Vanguard® Materials Index Fund
Schedule of Investments (unaudited)
As of November 30, 2023
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
Shares | Market Value ($000) | ||
Common Stocks (99.6%) | |||
Chemicals (60.8%) | |||
Linde plc | 1,492,117 | 617,393 | |
Sherwin-Williams Co. | 747,033 | 208,273 | |
Air Products and Chemicals Inc. | 679,324 | 183,791 | |
Ecolab Inc. | 784,430 | 150,399 | |
Dow Inc. | 2,149,900 | 111,257 | |
PPG Industries Inc. | 720,179 | 102,258 | |
DuPont de Nemours Inc. | 1,403,725 | 100,423 | |
Corteva Inc. | 2,170,467 | 98,105 | |
LyondellBasell Industries NV Class A | 793,036 | 75,418 | |
International Flavors & Fragrances Inc. | 780,591 | 58,841 | |
CF Industries Holdings Inc. | 590,044 | 44,342 | |
Celanese Corp. | 316,219 | 43,847 | |
RPM International Inc. | 393,922 | 40,546 | |
Albemarle Corp. | 311,870 | 37,821 | |
Mosaic Co. | 1,016,162 | 36,470 | |
Eastman Chemical Co. | 362,517 | 30,390 | |
* | Axalta Coating Systems Ltd. | 677,924 | 21,334 |
FMC Corp. | 381,466 | 20,470 | |
Olin Corp. | 365,556 | 17,232 | |
Westlake Corp. | 117,145 | 15,040 | |
Element Solutions Inc. | 701,678 | 14,707 | |
Cabot Corp. | 171,059 | 12,983 | |
Huntsman Corp. | 516,919 | 12,716 | |
HB Fuller Co. | 165,411 | 12,518 | |
Chemours Co. | 452,942 | 12,424 | |
Balchem Corp. | 98,648 | 12,303 | |
Ashland Inc. | 148,920 | 11,902 | |
NewMarket Corp. | 22,019 | 11,681 | |
Avient Corp. | 278,868 | 9,579 | |
Innospec Inc. | 76,037 | 7,989 | |
* | Livent Corp. | 548,935 | 7,553 |
Sensient Technologies Corp. | 129,127 | 7,482 | |
Scotts Miracle-Gro Co. | 128,831 | 7,171 | |
Quaker Chemical Corp. | 38,523 | 6,888 | |
Minerals Technologies Inc. | 99,588 | 6,238 | |
Stepan Co. | 68,429 | 5,650 | |
Tronox Holdings plc | 360,195 | 4,593 | |
Orion SA | 179,109 | 4,268 | |
*,1 | Ginkgo Bioworks Holdings Inc. | 3,173,686 | 4,094 |
* | Ingevity Corp. | 104,995 | 4,073 |
Hawkins Inc. | 61,430 | 3,774 | |
* | Ecovyst Inc. | 321,808 | 3,064 |
Shares | Market Value ($000) | ||
Koppers Holdings Inc. | 64,086 | 2,895 | |
AdvanSix Inc. | 83,767 | 2,189 | |
Mativ Holdings Inc. | 166,800 | 1,952 | |
* | Perimeter Solutions SA | 447,770 | 1,863 |
* | Aspen Aerogels Inc. | 161,362 | 1,691 |
*,1 | PureCycle Technologies Inc. | 325,190 | 1,314 |
* | LSB Industries Inc. | 147,403 | 1,263 |
American Vanguard Corp. | 85,072 | 798 | |
* | Intrepid Potash Inc. | 34,343 | 705 |
Kronos Worldwide Inc. | 70,940 | 619 | |
Trinseo plc | 83,736 | 484 | |
*,1 | Danimer Scientific Inc. | 296,499 | 323 |
*,1 | Origin Materials Inc. | 354,523 | 242 |
2,213,638 | |||
Construction Materials (6.0%) | |||
Martin Marietta Materials Inc. | 188,993 | 87,804 | |
Vulcan Materials Co. | 406,278 | 86,765 | |
Eagle Materials Inc. | 108,333 | 19,614 | |
* | Summit Materials Inc. Class A | 363,717 | 12,617 |
* | Knife River Corp. | 155,865 | 9,302 |
United States Lime & Minerals Inc. | 6,951 | 1,474 | |
217,576 | |||
Containers & Packaging (11.6%) | |||
Ball Corp. | 963,506 | 53,272 | |
Avery Dennison Corp. | 246,409 | 47,927 | |
Packaging Corp. of America | 274,917 | 46,189 | |
Amcor plc | 4,423,035 | 41,930 | |
International Paper Co. | 1,005,107 | 37,129 | |
Westrock Co. | 784,159 | 32,284 | |
Crown Holdings Inc. | 368,926 | 31,731 | |
AptarGroup Inc. | 200,646 | 25,460 | |
Berry Global Group Inc. | 361,124 | 23,877 | |
Graphic Packaging Holding Co. | 939,407 | 21,296 | |
Sonoco Products Co. | 299,632 | 16,528 | |
Sealed Air Corp. | 441,709 | 14,744 | |
Silgan Holdings Inc. | 268,894 | 11,218 | |
* | O-I Glass Inc. | 472,987 | 6,981 |
Greif Inc. Class A | 78,105 | 5,460 | |
