793 | 88,495 | |
GATX Corp. | 823,732 | 86,253 | |
Zurn Elkay Water Solutions Corp. | 3,641,774 | 85,545 | |
Herc Holdings Inc. | 694,700 | 81,704 | |
* | Clean Harbors Inc. | 647,636 | 79,309 |
* | WillScot Mobile Mini Holdings Corp. | 1,787,202 | 76,010 |
Ritchie Bros Auctioneers Inc. | 1,154,820 | 75,444 | |
Kennametal Inc. | 2,742,291 | 73,247 | |
* | Gibraltar Industries Inc. | 1,425,814 | 72,831 |
Flowserve Corp. | 2,532,428 | 72,630 | |
Sensata Technologies Holding plc | 1,769,225 | 71,141 | |
* | Mercury Systems Inc. | 1,457,791 | 70,557 |
IDEX Corp. | 308,180 | 68,511 | |
Spirit AeroSystems Holdings Inc. Class A | 2,892,987 | 67,002 | |
* | Trex Co. Inc. | 1,345,284 | 64,695 |
Acuity Brands Inc. | 345,856 | 63,489 |
Shares | Market Value• ($000) | ||
Fortune Brands Home & Security Inc. | 1,025,769 | 61,874 | |
Forward Air Corp. | 578,835 | 61,281 | |
Regal Rexnord Corp. | 471,386 | 59,649 | |
* | Alight Inc. Class A | 6,773,924 | 56,156 |
* | Axon Enterprise Inc. | 373,987 | 54,393 |
Matson Inc. | 671,020 | 49,374 | |
* | Masonite International Corp. | 652,204 | 46,652 |
* | ACV Auctions Inc. Class A | 4,812,393 | 43,889 |
* | API Group Corp. | 2,579,955 | 42,543 |
Tennant Co. | 624,548 | 36,380 | |
Verisk Analytics Inc. Class A | 197,505 | 36,110 | |
HEICO Corp. Class A | 275,721 | 35,099 | |
* | XPO Logistics Inc. | 671,745 | 34,756 |
* | Shoals Technologies Group Inc. Class A | 1,419,809 | 32,812 |
Vertiv Holdings Co. Class A | 2,039,279 | 29,182 | |
* | United Rentals Inc. | 88,430 | 27,918 |
* | AeroVironment Inc. | 299,828 | 27,434 |
* | CoStar Group Inc. | 329,309 | 27,240 |
* | SiteOne Landscape Supply Inc. | 232,356 | 26,923 |
* | Generac Holdings Inc. | 215,135 | 24,936 |
CH Robinson Worldwide Inc. | 252,045 | 24,630 | |
* | Ameresco Inc. Class A | 387,477 | 23,435 |
Applied Industrial Technologies Inc. | 186,642 | 23,215 | |
Robert Half International Inc. | 300,294 | 22,960 | |
Allison Transmission Holdings Inc. | 529,741 | 22,382 | |
Rockwell Automation Inc. | 87,469 | 22,331 | |
* | Atkore Inc. | 233,090 | 22,213 |
John Bean Technologies Corp. | 224,423 | 20,467 | |
* | GXO Logistics Inc. | 558,445 | 20,406 |
UFP Industries Inc. | 281,195 | 20,029 | |
Terex Corp. | 443,127 | 17,964 | |
* | GMS Inc. | 380,522 | 17,961 |
* | Saia Inc. | 86,305 | 17,163 |
JB Hunt Transport Services Inc. | 97,176 | 16,624 | |
Watts Water Technologies Inc. Class A | 111,939 | 16,383 | |
Tetra Tech Inc. | 115,531 | 16,322 | |
* | Bloom Energy Corp. Class A | 860,400 | ��� 16,098 |
* | Kratos Defense & Security Solutions Inc. | 1,431,600 | 15,862 |
Lincoln Electric Holdings Inc. | 105,385 | 14,965 | |
BWX Technologies Inc. | 258,900 | 14,752 | |
* | Rocket Lab USA Inc. | 2,892,847 | 14,725 |
AGCO Corp. | 115,686 | 14,365 | |
EMCOR Group Inc. | 99,549 | 14,046 | |
* | Kornit Digital Ltd. | 519,660 | 13,885 |
Advanced Drainage Systems Inc. | 118,494 | 13,731 | |
* | ASGN Inc. | 159,114 | 13,490 |
* | Cimpress plc | 532,655 | 12,400 |
Shares | Market Value• ($000) | ||
Carlisle Cos. Inc. | 51,632 | 12,330 | |
Booz Allen Hamilton Holding Corp. Class A | 109,403 | 11,908 | |
Toro Co. | 108,973 | 11,489 | |
Boise Cascade Co. | 169,975 | 11,349 | |
Heartland Express Inc. | 705,913 | 10,504 | |
Mueller Industries Inc. | 165,351 | 10,358 | |
Kforce Inc. | 161,489 | 10,217 | |
* | AZEK Co. Inc. Class A | 579,264 | 10,143 |
GrafTech International Ltd. | 1,966,660 | 10,010 | |
Korn Ferry | 175,625 | 9,763 | |
