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: 811-03916
Name of Registrant: | Vanguard Specialized Funds |
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: January 31
Date of reporting period: February 1, 2022—July 31, 2022
Item 1: Reports to Shareholders
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/img65b64c601.jpg)
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 16 |
Liquidity Risk Management | 18 |
• | 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 July 31, 2022 | |||
Beginning Account Value 1/31/2022 | Ending Account Value 7/31/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Energy Fund | |||
Investor Shares | $1,000.00 | $1,071.60 | $2.21 |
Admiral™ Shares | 1,000.00 | 1,072.20 | 1.80 |
Based on Hypothetical 5% Yearly Return | |||
Energy Fund | |||
Investor Shares | $1,000.00 | $1,022.66 | $2.16 |
Admiral Shares | 1,000.00 | 1,023.06 | 1.76 |
United States | 52.0% |
United Kingdom | 16.9 |
France | 8.9 |
Canada | 8.4 |
Norway | 3.5 |
Italy | 2.9 |
Spain | 2.2 |
India | 1.8 |
Brazil | 1.3 |
Germany | 1.3 |
Other | 0.8 |
Shares | Market Value• ($000) | ||
Common Stocks (99.4%) | |||
Brazil (1.3%) | |||
Petroleo Brasileiro SA | 10,799,725 | 77,145 | |
Canada (8.3%) | |||
Cenovus Energy Inc. | 9,576,426 | 182,718 | |
Enbridge Inc. | 3,608,632 | 162,065 | |
TC Energy Corp. (XTSE) | 1,139,407 | 60,753 | |
Pembina Pipeline Corp. | 755,676 | 28,851 | |
ARC Resources Ltd. | 1,746,479 | 24,495 | |
TC Energy Corp. | 429,158 | 22,880 | |
481,762 | |||
China (0.8%) | |||
China Yangtze Power Co. Ltd. Class A | 13,326,260 | 47,285 | |
France (8.8%) | |||
TotalEnergies SE | 4,030,974 | 205,891 | |
Engie SA (XPAR) | 12,989,424 | 160,710 | |
TotalEnergies SE ADR | 2,779,005 | 141,896 | |
508,497 | |||
Germany (1.3%) | |||
RWE AG | 1,851,889 | 76,183 | |
India (1.8%) | |||
Power Grid Corp. of India Ltd. | 37,452,361 | 101,423 | |
Italy (2.9%) | |||
Tenaris SA | 6,268,325 | 87,719 | |
Enel SpA | 15,877,888 | 80,045 | |
167,764 | |||
Norway (3.5%) | |||
Equinor ASA | 5,179,330 | 199,425 | |
Russia (0.0%) | |||
1 | LUKOIL PJSC ADR | 1,423,477 | — |
Spain (2.2%) | |||
Iberdrola SA (XMAD) | 11,774,858 | 125,738 | |
Iberdrola SA | 333,012 | 3,550 | |
129,288 | |||
United Kingdom (16.8%) | |||
Shell plc (XLON) | 11,748,054 | 313,395 | |
BP plc | 45,505,929 | 222,718 | |
Shell plc ADR | 3,887,765 | 207,529 | |
National Grid plc | 8,744,490 | 120,408 | |
BP plc ADR | 3,551,189 | 104,334 | |
968,384 |
Shares | Market Value• ($000) | ||
United States (51.7%) | |||
ConocoPhillips | 3,742,854 | 364,666 | |
Marathon Petroleum Corp. | 3,681,698 | 337,465 | |
Pioneer Natural Resources Co. | 1,071,829 | 253,970 | |
Coterra Energy Inc. | 6,871,971 | 210,214 | |
Duke Energy Corp. | 1,762,463 | 193,748 | |
Chesapeake Energy Corp. | 1,929,822 | 181,731 | |
Exelon Corp. | 3,791,621 | 176,273 | |
NextEra Energy Inc. | 2,015,543 | 170,293 | |
Southern Co. | 2,100,611 | 161,516 | |
FirstEnergy Corp. | 3,355,355 | 137,905 | |
Sempra Energy (XNYS) | 804,333 | 133,358 | |
American Electric Power Co. Inc. | 1,322,108 | 130,307 | |
Edison International | 1,757,330 | 119,094 | |
Williams Cos. Inc. | 3,172,492 | 108,150 | |
Constellation Energy Corp. | 1,263,874 | 83,542 | |
CenterPoint Energy Inc. | 2,543,728 | 80,611 | |
Avangrid Inc. | 1,113,581 | 54,265 | |
Schlumberger NV | 1,377,191 | 50,997 | |
* | First Solar Inc. | 356,359 | 35,340 |
2,983,445 | |||
Total Common Stocks (Cost $4,283,887) | 5,740,601 | ||
Temporary Cash Investments (0.6%) | |||
Money Market Fund (0.0%) | |||
2 | Vanguard Market Liquidity Fund 1.903% | 1,042 | 104 |
Face Amount ($000) | Market Value• ($000) | ||
Repurchase Agreement (0.6%) | |||
NatWest Markets plc, 2.230%, 8/1/22 (Dated 7/29/22, Repurchase Value $35,607,000, collateralized by U.S. Treasury Note/Bond 1.875%–2.250%, 12/31/24–7/31/26, with a value of $36,312,000) | 35,600 | 35,600 | |
Total Temporary Cash Investments (Cost $35,704) | 35,704 | ||
Total Investments (100.0%) (Cost $4,319,591) | 5,776,305 | ||
Other Assets and Liabilities—Net (0.0%) | (1,155) | ||
Net Assets (100%) | 5,775,150 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Security value determined using significant unobservable inputs. |
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. |
ADR—American Depositary Receipt. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $4,319,487) | 5,776,201 |
Affiliated Issuers (Cost $104) | 104 |
Total Investments in Securities | 5,776,305 |
Investment in Vanguard | 212 |
Foreign Currency, at Value (Cost $193) | 189 |
Receivables for Accrued Income | 6,596 |
Receivables for Capital Shares Issued | 5,760 |
Total Assets | 5,789,062 |
Liabilities | |
Due to Custodian | 457 |
Payables to Investment Advisor | 2,841 |
Payables for Capital Shares Redeemed | 5,993 |
Payables to Vanguard | 445 |
Deferred Foreign Capital Gains Taxes | 4,176 |
Total Liabilities | 13,912 |
Net Assets | 5,775,150 |
At July 31, 2022, net assets consisted of: | |
Paid-in Capital | 4,775,081 |
Total Distributable Earnings (Loss) | 1,000,069 |
Net Assets | 5,775,150 |
Investor Shares—Net Assets | |
Applicable to 41,837,020 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,863,983 |
Net Asset Value Per Share—Investor Shares | $44.55 |
Admiral Shares—Net Assets | |
Applicable to 46,778,988 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 3,911,167 |
Net Asset Value Per Share—Admiral Shares | $83.61 |
Six Months Ended July 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 141,377 |
Interest2 | 175 |
Securities Lending—Net | 66 |
Total Income | 141,618 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 4,364 |
Performance Adjustment | 1,100 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 2,105 |
Management and Administrative—Admiral Shares | 2,934 |
Marketing and Distribution—Investor Shares | 65 |
Marketing and Distribution—Admiral Shares | 77 |
Custodian Fees | 61 |
Shareholders’ Reports—Investor Shares | 33 |
Shareholders’ Reports—Admiral Shares | 17 |
Trustees’ Fees and Expenses | 1 |
Other Expenses | 14 |
Total Expenses | 10,771 |
Net Investment Income | 130,847 |
Realized Net Gain (Loss) | |
Investment Securities Sold2,3 | 111,613 |
Foreign Currencies | (1,538) |
Realized Net Gain (Loss) | 110,075 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,4 | 131,520 |
Foreign Currencies | (154) |
Change in Unrealized Appreciation (Depreciation) | 131,366 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 372,288 |
1 | Dividends are net of foreign withholding taxes of $7,272,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $0, $18,000, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
3 | Realized gain (loss) is net of foreign capital gain taxes of $23,000. |
4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($44,000). |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 130,847 | 177,015 | |
Realized Net Gain (Loss) | 110,075 | 116,270 | |
Change in Unrealized Appreciation (Depreciation) | 131,366 | 1,155,587 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 372,288 | 1,448,872 | |
Distributions | |||
Investor Shares | (3,003) | (57,404) | |
Admiral Shares | (6,813) | (119,222) | |
Total Distributions | (9,816) | (176,626) | |
Capital Share Transactions | |||
Investor Shares | (24,978) | (14,569) | |
Admiral Shares | 58,604 | 7,935 | |
Net Increase (Decrease) from Capital Share Transactions | 33,626 | (6,634) | |
Total Increase (Decrease) | 396,098 | 1,265,612 | |
Net Assets | |||
Beginning of Period | 5,379,052 | 4,113,440 | |
End of Period | 5,775,150 | 5,379,052 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $41.64 | $31.66 | $43.28 | $47.85 | $55.62 | $52.70 |
Investment Operations | ||||||
Net Investment Income1 | .978 | 1.364 | 1.449 | 1.519 | 1.300 | 1.4772 |
Net Realized and Unrealized Gain (Loss) on Investments | 2.001 | 10.019 | (11.669) | (4.524) | (7.788) | 3.035 |
Total from Investment Operations | 2.979 | 11.383 | (10.220) | (3.005) | (6.488) | 4.512 |
Distributions | ||||||
Dividends from Net Investment Income | (.069) | (1.403) | (1.400) | (1.565) | (1.282) | (1.592) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (.069) | (1.403) | (1.400) | (1.565) | (1.282) | (1.592) |
Net Asset Value, End of Period | $44.55 | $41.64 | $31.66 | $43.28 | $47.85 | $55.62 |
Total Return3 | 7.16% | 36.33% | -23.55% | -6.55% | -11.48% | 8.75% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $1,864 | $1,771 | $1,363 | $1,793 | $2,265 | $2,968 |
Ratio of Total Expenses to Average Net Assets4 | 0.43% | 0.41% | 0.37% | 0.32% | 0.37% | 0.38% |
Ratio of Net Investment Income to Average Net Assets | 4.02% | 3.68% | 4.49% | 3.20% | 2.42% | 2.86%2 |
Portfolio Turnover Rate | 8% | 14% | 55% | 48% | 31% | 24% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Net investment income per share and the ratio of net investment income to average net assets include $.342 and 0.67%, respectively, resulting from a cash payment received in connection with the merger of General Electric Co. and Baker Hughes Inc. in July 2017. |
3 | 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. |
4 | Includes performance-based investment advisory fee increases (decreases) of 0.04%, 0.02%, (0.02%), (0.06%), (0.01%), and 0.00%. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $78.12 | $59.39 | $81.18 | $89.77 | $104.35 | $98.88 |
Investment Operations | ||||||
Net Investment Income1 | 1.870 | 2.615 | 2.787 | 2.926 | 2.511 | 2.8152 |
Net Realized and Unrealized Gain (Loss) on Investments | 3.765 | 18.794 | (21.903) | (8.512) | (14.600) | 5.730 |
Total from Investment Operations | 5.635 | 21.409 | (19.116) | (5.586) | (12.089) | 8.545 |
Distributions | ||||||
Dividends from Net Investment Income | (.145) | (2.679) | (2.674) | (3.004) | (2.491) | (3.075) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (.145) | (2.679) | (2.674) | (3.004) | (2.491) | (3.075) |
Net Asset Value, End of Period | $83.61 | $78.12 | $59.39 | $81.18 | $89.77 | $104.35 |
Total Return3 | 7.22% | 36.43% | -23.47% | -6.50% | -11.40% | 8.84% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $3,911 | $3,608 | $2,751 | $4,388 | $5,606 | $6,796 |
Ratio of Total Expenses to Average Net Assets4 | 0.35% | 0.33% | 0.29% | 0.24% | 0.29% | 0.30% |
Ratio of Net Investment Income to Average Net Assets | 4.10% | 3.76% | 4.60% | 3.28% | 2.50% | 2.94%2 |
Portfolio Turnover Rate | 8% | 14% | 55% | 48% | 31% | 24% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Net investment income per share and the ratio of net investment income to average net assets include $.643 and 0.67%, respectively, resulting from a cash payment received in connection with the merger of General Electric Co. and Baker Hughes Inc. in July 2017. |
3 | 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. |
4 | Includes performance-based investment advisory fee increases (decreases) of 0.04%, 0.02%, (0.02%), (0.06%), (0.01%), and 0.00%. |
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. | Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments based on the fund's performance relative to the MSCI ACWI Energy Index for periods prior to October 21, 2020, and to the current benchmark MSCI ACWI Energy + Utilities Index, beginning October 21, 2020, for the preceding three years. The benchmark change will be fully phased in by October 2023. For the six months ended July 31, 2022, the investment advisory fee paid represented an effective annual basic rate of 0.15% of the fund’s average net assets, before a net increase of $1,100,000 (0.04%) based on performance. |
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, and distribution 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. 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—North and South America | 3,542,352 | — | — | 3,542,352 |
Common Stocks—Other | 453,759 | 1,744,490 | — | 2,198,249 |
Temporary Cash Investments | 104 | 35,600 | — | 35,704 |
Total | 3,996,215 | 1,780,090 | — | 5,776,305 |
E. | As of July 31, 2022, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 4,321,830 |
Gross Unrealized Appreciation | 1,644,028 |
Gross Unrealized Depreciation | (189,553) |
Net Unrealized Appreciation (Depreciation) | 1,454,475 |
F. | During the six months ended July 31, 2022, the fund purchased $670,288,000 of investment securities and sold $471,214,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 351,446 | 8,031 | 433,225 | 11,662 | |
Issued in Lieu of Cash Distributions | 2,780 | 63 | 53,100 | 1,381 | |
Redeemed | (379,204) | (8,791) | (500,894) | (13,551) | |
Net Increase (Decrease)—Investor Shares | (24,978) | (697) | (14,569) | (508) | |
Admiral Shares | |||||
Issued | 742,812 | 9,053 | 851,809 | 12,163 | |
Issued in Lieu of Cash Distributions | 6,048 | 74 | 105,042 | 1,455 | |
Redeemed | (690,256) | (8,534) | (948,916) | (13,745) | |
Net Increase (Decrease)—Admiral Shares | 58,604 | 593 | 7,935 | (127) |
H. | Management has determined that no events or transactions occurred subsequent to July 31, 2022, that would require recognition or disclosure in these financial statements. |
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/img0e44d9e42.jpg)
All rights reserved.
Vanguard Marketing Corporation, Distributor.