TriMas Corp. | 126,367 | 3,239 | |
Myers Industries Inc. | 96,587 | 1,702 | |
Pactiv Evergreen Inc. | 137,297 | 1,571 | |
* | Ranpak Holdings Corp. | 134,104 | 550 |
423,088 | |||
Metals & Mining (20.6%) | |||
Freeport-McMoRan Inc. | 4,384,316 | 163,623 | |
Newmont Corp. (XNYS) | 3,524,373 | 141,645 | |
Nucor Corp. | 760,605 | 129,280 | |
Steel Dynamics Inc. | 481,232 | 57,329 | |
Reliance Steel & Aluminum Co. | 179,054 | 49,286 | |
* | Cleveland-Cliffs Inc. | 1,555,739 | 26,696 |
Royal Gold Inc. | 200,875 | 24,467 | |
* | ATI Inc. | 393,242 | 17,283 |
United States Steel Corp. | 469,827 | 16,867 | |
Commercial Metals Co. | 357,500 | 16,205 | |
Alcoa Corp. | 545,934 | 14,664 | |
Carpenter Technology Corp. | 149,498 | 10,586 | |
Alpha Metallurgical Resources Inc. | 34,771 | 9,755 |
Shares | Market Value ($000) | ||
Hecla Mining Co. | 1,796,991 | 8,949 | |
Warrior Met Coal Inc. | 159,127 | 8,906 | |
Arch Resources Inc. | 52,560 | 8,723 | |
Materion Corp. | 63,163 | 7,144 | |
Worthington Industries Inc. | 99,079 | 7,104 | |
* | MP Materials Corp. | 433,536 | 6,880 |
* | Coeur Mining Inc. | 1,077,254 | 3,286 |
Ryerson Holding Corp. | 95,115 | 2,946 | |
Kaiser Aluminum Corp. | 49,246 | 2,880 | |
Compass Minerals International Inc. | 107,185 | 2,602 | |
*,1 | Ivanhoe Electric Inc. | 215,056 | 2,443 |
* | TimkenSteel Corp. | 120,156 | 2,442 |
SunCoke Energy Inc. | 254,345 | 2,368 | |
Schnitzer Steel Industries Inc. Class A | 78,661 | 2,016 | |
Haynes International Inc. | 38,884 | 1,908 | |
* | Piedmont Lithium Inc. | 55,762 | 1,445 |
1 | Ramaco Resources Inc. Class A | 86,320 | 1,442 |
* | Century Aluminum Co. | 169,559 | 1,333 |
* | 5e Advanced Materials Inc. | 94,699 | 195 |
752,698 | |||
Paper & Forest Products (0.6%) | |||
Louisiana-Pacific Corp. | 198,537 | 12,109 | |
Sylvamo Corp. | 115,057 | 5,785 | |
* | Clearwater Paper Corp. | 50,993 | 1,788 |
Mercer International Inc. | 121,388 | 1,163 | |
20,845 | |||
Total Common Stocks (Cost $3,605,246) | 3,627,845 | ||
Temporary Cash Investments (0.4%) | |||
Money Market Fund (0.4%) | |||
2,3 | Vanguard Market Liquidity Fund, 5.438% (Cost $14,666) | 146,688 | 14,667 |
Total Investments (100.0%) (Cost $3,619,912) | 3,642,512 | ||
Other Assets and Liabilities—Net (0.0%) | (991) | ||
Net Assets (100.0%) | 3,641,521 | ||
Cost is in $000. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $5,891,000. |
2 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
3 | Collateral of $7,513,000 was received for securities on loan. |
Derivative Financial Instruments Outstanding as of Period End
Over-the-Counter Total Return Swaps | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Floating Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
Albemarle Corp. | 1/31/24 | CITNA | 5,700 | (5.331) | — | (27) |
United States Steel Corp. | 8/30/24 | BANA | 7,611 | (5.331) | — | (21) |
— | (48) |
1 | Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/paid monthly. |
BANA—Bank of America, N.A. | |
CITNA—Citibank, N.A. |
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
B. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded as an asset (liability) and as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
C. Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of November 30, 2023, based on the inputs used to value them:
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 3,627,845 | — | — | 3,627,845 |
Temporary Cash Investments | 14,667 | — | — | 14,667 |
Total | 3,642,512 | — | — | 3,642,512 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Swap Contracts | — | 48 | — | 48 |