Valmont Industries Inc. | 29,593 | 9,447 | |
Howmet Aerospace Inc. | 257,264 | 9,146 | |
Nordson Corp. | 31,874 | 7,172 | |
Exponent Inc. | 71,892 | 6,848 | |
Donaldson Co. Inc. | 109,048 | 6,265 | |
* | Veritiv Corp. | 49,734 | 5,782 |
* | Enovix Corp. | 300,279 | 5,666 |
* | Titan International Inc. | 371,644 | 5,560 |
* | Huron Consulting Group Inc. | 71,911 | 5,295 |
Simpson Manufacturing Co. Inc. | 59,469 | 5,083 | |
H&E Equipment Services Inc. | 131,677 | 4,972 | |
* | TrueBlue Inc. | 216,816 | 4,263 |
* | MYR Group Inc. | 47,903 | 4,192 |
Franklin Electric Co. Inc. | 48,830 | 4,001 | |
* | Dycom Industries Inc. | 25,837 | 3,053 |
* | Stem Inc. | 199,410 | 2,712 |
* | Array Technologies Inc. | 145,025 | 2,625 |
Allegion plc | 23,449 | 2,457 | |
* | MRC Global Inc. | 227,264 | 2,279 |
* | Hudson Technologies Inc. | 230,530 | 2,123 |
Marten Transport Ltd. | 98,518 | 1,849 | |
* | First Advantage Corp. | 129,313 | 1,817 |
AECOM | 21,754 | 1,638 | |
* | Air Transport Services Group Inc. | 44,913 | 1,311 |
* | BlueLinx Holdings Inc. | 18,096 | 1,275 |
Pitney Bowes Inc. | 405,508 | 1,261 | |
Helios Technologies Inc. | 22,034 | 1,249 | |
Lindsay Corp. | 6,673 | 1,130 | |
* | Franklin Covey Co. | 20,352 | 1,030 |
* | Janus International Group Inc. | 92,812 | 894 |
Primoris Services Corp. | 43,424 | 877 | |
Trinity Industries Inc. | 23,925 | 683 | |
Kadant Inc. | 3,828 | 681 | |
Moog Inc. Class A | 7,332 | 621 | |
Brady Corp. Class A | 12,906 | 590 | |
* | Hireright Holdings Corp. | 36,992 | 498 |
3,839,712 | |||
Information Technology (18.8%) | |||
* | First Solar Inc. | 777,327 | 113,155 |
* | Five9 Inc. | 1,841,326 | 110,958 |
* | New Relic Inc. | 1,807,150 | 107,056 |
* | GoDaddy Inc. Class A | 1,193,927 | 95,992 |
* | Guidewire Software Inc. | 1,610,875 | 95,702 |
Power Integrations Inc. | 1,419,005 | 94,662 | |
* | Viavi Solutions Inc. | 5,696,441 | 86,016 |
* | Tower Semiconductor Ltd. | 2,010,978 | 85,989 |
* | Varonis Systems Inc. Class B | 3,195,906 | 85,554 |
Shares | Market Value• ($000) | ||
* | Jamf Holding Corp. | 3,446,833 | 81,587 |
* | Trimble Inc. | 1,240,327 | 74,618 |
* | ON Semiconductor Corp. | 1,153,888 | 70,883 |
* | Cirrus Logic Inc. | 1,040,779 | 69,857 |
* | Manhattan Associates Inc. | 554,805 | 67,503 |
* | Dynatrace Inc. | 1,874,359 | 66,052 |
Monolithic Power Systems Inc. | 192,599 | 65,378 | |
*,1 | Informatica Inc. Class A | 3,365,885 | 65,164 |
* | Smartsheet Inc. Class A | 1,839,667 | 64,241 |
Concentrix Corp. | 514,142 | 62,844 | |
*,1 | GLOBALFOUNDRIES Inc. | 1,070,876 | 60,719 |
* | Cadence Design Systems Inc. | 369,739 | 55,975 |
* | Teledyne Technologies Inc. | 132,410 | 52,697 |
* | Zendesk Inc. | 646,908 | 49,611 |
* | Paycor HCM Inc. | 1,578,757 | 48,105 |
* | Silicon Laboratories Inc. | 393,199 | 45,186 |
* | N-Able Inc. | 4,084,019 | 44,230 |
* | Wix.com Ltd. | 524,047 | 44,072 |
* | Momentive Global Inc. | 5,455,727 | 42,336 |
* | Palo Alto Networks Inc. | 244,962 | 42,033 |
* | PTC Inc. | 340,366 | 40,105 |
* | HubSpot Inc. | 134,569 | ��� 39,908 |
* | Enphase Energy Inc. | 122,700 | 37,669 |
* | Euronet Worldwide Inc. | 447,514 | 37,596 |
* | Onto Innovation Inc. | 539,899 | 36,087 |
* | CyberArk Software Ltd. | 224,703 | 35,258 |
* | Box Inc. Class A | 1,202,067 | 34,920 |
Maximus Inc. | 547,553 | 33,768 | |
* | WEX Inc. | 205,098 | 33,665 |
* | Fortinet Inc. | 557,473 | 31,865 |
* | Envestnet Inc. | 618,898 | 30,518 |
* | Globant SA | 159,244 | 30,046 |