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/img401771121.jpg)
• | 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 July 31, 2022 | |||
Global Capital Cycles Fund | Beginning Account Value 1/31/2022 | Ending Account Value 7/31/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $965.90 | $2.05 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.71 | 2.11 |
United States | 31.0% |
United Kingdom | 21.7 |
Canada | 16.4 |
India | 4.9 |
France | 4.4 |
China | 3.7 |
Australia | 3.1 |
Switzerland | 2.4 |
Brazil | 2.3 |
Japan | 2.0 |
Italy | 1.7 |
Sweden | 1.6 |
South Korea | 1.5 |
Germany | 1.4 |
Spain | 1.2 |
Other | 0.7 |
Shares | Market Value• ($000) | |||||
Common Stocks (99.0%) | ||||||
Australia (3.0%) | ||||||
1 | BHP Group Ltd. ADR | 409,441 | 22,536 | |||
BHP Group Ltd. (XASX) | 677,588 | 18,542 | ||||
41,078 | ||||||
Austria (0.7%) | ||||||
*,2 | BAWAG Group AG | 200,181 | 9,242 | |||
Brazil (2.3%) | ||||||
Vale SA Class B ADR | 1,154,895 | 15,545 | ||||
* | Cia de Saneamento Basico do Estado de Sao Paulo ADR | 1,801,888 | 15,442 | |||
30,987 | ||||||
Canada (16.3%) | ||||||
Barrick Gold Corp. | 7,147,189 | 112,497 | ||||
Intact Financial Corp. | 544,638 | 81,065 | ||||
Endeavour Mining plc | 855,528 | 16,876 | ||||
Agnico Eagle Mines Ltd. | 243,910 | 10,486 | ||||
220,924 | ||||||
China (3.7%) | ||||||
Ping An Insurance Group Co. of China Ltd. Class H | 3,189,000 | 18,742 | ||||
* | Baidu Inc. Class A | 918,499 | 15,876 | |||
* | Contemporary Amperex Technology Co. Ltd. Class A | 113,600 | 8,632 | |||
* | XPeng Inc. Class A ADR | 296,216 | 7,236 | |||
50,486 | ||||||
France (4.3%) | ||||||
STMicroelectronics NV | 1,016,089 | 38,452 | ||||
Rubis SCA | 830,232 | 20,292 | ||||
58,744 | ||||||
Germany (1.4%) | ||||||
Bayer AG (Registered) | 333,267 | 19,440 | ||||
India (4.8%) | ||||||
Power Grid Corp. of India Ltd. | 24,170,822 | 65,456 |
Shares | Market Value• ($000) | |||||
Italy (1.7%) | ||||||
UniCredit SpA | 2,313,397 | 22,879 | ||||
Japan (2.0%) | ||||||
Mitsubishi UFJ Financial Group Inc. | 2,247,800 | 12,665 | ||||
T&D Holdings Inc. | 711,540 | 8,053 | ||||
Panasonic Holdings Corp. | 793,400 | 6,551 | ||||
27,269 | ||||||
South Korea (1.5%) | ||||||
* | Coupang Inc. Class A | 1,144,625 | 19,791 | |||
Spain (1.2%) | ||||||
*,1 | Grifols SA | 1,142,445 | 16,670 | |||
Sweden (1.5%) | ||||||
SKF AB Class B | 1,252,691 | 21,082 | ||||
Switzerland (2.4%) | ||||||
Novartis AG (Registered) | 373,666 | 32,109 | ||||
United Kingdom (21.5%) | ||||||
* | Glencore plc | 16,923,095 | 95,915 | |||
Anglo American plc | 1,303,992 | 47,133 | ||||
Unilever plc | 811,595 | 39,527 | ||||
1 | Rio Tinto plc ADR | 567,573 | 34,639 | |||
Serco Group plc | 10,766,538 | 24,770 | ||||
Standard Chartered plc | 2,917,552 | 20,110 | ||||
* | Babcock International Group plc | 4,009,566 | 16,768 | |||
Centamin plc | 13,244,415 | 13,391 | ||||
292,253 | ||||||
United States (30.7%) | ||||||
American Electric Power Co. Inc. | 712,474 | 70,221 | ||||
BWX Technologies Inc. | 1,201,722 | 68,114 | ||||
Medical Properties Trust Inc. | 2,496,769 | 43,044 | ||||
Viper Energy Partners LP | 1,212,762 | 37,280 | ||||
* | Enstar Group Ltd. | 175,285 | 34,692 | |||
* | Livent Corp. | 1,174,668 | 29,238 | |||
* | Fluor Corp. | 1,085,118 | 27,573 | |||
Schlumberger NV | 714,535 | 26,459 | ||||
Intel Corp. | 668,161 | 24,261 |
Shares | Market Value• ($000) | |||||
Merck & Co. Inc. | 267,474 | 23,896 | ||||
* | Salesforce Inc. | 75,516 | 13,897 | |||
Mosaic Co. | 205,876 | 10,841 | ||||
* | Diamond Offshore Drilling Inc. | 1,165,041 | 7,864 | |||
* | Metals Acquisition Corp. Warrants Exp. 7/12/26 | 330,300 | 139 | |||
417,519 | ||||||
Total Common Stocks (Cost $1,276,855) | 1,345,929 | |||||
Temporary Cash Investments (2.9%) | ||||||
Money Market Fund (2.9%) | ||||||
3,4 | Vanguard Market Liquidity Fund, 1.903% (Cost $39,342) | 393,596 | 39,344 | |||
Total Investments (101.9%) (Cost $1,316,197) | 1,385,273 | |||||
Other Assets and Liabilities—Net (-1.9%) | (26,321) | |||||
Net Assets (100%) | 1,358,952 |
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 $33,395,000. |
2 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2022, the aggregate value was $9,242,000, representing 0.7% of net assets. |
3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
4 | Collateral of $35,196,000 was received for securities on loan, of which $35,180,000 is held in Vanguard Market Liquidity Fund and $16,000 is held in cash. |
ADR—American Depositary Receipt. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $1,276,855) | 1,345,929 |
Affiliated Issuers (Cost $39,342) | 39,344 |
Total Investments in Securities | 1,385,273 |
Investment in Vanguard | 52 |
Cash | 16 |
Foreign Currency, at Value (Cost $213) | 208 |
Receivables for Investment Securities Sold | 18,243 |
Receivables for Accrued Income | 637 |
Receivables for Capital Shares Issued | 1,558 |
Total Assets | 1,405,987 |
Liabilities | |
Due to Custodian | 1,108 |
Payables for Investment Securities Purchased | 6,775 |
Collateral for Securities on Loan | 35,196 |
Payables for Capital Shares Redeemed | 642 |
Payables to Investment Advisor | 674 |
Payables to Vanguard | 132 |
Deferred Foreign Capital Gains Taxes | 2,508 |
Total Liabilities | 47,035 |
Net Assets | 1,358,952 |
1 Includes $33,395 of securities on loan. | |
At July 31, 2022, net assets consisted of: | |
Paid-in Capital | 3,387,659 |
Total Distributable Earnings (Loss) | (2,028,707) |
Net Assets | 1,358,952 |
Net Assets | |
Applicable to 124,857,428 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,358,952 |
Net Asset Value Per Share | $10.88 |
Six Months Ended July 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 25,872 |
Non-Cash Dividends | 5,209 |
Interest2 | 110 |
Securities Lending—Net | 103 |
Total Income | 31,294 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 1,060 |
Performance Adjustment | 307 |
The Vanguard Group—Note C | |
Management and Administrative | 1,569 |
Marketing and Distribution | 44 |
Custodian Fees | 24 |
Shareholders’ Reports | 25 |
Trustees’ Fees and Expenses | — |
Other Expenses | 5 |
Total Expenses | 3,034 |
Net Investment Income | 28,260 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 70,888 |
Foreign Currencies | (469) |
Realized Net Gain (Loss) | 70,419 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,3 | (155,940) |
Foreign Currencies | (55) |
Change in Unrealized Appreciation (Depreciation) | (155,995) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (57,316) |
1 | Dividends are net of foreign withholding taxes of $1,861,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $110,000, ($24,000), and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
3 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($597,000). |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 28,260 | 43,390 | |
Realized Net Gain (Loss) | 70,419 | 166,516 | |
Change in Unrealized Appreciation (Depreciation) | (155,995) | 41,453 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (57,316) | 251,359 | |
Distributions | |||
Total Distributions | (2,167) | (42,400) | |
Capital Share Transactions | |||
Issued | 242,675 | 228,666 | |
Issued in Lieu of Cash Distributions | 1,861 | 36,640 | |
Redeemed | (185,599) | (296,930) | |
Net Increase (Decrease) from Capital Share Transactions | 58,937 | (31,624) | |
Total Increase (Decrease) | (546) | 177,335 | |
Net Assets | |||
Beginning of Period | 1,359,498 | 1,182,163 | |
End of Period | 1,358,952 | 1,359,498 |
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $11.28 | $9.57 | $7.97 | $7.62 | $10.57 | $10.74 |
Investment Operations | ||||||
Net Investment Income1 | .224 | .356 | .197 | .212 | .122 | .049 |
Net Realized and Unrealized Gain (Loss) on Investments | (.607) | 1.715 | 1.597 | .337 | (2.858) | (.217) |
Total from Investment Operations | (.383) | 2.071 | 1.794 | .549 | (2.736) | (.168) |
Distributions | ||||||
Dividends from Net Investment Income | (.017) | (.361) | (.194) | (.199) | (.214) | (.002) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (.017) | (.361) | (.194) | (.199) | (.214) | (.002) |
Net Asset Value, End of Period | $10.88 | $11.28 | $9.57 | $7.97 | $7.62 | $10.57 |
Total Return2 | -3.41% | 21.74% | 22.63% | 7.11% | -26.17% | -1.56% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $1,359 | $1,359 | $1,182 | $1,212 | $1,399 | $2,568 |
Ratio of Total Expenses to Average Net Assets3 | 0.42% | 0.36% | 0.35% | 0.38% | 0.33% | 0.36% |
Ratio of Net Investment Income to Average Net Assets | 3.90% | 3.28% | 2.43% | 2.68% | 1.38% | 0.47% |
Portfolio Turnover Rate | 32% | 57% | 70% | 56% | 110% | 35% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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%), (0.03%), 0.00%, (0.04%), and 0.00%. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 669,430 | — | — | 669,430 |
Common Stocks—Other | 84,202 | 592,297 | — | 676,499 |
Temporary Cash Investments | 39,344 | — | — | 39,344 |
Total | 792,976 | 592,297 | — | 1,385,273 |
Amount ($000) | |
Tax Cost | 1,316,197 |
Gross Unrealized Appreciation | 193,629 |
Gross Unrealized Depreciation | (124,553) |
Net Unrealized Appreciation (Depreciation) | 69,076 |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 20,393 | 21,067 | |
Issued in Lieu of Cash Distributions | 150 | 3,333 | |
Redeemed | (16,213) | (27,397) | |
Net Increase (Decrease) in Shares Outstanding | 4,330 | (2,997) |
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/imgabebbb712.jpg)
Who Are Deaf or Hard of Hearing > 800-749-7273
All rights reserved.
Vanguard Marketing Corporation, Distributor.
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/img7cdd13361.jpg)
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 19 |
Liquidity Risk Management | 21 |
• | 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 July 31, 2022 | |||
Beginning Account Value 1/31/2022 | Ending Account Value 7/31/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Health Care Fund | |||
Investor Shares | $1,000.00 | $1,025.80 | $1.61 |
Admiral™ Shares | 1,000.00 | 1,026.10 | 1.36 |
Based on Hypothetical 5% Yearly Return | |||
Health Care Fund | |||
Investor Shares | $1,000.00 | $1,023.21 | $1.61 |
Admiral Shares | 1,000.00 | 1,023.46 | 1.35 |
United States | 72.9% |
Japan | 8.7 |
United Kingdom | 6.3 |
Switzerland | 5.2 |
Belgium | 3.0 |
Denmark | 2.0 |
China | 1.1 |
Other | 0.8 |
Shares | Market Value• ($000) | ||
Common Stocks (98.1%) | |||
Belgium (2.9%) | |||
1 | UCB SA | 10,288,169 | 803,905 |
* | Argenx SE | 1,377,888 | 503,344 |
* | Galapagos NV | 1,175,458 | 59,636 |
1,366,885 | |||
Brazil (0.0%) | |||
2 | Hapvida Participacoes e Investimentos SA | 8,909,471 | 10,607 |
China (1.0%) | |||
2 | WuXi AppTec Co. Ltd. Class H | 9,838,416 | 119,184 |
* | Legend Biotech Corp. ADR | 1,483,204 | 70,067 |
*,2 | Wuxi Biologics Cayman Inc. | 6,756,200 | 64,671 |
* | Zai Lab Ltd. | 14,229,400 | 58,277 |
Yifeng Pharmacy Chain Co. Ltd. Class A | 6,945,794 | 53,403 | |
* | Zai Lab Ltd. ADR | 1,085,794 | 44,007 |
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 24,872,000 | 31,111 | |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. Class A (XSHE) | 452,517 | 19,479 | |
*,2 | Remegen Co. Ltd. Class H | 2,409,000 | 13,791 |
*,2 | Akeso Inc. | 3,657,000 | 9,785 |
*,2 | Everest Medicines Ltd. | 2,139,500 | 4,430 |
488,205 | |||
Denmark (2.0%) | |||
* | Genmab A/S | 2,088,852 | 743,256 |
* | Genmab A/S ADR | 3,150,246 | 112,212 |
*,3 | Ascendis Pharma A/S ADR | 942,809 | 80,638 |
936,106 | |||
Germany (0.0%) | |||
* | MorphoSys AG | 883,482 | 19,643 |
Italy (0.3%) | |||
DiaSorin SpA | 552,359 | 76,801 | |
Amplifon SpA | 1,439,109 | 47,589 | |
124,390 |
Shares | Market Value• ($000) | ||
Japan (8.6%) | |||
Daiichi Sankyo Co. Ltd. | 45,692,990 | 1,211,537 | |
1 | Eisai Co. Ltd. | 17,856,177 | 817,721 |
Astellas Pharma Inc. | 44,471,600 | 696,487 | |
Ono Pharmaceutical Co. Ltd. | 19,628,460 | 551,931 | |
Chugai Pharmaceutical Co. Ltd. | 11,038,000 | 310,089 | |
Terumo Corp. | 8,498,900 | 290,183 | |
Nippon Shinyaku Co. Ltd. | 1,977,800 | 122,409 | |
Asahi Intecc Co. Ltd. | 2,023,500 | 37,435 | |
4,037,792 | |||
Netherlands (0.4%) | |||
Koninklijke Philips NV | 10,091,245 | 208,851 | |
Spain (0.1%) | |||
Almirall SA | 3,142,775 | 30,343 | |
Switzerland (5.1%) | |||
Novartis AG (Registered) | 21,530,502 | 1,850,109 | |
Alcon Inc. | 3,393,208 | 267,059 | |
Lonza Group AG (Registered) | 352,632 | 214,313 | |
Tecan Group AG (Registered) | 203,082 | 72,122 | |
2,403,603 | |||
United Kingdom (6.2%) | |||
AstraZeneca plc | 19,803,082 | 2,604,923 | |
Hikma Pharmaceuticals plc | 6,910,934 | 146,076 | |
*,3 | Abcam plc ADR | 5,880,982 | 87,862 |
Genus plc | 1,004,385 | 34,785 | |
* | Abcam plc | 1,281,015 | 19,145 |
2,892,791 | |||
United States (71.5%) | |||
UnitedHealth Group Inc. | 6,341,208 | 3,439,091 | |
Eli Lilly & Co. | 8,418,102 | 2,775,364 | |
Pfizer Inc. | 54,285,423 | 2,741,957 | |
Bristol-Myers Squibb Co. | 19,516,668 | 1,439,940 | |
Elevance Health Inc. | 2,851,578 | 1,360,488 | |
Danaher Corp. | 4,344,265 | 1,266,223 | |
* | Vertex Pharmaceuticals Inc. | 4,412,004 | 1,237,170 |
Thermo Fisher Scientific Inc. | 2,024,414 | 1,211,430 | |
* | Boston Scientific Corp. | 29,297,185 | 1,202,649 |
Stryker Corp. | 5,344,795 | 1,147,795 | |
* | Biogen Inc. | 5,192,274 | 1,116,650 |
Shares | Market Value• ($000) | ||
Humana Inc. | 2,186,329 | 1,053,811 | |
* | Edwards Lifesciences Corp. | 9,131,833 | 918,114 |
* | Regeneron Pharmaceuticals Inc. | 1,533,348 | 891,933 |
* | Centene Corp. | 8,630,836 | 802,409 |
* | Seagen Inc. | 4,431,828 | 797,640 |
* | Alnylam Pharmaceuticals Inc. | 5,036,278 | 715,353 |
* | Incyte Corp. | 9,000,425 | 699,153 |
Zoetis Inc. | 3,528,663 | 644,157 | |
* | Moderna Inc. | 3,816,417 | 626,236 |
Baxter International Inc. | 10,552,096 | 618,986 | |
HCA Healthcare Inc. | 2,874,896 | 610,685 | |
* | Insulet Corp. | 2,003,249 | 496,405 |
Agilent Technologies Inc. | 3,576,445 | 479,601 | |
Laboratory Corp. of America Holdings | 1,485,818 | 389,567 | |
* | IQVIA Holdings Inc. | 1,559,767 | 374,765 |
*,3 | agilon health Inc. | 12,060,922 | 301,885 |
* | Waters Corp. | 811,122 | 295,273 |
Teleflex Inc. | 1,217,493 | 292,758 | |
* | Align Technology Inc. | 993,443 | 279,128 |
* | DexCom Inc. | 3,102,951 | 254,690 |
* | Sarepta Therapeutics Inc. | 2,273,611 | 211,332 |
* | Illumina Inc. | 946,867 | 205,167 |
* | Molina Healthcare Inc. | 584,853 | 191,668 |
Universal Health Services Inc. Class B | 1,622,122 | 182,440 | |
* | Apellis Pharmaceuticals Inc. | 3,222,912 | 181,385 |
* | Acadia Healthcare Co. Inc. | 1,832,464 | 151,930 |
* | Syneos Health Inc. | 1,911,256 | 151,257 |
Royalty Pharma plc Class A | 3,053,455 | 132,795 | |
* | Exact Sciences Corp. | 2,807,222 | 126,606 |
Viatris Inc. | 12,951,732 | 125,502 | |
*,1 | Ironwood Pharmaceuticals Inc. Class A | 10,902,066 | 124,829 |
* | Intra-Cellular Therapies Inc. | 2,295,196 | 124,216 |
* | Alkermes plc | 4,619,968 | 118,271 |
*,1 | Agios Pharmaceuticals Inc. | 5,148,413 | 111,051 |
* | Mirati Therapeutics Inc. | 1,723,798 | 111,013 |