* | Everbridge Inc. | 942,566 | 29,531 |
* | Black Knight Inc. | 475,572 | 28,758 |
Jabil Inc. | 436,806 | 28,065 | |
* | Tyler Technologies Inc. | 85,764 | 27,730 |
* | Procore Technologies Inc. | 505,100 | 27,609 |
* | Toast Inc. Class A | 1,179,365 | 26,052 |
* | Nutanix Inc. Class A | 944,442 | 25,878 |
* | Lattice Semiconductor Corp. | 530,487 | 25,734 |
National Instruments Corp. | 652,976 | 24,931 | |
* | Consensus Cloud Solutions Inc. | 443,460 | 24,896 |
Microchip Technology Inc. | 402,808 | 24,869 | |
* | Qualys Inc. | 174,109 | 24,821 |
* | 8x8 Inc. | 5,799,500 | 24,532 |
* | Dropbox Inc. Class A | 1,110,378 | 24,151 |
*,1 | Monday.com Ltd. | 221,532 | 23,691 |
* | Fair Isaac Corp. | 47,647 | 22,815 |
* | Extreme Networks Inc. | 1,216,664 | 21,827 |
* | CommScope Holding Co. Inc. | 1,587,772 | 21,022 |
Cognex Corp. | 440,031 | 20,343 | |
* | RingCentral Inc. Class A | 555,233 | 19,722 |
* | Aspen Technology Inc. | 81,026 | 19,564 |
* | Sumo Logic Inc. | 2,497,146 | 19,253 |
* | Allegro MicroSystems Inc. | 737,186 | 18,732 |
Shares | Market Value• ($000) | ||
* | Tenable Holdings Inc. | 455,363 | 18,506 |
* | Okta Inc. | 326,973 | 18,350 |
* | SentinelOne Inc. Class A | 779,800 | 17,811 |
* | Pure Storage Inc. Class A | 540,770 | 16,688 |
* | Rapid7 Inc. | 365,835 | 16,561 |
Bentley Systems Inc. Class B | 448,802 | 15,834 | |
* | Clear Secure Inc. Class A | 578,300 | 15,626 |
* | ANSYS Inc. | 69,172 | 15,298 |
*,1 | Freshworks Inc. Class A | 1,106,800 | 15,041 |
* | Qualtrics International Inc. Class A | 1,254,286 | 15,014 |
* | DocuSign Inc. Class A | 308,983 | 14,924 |
* | Paylocity Holding Corp. | 64,320 | 14,909 |
* | Axcelis Technologies Inc. | 253,072 | 14,678 |
A10 Networks Inc. | 852,187 | 14,317 | |
* | CommVault Systems Inc. | 233,057 | 14,191 |
* | KnowBe4 Inc. Class A | 570,698 | 14,028 |
* | Q2 Holdings Inc. | 437,156 | 13,569 |
* | Semtech Corp. | 489,276 | 13,548 |
* | Ambarella Inc. | 241,684 | 13,227 |
* | Elastic NV | 205,075 | 13,115 |
* | PROS Holdings Inc. | 509,666 | 12,716 |
* | Coupa Software Inc. | 214,242 | 11,404 |
CSG Systems International Inc. | 164,794 | 10,657 | |
* | Teradata Corp. | 325,347 | 10,278 |
* | Diodes Inc. | 142,496 | 10,213 |
* | ExlService Holdings Inc. | 54,070 | 9,833 |
* | MaxLinear Inc. | 318,206 | 9,826 |
* | Atlassian Corp. | 47,201 | 9,569 |
* | Super Micro Computer Inc. | 132,565 | 9,225 |
* | Agilysys Inc. | 137,951 | 8,852 |
* | Domo Inc. Class B | 489,672 | 8,653 |
* | Yext Inc. | 1,452,718 | 7,728 |
TTEC Holdings Inc. | 162,858 | 7,242 | |
Pegasystems Inc. | 188,911 | 7,029 | |
Amkor Technology Inc. | 330,034 | 6,861 | |
* | Alarm.com Holdings Inc. | 109,315 | 6,432 |
* | Impinj Inc. | 51,107 | 5,858 |
* | SMART Global Holdings Inc. | 350,636 | 4,744 |
* | EPAM Systems Inc. | 12,449 | 4,357 |
* | Fabrinet | 38,015 | 4,349 |
Hackett Group Inc. | 198,772 | 4,341 | |
* | NCR Corp. | 191,547 | 4,072 |
* | Payoneer Global Inc. | 521,652 | 4,043 |
* | Perficient Inc. | 60,211 | 4,032 |
* | AvidXchange Holdings Inc. | 430,600 | 3,918 |
CDW Corp. | 22,383 | 3,868 | |
* | International Money Express Inc. | 134,153 | 3,626 |
* | ePlus Inc. | 73,114 | 3,562 |
* | eGain Corp. | 440,680 | 3,547 |
* | Brightcove Inc. | 524,919 | 3,517 |
Entegris Inc. | 42,735 | 3,391 | |
* | Arrow Electronics Inc. | 31,262 | 3,166 |
* | LivePerson Inc. | 291,253 | 3,079 |
* | Ultra Clean Holdings Inc. | 89,846 | 2,795 |
Shares | Market Value• ($000) | ||
Jack Henry & Associates Inc. | 12,919 | 2,572 | |
* | Eastman Kodak Co. | 451,327 | 2,415 |
* | Unisys Corp. | 261,399 | 2,222 |
* | Workiva Inc. Class A | 25,909 | 2,016 |
* | Upland Software Inc. | 233,415 | 1,877 |
* | Sprout Social Inc. Class A | 30,614 | 1,847 |
Vishay Intertechnology Inc. | 83,285 | 1,741 | |
* | ACI Worldwide Inc. | 71,312 | 1,735 |
* | Cambium Networks Corp. | 89,119 | 1,724 |
* | Marqeta Inc. Class A | 211,806 | 1,669 |
* | EngageSmart Inc. | 77,198 | 1,516 |
* | Diebold Nixdorf Inc. | 589,155 | 1,467 |
* | Zuora Inc. Class A | 165,042 | 1,269 |
* | Sitime Corp. | 12,939 | 1,162 |
* | Digital Turbine Inc. | 70,633 | 1,031 |
* | Arlo Technologies Inc. | 176,325 | 908 |
* | Confluent Inc. Class A | 32,077 | 862 |
* | BigCommerce Holdings Inc. Series 1 | 45,893 | 682 |
* | OSI Systems Inc. | 7,962 | 654 |
* | FormFactor Inc. | 31,333 | 633 |
* | Squarespace Inc. Class A | 26,104 | 580 |
* | Insight Enterprises Inc. | 5,855 | 553 |
* | Couchbase Inc. | 32,929 | 421 |
* | C3.ai Inc. Class A | 31,316 | 411 |
3,578,091 | |||
Materials (3.2%) | |||
Graphic Packaging Holding Co. | 5,801,602 | 133,205 | |
Cabot Corp. | 1,132,512 | 83,217 | |
Methanex Corp. | 1,946,800 | 67,924 | |
Louisiana-Pacific Corp. | 1,102,463 | 62,455 | |
Ashland Inc. | 474,900 | 49,826 | |
* | Summit Materials Inc. Class A | 1,830,961 | 48,246 |
Balchem Corp. | 202,575 | 28,320 | |
Chemours Co. | 522,379 | 14,956 | |
Warrior Met Coal Inc. | 394,807 | 14,663 | |
Eagle Materials Inc. | 112,178 | 13,720 | |
Olin Corp. | 256,407 | 13,577 | |
Steel Dynamics Inc. | 122,029 | 11,477 | |
* | O-I Glass Inc. | 520,515 | 8,490 |
Alpha Metallurgical Resources Inc. | 40,839 | 6,896 | |
Sensient Technologies Corp. | 85,307 | 6,096 | |
* | Livent Corp. | 184,477 | 5,824 |
AdvanSix Inc. | 130,940 | 4,764 | |
* | Ingevity Corp. | 52,836 | 3,554 |
Avery Dennison Corp. | 20,810 | 3,528 | |
Sealed Air Corp. | 67,207 | 3,200 | |
American Vanguard Corp. | 119,450 | 2,780 | |
Innospec Inc. | 27,698 | 2,770 | |
* | LSB Industries Inc. | 143,076 | 2,522 |
* | Constellium SE Class A | 193,561 | 2,133 |
Sylvamo Corp. | 36,565 | 1,761 | |
* | Century Aluminum Co. | 241,265 | 1,739 |
Schnitzer Steel Industries Inc. Class A | 61,147 | 1,650 | |
Greif Inc. Class A | 24,713 | 1,636 |
Shares | Market Value• ($000) | ||
Orion Engineered Carbons SA | 95,525 | 1,525 | |
Crown Holdings Inc. | 14,209 | 975 | |
Ryerson Holding Corp. | 20,978 | 704 | |
Ramaco Resources Inc. | 56,463 | 637 | |
Kronos Worldwide Inc. | 39,611 | 376 | |
605,146 | |||
Other (1.1%) | |||
3 | Vanguard Small-Cap ETF | 1,160,553 | 217,998 |
Real Estate (2.7%) | |||
Phillips Edison & Co. Inc. | 2,689,355 | 81,057 | |
Essential Properties Realty Trust Inc. | 3,569,564 | 76,817 | |
Life Storage Inc. | 618,098 | 68,368 | |
Rexford Industrial Realty Inc. | 1,234,521 | 68,244 | |
Douglas Emmett Inc. | 2,936,676 | 51,656 | |
Pebblebrook Hotel Trust | 2,663,816 | 42,728 | |
Xenia Hotels & Resorts Inc. | 1,932,363 | 33,005 | |
Americold Realty Trust Inc. | 1,070,900 | 25,969 | |
Outfront Media Inc. | 796,311 | 14,373 | |
National Storage Affiliates Trust | 310,937 | 13,265 | |
EastGroup Properties Inc. | 79,832 | 12,509 | |
Camden Property Trust | 77,711 | 8,979 | |
Equity LifeStyle Properties Inc. | 96,584 | 6,177 | |
Necessity Retail REIT Inc. | 436,443 | 2,985 | |
NexPoint Residential Trust Inc. | 63,741 | 2,907 | |
Alexander's Inc. | 9,841 | 2,312 | |