* | Oak Street Health Inc. | 2,978,154 | 86,217 |
* | Cytokinetics Inc. | 1,678,045 | 71,032 |
* | Karuna Therapeutics Inc. | 514,899 | 67,066 |
* | Blueprint Medicines Corp. | 1,306,248 | 66,697 |
Encompass Health Corp. | 1,118,557 | 56,621 | |
* | PTC Therapeutics Inc. | 1,235,744 | 53,817 |
* | Glaukos Corp. | 934,746 | 50,336 |
* | Amedisys Inc. | 408,358 | 48,942 |
* | Ultragenyx Pharmaceutical Inc. | 900,000 | 47,952 |
*,1 | Nektar Therapeutics Class A | 11,383,721 | 45,079 |
* | REVOLUTION Medicines Inc. | 1,881,501 | 42,503 |
* | Reata Pharmaceuticals Inc. Class A | 1,237,211 | 37,958 |
* | Amicus Therapeutics Inc. | 3,307,491 | 32,943 |
*,1 | 2seventy bio Inc. | 2,046,666 | 29,451 |
* | Sage Therapeutics Inc. | 772,758 | 26,591 |
Shares | Market Value• ($000) | ||
*,1 | Bluebird Bio Inc. | 4,897,789 | 19,836 |
* | TG Therapeutics Inc. | 3,066,304 | 18,367 |
* | NanoString Technologies Inc. | 1,416,596 | 18,132 |
* | Rocket Pharmaceuticals Inc. | 1,199,337 | 17,390 |
* | Relay Therapeutics Inc. | 909,447 | 17,298 |
Enhabit Inc. | 559,278 | 9,793 | |
* | ALX Oncology Holdings Inc. | 978,377 | 9,471 |
33,604,260 | |||
Total Common Stocks (Cost $28,617,347) | 46,123,476 | ||
Temporary Cash Investments (2.0%) | |||
Money Market Fund (0.0%) | |||
4,5 | Vanguard Market Liquidity Fund 1.903% | 53,511 | 5,349 |
Face Amount ($000) | |||
Repurchase Agreements (1.1%) | |||
Bank of America Securities, LLC, 2.300%, 8/1/22 (Dated 7/29/22, Repurchase Value $29,406,000, collateralized by Ginnie Mae 2.000%–3.000%, 6/20/50–1/20/52, with a value of $29,988,000) | 29,400 | 29,400 | |
Bank of Nova Scotia, 2.250%, 8/1/22 (Dated 7/29/22, Repurchase Value $20,004,000, collateralized by U.S. Treasury Note/Bond 0.250%–3.000%, 3/15/24–2/15/48, with a value of $20,404,000) | 20,000 | 20,000 | |
Barclays Capital Inc., 2.220%, 8/1/22 (Dated 7/29/22, Repurchase Value $51,910,000, collateralized by U.S. Treasury Note/Bond 2.625%, 5/31/27, with a value of $52,938,000) | 51,900 | 51,900 |
Face Amount ($000) | Market Value• ($000) | ||
BNP Paribas Securities Corp., 2.280%, 8/1/22 (Dated 7/29/22, Repurchase Value $22,604,000, collateralized by Fannie Mae 2.918%–6.020%, 10/1/33–5/1/52, Freddie Mac 4.500%, 7/1/52, and Ginnie Mae 2.500%, 10/20/51, with a value of $23,052,000) | 22,600 | 22,600 | |
Credit Agricole Securities, 2.220%, 8/1/22 (Dated 7/29/22, Repurchase Value $60,711,000, collateralized by U.S. Treasury Note/Bond 2.875%, 5/15/52, with a value of $61,914,000) | 60,700 | 60,700 | |
HSBC Bank USA, 2.240%, 8/1/22 (Dated 7/29/22, Repurchase Value $25,205,000, collateralized by U.S. Treasury Note/Bond 2.125%–2.250%, 5/31/26–5/15/41, with a value of $25,704,000) | 25,200 | 25,200 | |
HSBC Bank USA, 2.300%, 8/1/22 (Dated 7/29/22, Repurchase Value $41,108,000, collateralized by Fannie Mae 2.500%–4.500%, 3/1/44–6/1/52, and Freddie Mac 3.000%–5.500%, 3/1/52–7/1/52, with a value of $41,922,000) | 41,100 | 41,100 | |
Natixis SA, 2.220%, 8/1/22 (Dated 7/29/22, Repurchase Value $195,236,000, collateralized by Federal Home Loan Bank 2.080%–2.840%, 1/27/42–9/25/45, U.S. Treasury Bill 0.000%, 10/20/22, U.S. Treasury Inflation Indexed Note/Bond 2.461%, 4/30/24, and U.S. Treasury Note/Bond 0.250%–4.500%, 1/31/23–5/15/52, with a value of $199,104,000) | 195,200 | 195,200 |
Face Amount ($000) | Market Value• ($000) | ||
Nomura International plc, 2.250%, 8/1/22 (Dated 7/29/22, Repurchase Value $23,604,000, collateralized by U.S. Treasury Note/Bond 2.000%–2.250%, 11/15/24–2/15/50, with a value of $24,072,000) | 23,600 | 23,600 | |
RBC Capital Markets LLC, 2.280%, 8/1/22 (Dated 7/29/22, Repurchase Value $52,110,000, collateralized by U.S. Treasury Note/Bond 0.750%, 5/31/26, with a value of $53,142,000) | 52,100 | 52,100 | |
521,800 | |||
U.S. Government and Agency Obligations (0.9%) | |||
Federal Home Loan Banks Discount Notes, 1.486%–1.487%, 8/09/22 | 100,000 | 99,954 | |
Federal Home Loan Banks Discount Notes, 1.500%, 8/11/22 | 150,000 | 149,914 | |
United States Cash Management Bill, 1.121%, 9/13/22 | 19,955 | 19,903 | |
United States Cash Management Bill, 2.620%, 11/29/22 | 75,000 | 74,348 |
Face Amount ($000) | Market Value• ($000) | ||
United States Treasury Bill, 0.885%, 8/11/22 | 100,000 | 99,942 | |
444,061 | |||
Total Temporary Cash Investments (Cost $971,288) | 971,210 | ||
Total Investments (100.1%) (Cost $29,588,635) | 47,094,686 | ||
Other Assets and Liabilities—Net (-0.1%) | (62,691) | ||
Net Assets (100%) | 47,031,995 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | 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 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2022, the aggregate value was $222,468,000, representing 0.5% of net assets. |
3 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $5,051,000. |
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 $5,257,000 was received for securities on loan. |
ADR—American Depositary Receipt. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $27,050,845) | 45,137,465 |
Affiliated Issuers (Cost $2,537,790) | 1,957,221 |
Total Investments in Securities | 47,094,686 |
Investment in Vanguard | 1,742 |
Cash | 2,993 |
Foreign Currency, at Value (Cost $1,483) | 1,357 |
Receivables for Investment Securities Sold | 68,637 |
Receivables for Accrued Income | 79,724 |
Receivables for Capital Shares Issued | 5,881 |
Total Assets | 47,255,020 |
Liabilities | |
Payables for Investment Securities Purchased | 185,172 |
Collateral for Securities on Loan | 5,257 |
Payables to Investment Advisor | 16,048 |
Payables for Capital Shares Redeemed | 13,531 |
Payables to Vanguard | 3,017 |
Total Liabilities | 223,025 |
Net Assets | 47,031,995 |
1 Includes $5,051 of securities on loan. | |
At July 31, 2022, net assets consisted of: | |
Paid-in Capital | 28,545,204 |
Total Distributable Earnings (Loss) | 18,486,791 |
Net Assets | 47,031,995 |
Investor Shares—Net Assets | |
Applicable to 35,627,660 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 7,424,465 |
Net Asset Value Per Share—Investor Shares | $208.39 |
Admiral Shares—Net Assets | |
Applicable to 450,697,541 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 39,607,530 |
Net Asset Value Per Share—Admiral Shares | $87.88 |
Six Months Ended July 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 300,789 |
Dividends—Affiliated Issuers2 | 21,965 |
Interest—Unaffiliated Issuers | 2,462 |
Securities Lending—Net | 1,145 |
Total Income | 326,361 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 33,708 |
Performance Adjustment | (3,084) |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 6,629 |
Management and Administrative—Admiral Shares | 26,461 |
Marketing and Distribution—Investor Shares | 206 |
Marketing and Distribution—Admiral Shares | 486 |
Custodian Fees | 372 |
Shareholders’ Reports—Investor Shares | 69 |
Shareholders’ Reports—Admiral Shares | 67 |
Trustees’ Fees and Expenses | 12 |
Other Expenses | 5 |
Total Expenses | 64,931 |
Expenses Paid Indirectly | (16) |
Net Expenses | 64,915 |
Net Investment Income | 261,446 |
Realized Net Gain (Loss) | |
Investment Securities Sold—Unaffiliated Issuers | 1,025,878 |
Investment Securities Sold—Affiliated Issuers | (184,969) |
Foreign Currencies | (1,835) |
Realized Net Gain (Loss) | 839,074 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | 343,665 |
Investment Securities—Affiliated Issuers | (245,033) |
Foreign Currencies | (2,452) |
Change in Unrealized Appreciation (Depreciation) | 96,180 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,196,700 |
1 | Dividends are net of foreign withholding taxes of $16,752,000. |
2 | Dividends are net of foreign withholding taxes of $3,186,000. |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 261,446 | 430,364 | |
Realized Net Gain (Loss) | 839,074 | 4,838,005 | |
Change in Unrealized Appreciation (Depreciation) | 96,180 | (2,985,233) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,196,700 | 2,283,136 | |
Distributions | |||
Investor Shares | (272,400) | (650,696) | |
Admiral Shares | (1,454,452) | (3,443,247) | |
Total Distributions | (1,726,852) | (4,093,943) | |
Capital Share Transactions | |||
Investor Shares | 18,917 | (610,620) | |
Admiral Shares | 116,004 | 737,980 | |
Net Increase (Decrease) from Capital Share Transactions | 134,921 | 127,360 | |
Total Increase (Decrease) | (395,231) | (1,683,447) | |
Net Assets | |||
Beginning of Period | 47,427,226 | 49,110,673 | |
End of Period | 47,031,995 | 47,427,226 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $210.54 | $218.60 | $204.57 | $203.34 | $215.96 | $189.88 |
Investment Operations | ||||||
Net Investment Income1 | 1.111 | 1.869 | 2.005 | 2.506 | 2.375 | 2.162 |
Net Realized and Unrealized Gain (Loss) on Investments | 4.457 | 8.949 | 29.203 | 23.326 | 2.489 | 38.929 |
Total from Investment Operations | 5.568 | 10.818 | 31.208 | 25.832 | 4.864 | 41.091 |
Distributions | ||||||
Dividends from Net Investment Income | (.124) | (1.951) | (1.886) | (2.428) | (2.323) | (2.059) |
Distributions from Realized Capital Gains | (7.594) | (16.927) | (15.292) | (22.174) | (15.161) | (12.952) |
Total Distributions | (7.718) | (18.878) | (17.178) | (24.602) | (17.484) | (15.011) |
Net Asset Value, End of Period | $208.39 | $210.54 | $218.60 | $204.57 | $203.34 | $215.96 |
Total Return2 | 2.58% | 4.48% | 16.16% | 13.16% | 2.76% | 22.29% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $7,424 | $7,493 | $8,342 | $8,729 | $8,850 | $9,853 |
Ratio of Total Expenses to Average Net Assets3 | 0.32%4 | 0.30% | 0.32% | 0.32% | 0.34% | 0.38% |
Ratio of Net Investment Income to Average Net Assets | 1.09% | 0.82% | 0.95% | 1.25% | 1.12% | 1.02% |
Portfolio Turnover Rate | 8% | 15% | 18% | 18% | 16% | 11% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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%), (0.04%), (0.01%), (0.02%), 0.00%, and 0.04%. |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.32%. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $88.77 | $92.17 | $86.27 | $85.75 | $91.08 | $80.09 |
Investment Operations | ||||||
Net Investment Income1 | .490 | .830 | .883 | 1.097 | 1.036 | .938 |
Net Realized and Unrealized Gain (Loss) on Investments | 1.885 | 3.780 | 12.316 | 9.844 | 1.057 | 16.436 |
Total from Investment Operations | 2.375 | 4.610 | 13.199 | 10.941 | 2.093 | 17.374 |
Distributions | ||||||
Dividends from Net Investment Income | (.063) | (.870) | (.849) | (1.068) | (1.027) | (.920) |
Distributions from Realized Capital Gains | (3.202) | (7.140) | (6.450) | (9.353) | (6.396) | (5.464) |
Total Distributions | (3.265) | (8.010) | (7.299) | (10.421) | (7.423) | (6.384) |
Net Asset Value, End of Period | $87.88 | $88.77 | $92.17 | $86.27 | $85.75 | $91.08 |
Total Return2 | 2.61% | 4.53% | 16.21% | 13.22% | 2.81% | 22.35% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $39,608 | $39,934 | $40,769 | $38,126 | $37,888 | $39,214 |
Ratio of Total Expenses to Average Net Assets3 | 0.27%4 | 0.25% | 0.27% | 0.27% | 0.28% | 0.33% |
Ratio of Net Investment Income to Average Net Assets | 1.13% | 0.86% | 0.99% | 1.30% | 1.18% | 1.07% |
Portfolio Turnover Rate | 8% | 15% | 18% | 18% | 16% | 11% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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%), (0.04%), (0.01%), (0.02%), 0.00%, and 0.04%. |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.27%. |
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. | Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments based on the fund’s performance relative to the MSCI All Country World Health Care Index for the preceding three years. For the six months ended July 31, 2022, the investment advisory fee represented an effective annual basic rate of 0.15% of the fund’s average net assets, before a net decrease of $3,084,000 (0.01%) based on performance. |
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, and distribution 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 advisor 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 six months ended July 31, 2022, these arrangements reduced the fund’s expenses by $16,000 (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. 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—North and South America | 33,614,867 | — | — | 33,614,867 |
Common Stocks—Other | 394,786 | 12,113,823 | — | 12,508,609 |
Temporary Cash Investments | 5,349 | 965,861 | — | 971,210 |
Total | 34,015,002 | 13,079,684 | — | 47,094,686 |
F. | As of July 31, 2022, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 29,706,461 |
Gross Unrealized Appreciation | 20,781,534 |
Gross Unrealized Depreciation | (3,393,309) |
Net Unrealized Appreciation (Depreciation) | 17,388,225 |
G. | During the six months ended July 31, 2022, the fund purchased $3,533,136,000 of investment securities and sold $4,865,990,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 199,046 | 962 | 629,952 | 2,783 | |
Issued in Lieu of Cash Distributions | 255,615 | 1,203 | 609,552 | 2,709 | |
Redeemed | (435,744) | (2,129) | (1,850,124) | (8,061) | |
Net Increase (Decrease)—Investor Shares | 18,917 | 36 | (610,620) | (2,569) | |
Admiral Shares | |||||
Issued | 453,772 | 5,234 | 1,787,859 | 18,432 | |
Issued in Lieu of Cash Distributions | 1,284,039 | 14,337 | 3,027,419 | 31,867 | |
Redeemed | (1,621,807) | (18,710) | (4,077,298) | (42,774) | |
Net Increase (Decrease)—Admiral Shares | 116,004 | 861 | 737,980 | 7,525 |
I. | Certain of the fund’s investments were in companies that were considered to be affiliated companies of the fund because the fund owned more than 5% of the outstanding voting securities of the company or the issuer was another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows: |
Current Period Transactions | ||||||||
Jan. 31, 2022 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) | Jul. 31, 2022 Market Value ($000) | |
2seventy bio Inc. | 38,211 | — | — | — | (8,760) | — | — | 29,451 |
Agios Pharmaceuticals Inc. | 159,034 | — | — | — | (47,983) | — | — | 111,051 |
Alkermes plc | 301,083 | — | 201,154 | (86,001) | 104,343 | — | — | NA1 |
Bluebird Bio Inc. | 48,445 | — | 5,159 | (113,062) | 89,612 | — | — | 19,836 |
Eisai Co. Ltd. | 894,327 | — | — | — | (76,606) | 10,553 | — | 817,721 |
Ironwood Pharmaceuticals Inc. Class A | 121,558 | — | — | — | 3,271 | — | — | 124,829 |
Nektar Therapeutics Class A | 126,587 | — | — | — | (81,508) | — | — | 45,079 |
UCB SA | 1,018,749 | 45,278 | 46,817 | 14,097 | (227,402) | 11,412 | — | 803,905 |
Vanguard Market Liquidity Fund | 4,711 | NA2 | NA2 | (3) | — | — | — | 5,349 |
Total | 2,712,705 | 45,278 | 253,130 | (184,969) | (245,033) | 21,965 | — | 1,957,221 |
1 | Not applicable—at July 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. |
J. | Management has determined that no events or transactions occurred subsequent to July 31, 2022, that would require recognition or disclosure in these financial statements. |
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/imgdb836c882.jpg)
All rights reserved.
Vanguard Marketing Corporation, Distributor.