RMR Group Inc. Class A | 75,418 | 2,064 | |
CareTrust REIT Inc. | 72,904 | 1,362 | |
Gladstone Commercial Corp. | 71,786 | 1,263 | |
Douglas Elliman Inc. | 254,240 | 1,175 | |
517,215 | |||
Utilities (1.0%) | |||
Portland General Electric Co. | 1,603,821 | 72,076 | |
Atlantica Sustainable Infrastructure plc | 2,523,495 | 69,926 | |
National Fuel Gas Co. | 196,101 | 13,235 | |
Vistra Corp. | 483,053 | 11,096 | |
Otter Tail Corp. | 95,857 | 6,463 | |
Brookfield Infrastructure Corp. Class A (XTSE) | 121,121 | 5,223 | |
NRG Energy Inc. | 75,859 | 3,368 | |
MGE Energy Inc. | 16,382 | 1,115 | |
Chesapeake Utilities Corp. | 6,819 | 848 | |
�� 183,350 | |||
Total Common Stocks (Cost $16,769,294) | 18,298,575 |
Shares | Market Value• ($000) | ||
Preferred Stock (0.0%) | |||
*,1,4 | Meta Material Inc. Preference Shares 0.00% (Cost $267) | 181,756 | 1,245 |
Temporary Cash Investments (4.5%) | |||
Money Market Fund (3.8%) | |||
5,6 | Vanguard Market Liquidity Fund, 3.117% | 7,168,374 | 716,694 |
Face Amount ($000) | |||
Repurchase Agreement (0.7%) | |||
Deutsche Bank Securities, Inc. 3.000%, 11/1/22 (Dated 10/31/22, Repurchase Value $138,312,000, collateralized by U.S. Treasury Note/Bond 4.375%, 10/31/24, with a value of $141,066,000) | 138,300 | 138,300 | |
Total Temporary Cash Investments (Cost $854,876) | 854,994 | ||
Total Investments (100.5%) (Cost $17,624,437) | 19,154,814 | ||
Other Assets and Liabilities—Net (-0.5%) | (103,815) | ||
Net Assets (100%) | 19,050,999 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $64,501,000. |
2 | Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. |
3 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
4 | Perpetual security with no stated maturity date. |
5 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
6 | Collateral of $70,026,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
REIT—Real Estate Investment Trust. |
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 2022 | 3,939 | 364,948 | (6,484) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $16,602,150) | 18,140,989 |
Affiliated Issuers (Cost $1,022,287) | 1,013,825 |
Total Investments in Securities | 19,154,814 |
Investment in Vanguard | 710 |
Cash Collateral Pledged—Futures Contracts | 21,668 |
Receivables for Investment Securities Sold | 51,887 |
Receivables for Accrued Income | 2,699 |
Receivables for Capital Shares Issued | 6,071 |
Variation Margin Receivable—Futures Contracts | 276 |
Total Assets | 19,238,125 |
Liabilities | |
Due to Custodian | 9,365 |
Payables for Investment Securities Purchased | 89,058 |
Collateral for Securities on Loan | 70,026 |
Payables to Investment Advisor | 9,801 |
Payables for Capital Shares Redeemed | 7,621 |
Payables to Vanguard | 1,255 |
Total Liabilities | 187,126 |
Net Assets | 19,050,999 |
1 Includes $64,501 of securities on loan. | |
At October 31, 2022, net assets consisted of: | |
Paid-in Capital | 16,733,569 |
Total Distributable Earnings (Loss) | 2,317,430 |
Net Assets | 19,050,999 |
Investor Shares—Net Assets | |
Applicable to 29,023,607 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 2,893,778 |
Net Asset Value Per Share—Investor Shares | $99.70 |
Admiral Shares—Net Assets | |
Applicable to 174,132,245 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 16,157,221 |
Net Asset Value Per Share—Admiral Shares | $92.79 |
Year Ended October 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 145,527 |
Dividends—Affiliated Issuers | 3,148 |