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/g323066imgb7fd20e61.jpg)
Vanguard Real Estate Index Fund |
Vanguard Real Estate II Index Fund |
• | 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 July 31, 2022 | |||
Beginning Account Value 1/31/2022 | Ending Account Value 7/31/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Real Estate Index Fund | |||
Investor Shares | $1,000.00 | $ 939.70 | $1.20 |
ETF Shares | 1,000.00 | 940.50 | 0.58 |
Admiral™ Shares | 1,000.00 | 940.60 | 0.58 |
Institutional Shares | 1,000.00 | 940.50 | 0.48 |
Real Estate II Index Fund | $1,000.00 | $ 940.70 | $0.38 |
Based on Hypothetical 5% Yearly Return | |||
Real Estate Index Fund | |||
Investor Shares | $1,000.00 | $1,023.56 | $1.25 |
ETF Shares | 1,000.00 | 1,024.20 | 0.60 |
Admiral Shares | 1,000.00 | 1,024.20 | 0.60 |
Institutional Shares | 1,000.00 | 1,024.30 | 0.50 |
Real Estate II Index Fund | $1,000.00 | $1,024.40 | $0.40 |
Diversified Real Estate Activities | 0.1% |
Diversified REITs | 2.7 |
Health Care REITs | 8.1 |
Hotel & Resort REITs | 2.6 |
Industrial REITs | 11.8 |
Office REITs | 5.9 |
Real Estate Development | 0.2 |
Real Estate Operating Companies | 0.5 |
Real Estate Services | 4.0 |
Residential REITs | 15.1 |
Retail REITs | 11.3 |
Specialized REITs | 37.7 |
Shares | Market Value• ($000) | |||||
Equity Real Estate Investment Trusts (REITs) (95.2%) | ||||||
Diversified REITs (2.4%) | ||||||
WP Carey Inc. | 8,743,103 | 780,759 | ||||
STORE Capital Corp. | 11,303,279 | 328,021 | ||||
Broadstone Net Lease Inc. | 7,497,078 | 169,959 | ||||
Essential Properties Realty Trust Inc. | 5,761,575 | 138,969 | ||||
Global Net Lease Inc. | 4,765,303 | 71,908 | ||||
American Assets Trust Inc. | 2,359,709 | 71,334 | ||||
Alexander & Baldwin Inc. | 3,326,594 | 66,233 | ||||
Empire State Realty Trust Inc. Class A | 6,595,841 | 56,263 | ||||
iStar Inc. | 3,167,456 | 52,928 | ||||
Armada Hoffler Properties Inc. | 3,084,492 | 43,738 | ||||
Gladstone Commercial Corp. | 1,731,930 | 36,284 | ||||
One Liberty Properties Inc. | 768,149 | 21,316 | ||||
1,837,712 | ||||||
Health Care REITs (7.1%) | ||||||
Welltower Inc. | 19,766,417 | 1,706,632 | ||||
Ventas Inc. | 18,324,532 | 985,493 | ||||
Healthpeak Properties Inc. | 24,737,357 | 683,493 | ||||
Medical Properties Trust Inc. | 27,375,325 | 471,951 | ||||
1 | Healthcare Realty Trust Inc. Class A | 17,462,874 | 458,400 | |||
Omega Healthcare Investors Inc. | 10,967,903 | 340,005 | ||||
Physicians Realty Trust | 10,318,085 | 183,352 | ||||
Sabra Health Care REIT Inc. | 10,591,234 | 162,999 | ||||
National Health Investors Inc. | 2,103,159 | 136,369 | ||||
CareTrust REIT Inc. | 4,451,645 | 91,927 | ||||
LTC Properties Inc. | 1,811,743 | 75,912 | ||||
Community Healthcare Trust Inc. | 1,091,309 | 42,507 |
Shares | Market Value• ($000) | |||||
Global Medical REIT Inc. | 2,797,902 | 34,079 | ||||
Universal Health Realty Income Trust | 599,909 | 32,335 | ||||
Diversified Healthcare Trust | 10,977,598 | 18,991 | ||||
5,424,445 | ||||||
Hotel & Resort REITs (2.3%) | ||||||
Host Hotels & Resorts Inc. | 32,757,517 | 583,411 | ||||
* | Ryman Hospitality Properties Inc. | 2,399,581 | 212,459 | |||
Park Hotels & Resorts Inc. | 10,846,779 | 169,101 | ||||
Apple Hospitality REIT Inc. | 9,946,332 | 165,905 | ||||
Pebblebrook Hotel Trust | 6,031,229 | 117,971 | ||||
* | Sunstone Hotel Investors Inc. | 10,060,581 | 113,986 | |||
RLJ Lodging Trust | 7,640,761 | 95,433 | ||||
* | DiamondRock Hospitality Co. | 9,666,781 | 89,708 | |||
* | Xenia Hotels & Resorts Inc. | 5,238,792 | 86,021 | |||
Service Properties Trust | 7,578,116 | 49,561 | ||||
* | Summit Hotel Properties Inc. | 4,873,237 | 38,255 | |||
* | Chatham Lodging Trust | 2,123,237 | 25,819 | |||
1,747,630 | ||||||
Industrial REITs (10.3%) | ||||||
Prologis Inc. | 33,943,300 | 4,499,524 | ||||
Duke Realty Corp. | 17,557,346 | 1,098,387 | ||||
Rexford Industrial Realty Inc. | 7,363,812 | 481,667 | ||||
Americold Realty Trust Inc. | 12,305,953 | 403,020 | ||||
EastGroup Properties Inc. | 1,892,111 | 322,680 | ||||
First Industrial Realty Trust Inc. | 6,044,767 | 314,026 | ||||
STAG Industrial Inc. | 8,162,623 | 267,571 | ||||
Terreno Realty Corp. | 3,462,935 | 216,953 | ||||
LXP Industrial Trust | 13,102,576 | 143,735 |
Shares | Market Value• ($000) | |||||
Innovative Industrial Properties Inc. | 1,175,398 | 113,320 | ||||
Plymouth Industrial REIT Inc. | 1,675,476 | 32,270 | ||||
Industrial Logistics Properties Trust | 2,996,099 | 30,051 | ||||
7,923,204 | ||||||
Office REITs (5.2%) | ||||||
Alexandria Real Estate Equities Inc. | 6,969,646 | 1,155,428 | ||||
Boston Properties Inc. | 6,827,275 | 622,374 | ||||
Kilroy Realty Corp. | 4,818,279 | 261,054 | ||||
Vornado Realty Trust | 7,474,866 | 227,161 | ||||
Cousins Properties Inc. | 6,820,035 | 210,398 | ||||
Douglas Emmett Inc. | 8,060,010 | 190,539 | ||||
Highwoods Properties Inc. | 4,811,285 | 171,137 | ||||
1 | SL Green Realty Corp. | 2,970,817 | 147,501 | |||
* | Equity Commonwealth | 5,187,537 | 145,510 | |||
Corporate Office Properties Trust | 5,152,111 | 145,032 | ||||
JBG SMITH Properties | 5,265,596 | 133,957 | ||||
Hudson Pacific Properties Inc. | 6,934,801 | 104,299 | ||||
Piedmont Office Realty Trust Inc. Class A | 5,655,355 | 77,818 | ||||
Easterly Government Properties Inc. Class A | 3,753,923 | 76,092 | ||||
Brandywine Realty Trust | 7,852,004 | 73,416 | ||||
Paramount Group Inc. | 8,039,427 | 63,110 | ||||
* | Veris Residential Inc. | 3,547,059 | 49,481 | |||
Office Properties Income Trust | 2,223,013 | 46,194 | ||||
Orion Office REIT Inc. | 2,596,389 | 28,405 | ||||
City Office REIT Inc. | 1,998,229 | 28,175 | ||||
Franklin Street Properties Corp. | 4,764,019 | 18,056 | ||||
*,2 | New York REIT Liquidating LLC | 1,208 | 14 | |||
3,975,151 | ||||||
Other (11.7%)3 | ||||||
4,5 | Vanguard Real Estate II Index Fund | 376,527,417 | 8,978,201 | |||
Residential REITs (13.3%) | ||||||
AvalonBay Communities Inc. | 6,410,351 | 1,371,430 | ||||
Equity Residential | 15,780,906 | 1,237,065 | ||||
Invitation Homes Inc. | 27,872,753 | 1,087,874 | ||||
Mid-America Apartment Communities Inc. | 5,290,637 | 982,630 | ||||
Sun Communities Inc. | 5,319,124 | 872,124 | ||||
Essex Property Trust Inc. | 2,994,301 | 857,957 | ||||
UDR Inc. | 14,598,581 | 706,571 | ||||
Camden Property Trust | 4,507,068 | 635,947 | ||||
Equity LifeStyle Properties Inc. | 8,102,334 | 595,684 |
Shares | Market Value• ($000) | |||||
American Homes 4 Rent Class A | 13,300,847 | 503,836 | ||||
American Campus Communities Inc. | 6,457,763 | 421,821 | ||||
Apartment Income REIT Corp. Class A | 7,200,784 | 326,484 | ||||
Independence Realty Trust Inc. | 10,136,076 | 225,021 | ||||
1 | Washington REIT | 4,009,715 | 88,895 | |||
NexPoint Residential Trust Inc. | 1,054,907 | 70,193 | ||||
Centerspace | 689,948 | 59,260 | ||||
* | Apartment Investment & Management Co. Class A | 6,986,166 | 58,125 | |||
UMH Properties Inc. | 2,269,252 | 48,358 | ||||
Bluerock Residential Growth REIT Inc. Class A | 1,341,420 | 35,239 | ||||
10,184,514 | ||||||
Retail REITs (9.9%) | ||||||
Realty Income Corp. | 27,123,565 | 2,006,873 | ||||
Simon Property Group Inc. | 14,672,055 | 1,593,972 | ||||
Kimco Realty Corp. | 28,285,568 | 625,394 | ||||
Regency Centers Corp. | 7,074,635 | 455,819 | ||||
National Retail Properties Inc. | 8,056,224 | 383,557 | ||||
Federal Realty OP LP | 3,245,463 | 342,753 | ||||
Brixmor Property Group Inc. | 13,661,702 | 316,678 | ||||
Agree Realty Corp. | 3,269,938 | 260,254 | ||||
Spirit Realty Capital Inc. | 5,859,542 | 259,812 | ||||
Kite Realty Group Trust | 10,042,773 | 199,751 | ||||
1 | Phillips Edison & Co. Inc. | 5,201,736 | 177,067 | |||
SITE Centers Corp. | 8,720,282 | 127,403 | ||||
Macerich Co. | 9,771,519 | 103,676 | ||||
Retail Opportunity Investments Corp. | 5,632,905 | 98,351 | ||||
InvenTrust Properties Corp. | 3,089,122 | 88,565 | ||||
Urban Edge Properties | 5,384,974 | 88,475 | ||||
Tanger Factory Outlet Centers Inc. | 4,776,117 | 77,707 | ||||
Acadia Realty Trust | 4,095,949 | 70,164 | ||||
Getty Realty Corp. | 1,821,938 | 53,456 | ||||
Necessity Retail REIT Inc. Class A | 5,959,018 | 46,421 | ||||
RPT Realty | 3,894,414 | 42,332 | ||||
NETSTREIT Corp. | 2,027,187 | 41,557 | ||||
Saul Centers Inc. | 653,078 | 34,143 | ||||
Alexander's Inc. | 105,398 | 25,665 | ||||
Urstadt Biddle Properties Inc. Class A | 1,368,442 | 25,179 | ||||
1 | CBL & Associates Properties Inc. | 582,322 | 17,930 |
Shares | Market Value• ($000) | |||||
Urstadt Biddle Properties Inc. | 16,032 | 299 | ||||
*,2 | Spirit MTA REIT | 2,071,263 | — | |||
7,563,253 | ||||||
Specialized REITs (33.0%) | ||||||
American Tower Corp. | 20,911,134 | 5,663,362 | ||||
Crown Castle International Corp. | 19,825,397 | 3,581,656 | ||||
Equinix Inc. | 4,161,311 | 2,928,481 | ||||
Public Storage | 7,229,976 | 2,359,936 | ||||
SBA Communications Corp. | 4,989,735 | 1,675,503 | ||||
Digital Realty Trust Inc. | 12,423,409 | 1,645,481 | ||||
VICI Properties Inc. | 38,751,120 | 1,324,901 | ||||
Weyerhaeuser Co. | 34,233,746 | 1,243,370 | ||||
Extra Space Storage Inc. | 6,141,538 | 1,163,944 | ||||
Iron Mountain Inc. | 13,294,309 | 644,641 | ||||
Gaming & Leisure Properties Inc. | 10,786,938 | 560,813 | ||||
Life Storage Inc. | 3,838,780 | 483,264 | ||||
CubeSmart | 10,274,900 | 471,310 | ||||
Lamar Advertising Co. Class A | 3,983,867 | 402,610 | ||||
Rayonier Inc. | 6,668,165 | 251,723 | ||||
National Storage Affiliates Trust | 3,974,179 | 217,944 | ||||
EPR Properties | 3,438,679 | 185,035 | ||||
PotlatchDeltic Corp. | 3,168,838 | 155,368 | ||||
Uniti Group Inc. | 10,828,607 | 107,961 | ||||
Four Corners Property Trust Inc. | 3,686,411 | 107,754 | ||||
Outfront Media Inc. | 5,701,780 | 105,255 | ||||
Gladstone Land Corp. | 1,489,480 | 40,380 | ||||
Safehold Inc. | 778,981 | 33,216 | ||||
25,353,908 | ||||||
Total Equity Real Estate Investment Trusts (REITs) (Cost $61,679,101) | 72,988,018 | |||||
Real Estate Management & Development (4.2%) | ||||||
Diversified Real Estate Activities (0.1%) | ||||||
St. Joe Co. | 1,485,517 | 62,422 | ||||
RMR Group Inc. Class A | 710,180 | 20,531 | ||||
82,953 | ||||||
Real Estate Development (0.2%) | ||||||
* | Howard Hughes Corp. | 1,896,475 | 134,441 | |||
* | Forestar Group Inc. | 908,355 | 12,572 | |||
147,013 | ||||||
Real Estate Operating Companies (0.4%) | ||||||
* | DigitalBridge Group Inc. | 26,096,211 | 143,007 | |||
Kennedy-Wilson Holdings Inc. | 5,691,636 | 117,589 | ||||
*,1 | WeWork Inc. | 8,090,688 | 38,593 |
Shares | Market Value• ($000) | |||||
* | FRP Holdings Inc. | 281,101 | 16,585 | |||
*,1 | Seritage Growth Properties Class A | 1,208,337 | 14,524 | |||
330,298 | ||||||
Real Estate Services (3.5%) | ||||||
* | CBRE Group Inc. Class A | 15,350,876 | 1,314,342 | |||
* | Jones Lang LaSalle Inc. | 2,288,175 | 436,286 | |||
* | Zillow Group Inc. Class C | 7,545,311 | 263,180 | |||
* | Cushman & Wakefield plc | 6,662,632 | 111,932 | |||
Newmark Group Inc. Class A | 8,772,362 | 100,005 | ||||
* | Zillow Group Inc. Class A | 2,828,387 | 98,994 | |||
*,1 | Opendoor Technologies Inc. | 18,585,684 | 91,256 | |||
* | Anywhere Real Estate Inc. | 5,348,291 | 53,109 | |||
Marcus & Millichap Inc. | 1,184,121 | 48,454 | ||||
1 | eXp World Holdings Inc. | 3,074,010 | 45,680 | |||
*,1 | Compass Inc. Class A | 10,313,029 | 39,396 | |||
* | Redfin Corp. | 4,032,926 | 35,086 | |||
RE/MAX Holdings Inc. Class A | 861,455 | 21,829 | ||||
Douglas Elliman Inc. | 3,211,035 | 19,266 | ||||
*,1 | Offerpad Solutions Inc. | 2,638,342 | 5,567 | |||
*,1 | Doma Holdings Inc. | 4,472,970 | 3,319 | |||
2,687,701 | ||||||
Total Real Estate Management & Development (Cost $4,119,341) | 3,247,965 |
Shares | Market Value• ($000) | |||||
Temporary Cash Investments (0.6%) | ||||||
Money Market Fund (0.6%) | ||||||
6,7 | Vanguard Market Liquidity Fund, 1.903% (Cost $482,230) | 4,824,316 | 482,239 | |||
Total Investments (100.0%) (Cost $66,280,672) | 76,718,222 | |||||
Other Assets and Liabilities—Net (0.0%) | (9,314) | |||||
Net Assets (100%) | 76,708,908 |
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 $84,190,000. |
2 | Security value determined using significant unobservable inputs. |
3 | “Other” represents securities that are not classified by the fund’s benchmark index. |
4 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
5 | Represents a wholly owned subsidiary of the fund. See accompanying financial statements for Vanguard Real Estate II Index Fund's Schedule of Investments. |
6 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
7 | Collateral of $88,289,000 was received for securities on loan, of which $84,183,000 is held in Vanguard Market Liquidity Fund and $4,106,000 is held in cash. |
REIT—Real Estate Investment Trust. |
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) |
American Homes 4 Rent Class A | 8/31/22 | BANA | 37,212 | (1.809) | 2,511 | — |
Digital Realty Trust Inc. | 1/31/23 | GSI | 30,245 | (2.153) | 2,853 | — |
Digital Realty Trust Inc. | 8/31/22 | BANA | 48,687 | (1.797) | 915 | — |
Equity Residential | 8/31/22 | BANA | 14,444 | (1.836) | 1,339 | — |
Equity Residential | 8/31/22 | BANA | 28,888 | (1.813) | 2,678 | — |
Redfin Corp. | 1/31/23 | GSI | 3,059 | (2.144) | — | (15) |
Seritage Growth Properties Class A | 1/31/23 | GSI | 4,312 | (2.129) | 446 | — |
Simon Property Group Inc. | 1/31/23 | GSI | 38,544 | (2.165) | 4,894 | — |
VICI Properties Inc. | 8/31/22 | BANA | 160,866 | (2.234) | 25,436 | — |
Welltower Inc. | 8/31/22 | BANA | 61,764 | (1.804) | 2,910 | — |
43,982 | (15) |
1 | Based on USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly. |
BANA—Bank of America, N.A. | |
GSI—Goldman Sachs International. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $58,590,407) | 67,257,782 |
Affiliated Issuers (Cost $482,230) | 482,239 |
Vanguard Real Estate II Index Fund (Cost $7,208,035) | 8,978,201 |
Total Investments in Securities | 76,718,222 |
Investment in Vanguard | 2,409 |
Cash | 4,106 |
Receivables for Investment Securities Sold | 20,197 |
Receivables for Accrued Income | 128,280 |
Receivables for Capital Shares Issued | 18,678 |
Unrealized Appreciation—Over-the-Counter Swap Contracts | 43,982 |
Total Assets | 76,935,874 |
Liabilities | |
Due to Custodian | 9,652 |
Payables for Investment Securities Purchased | 102,763 |
Collateral for Securities on Loan | 88,289 |
Payables for Capital Shares Redeemed | 22,634 |
Payables to Vanguard | 3,613 |
Unrealized Depreciation—Over-the-Counter Swap Contracts | 15 |
Total Liabilities | 226,966 |
Net Assets | 76,708,908 |
1 Includes $84,190 of securities on loan. |
Statement of Assets and Liabilities (continued) | |
At July 31, 2022, net assets consisted of: | |
($000s, except shares and per-share amounts) | Amount |
Paid-in Capital | 66,875,970 |
Total Distributable Earnings (Loss) | 9,832,938 |
Net Assets | 76,708,908 |
Investor Shares—Net Assets | |
Applicable to 4,475,070 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 147,117 |
Net Asset Value Per Share—Investor Shares | $32.87 |
ETF Shares—Net Assets | |
Applicable to 413,914,080 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 40,954,284 |