Interest—Unaffiliated Issuers | 1,638 |
Interest—Affiliated Issuers | 6,297 |
Securities Lending—Net | 2,365 |
Total Income | 158,975 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 34,261 |
Performance Adjustment | 8,134 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 7,742 |
Management and Administrative—Admiral Shares | 22,856 |
Marketing and Distribution—Investor Shares | 218 |
Marketing and Distribution—Admiral Shares | 816 |
Custodian Fees | 109 |
Auditing Fees | 42 |
Shareholders’ Reports—Investor Shares | 79 |
Shareholders’ Reports—Admiral Shares | 198 |
Trustees’ Fees and Expenses | 8 |
Other Expenses | 18 |
Total Expenses | 74,481 |
Expenses Paid Indirectly | (33) |
Net Expenses | 74,448 |
Net Investment Income | 84,527 |
Realized Net Gain (Loss) | |
Capital Gains Distributions Received – Affiliated Issuers | 15 |
Investment Securities Sold—Unaffiliated Issuers | 957,379 |
Investment Securities Sold—Affiliated Issuers | 9,735 |
Futures Contracts | (101,326) |
Foreign Currencies | (49) |
Realized Net Gain (Loss) | 865,754 |
Statement of Operations (continued) | |
Year Ended October 31, 2022 | |
($000) | |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | (6,473,454) |
Investment Securities—Affiliated Issuers | (189,470) |
Futures Contracts | (15,756) |
Foreign Currencies | 1 |
Change in Unrealized Appreciation (Depreciation) | (6,678,679) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (5,728,398) |
1 | Dividends are net of foreign withholding taxes of $396,000. |
Year Ended October 31, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 84,527 | 52,288 |
Realized Net Gain (Loss) | 865,754 | 3,516,351 |
Change in Unrealized Appreciation (Depreciation) | (6,678,679) | 4,291,092 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (5,728,398) | 7,859,731 |
Distributions | ||
Investor Shares | (542,949) | (250,706) |
Admiral Shares | (2,859,142) | (1,099,471) |
Total Distributions | (3,402,091) | (1,350,177) |
Capital Share Transactions | ||
Investor Shares | 274,349 | (480,536) |
Admiral Shares | 3,239,276 | 2,034,131 |
Net Increase (Decrease) from Capital Share Transactions | 3,513,625 | 1,553,595 |
Total Increase (Decrease) | (5,616,864) | 8,063,149 |
Net Assets | ||
Beginning of Period | 24,667,863 | 16,604,714 |
End of Period | 19,050,999 | 24,667,863 |
Investor Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended October 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $151.47 | $110.44 | $101.66 | $102.25 | $102.10 |
Investment Operations | |||||
Net Investment Income1 | .349 | .206 | .284 | .333 | .325 |
Net Realized and Unrealized Gain (Loss) on Investments | (31.635) | 49.372 | 13.688 | 8.234 | 11.192 |
Total from Investment Operations | (31.286) | 49.578 | 13.972 | 8.567 | 11.517 |
Distributions | |||||
Dividends from Net Investment Income | (.278) | (.158) | (.295) | (.286) | (.475) |
Distributions from Realized Capital Gains | (20.206) | (8.390) | (4.897) | (8.871) | (10.892) |
Total Distributions | (20.484) | (8.548) | (5.192) | (9.157) | (11.367) |
Net Asset Value, End of Period | $99.70 | $151.47 | $110.44 | $101.66 | $102.25 |
Total Return2 | -23.09% | 46.27% | 14.08% | 10.15% | 12.12% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $2,894 | $4,074 | $3,325 | $3,520 | $3,420 |
Ratio of Total Expenses to Average Net Assets3 | 0.45%4 | 0.40% | 0.41% | 0.45% | 0.44% |
Ratio of Net Investment Income to Average Net Assets | 0.31% | 0.15% | 0.28% | 0.33% | 0.31% |