Net Asset Value Per Share—ETF Shares | $98.94 |
Admiral Shares—Net Assets | |
Applicable to 170,284,766 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 23,878,936 |
Net Asset Value Per Share—Admiral Shares | $140.23 |
Institutional Shares—Net Assets | |
Applicable to 540,393,314 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 11,728,571 |
Net Asset Value Per Share—Institutional Shares | $21.70 |
Six Months Ended July 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers | 1,063,139 |
Dividends—Affiliated Issuers | 30,576 |
Dividends—Vanguard Real Estate II Index Fund | 117,477 |
Interest—Affiliated Issuers | 645 |
Securities Lending—Net | 660 |
Total Income | 1,212,497 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 887 |
Management and Administrative—Investor Shares | 213 |
Management and Administrative—ETF Shares | 22,748 |
Management and Administrative—Admiral Shares | 12,902 |
Management and Administrative—Institutional Shares | 5,143 |
Marketing and Distribution—Investor Shares | 6 |
Marketing and Distribution—ETF Shares | 722 |
Marketing and Distribution—Admiral Shares | 459 |
Marketing and Distribution—Institutional Shares | 186 |
Custodian Fees | 98 |
Shareholders’ Reports—Investor Shares | 1 |
Shareholders’ Reports—ETF Shares | 675 |
Shareholders’ Reports—Admiral Shares | 173 |
Shareholders’ Reports—Institutional Shares | 64 |
Trustees’ Fees and Expenses | 20 |
Other Expenses | 6 |
Total Expenses | 44,303 |
Expenses Paid Indirectly | (23) |
Net Expenses | 44,280 |
Net Investment Income | 1,168,217 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received—Unaffiliated Issuers | 45,697 |
Capital Gain Distributions Received—Vanguard Real Estate II Index Fund | — |
Investment Securities Sold—Unaffiliated Issuers1 | 1,688,874 |
Investment Securities Sold—Affiliated Issuers2 | 21,399 |
Investment Securities Sold—Vanguard Real Estate II Index Fund | — |
Swap Contracts | (39,546) |
Realized Net Gain (Loss) | 1,716,424 |
Statement of Operations (continued) | |
Six Months Ended July 31, 2022 | |
($000) | |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | (7,655,293) |
Investment Securities—Affiliated Issuers | 204,832 |
Investment Securities—Vanguard Real Estate II Index Fund | (683,638) |
Swap Contracts | 43,967 |
Change in Unrealized Appreciation (Depreciation) | (8,090,132) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (5,205,491) |
1 | Includes $1,805,234,000 of net gain (loss) resulting from in-kind redemptions. |
2 | Includes $32,314,000 of net gain (loss) resulting from in-kind redemptions. |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 1,168,217 | 1,487,532 | |
Realized Net Gain (Loss) | 1,716,424 | 2,507,302 | |
Change in Unrealized Appreciation (Depreciation) | (8,090,132) | 14,077,791 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (5,205,491) | 18,072,625 | |
Distributions | |||
Investor Shares | (1,879) | (3,637) | |
ETF Shares | (490,481) | (811,715) | |
Admiral Shares | (276,428) | (463,925) | |
Institutional Shares | (135,640) | (220,900) | |
Return of Capital | |||
Investor Shares | — | (1,874) | |
ETF Shares | — | (418,428) | |
Admiral Shares | — | (239,147) | |
Institutional Shares | — | (113,871) | |
Total Distributions | (904,428) | (2,273,497) | |
Capital Share Transactions | |||
Investor Shares | (33,562) | (35,113) | |
ETF Shares | (2,289,715) | 6,252,486 | |
Admiral Shares | (70,519) | 1,052,588 | |
Institutional Shares | 490,722 | 221,639 | |
Net Increase (Decrease) from Capital Share Transactions | (1,903,074) | 7,491,600 | |
Total Increase (Decrease) | (8,012,993) | 23,290,728 | |
Net Assets | |||
Beginning of Period | 84,721,901 | 61,431,173 | |
End of Period | 76,708,908 | 84,721,901 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $35.37 | $28.23 | $31.21 | $27.69 | $26.40 | $27.38 |
Investment Operations | ||||||
Net Investment Income1 | .459 | .602 | .586 | .719 | .787 | .761 |
Net Realized and Unrealized Gain (Loss) on Investments | (2.600) | 7.475 | (2.498) | 3.801 | 1.639 | (.614) |
Total from Investment Operations | (2.141) | 8.077 | (1.912) | 4.520 | 2.426 | .147 |
Distributions | ||||||
Dividends from Net Investment Income | (.359) | (.620) | (.624) | (.752) | (.851) | (.788) |
Distributions from Realized Capital Gains | — | — | — | — | — | (.011) |
Return of Capital | — | (.317) | (.444) | (.248) | (.285) | (.328) |
Total Distributions | (.359) | (.937) | (1.068) | (1.000) | (1.136) | (1.127) |
Net Asset Value, End of Period | $32.87 | $35.37 | $28.23 | $31.21 | $27.69 | $26.40 |
Total Return2 | -6.03% | 28.73% | -5.88% | 16.59% | 9.53% | 0.45% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $147 | $196 | $188 | $243 | $1,871 | $2,143 |
Ratio of Total Expenses to Average Net Assets | 0.25% 3 | 0.26% | 0.26% | 0.26% | 0.25% | 0.26% |
Ratio of Net Investment Income to Average Net Assets | 2.58% | 1.77% | 2.18% | 2.48% | 3.02% | 2.87% |
Portfolio Turnover Rate4 | 4% | 7% | 8% | 6% | 24% | 6% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.25%. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
ETF Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $106.44 | $84.96 | $93.93 | $83.36 | $79.47 | $82.43 |
Investment Operations | ||||||
Net Investment Income1 | 1.470 | 1.960 | 1.889 | 2.335 | 2.487 | 2.499 |
Net Realized and Unrealized Gain (Loss) on Investments | (7.824) | 22.486 | (7.525) | 11.379 | 4.934 | (1.945) |
Total from Investment Operations | (6.354) | 24.446 | (5.636) | 13.714 | 7.421 | .554 |
Distributions | ||||||
Dividends from Net Investment Income | (1.146) | (1.943) | (1.947) | (2.364) | (2.646) | (2.458) |
Distributions from Realized Capital Gains | — | — | — | — | — | (.034) |
Return of Capital | — | (1.023) | (1.387) | (.780) | (.885) | (1.022) |
Total Distributions | (1.146) | (2.966) | (3.334) | (3.144) | (3.531) | (3.514) |
Net Asset Value, End of Period | $98.94 | $106.44 | $84.96 | $93.93 | $83.36 | $79.47 |
Total Return | -5.95% | 28.88% | -5.80% | 16.70% | 9.70% | 0.59% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $40,954 | $46,673 | $32,064 | $37,682 | $30,857 | $32,377 |
Ratio of Total Expenses to Average Net Assets | 0.12% 2 | 0.12% | 0.12% | 0.12% | 0.12% | 0.12% |
Ratio of Net Investment Income to Average Net Assets | 2.76% | 1.90% | 2.33% | 2.60% | 3.15% | 3.01% |
Portfolio Turnover Rate3 | 4% | 7% | 8% | 6% | 24% | 6% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%. |
3 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $150.85 | $120.40 | $133.12 | $118.14 | $112.63 | $116.83 |
Investment Operations | ||||||
Net Investment Income1 | 2.096 | 2.761 | 2.677 | 3.315 | 3.507 | 3.538 |
Net Realized and Unrealized Gain (Loss) on Investments | (11.091) | 31.890 | (10.672) | 16.121 | 7.008 | (2.761) |
Total from Investment Operations | (8.995) | 34.651 | (7.995) | 19.436 | 10.515 | .777 |
Distributions | ||||||
Dividends from Net Investment Income | (1.625) | (2.770) | (2.759) | (3.350) | (3.751) | (3.483) |
Distributions from Realized Capital Gains | — | — | — | — | — | (.048) |
Return of Capital | — | (1.431) | (1.966) | (1.106) | (1.254) | (1.447) |
Total Distributions | (1.625) | (4.201) | (4.725) | (4.456) | (5.005) | (4.978) |
Net Asset Value, End of Period | $140.23 | $150.85 | $120.40 | $133.12 | $118.14 | $112.63 |
Total Return2 | -5.94% | 28.91% | -5.74% | 16.73% | 9.69% | 0.58% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $23,879 | $25,764 | $19,702 | $23,274 | $18,223 | $17,757 |
Ratio of Total Expenses to Average Net Assets | 0.12% 3 | 0.12% | 0.12% | 0.12% | 0.11% | 0.12% |
Ratio of Net Investment Income to Average Net Assets | 2.78% | 1.90% | 2.33% | 2.60% | 3.16% | 3.01% |
Portfolio Turnover Rate4 | 4% | 7% | 8% | 6% | 24% | 6% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
Institutional Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $23.35 | $18.64 | $20.60 | $18.28 | $17.43 | $18.08 |
Investment Operations | ||||||
Net Investment Income1 | .328 | .432 | .421 | .518 | .543 | .568 |
Net Realized and Unrealized Gain (Loss) on Investments | (1.724) | 4.933 | (1.646) | 2.496 | 1.085 | (.444) |
Total from Investment Operations | (1.396) | 5.365 | (1.225) | 3.014 | 1.628 | .124 |
Distributions | ||||||
Dividends from Net Investment Income | (.254) | (.432) | (.429) | (.522) | (.583) | (.542) |
Distributions from Realized Capital Gains | — | — | — | — | — | (.007) |
Return of Capital | — | (.223) | (.306) | (.172) | (.195) | (.225) |
Total Distributions | (.254) | (.655) | (.735) | (.694) | (.778) | (.774) |
Net Asset Value, End of Period | $21.70 | $23.35 | $18.64 | $20.60 | $18.28 | $17.43 |
Total Return | -5.95% | 28.91% | -5.68% | 16.77% | 9.70% | 0.60% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $11,729 | $12,089 | $9,478 | $10,027 | $8,206 | $8,176 |
Ratio of Total Expenses to Average Net Assets | 0.10% 2 | 0.10% | 0.10% | 0.10% | 0.09% | 0.10% |
Ratio of Net Investment Income to Average Net Assets | 2.81% | 1.92% | 2.37% | 2.63% | 3.18% | 3.03% |
Portfolio Turnover Rate3 | 4% | 7% | 8% | 6% | 24% | 6% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
3 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
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. | In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution 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. |
C. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended July 31, 2022, custodian fee offset arrangements reduced the fund’s expenses by $23,000 (an annual rate of less than 0.01% of average net assets). |
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 | 76,235,969 | — | 14 | 76,235,983 |
Temporary Cash Investments | 482,239 | — | — | 482,239 |
Total | 76,718,208 | — | 14 | 76,718,222 |
Derivative Financial Instruments | ||||
Assets | ||||
Swap Contracts | — | 43,982 | — | 43,982 |
Liabilities | ||||
Swap Contracts | — | 15 | — | 15 |
E. | As of July 31, 2022, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 66,532,469 |
Gross Unrealized Appreciation | 16,444,842 |
Gross Unrealized Depreciation | (6,215,122) |
Net Unrealized Appreciation (Depreciation) | 10,229,720 |
F. | During the six months ended July 31, 2022, the fund purchased $6,666,599,000 of investment securities and sold $8,517,790,000 of investment securities, other than temporary cash investments. Purchases and sales include $2,716,008,000 and $5,022,320,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares. |
G. | Capital share transactions for each class of shares were: |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 8,183 | 239 | 40,853 | 1,192 | |
Issued in Lieu of Cash Distributions | 1,879 | 58 | 5,511 | 161 | |
Redeemed | (43,624) | (1,361) | (81,477) | (2,463) | |
Net Increase (Decrease)—Investor Shares | (33,562) | (1,064) | (35,113) | (1,110) | |
ETF Shares | |||||
Issued | 2,739,304 | 26,810 | 12,323,320 | 119,786 | |
Issued in Lieu of Cash Distributions | — | — | — | — | |
Redeemed | (5,029,019) | (51,400) | (6,070,834) | (58,700) | |
Net Increase (Decrease)—ETF Shares | (2,289,715) | (24,590) | 6,252,486 | 61,086 | |
Admiral Shares | |||||
Issued | 1,491,343 | 10,427 | 4,265,102 | 29,377 | |
Issued in Lieu of Cash Distributions | 242,660 | 1,768 | 616,726 | 4,188 | |
Redeemed | (1,804,522) | (12,701) | (3,829,240) | (26,405) | |
Net Increase (Decrease)—Admiral Shares | (70,519) | (506) | 1,052,588 | 7,160 | |
Institutional Shares | |||||
Issued | 1,257,128 | 57,103 | 2,230,405 | 98,845 | |
Issued in Lieu of Cash Distributions | 125,971 | 5,933 | 311,998 | 13,695 | |
Redeemed | (892,377) | (40,438) | (2,320,764) | (103,325) | |
Net Increase (Decrease)—Institutional Shares | 490,722 | 22,598 | 221,639 | 9,215 |
Current Period Transactions | ||||||||
Jan. 31, 2022 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Jul. 31, 2022 Market Value ($000) | |
Easterly Government Properties Inc. | 90,343 | 5,544 | 16,623 | (251) | (2,921) | 2,164 | — | NA 2 |
Equity Commonwealth | NA 3 | 10,687 | 27,803 | (1,498) | 12,511 | — | — | NA 2 |
Hudson Pacific Properties Inc. | NA 3 | 11,338 | 17,834 | (4,079) | (57,207) | 3,572 | — | NA 2 |
Vanguard Market Liquidity Fund | 147,613 | NA 4 | NA 4 | (50) | (14) | 645 | — | 482,239 |
Vanguard Real Estate II Index Fund | 9,542,041 | 117,477 | — | — | (683,638) | 117,477 | — | 8,978,201 |
VICI Properties Inc. | NA 3,5 | 488,161 | 282,110 | 27,277 | 252,463 | 24,840 | — | NA 2 |
Total | 9,779,997 | 633,207 | 344,370 | 21,399 | (478,806) | 148,698 | — | 9,460,440 |
1 | Does not include adjustments related to return of capital. |
2 | Not applicable—at July 31, 2022, the security was still held, but the issuer was no longer an affiliated company of the fund. |
3 | Not applicable—at January 31, 2022, the issuer was not an affiliated company of the fund. |
4 | Not applicable—purchases and sales are for temporary cash investment purposes. |
5 | Not applicable—in April 2022, VICI Properties Inc. acquired MGM Growth Properties LLC. |
I. | Management has determined that no events or transactions occurred subsequent to July 31, 2022, that would require recognition or disclosure in these financial statements. |
Diversified Real Estate Activities | 0.1% |
Diversified REITs | 2.7 |
Health Care REITs | 8.1 |
Hotel & Resort REITs | 2.5 |
Industrial REITs | 11.6 |
Office REITs | 5.9 |
Real Estate Development | 0.2 |
Real Estate Operating Companies | 0.5 |
Real Estate Services | 4.0 |
Residential REITs | 15.2 |
Retail REITs | 11.3 |
Specialized REITs | 37.9 |
Shares | Market Value• ($000) | |||||
Equity Real Estate Investment Trusts (REITs) (95.0%) | ||||||
Diversified REITs (2.7%) | ||||||
WP Carey Inc. | 1,158,931 | 103,493 | ||||
STORE Capital Corp. | 1,498,233 | 43,479 | ||||
Broadstone Net Lease Inc. | 993,672 | 22,527 | ||||
Essential Properties Realty Trust Inc. | 763,637 | 18,419 | ||||
Global Net Lease Inc. | 631,098 | 9,523 | ||||
American Assets Trust Inc. | 312,892 | 9,459 | ||||
Alexander & Baldwin Inc. | 440,954 | 8,779 | ||||
Empire State Realty Trust Inc. Class A | 874,766 | 7,462 | ||||
iStar Inc. | 420,079 | 7,019 | ||||
Armada Hoffler Properties Inc. | 409,794 | 5,811 | ||||
Gladstone Commercial Corp. | 229,328 | 4,804 | ||||
One Liberty Properties Inc. | 101,863 | 2,827 | ||||
243,602 | ||||||
Health Care REITs (8.1%) | ||||||
Welltower Inc. | 2,719,606 | 234,811 | ||||
Ventas Inc. | 2,429,055 | 130,635 | ||||
Healthpeak Properties Inc. | 3,279,150 | 90,603 | ||||
Medical Properties Trust Inc. | 3,628,739 | 62,559 | ||||
Healthcare Realty Trust Inc. Class A | 2,314,798 | 60,763 | ||||
Omega Healthcare Investors Inc. | 1,453,889 | 45,071 | ||||
Physicians Realty Trust | 1,367,537 | 24,301 | ||||
Sabra Health Care REIT Inc. | 1,403,911 | 21,606 | ||||
National Health Investors Inc. | 278,772 | 18,076 | ||||
CareTrust REIT Inc. | 590,124 | 12,186 | ||||
LTC Properties Inc. | 240,295 | 10,068 | ||||
Community Healthcare Trust Inc. | 144,816 | 5,641 | ||||
Global Medical REIT Inc. | 371,042 | 4,519 |
Shares | Market Value• ($000) | |||||
Universal Health Realty Income Trust | 79,609 | 4,291 | ||||
Diversified Healthcare Trust | 1,449,979 | 2,508 | ||||
727,638 | ||||||