Portfolio Turnover Rate | 44% | 45% | 43% | 41% | 50% |
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 0.04%, (0.01%), (0.01%), 0.03%, and 0.02%. |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.45%. |
Admiral Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended October 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $141.02 | $102.82 | $94.64 | $95.24 | $94.99 |
Investment Operations | |||||
Net Investment Income1 | .437 | .321 | .365 | .409 | .418 |
Net Realized and Unrealized Gain (Loss) on Investments | (29.417) | 45.967 | 12.752 | 7.648 | 10.405 |
Total from Investment Operations | (28.980) | 46.288 | 13.117 | 8.057 | 10.823 |
Distributions | |||||
Dividends from Net Investment Income | (.434) | (.275) | (.378) | (.393) | (.438) |
Distributions from Realized Capital Gains | (18.816) | (7.813) | (4.559) | (8.264) | (10.135) |
Total Distributions | (19.250) | (8.088) | (4.937) | (8.657) | (10.573) |
Net Asset Value, End of Period | $92.79 | $141.02 | $102.82 | $94.64 | $95.24 |
Total Return2 | -23.00% | 46.42% | 14.21% | 10.27% | 12.24% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $16,157 | $20,594 | $13,279 | $12,569 | $11,616 |
Ratio of Total Expenses to Average Net Assets3 | 0.34%4 | 0.29% | 0.30% | 0.34% | 0.32% |
Ratio of Net Investment Income to Average Net Assets | 0.42% | 0.25% | 0.39% | 0.44% | 0.43% |
Portfolio Turnover Rate | 44% | 45% | 43% | 41% | 50% |
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 0.04%, (0.01%), (0.01%), 0.03%, and 0.02%. |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.34%. |
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. | The fund has asked its investment advisors to direct certain security trades, subject to obtaining the best price and execution, to brokers who have agreed to rebate to the fund part of the commissions generated. Such rebates are used solely to reduce the fund’s management and administrative expenses. For the year ended October 31, 2022, these arrangements reduced the fund’s expenses by $33,000 (an annual rate of less than 0.01% of average net assets). |
E. | Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 18,298,575 | — | — | 18,298,575 |
Preferred Stock | 1,245 | — | — | 1,245 |
Temporary Cash Investments | 716,694 | 138,300 | — | 854,994 |
Total | 19,016,514 | 138,300 | — | 19,154,814 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 6,484 | — | — | 6,484 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
F. | 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 applicable foreign currency transactions and distributions in connection with fund share redemptions were reclassified between the following accounts: |
Amount ($000) | |
Paid-in Capital | 65,350 |
Total Distributable Earnings (Loss) | (65,350) |
Amount ($000) | |
Undistributed Ordinary Income | 55,409 |
Undistributed Long-Term Gains | 830,733 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 1,431,288 |
Year Ended October 31, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 855,654 | 167,722 |
Long-Term Capital Gains | 2,546,437 | 1,182,455 |
Total | 3,402,091 | 1,350,177 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 17,723,526 |
Gross Unrealized Appreciation | 4,335,653 |
Gross Unrealized Depreciation | (2,904,365) |
Net Unrealized Appreciation (Depreciation) | 1,431,288 |
G. | During the year ended October 31, 2022, the fund purchased $8,937,784,000 of investment securities and sold $8,879,454,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Year Ended October 31, | |||||