Hotel & Resort REITs (2.5%) | ||||||
Host Hotels & Resorts Inc. | 4,342,314 | 77,337 | ||||
* | Ryman Hospitality Properties Inc. | 318,097 | 28,164 | |||
Apple Hospitality REIT Inc. | 1,318,391 | 21,991 | ||||
Park Hotels & Resorts Inc. | 1,037,833 | 16,180 | ||||
Pebblebrook Hotel Trust | 799,484 | 15,638 | ||||
* | Sunstone Hotel Investors Inc. | 1,333,564 | 15,109 | |||
RLJ Lodging Trust | 1,012,853 | 12,650 | ||||
* | DiamondRock Hospitality Co. | 1,281,877 | 11,896 | |||
* | Xenia Hotels & Resorts Inc. | 694,712 | 11,407 | |||
Service Properties Trust | 1,004,752 | 6,571 | ||||
* | Summit Hotel Properties Inc. | 647,605 | 5,084 | |||
* | Chatham Lodging Trust | 280,859 | 3,415 | |||
225,442 | ||||||
Industrial REITs (11.6%) | ||||||
Prologis Inc. | 4,499,479 | 596,451 | ||||
Duke Realty Corp. | 2,327,380 | 145,601 | ||||
Rexford Industrial Realty Inc. | 976,154 | 63,850 | ||||
Americold Realty Trust Inc. | 1,381,262 | 45,236 | ||||
EastGroup Properties Inc. | 250,819 | 42,775 | ||||
First Industrial Realty Trust Inc. | 801,263 | 41,625 | ||||
STAG Industrial Inc. | 1,082,003 | 35,468 | ||||
Terreno Realty Corp. | 459,057 | 28,760 | ||||
LXP Industrial Trust | 1,736,639 | 19,051 | ||||
Innovative Industrial Properties Inc. | 155,821 | 15,023 | ||||
Plymouth Industrial REIT Inc. | 222,529 | 4,286 | ||||
Industrial Logistics Properties Trust | 398,082 | 3,993 | ||||
1,042,119 |
Shares | Market Value• ($000) | |||||
Office REITs (5.9%) | ||||||
Alexandria Real Estate Equities Inc. | 923,884 | 153,161 | ||||
Boston Properties Inc. | 905,004 | 82,500 | ||||
Kilroy Realty Corp. | 638,690 | 34,604 | ||||
Vornado Realty Trust | 990,820 | 30,111 | ||||
Cousins Properties Inc. | 903,950 | 27,887 | ||||
Douglas Emmett Inc. | 1,068,361 | 25,256 | ||||
Highwoods Properties Inc. | 637,664 | 22,682 | ||||
SL Green Realty Corp. | 393,738 | 19,549 | ||||
* | Equity Commonwealth | 687,473 | 19,284 | |||
Corporate Office Properties Trust | 682,859 | 19,222 | ||||
JBG SMITH Properties | 697,898 | 17,755 | ||||
Hudson Pacific Properties Inc. | 919,272 | 13,826 | ||||
Piedmont Office Realty Trust Inc. Class A | 749,588 | 10,314 | ||||
Easterly Government Properties Inc. Class A | 497,600 | 10,086 | ||||
Brandywine Realty Trust | 1,040,730 | 9,731 | ||||
Paramount Group Inc. | 1,066,693 | 8,374 | ||||
* | Veris Residential Inc. | 470,485 | 6,563 | |||
Office Properties Income Trust | 294,714 | 6,124 | ||||
Orion Office REIT Inc. | 343,992 | 3,763 | ||||
City Office REIT Inc. | 264,882 | 3,735 | ||||
Franklin Street Properties Corp. | 633,398 | 2,401 | ||||
526,928 | ||||||
Residential REITs (15.2%) | ||||||
AvalonBay Communities Inc. | 849,741 | 181,794 | ||||
Equity Residential | 2,171,420 | 170,218 | ||||
Invitation Homes Inc. | 3,694,748 | 144,206 | ||||
Mid-America Apartment Communities Inc. | 701,313 | 130,255 | ||||
Sun Communities Inc. | 705,091 | 115,607 | ||||
Essex Property Trust Inc. | 396,917 | 113,729 | ||||
UDR Inc. | 1,935,170 | 93,662 | ||||
Camden Property Trust | 597,449 | 84,300 | ||||
Equity LifeStyle Properties Inc. | 1,074,046 | 78,964 | ||||
American Homes 4 Rent Class A | 1,902,291 | 72,059 | ||||
American Campus Communities Inc. | 855,959 | 55,911 | ||||
Apartment Income REIT Corp. Class A | 954,478 | 43,276 | ||||
Independence Realty Trust Inc. | 1,343,606 | 29,828 | ||||
Washington REIT | 531,381 | 11,781 | ||||
NexPoint Residential Trust Inc. | 139,744 | 9,298 | ||||
Centerspace | 91,356 | 7,846 | ||||
* | Apartment Investment & Management Co. Class A | 926,197 | 7,706 |
Shares | Market Value• ($000) | |||||
UMH Properties Inc. | 300,645 | 6,407 | ||||
Bluerock Residential Growth REIT Inc. Class A | 177,745 | 4,669 | ||||
1,361,516 | ||||||
Retail REITs (11.2%) | ||||||
Realty Income Corp. | 3,595,410 | 266,024 | ||||
Simon Property Group Inc. | 1,997,923 | 217,054 | ||||
Kimco Realty Corp. | 3,749,466 | 82,901 | ||||
Regency Centers Corp. | 937,819 | 60,424 | ||||
National Retail Properties Inc. | 1,067,872 | 50,841 | ||||
Federal Realty OP LP | 430,218 | 45,435 | ||||
Brixmor Property Group Inc. | 1,810,950 | 41,978 | ||||
Agree Realty Corp. | 433,430 | 34,497 | ||||
Spirit Realty Capital Inc. | 776,693 | 34,439 | ||||
Kite Realty Group Trust | 1,331,222 | 26,478 | ||||
1 | Phillips Edison & Co. Inc. | 689,529 | 23,472 | |||
SITE Centers Corp. | 1,155,888 | 16,887 | ||||
Macerich Co. | 1,295,245 | 13,743 | ||||
Retail Opportunity Investments Corp. | 746,485 | 13,034 | ||||
InvenTrust Properties Corp. | 409,468 | 11,739 | ||||
Urban Edge Properties | 714,031 | 11,732 | ||||
Tanger Factory Outlet Centers Inc. | 633,048 | 10,300 | ||||
Acadia Realty Trust | 543,264 | 9,306 | ||||
Getty Realty Corp. | 241,693 | 7,091 | ||||
Necessity Retail REIT Inc. Class A | 789,954 | 6,154 | ||||
RPT Realty | 514,604 | 5,594 | ||||
NETSTREIT Corp. | 269,457 | 5,524 | ||||
Saul Centers Inc. | 86,333 | 4,513 | ||||
Alexander's Inc. | 13,988 | 3,406 | ||||
Urstadt Biddle Properties Inc. Class A | 183,284 | 3,372 | ||||
1 | CBL & Associates Properties Inc. | 77,067 | 2,373 | |||
*,2 | Spirit MTA REIT | 257,871 | — | |||
1,008,311 | ||||||
Specialized REITs (37.8%) | ||||||
American Tower Corp. | 2,771,941 | 750,725 | ||||
Crown Castle International Corp. | 2,628,026 | �� 474,779 | ||||
Equinix Inc. | 551,619 | 388,196 | ||||
Public Storage | 958,397 | 312,830 | ||||
Digital Realty Trust Inc. | 1,729,681 | 229,096 | ||||
SBA Communications Corp. | 661,432 | 222,102 | ||||
VICI Properties Inc. | 5,852,569 | 200,099 | ||||
Weyerhaeuser Co. | 4,537,971 | 164,819 | ||||
Extra Space Storage Inc. | 814,116 | 154,291 | ||||
Iron Mountain Inc. | 1,762,257 | 85,452 | ||||
Gaming & Leisure Properties Inc. | 1,429,876 | 74,339 | ||||
Life Storage Inc. | 508,870 | 64,062 |
Shares | Market Value• ($000) | |||||
CubeSmart | 1,362,038 | 62,477 | ||||
Lamar Advertising Co. Class A | 528,094 | 53,369 | ||||
Rayonier Inc. | 883,921 | 33,368 | ||||
National Storage Affiliates Trust | 526,821 | 28,891 | ||||
EPR Properties | 455,790 | 24,526 | ||||
PotlatchDeltic Corp. | 420,033 | 20,594 | ||||
Uniti Group Inc. | 1,435,498 | 14,312 | ||||
Four Corners Property Trust Inc. | 488,552 | 14,281 | ||||
Outfront Media Inc. | 755,826 | 13,953 | ||||
Gladstone Land Corp. | 198,008 | 5,368 | ||||
Safehold Inc. | 103,439 | 4,411 | ||||
3,396,340 | ||||||
Total Equity Real Estate Investment Trusts (REITs) (Cost $6,717,716) | 8,531,896 | |||||
Real Estate Management & Development (4.8%) | ||||||
Diversified Real Estate Activities (0.1%) | ||||||
St. Joe Co. | 196,789 | 8,269 | ||||
RMR Group Inc. Class A | 94,242 | 2,724 | ||||
10,993 | ||||||
Real Estate Development (0.2%) | ||||||
* | Howard Hughes Corp. | 251,409 | 17,822 | |||
* | Forestar Group Inc. | 120,847 | 1,673 | |||
19,495 | ||||||
Real Estate Operating Companies (0.5%) | ||||||
* | DigitalBridge Group Inc. | 3,459,676 | 18,959 | |||
Kennedy-Wilson Holdings Inc. | 754,484 | 15,588 | ||||
*,1 | WeWork Inc. | 1,071,100 | 5,109 | |||
* | Seritage Growth Properties Class A | 213,098 | 2,561 | |||
* | FRP Holdings Inc. | 37,335 | 2,203 | |||
44,420 | ||||||
Real Estate Services (4.0%) | ||||||
* | CBRE Group Inc. Class A | 2,034,952 | 174,233 | |||
* | Jones Lang LaSalle Inc. | 303,333 | 57,837 | |||
* | Zillow Group Inc. Class C | 996,489 | 34,758 | |||
* | Cushman & Wakefield plc | 883,283 | 14,839 |
Shares | Market Value• ($000) | |||||
Newmark Group Inc. Class A | 1,162,909 | 13,257 | ||||
* | Zillow Group Inc. Class A | 378,600 | 13,251 | |||
* | Opendoor Technologies Inc. | 2,463,977 | 12,098 | |||
* | Anywhere Real Estate Inc. | 709,473 | 7,045 | |||
Marcus & Millichap Inc. | 156,652 | 6,410 | ||||
1 | eXp World Holdings Inc. | 406,749 | 6,044 | |||
* | Compass Inc. Class A | 1,366,823 | 5,221 | |||
* | Redfin Corp. | 581,335 | 5,058 | |||
RE/MAX Holdings Inc. Class A | 114,441 | 2,900 | ||||
Douglas Elliman Inc. | 424,547 | 2,547 | ||||
*,1 | Offerpad Solutions Inc. | 348,555 | 735 | |||
*,1 | Doma Holdings Inc. | 581,481 | 432 | |||
356,665 | ||||||
Total Real Estate Management & Development (Cost $511,284) | 431,573 | |||||
Temporary Cash Investments (0.3%) | ||||||
Money Market Fund (0.3%) | ||||||
3,4 | Vanguard Market Liquidity Fund, 1.903% (Cost $26,840) | 268,507 | 26,840 | |||
Total Investments (100.1%) (Cost $7,255,840) | 8,990,309 | |||||
Other Assets and Liabilities—Net (-0.1%) | (12,108) | |||||
Net Assets (100%) | 8,978,201 |
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 $13,847,000. |
2 | Security value determined using significant unobservable inputs. |
3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
4 | Collateral of $14,336,000 was received for securities on loan. |
REIT—Real Estate Investment Trust. |
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) |
Americold Realty Trust Inc. | 1/31/23 | GSI | 7,788 | (2.093) | 396 | — |
Park Hotels & Resorts Inc. | 1/31/23 | GSI | 5,544 | (2.110) | 690 | — |
1,086 | — |
1 | Based on USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly. |
GSI—Goldman Sachs International. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $7,229,000) | 8,963,469 |
Affiliated Issuers (Cost $26,840) | 26,840 |
Total Investments in Securities | 8,990,309 |
Investment in Vanguard | 316 |
Receivables for Investment Securities Sold | 1,218 |
Receivables for Accrued Income | 16,915 |
Unrealized Appreciation—Over-the-Counter Swap Contracts | 1,086 |
Total Assets | 9,009,844 |
Liabilities | |
Due to Custodian | 1,218 |
Payables for Investment Securities Purchased | 15,788 |
Collateral for Securities on Loan | 14,336 |
Payables to Vanguard | 301 |
Total Liabilities | 31,643 |
Net Assets | 8,978,201 |
1 Includes $13,847 of securities on loan. | |
At July 31, 2022, net assets consisted of: | |
Paid-in Capital | 7,206,235 |
Total Distributable Earnings (Loss) | 1,771,966 |
Net Assets | 8,978,201 |
Net Assets | |
Applicable to 376,527,417 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 8,978,201 |
Net Asset Value Per Share | $23.84 |
Six Months Ended July 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends | 142,749 |
Interest 1 | 17 |
Securities Lending—Net | 70 |
Total Income | 142,836 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 618 |
Management and Administrative | 2,872 |
Marketing and Distribution | 79 |
Custodian Fees | 13 |
Shareholders’ Reports | — |
Trustees’ Fees and Expenses | 2 |
Other Expenses | 6 |
Total Expenses | 3,590 |
Expenses Paid Indirectly | (1) |
Net Expenses | 3,589 |
Net Investment Income | 139,247 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received | 5,521 |
Investment Securities Sold1 | 14,480 |
Swap Contracts | (1,523) |
Realized Net Gain (Loss) | 18,478 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | (722,651) |
Swap Contracts | 1,086 |
Change in Unrealized Appreciation (Depreciation) | (721,565) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (563,840) |
1 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $17,000, ($6,000), and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 139,247 | 176,897 | |
Realized Net Gain (Loss) | 18,478 | 53,384 | |
Change in Unrealized Appreciation (Depreciation) | (721,565) | 1,912,230 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (563,840) | 2,142,511 | |
Distributions | |||
Net Investment Income and/or Realized Capital Gains | (117,477) | (186,333) | |
Return of Capital | — | (76,790) | |
Total Distributions | (117,477) | (263,123) | |
Capital Share Transactions | |||
Issued | — | — | |
Issued in Lieu of Cash Distributions | 117,477 | 263,123 | |
Redeemed | — | — | |
Net Increase (Decrease) from Capital Share Transactions | 117,477 | 263,123 | |
Total Increase (Decrease) | (563,840) | 2,142,511 | |
Net Assets | |||
Beginning of Period | 9,542,041 | 7,399,530 | |
End of Period | 8,978,201 | 9,542,041 |
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | September 26, 20171 to January 31, 2018 | |||
2022 | 2021 | 2020 | 2019 | |||
Net Asset Value, Beginning of Period | $25.69 | $20.50 | $22.64 | $20.10 | $19.17 | $20.00 |
Investment Operations | ||||||
Net Investment Income2 | .373 | .484 | .471 | .571 | .611 | .268 |
Net Realized and Unrealized Gain (Loss) on Investments | (1.908) | 5.427 | (1.808) | 2.752 | 1.176 | (.834) |
Total from Investment Operations | (1.535) | 5.911 | (1.337) | 3.323 | 1.787 | (.566) |
Distributions | ||||||
Dividends from Net Investment Income | (.315) | (.477) | (.465) | (.590) | (.626) | (.225) |
Distributions from Realized Capital Gains | — | (.034) | — | — | — | (.030) |
Return of Capital | — | (.210) | (.338) | (.193) | (.231) | (.009) |
Total Distributions | (.315) | (.721) | (.803) | (.783) | (.857) | (.264) |
Net Asset Value, End of Period | $23.84 | $25.69 | $20.50 | $22.64 | $20.10 | $19.17 |
Total Return | -5.93% | 28.96% | -5.70% | 16.78% | 9.68% | -2.89% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $8,978 | $9,542 | $7,400 | $7,848 | $6,719 | $6,126 |
Ratio of Total Expenses to Average Net Assets | 0.08% 3 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 4 |
Ratio of Net Investment Income to Average Net Assets | 2.90% | 1.95% | 2.41% | 2.63% | 3.22% | 3.84% 4 |
Portfolio Turnover Rate | 3% | 6% | 4% | 3% | 23% | 1% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Inception. |
2 | Calculated based on average shares outstanding. |
3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.08%. |
4 | Annualized. |
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. | In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution 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. |
C. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended July 31, 2022, custodian fee offset arrangements reduced the fund’s expenses by $1,000 (an annual rate of less than 0.01% of average net assets). |
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 | 8,963,469 | — | — | 8,963,469 |
Temporary Cash Investments | 26,840 | — | — | 26,840 |
Total | 8,990,309 | — | — | 8,990,309 |
Derivative Financial Instruments | ||||
Assets | ||||
Swap Contracts | — | 1,086 | — | 1,086 |
E. | As of July 31, 2022, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 7,288,336 |
Gross Unrealized Appreciation | 2,502,589 |
Gross Unrealized Depreciation | (799,530) |
Net Unrealized Appreciation (Depreciation) | 1,703,059 |
F. | During the six months ended July 31, 2022, the fund purchased $461,971,000 of investment securities and sold $306,012,000 of investment securities, other than temporary cash investments. |
G. | Capital shares issued and redeemed were: |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | — | — | |
Issued in Lieu of Cash Distributions | 5,076 | 10,506 | |
Redeemed | — | — | |
Net Increase (Decrease) in Shares Outstanding | 5,076 | 10,506 |
H. | Management has determined that no events or transactions occurred subsequent to July 31, 2022, that would require recognition or disclosure in these financial statements. |
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/g323066img5989b3f32.jpg)
Who Are Deaf or Hard of Hearing > 800-749-7273
All rights reserved.
U.S. Patent No. 6,879,964.
Vanguard Marketing Corporation, Distributor.
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/imgd608fef71.jpg)
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Liquidity Risk Management | 15 |
• | 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 July 31, 2022 | |||
Dividend Growth Fund | Beginning Account Value 1/31/2022 | Ending Account Value 7/31/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $973.70 | $1.47 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.31 | 1.51 |
Communication Services | 1.5% |
Consumer Discretionary | 11.7 |
Consumer Staples | 16.0 |
Financials | 8.4 |
Health Care | 18.5 |
Industrials | 20.8 |
Information Technology | 15.1 |
Materials | 5.1 |
Real Estate | 2.9 |
Shares | Market Value• ($000) | ||
Common Stocks (97.9%) | |||
Communication Services (1.5%) | |||
Comcast Corp. Class A | 21,385,571 | 802,387 | |
Consumer Discretionary (11.4%) | |||
TJX Cos. Inc. | 33,263,850 | 2,034,417 | |
McDonald's Corp. | 5,996,876 | 1,579,397 | |
NIKE Inc. Class B | 13,146,679 | 1,510,816 | |
Home Depot Inc. | 3,153,585 | 949,040 | |
6,073,670 | |||
Consumer Staples (15.6%) | |||
Colgate-Palmolive Co. | 23,372,041 | 1,840,315 | |
PepsiCo Inc. | 8,539,179 | 1,494,015 | |
Procter & Gamble Co. | 10,138,846 | 1,408,387 | |
Coca-Cola Co. | 20,650,771 | 1,325,160 | |
Costco Wholesale Corp. | 2,191,388 | 1,186,198 | |
Diageo plc | 21,972,876 | 1,040,896 | |
8,294,971 | |||
Financials (8.2%) | |||
Marsh & McLennan Cos. Inc. | 8,807,118 | 1,444,015 | |
Chubb Ltd. | 6,390,463 | 1,205,497 | |
American Express Co. | 6,899,286 | 1,062,628 | |
PNC Financial Services Group Inc. | 4,001,572 | 664,021 | |
4,376,161 | |||
Health Care (18.2%) | |||
UnitedHealth Group Inc. | 3,967,182 | 2,151,561 | |
Stryker Corp. | 6,905,037 | 1,482,857 | |
Johnson & Johnson | 8,267,659 | 1,442,872 | |
Medtronic plc | 12,684,304 | 1,173,552 | |
Danaher Corp. | 3,938,156 | 1,147,854 | |
Baxter International Inc. | 16,576,448 | 972,374 | |
Merck & Co. Inc. | 7,847,792 | 701,122 | |
Pfizer Inc. | 11,049,853 | 558,128 | |
9,630,320 | |||
Industrials (20.4%) | |||
Northrop Grumman Corp. | 3,666,984 | 1,756,119 | |
Honeywell International Inc. | 8,697,718 | 1,673,963 |
Shares | Market Value• ($000) | ||
Union Pacific Corp. | 5,721,760 | 1,300,556 | |
Raytheon Technologies Corp. | 13,730,740 | 1,279,842 | |
General Dynamics Corp. | 5,570,714 | 1,262,714 | |
Canadian National Railway Co. | 9,141,864 | 1,158,162 | |
United Parcel Service Inc. Class B | 5,921,866 | 1,154,112 | |
Lockheed Martin Corp. | 1,823,908 | 754,751 | |
Deere & Co. | 1,417,859 | 486,581 | |
10,826,800 | |||
Information Technology (14.8%) | |||
Visa Inc. Class A | 6,888,638 | 1,461,149 | |
Microsoft Corp. | 5,182,310 | 1,454,882 | |
Mastercard Inc. Class A | 3,732,371 | 1,320,476 | |
Texas Instruments Inc. | 7,295,937 | 1,305,170 | |
Accenture plc Class A | 4,223,497 | 1,293,488 | |
Automatic Data Processing Inc. | 4,143,705 | 999,130 | |
7,834,295 | |||
Materials (5.0%) | |||
Linde plc | 4,442,957 | 1,341,773 | |
Ecolab Inc. | 7,904,944 | 1,305,660 | |
2,647,433 | |||
Real Estate (2.8%) | |||
Public Storage | 2,390,232 | 780,196 | |
American Tower Corp. | 2,645,787 | 716,558 | |
1,496,754 | |||
Total Common Stocks (Cost $29,949,301) | 51,982,791 | ||
Temporary Cash Investments (1.9%) | |||
Money Market Fund (0.0%) | |||
1 | Vanguard Market Liquidity Fund, 1.903% | 262 | 26 |
Face Amount ($000) | Market Value• ($000) | ||
Repurchase Agreements (1.0%) | |||
Credit Agricole Securities 2.220%, 8/1/22 (Dated 7/29/22, Repurchase Value $83,015,000, collateralized by U.S. Treasury Note/Bond 2.500%, 2/15/45, with a value of $84,660,000) | 83,000 | 83,000 | |
Natixis SA 2.220%, 8/1/22 (Dated 7/29/22, Repurchase Value $323,660,000, collateralized by Fannie Mae 0.000%, 8/6/38, Federal Home Loan Bank 2.840%–3.000%, 2/24/37–1/27/42, U.S. Treasury Inflation Indexed Note/Bond 0.125%, 10/15/25–7/15/30, and U.S. Treasury Note/Bond 0.125%–4.750%, 8/31/23–5/15/52, with a value of $330,072,000) | 323,600 | 323,600 | |
NatWest Markets plc 2.230%, 8/1/22 (Dated 7/29/22, Repurchase Value $26,505,000, collateralized by U.S. Treasury Note/Bond 2.250%, 12/31/24, with a value of $27,030,000) | 26,500 | 26,500 | |
Societe Generale 2.265%, 8/1/22 (Dated 7/29/22, Repurchase Value $89,317,000, collateralized by U.S. Treasury Inflation Indexed Note/Bond 2.461%, 4/30/24, with a value of $91,086,000) | 89,300 | 89,300 | |
522,400 |
Face Amount ($000) | Market Value• ($000) | ||
U.S. Government and Agency Obligations (0.9%) | |||
United States Cash Management Bill, 1.106%–1.853%, 9/6/22 | 266,090 | 265,521 | |
United States Treasury Bill, 1.282%, 8/9/22 | 150,000 | 149,930 | |
United States Treasury Bill, 0.948%, 8/16/22 | 30,525 | 30,498 | |
United States Treasury Bill, 2.406%, 10/20/22 | 21,735 | 21,622 | |
467,571 | |||
Total Temporary Cash Investments (Cost $990,136) | 989,997 | ||
Total Investments (99.8%) (Cost $30,939,437) | 52,972,788 | ||
Other Assets and Liabilities—Net (0.2%) | 91,014 | ||
Net Assets (100%) | 53,063,802 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $30,939,411) | 52,972,762 |
Affiliated Issuers (Cost $26) | 26 |
Total Investments in Securities | 52,972,788 |
Investment in Vanguard | 1,931 |
Cash | 18 |
Receivables for Accrued Income | 95,889 |
Receivables for Capital Shares Issued | 31,086 |
Total Assets | 53,101,712 |
Liabilities | |
Foreign Currency Due to Custodian, at Value (Proceeds $3) | 3 |
Payables to Investment Advisor | 18,930 |
Payables for Capital Shares Redeemed | 15,817 |
Payables to Vanguard | 3,160 |
Total Liabilities | 37,910 |
Net Assets | 53,063,802 |
At July 31, 2022, net assets consisted of: | |
Paid-in Capital | 29,805,208 |
Total Distributable Earnings (Loss) | 23,258,594 |
Net Assets | 53,063,802 |
Net Assets | |
Applicable to 1,487,643,077 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 53,063,802 |
Net Asset Value Per Share | $35.67 |
Six Months Ended July 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 520,937 |
Interest2 | 3,124 |
Securities Lending—Net | — |
Total Income | 524,061 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 34,501 |
Performance Adjustment | 7,006 |
The Vanguard Group—Note C | |
Management and Administrative | 34,703 |
Marketing and Distribution | 1,635 |
Custodian Fees | 126 |
Shareholders’ Reports | 223 |
Trustees’ Fees and Expenses | 13 |
Other Expenses | 5 |
Total Expenses | 78,212 |
Expenses Paid Indirectly | (21) |
Net Expenses | 78,191 |
Net Investment Income | 445,870 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 1,106,933 |
Foreign Currencies | (768) |
Realized Net Gain (Loss) | 1,106,165 |
Change in Unrealized Appreciation (Depreciation) of Investment Securities2 | (2,986,458) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,434,423) |
1 | Dividends are net of foreign withholding taxes of $1,580,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $0, $0, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 445,870 | 808,227 | |
Realized Net Gain (Loss) | 1,106,165 | 3,426,528 | |
Change in Unrealized Appreciation (Depreciation) | (2,986,458) | 7,167,222 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,434,423) | 11,401,977 | |
Distributions | |||
Total Distributions | (1,748,801) | (2,973,671) | |
Capital Share Transactions | |||
Issued | 3,746,446 | 5,053,981 | |
Issued in Lieu of Cash Distributions | 1,548,289 | 2,627,602 | |
Redeemed | (3,233,292) | (7,022,848) | |
Net Increase (Decrease) from Capital Share Transactions | 2,061,443 | 658,735 | |
Total Increase (Decrease) | (1,121,781) | 9,087,041 | |
Net Assets | |||
Beginning of Period | 54,185,583 | 45,098,542 | |
End of Period | 53,063,802 | 54,185,583 |
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $37.85 | $31.82 | $30.63 | $26.03 | $27.85 | $23.72 |
Investment Operations | ||||||
Net Investment Income1 | .304 | .576 | .557 | .536 | .520 | .514 |
Net Realized and Unrealized Gain (Loss) on Investments | (1.276) | 7.593 | 1.572 | 5.499 | (.178) | 4.985 |
Total from Investment Operations | (.972) | 8.169 | 2.129 | 6.035 | .342 | 5.499 |
Distributions | ||||||
Dividends from Net Investment Income | (.256) | (.574) | (.539) | (.525) | (.526) | (.509) |
Distributions from Realized Capital Gains | (.952) | (1.565) | (.400) | (.910) | (1.636) | (.860) |
Total Distributions | (1.208) | (2.139) | (.939) | (1.435) | (2.162) | (1.369) |
Net Asset Value, End of Period | $35.67 | $37.85 | $31.82 | $30.63 | $26.03 | $27.85 |
Total Return2 | -2.63% | 25.66% | 7.03% | 23.33% | 1.63% | 23.65% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $53,064 | $54,186 | $45,099 | $43,024 | $32,856 | $34,706 |
Ratio of Total Expenses to Average Net Assets3 | 0.30%4 | 0.27% | 0.26% | 0.27% | 0.22% | 0.26% |
Ratio of Net Investment Income to Average Net Assets | 1.65% | 1.56% | 1.85% | 1.82% | 1.93% | 2.00% |
Portfolio Turnover Rate | 9% | 15% | 15% | 17% | 23% | 15% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 0.03%, (0.00%), (0.01%), 0.00%, (0.05%), and (0.01%). |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset and broker commission abatement arrangements was 0.30%. |
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. | Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments based on the fund’s performance relative to the NASDAQ US Dividend Achievers Select Index for periods prior to September 20, 2021, and to the current benchmark S&P U.S. Dividend Growers Index, beginning September 20, 2021, for the preceding three years. The benchmark change will be fully phased in by October 2024. For the six months ended July 31, 2022, the investment advisory fee represented an effective annual basic rate of 0.13% of the fund’s average net assets, before a net increase of $7,006,000 (0.03%) based on performance. |
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, and distribution 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 advisor 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 |
E. | Various inputs may be used to determine the value of the fund’s investments. 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 | 50,941,895 | 1,040,896 | — | 51,982,791 |
Temporary Cash Investments | 26 | 989,971 | — | 989,997 |
Total | 50,941,921 | 2,030,867 | — | 52,972,788 |
F. | As of July 31, 2022, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 30,945,943 |
Gross Unrealized Appreciation | 22,644,231 |
Gross Unrealized Depreciation | (617,386) |
Net Unrealized Appreciation (Depreciation) | 22,026,845 |
G. | During the six months ended July 31, 2022, the fund purchased $4,866,130,000 of investment securities and sold $4,788,245,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 103,990 | 137,831 | |
Issued in Lieu of Cash Distributions | 42,294 | 68,554 | |
Redeemed | (90,098) | (192,414) | |
Net Increase (Decrease) in Shares Outstanding | 56,186 | 13,971 |
I. | Management has determined that no events or transactions occurred subsequent to July 31, 2022, that would require recognition or disclosure in these financial statements. |
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/img0027c86d2.jpg)
All rights reserved.
Vanguard Marketing Corporation, Distributor.
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/img961bf0381.jpg)
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 19 |
Liquidity Risk Management | 21 |
• | 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 July 31, 2022 | |||
Beginning Account Value 1/31/2022 | Ending Account Value 7/31/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Dividend Appreciation Index Fund | |||
ETF Shares | $1,000.00 | $950.30 | $0.29 |
Admiral™ Shares | 1,000.00 | 950.30 | 0.39 |
Based on Hypothetical 5% Yearly Return | |||
Dividend Appreciation Index Fund | |||
ETF Shares | $1,000.00 | $1,024.50 | $0.30 |
Admiral Shares | 1,000.00 | 1,024.40 | 0.40 |
Communication Services | 1.9% |
Consumer Discretionary | 9.2 |
Consumer Staples | 13.3 |
Energy | 0.1 |
Financials | 14.5 |
Health Care | 15.7 |
Industrials | 13.1 |
Information Technology | 24.0 |
Materials | 4.7 |
Utilities | 3.5 |
Shares | Market Value• ($000) | ||
Common Stocks (99.6%) | |||
Communication Services (1.9%) | |||
Comcast Corp. Class A | 27,950,906 | 1,048,718 | |
Activision Blizzard Inc. | 4,848,121 | 387,607 | |
John Wiley & Sons Inc. Class A | 269,643 | 14,081 | |
1,450,406 | |||
Consumer Discretionary (9.1%) | |||
Home Depot Inc. | 6,478,397 | 1,949,609 | |
McDonald's Corp. | 4,587,462 | 1,208,200 | |
NIKE Inc. Class B | 7,880,662 | 905,646 | |
Lowe's Cos. Inc. | 4,215,159 | 807,329 | |
Starbucks Corp. | 7,296,741 | 618,618 | |
Target Corp. | 2,921,261 | 477,276 | |
Genuine Parts Co. | 879,369 | 134,429 | |
Tractor Supply Co. | 694,590 | 133,000 | |
Best Buy Co. Inc. | 1,285,183 | 98,946 | |
VF Corp. | 2,024,721 | 90,465 | |
Pool Corp. | 248,852 | 89,014 | |
Service Corp. International | 985,961 | 73,415 | |
Williams-Sonoma Inc. | 442,412 | 63,893 | |
Whirlpool Corp. | 359,324 | 62,116 | |
Lithia Motors Inc. Class A | 179,362 | 47,581 | |
Churchill Downs Inc. | 212,733 | 44,631 | |
Gentex Corp. | 1,453,705 | 41,024 | |
Polaris Inc. | 347,156 | 40,715 | |
Thor Industries Inc. | 339,908 | 28,664 | |
Monro Inc. | 207,220 | 10,392 | |
1 | Dillard's Inc. Class A | 24,561 | 5,584 |
Aaron's Co. Inc. | 194,332 | 2,530 | |
6,933,077 | |||
Consumer Staples (13.2%) | |||
Procter & Gamble Co. | 15,026,126 | 2,087,279 | |
Coca-Cola Co. | 24,204,563 | 1,553,207 | |
PepsiCo Inc. | 8,573,163 | 1,499,961 | |
Costco Wholesale Corp. | 2,739,717 | 1,483,009 | |
Walmart Inc. | 8,755,449 | 1,156,157 | |
Colgate-Palmolive Co. | 5,196,804 | 409,196 | |
Archer-Daniels-Midland Co. | 3,489,395 | 288,817 | |
Sysco Corp. | 3,193,265 | 271,108 | |
Hershey Co. | 905,252 | 206,361 | |
Tyson Foods Inc. Class A | 1,822,323 | 160,383 | |
Kroger Co. | 3,115,682 | 144,692 | |
McCormick & Co. Inc. | 1,551,084 | 135,487 |
Shares | Market Value• ($000) | ||
Church & Dwight Co. Inc. | 1,519,288 | 133,652 | |
Clorox Co. | 763,176 | 108,249 | |
J M Smucker Co. | 673,397 | 89,104 | |
Hormel Foods Corp. | 1,759,413 | 86,810 | |
Brown-Forman Corp. Class B | 1,132,498 | 84,054 | |
Casey's General Stores Inc. | 229,298 | 46,467 | |
Ingredion Inc. | 411,357 | 37,425 | |
Lancaster Colony Corp. | 123,162 | 16,304 | |
WD-40 Co. | 84,648 | 15,014 | |
Nu Skin Enterprises Inc. Class A | 313,041 | 13,621 | |
J & J Snack Foods Corp. | 92,349 | 12,514 | |
Andersons Inc. | 199,244 | 7,207 | |
SpartanNash Co. | 221,620 | 7,156 | |
Tootsie Roll Industries Inc. | 108,119 | 3,797 | |
10,057,031 | |||
Energy (0.1%) | |||
Texas Pacific Land Corp. | 38,461 | 70,532 | |
Financials (14.4%) | |||
JPMorgan Chase & Co. | 18,220,214 | 2,101,884 | |
S&P Global Inc. | 2,153,347 | 811,661 | |
Goldman Sachs Group Inc. | 2,130,918 | 710,427 | |
BlackRock Inc. | 885,136 | 592,315 | |
Marsh & McLennan Cos. Inc. | 3,112,843 | 510,382 | |
Chubb Ltd. | 2,628,987 | 495,932 | |
CME Group Inc. | 2,230,134 | 444,867 | |
PNC Financial Services Group Inc. | 2,581,097 | 428,307 | |
Truist Financial Corp. | 8,257,436 | 416,753 | |
Aon plc Class A (XNYS) | 1,351,226 | 393,261 | |
Moody's Corp. | 995,378 | 308,816 | |