2022 | 2021 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 237,214 | 2,052 | 493,604 | 3,566 | |
Issued in Lieu of Cash Distributions | 526,661 | 4,329 | 244,060 | 1,898 | |
Redeemed | (489,526) | (4,253) | (1,218,200) | (8,679) | |
Net Increase (Decrease)—Investor Shares | 274,349 | 2,128 | (480,536) | (3,215) | |
Admiral Shares | |||||
Issued | 2,678,849 | 24,883 | 3,692,806 | 28,851 | |
Issued in Lieu of Cash Distributions | 2,659,574 | 23,515 | 1,024,110 | 8,560 | |
Redeemed | (2,099,147) | (20,303) | (2,682,785) | (20,527) | |
Net Increase (Decrease)—Admiral Shares | 3,239,276 | 28,095 | 2,034,131 | 16,884 |
I. | 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, 2021 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, 2022 Market Value ($000) | |
Enerpac Tool Group Corp. Class A | 65,557 | 2,165 | 58,231 | (10,573) | 1,082 | — | — | — |
Houghton Mifflin Harcourt Co. | 90,571 | 682 | 134,702 | 78,350 | (34,900) | — | — | — |
Momentive Global Inc. | 210,733 | 34,570 | 90,821 | (37,436) | (74,710) | — | — | NA1 |
Vanguard Market Liquidity Fund | 627,469 | NA2 | NA2 | (147) | 22 | 6,297 | 15 | 716,694 |
Vanguard Small-Cap ETF | 315,115 | 242,425 | 289,489 | (16,606) | (33,448) | 3,148 | — | 217,998 |
Veracyte Inc. | NA3 | 44,827 | 4,221 | (3,853) | (47,516) | — | — | 79,133 |
Total | 1,309,445 | 324,669 | 577,464 | 9,735 | (189,470) | 9,445 | 15 | 1,013,825 |
1 | Not applicable—at October 31, 2022, the security was still held, but the issuer was no longer an affiliated company of the fund. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Not applicable—at October 31, 2021, the issuer was not an affiliated company of the fund. |
J. | Management has determined that no events or transactions occurred subsequent to October 31, 2022, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
December 16, 2022
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
Chris D. Mclsaac | 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, 2022: $42,000
Fiscal Year Ended October 31, 2021: $45,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended October 31, 2022: $10,494,508
Fiscal Year Ended October 31, 2021: $11,244,694
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, 2022: $2,757,764
Fiscal Year Ended October 31, 2021: $2,955,181
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, 2022: $5,202,689
Fiscal Year Ended October 31, 2021: $2,047,574
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, 2022: $298,000
Fiscal Year Ended October 31, 2021: $280,000
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, 2022: $5,500,689
Fiscal Year Ended October 31, 2021: $2,327,574
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.
Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. There were no 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)(1) | Code of Ethics filed herewith. |
(a)(2) | Certifications filed herewith. |
(b) | Certifications filed herewith. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD EXplorer FUND | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: December 19, 2022
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 19, 2022
VANGUARD EXPLORER FUND | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: December 19, 2022
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on October 11, 2022 (see File Number 333-11763), Incorporated by Reference.