Travelers Cos. Inc. | 1,517,976 | 240,903 | |
Arthur J Gallagher & Co. | 1,295,783 | 231,932 | |
Aflac Inc. | 3,728,440 | 213,640 | |
Bank of New York Mellon Corp. | 4,731,466 | 205,630 | |
Allstate Corp. | 1,742,224 | 203,788 | |
Ameriprise Financial Inc. | 687,472 | 185,562 | |
Discover Financial Services | 1,772,502 | 179,023 | |
T Rowe Price Group Inc. | 1,381,406 | 170,562 | |
State Street Corp. | 2,276,455 | 161,719 | |
Fifth Third Bancorp | 4,255,474 | 145,197 |
Shares | Market Value• ($000) | ||
Raymond James Financial Inc. | 1,196,397 | 117,809 | |
FactSet Research Systems Inc. | 234,322 | 100,683 | |
Brown & Brown Inc. | 1,451,312 | 94,480 | |
Cincinnati Financial Corp. | 925,495 | 90,088 | |
W R Berkley Corp. | 1,301,217 | 81,365 | |
Cboe Global Markets Inc. | 658,655 | 81,265 | |
MarketAxess Holdings Inc. | 234,303 | 63,445 | |
Assurant Inc. | 336,042 | 59,069 | |
Globe Life Inc. | 563,680 | 56,780 | |
American Financial Group Inc. | 412,359 | 55,124 | |
Lincoln National Corp. | 1,022,475 | 52,494 | |
Reinsurance Group of America Inc. | 419,304 | 48,547 | |
Commerce Bancshares Inc. | 685,684 | 47,648 | |
Cullen/Frost Bankers Inc. | 351,901 | 45,888 | |
Prosperity Bancshares Inc. | 572,307 | 42,402 | |
SouthState Corp. | 473,061 | 40,101 | |
Morningstar Inc. | 146,297 | 37,357 | |
RenaissanceRe Holdings Ltd. | 287,160 | 37,133 | |
SEI Investments Co. | 650,748 | 36,025 | |
First Financial Bankshares Inc. | 801,222 | 35,398 | |
Erie Indemnity Co. Class A | 154,240 | 31,366 | |
Primerica Inc. | 237,798 | 30,602 | |
Hanover Insurance Group Inc. | 219,929 | 30,014 | |
Bank OZK | 699,567 | 28,053 | |
Home BancShares Inc. | 1,181,039 | 27,873 | |
RLI Corp. | 246,038 | 27,059 | |
Evercore Inc. Class A | 253,187 | 25,311 | |
Independent Bank Corp. (XNGS) | 293,558 | 24,600 | |
Axis Capital Holdings Ltd. | 482,140 | 24,343 | |
UMB Financial Corp. | 265,568 | 24,034 | |
Assured Guaranty Ltd. | 397,193 | 23,192 | |
Community Bank System Inc. | 333,454 | 22,451 | |
Simmons First National Corp. Class A | 794,338 | 18,866 | |
American Equity Investment Life Holding Co. | 481,815 | 18,097 | |
BOK Financial Corp. | 186,390 | 16,408 | |
Atlantic Union Bankshares Corp. | 467,569 | 16,173 | |
First Merchants Corp. | 352,624 | 14,644 | |
International Bancshares Corp. | 329,218 | 14,440 | |
BancFirst Corp. | 116,459 | 12,507 | |
Towne Bank | 408,916 | 12,214 | |
Lakeland Financial Corp. | 155,786 | 12,120 | |
Sandy Spring Bancorp Inc. | 281,518 | 11,627 | |
Stock Yards Bancorp Inc. | 167,539 | 11,585 | |
Cohen & Steers Inc. | 155,586 | 11,465 | |
Westamerica BanCorp. | 166,428 | 9,987 | |
Horace Mann Educators Corp. | 256,833 | 8,797 |
Shares | Market Value• ($000) | ||
Southside Bancshares Inc. | 200,155 | 7,994 | |
Federal Agricultural Mortgage Corp. Class C | 57,033 | 6,290 | |
Lakeland Bancorp Inc. | 384,707 | 6,125 | |
Tompkins Financial Corp. | 73,445 | 5,666 | |
1st Source Corp. | 106,090 | 5,116 | |
Horizon Bancorp Inc. | 241,824 | 4,612 | |
First Financial Corp. | 69,686 | 3,256 | |
Bank of Marin Bancorp | 98,551 | 3,225 | |
Southern Missouri Bancorp Inc. | 46,689 | 2,518 | |
10,928,292 | |||
Health Care (15.7%) | |||
UnitedHealth Group Inc. | 5,819,952 | 3,156,393 | |
Johnson & Johnson | 16,323,551 | 2,848,786 | |
Abbott Laboratories | 10,861,522 | 1,182,168 | |
Bristol-Myers Squibb Co. | 13,449,313 | 992,290 | |
Medtronic plc | 8,330,341 | 770,723 | |
Elevance Health Inc. | 1,495,692 | 713,595 | |
Stryker Corp. | 2,087,349 | 448,258 | |
Becton Dickinson and Co. | 1,783,121 | 435,634 | |
Humana Inc. | 784,526 | 378,141 | |
McKesson Corp. | 918,991 | 313,909 | |
West Pharmaceutical Services Inc. | 459,225 | 157,771 | |
STERIS plc | 621,302 | 140,197 | |
AmerisourceBergen Corp. Class A | 928,532 | 135,501 | |
Quest Diagnostics Inc. | 751,027 | 102,568 | |
Chemed Corp. | 92,794 | 44,642 | |
Perrigo Co. plc | 836,205 | 35,012 | |
Ensign Group Inc. | 328,876 | 26,208 | |
Embecta Corp. | 362,638 | 10,672 | |
National HealthCare Corp. | 84,972 | 6,036 | |
LeMaitre Vascular Inc. | 118,833 | 5,983 | |
Atrion Corp. | 8,508 | 5,751 | |
11,910,238 | |||
Industrials (13.1%) | |||
Union Pacific Corp. | 3,932,509 | 893,859 | |
United Parcel Service Inc. Class B | 4,555,846 | 887,889 | |
Honeywell International Inc. | 4,239,895 | 816,010 | |
Caterpillar Inc. | 3,309,151 | 656,039 | |
Lockheed Martin Corp. | 1,488,052 | 615,771 | |
Northrop Grumman Corp. | 920,356 | 440,758 | |
CSX Corp. | 13,483,964 | 435,937 | |
Waste Management Inc. | 2,369,283 | 389,889 | |
Eaton Corp. plc | 2,474,589 | 367,204 | |
Illinois Tool Works Inc. | 1,759,302 | 365,513 | |
Emerson Electric Co. | 3,707,372 | 333,923 | |
General Dynamics Corp. | 1,437,212 | 325,773 | |
L3Harris Technologies Inc. | 1,196,333 | 287,084 | |
Cintas Corp. | 537,699 | 228,786 | |
Cummins Inc. | 878,606 | 194,444 | |
Rockwell Automation Inc. | 720,469 | 183,921 | |
Fastenal Co. | 3,568,162 | 183,261 | |
Republic Services Inc. Class A | 1,295,600 | 179,648 | |
WW Grainger Inc. | 266,575 | 144,892 |
Shares | Market Value• ($000) | ||
Dover Corp. | 895,273 | 119,680 | |
Expeditors International of Washington Inc. | 1,041,070 | 110,614 | |
Xylem Inc. | 1,116,165 | 102,721 | |
IDEX Corp. | 472,103 | 98,552 | |
JB Hunt Transport Services Inc. | 520,187 | 95,335 | |
Carlisle Cos. Inc. | 320,887 | 95,015 | |
Stanley Black & Decker Inc. | 937,238 | 91,221 | |
CH Robinson Worldwide Inc. | 790,245 | 87,480 | |
Nordson Corp. | 333,798 | 77,104 | |
Snap-on Inc. | 333,396 | 74,697 | |
Hubbell Inc. Class B | 332,406 | 72,804 | |
Graco Inc. | 1,050,156 | 70,528 | |
HEICO Corp. Class A | 463,781 | 59,216 | |
Allegion plc | 544,824 | 57,588 | |
Toro Co. | 657,439 | 56,533 | |
Regal Rexnord Corp. | 416,383 | 55,920 | |
Robert Half International Inc. | 697,300 | 55,184 | |
A O Smith Corp. | 818,776 | 51,804 | |
Lincoln Electric Holdings Inc. | 359,379 | 50,831 | |
Pentair plc | 1,022,079 | 49,969 | |
Lennox International Inc. | 205,373 | 49,193 | |
Donaldson Co. Inc. | 764,095 | 41,574 | |
HEICO Corp. | 262,848 | 41,454 | |
MDU Resources Group Inc. | 1,256,807 | 35,907 | |
MSA Safety Inc. | 227,265 | 29,167 | |
ManpowerGroup Inc. | 326,355 | 25,590 | |
Ryder System Inc. | 316,944 | 24,823 | |
Insperity Inc. | 221,195 | 24,274 | |
Applied Industrial Technologies Inc. | 238,146 | 23,955 | |
GATX Corp. | 219,591 | 22,014 | |
Franklin Electric Co. Inc. | 242,084 | 21,986 | |
Hillenbrand Inc. | 446,374 | 20,622 | |
ABM Industries Inc. | 415,496 | 18,631 | |
Brady Corp. Class A | 300,427 | 14,375 | |
McGrath RentCorp. | 152,002 | 12,823 | |
Trinity Industries Inc. | 433,176 | 11,241 | |
Lindsay Corp. | 67,422 | 10,380 | |
Griffon Corp. | 294,349 | 8,833 | |
Tennant Co. | 115,400 | 7,735 | |
Standex International Corp. | 75,904 | 7,369 | |
Apogee Enterprises Inc. | 139,032 | 5,785 | |
Matthews International Corp. Class A | 196,209 | 5,484 | |
Douglas Dynamics Inc. | 146,563 | 4,670 | |
Gorman-Rupp Co. | 141,008 | 4,329 | |
9,935,611 | |||
Information Technology (23.9%) | |||
Microsoft Corp. | 10,696,799 | 3,003,019 | |
Visa Inc. Class A | 9,878,962 | 2,095,427 | |
Mastercard Inc. Class A | 5,354,458 | 1,894,354 | |
Broadcom Inc. | 2,524,954 | 1,352,062 | |
Accenture plc Class A | 3,926,992 | 1,202,681 | |
Cisco Systems Inc. | 25,770,005 | 1,169,185 | |
Texas Instruments Inc. | 5,720,331 | 1,023,310 | |
QUALCOMM Inc. | 6,904,694 | 1,001,595 | |
Intuit Inc. | 1,754,023 | 800,133 | |
Oracle Corp. | 9,997,414 | 778,199 |
Shares | Market Value• ($000) | ||
Automatic Data Processing Inc. | 2,600,018 | 626,916 | |
Analog Devices Inc. | 3,320,438 | 570,982 | |
KLA Corp. | 931,286 | 357,185 | |
Roper Technologies Inc. | 656,896 | 286,847 | |
Amphenol Corp. Class A | 3,628,510 | 279,867 | |
TE Connectivity Ltd. | 2,002,783 | 267,832 | |
Paychex Inc. | 1,991,698 | 255,495 | |
Motorola Solutions Inc. | 1,037,667 | 247,577 | |
Microchip Technology Inc. | 3,441,060 | 236,951 | |
HP Inc. | 6,954,406 | 232,208 | |
Corning Inc. | 4,845,418 | 178,117 | |
Broadridge Financial Solutions Inc. | 726,687 | 116,670 | |
Jack Henry & Associates Inc. | 460,009 | 95,576 | |
Littelfuse Inc. | 153,878 | 42,912 | |
Badger Meter Inc. | 180,572 | 17,369 | |
Cass Information Systems Inc. | 71,799 | 2,618 | |
18,135,087 | |||
Materials (4.7%) | |||
Linde plc | 3,122,701 | 943,056 | |
Sherwin-Williams Co. | 1,484,406 | 359,137 | |
Air Products and Chemicals Inc. | 1,373,473 | 340,937 | |
Ecolab Inc. | 1,541,516 | 254,612 | |
Nucor Corp. | 1,733,440 | 235,401 | |
International Flavors & Fragrances Inc. | 1,580,252 | 196,030 | |
PPG Industries Inc. | 1,464,587 | 189,356 | |
Albemarle Corp. | 726,089 | 177,391 | |
Avery Dennison Corp. | 507,092 | 96,581 | |
Packaging Corp. of America | 581,842 | 81,813 | |
Eastman Chemical Co. | 832,709 | 79,882 | |
Celanese Corp. Class A | 678,287 | 79,706 | |
Reliance Steel & Aluminum Co. | 384,329 | 73,119 | |
RPM International Inc. | 803,520 | 72,638 | |
AptarGroup Inc. | 406,747 | 43,831 | |
Royal Gold Inc. | 407,181 | 42,660 | |
Sonoco Products Co. | 607,659 | 38,580 | |
Ashland Global Holdings Inc. | 336,176 | 33,776 | |
Balchem Corp. | 199,990 | 27,151 | |
Cabot Corp. | 349,359 | 25,943 | |
Avient Corp. | 563,391 | 24,310 | |
Silgan Holdings Inc. | 518,780 | 23,086 | |
Scotts Miracle-Gro Co. | 251,600 | 22,380 | |
Sensient Technologies Corp. | 259,730 | 22,332 | |
HB Fuller Co. | 325,973 | 20,927 | |
Westlake Corp. | 207,882 | 20,235 | |
Stepan Co. | 131,246 | 14,727 | |
Quaker Chemical Corp. | 82,890 | 13,446 | |
Worthington Industries Inc. | 200,184 | 10,251 | |
Hawkins Inc. | 114,806 | 4,564 | |
3,567,858 | |||
Utilities (3.5%) | |||
NextEra Energy Inc. | 12,186,635 | 1,029,649 | |
Xcel Energy Inc. | 3,376,628 | 247,102 | |
WEC Energy Group Inc. | 1,955,760 | 203,027 | |
Eversource Energy | 2,138,118 | 188,625 |
Shares | Market Value• ($000) | ||
American Water Works Co. Inc. | 1,127,277 | 175,224 | |
DTE Energy Co. | 1,200,718 | 156,454 | |
CMS Energy Corp. | 1,801,297 | 123,803 | |
Atmos Energy Corp. | 842,313 | 102,248 | |
Alliant Energy Corp. | 1,558,010 | 94,930 | |
Essential Utilities Inc. | 1,432,196 | 74,388 | |
National Fuel Gas Co. | 564,939 | 40,868 | |
IDACORP Inc. | 314,797 | 35,169 | |
ONE Gas Inc. | 337,100 | 28,633 | |
New Jersey Resources Corp. | 597,278 | 27,588 | |
California Water Service Group | 335,726 | 20,170 | |
American States Water Co. | 229,893 | 20,040 | |
MGE Energy Inc. | 223,164 | 18,161 | |
Chesapeake Utilities Corp. | 110,906 | 15,209 | |
SJW Group | 170,725 | 11,210 | |
Middlesex Water Co. | 108,095 | 10,281 | |
York Water Co. | 88,218 | 3,792 | |
2,626,571 | |||
Total Common Stocks (Cost $57,907,133) | 75,614,703 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (0.3%) | |||
Money Market Fund (0.3%) | |||
2,3 | Vanguard Market Liquidity Fund, 1.903% (Cost $198,451) | 1,985,269 | 198,447 |
Total Investments (99.9%) (Cost $58,105,584) | 75,813,150 | ||
Other Assets and Liabilities—Net (0.1%) | 103,791 | ||
Net Assets (100%) | 75,916,941 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $932,000. |
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 $959,000 was received for securities on loan. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | September 2022 | 765 | 158,106 | 10,877 |
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) |
Kroger Co. | 1/31/23 | GSI | 47,750 | (1.570) | — | (1,333) |
Visa Inc. Class A | 8/31/22 | BANA | 94,389 | (1.470) | — | (89) |
— | (1,422) |
1 | Based on 1M USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly. |
1M—1-month. | |
BANA—Bank of America, N.A. | |
GSI—Goldman Sachs International. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $57,907,133) | 75,614,703 |
Affiliated Issuers (Cost $198,451) | 198,447 |
Total Investments in Securities | 75,813,150 |
Investment in Vanguard | 2,731 |
Cash Collateral Pledged—Futures Contracts | 8,040 |
Cash Collateral Pledged—Over-the-Counter Swap Contracts | 2,060 |
Receivables for Investment Securities Sold | 9,768 |
Receivables for Accrued Income | 92,142 |
Receivables for Capital Shares Issued | 7,120 |
Variation Margin Receivable—Futures Contracts | 2,295 |
Total Assets | 75,937,306 |
Liabilities | |
Due to Custodian | 5,115 |
Payables for Investment Securities Purchased | 6,341 |
Collateral for Securities on Loan | 959 |
Payables for Capital Shares Redeemed | 4,488 |
Payables to Vanguard | 2,040 |
Unrealized Depreciation—Over-the-Counter Swap Contracts | 1,422 |
Total Liabilities | 20,365 |
Net Assets | 75,916,941 |
1 Includes $932 of securities on loan. | |
At July 31, 2022, net assets consisted of: | |
Paid-in Capital | 58,331,816 |
Total Distributable Earnings (Loss) | 17,585,125 |
Net Assets | 75,916,941 |
ETF Shares—Net Assets | |
Applicable to 416,611,760 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 63,819,075 |
Net Asset Value Per Share—ETF Shares | $153.19 |
Admiral Shares—Net Assets | |
Applicable to 291,012,273 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 12,097,866 |
Net Asset Value Per Share—Admiral Shares | $41.57 |
Six Months Ended July 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends | 750,407 |
Interest1 | 557 |
Securities Lending—Net | — |
Total Income | 750,964 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 886 |
Management and Administrative—ETF Shares | 16,331 |
Management and Administrative—Admiral Shares | 4,367 |
Marketing and Distribution—ETF Shares | 1,091 |
Marketing and Distribution—Admiral Shares | 221 |
Custodian Fees | 162 |
Shareholders’ Reports—ETF Shares | 546 |
Shareholders’ Reports—Admiral Shares | 69 |
Trustees’ Fees and Expenses | 20 |
Other Expenses | 5 |
Total Expenses | 23,698 |
Net Investment Income | 727,266 |
Realized Net Gain (Loss) | |
Investment Securities Sold1,2 | 1,789,278 |
Futures Contracts | (23,309) |
Swap Contracts | (1,598) |
Realized Net Gain (Loss) | 1,764,371 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | (6,425,781) |
Futures Contracts | 16,426 |
Swap Contracts | (1,424) |
Change in Unrealized Appreciation (Depreciation) | (6,410,779) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,919,142) |
1 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $548,000, ($30,000), and ($4,000), respectively. Purchases and sales are for temporary cash investment purposes. |
2 | Includes $2,143,724,000 of net gain (loss) resulting from in-kind redemptions. |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 727,266 | 1,283,185 | |
Realized Net Gain (Loss) | 1,764,371 | 7,696,290 | |
Change in Unrealized Appreciation (Depreciation) | (6,410,779) | 3,906,835 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,919,142) | 12,886,310 | |
Distributions | |||
ETF Shares | (578,771) | (1,043,492) | |
Admiral Shares | (108,695) | (206,613) | |
Total Distributions | (687,466) | (1,250,105) | |
Capital Share Transactions | |||
ETF Shares | 2,078,658 | 4,113,142 | |
Admiral Shares | (46,930) | 215,802 | |
Net Increase (Decrease) from Capital Share Transactions | 2,031,728 | 4,328,944 | |
Total Increase (Decrease) | (2,574,880) | 15,965,149 | |
Net Assets | |||
Beginning of Period | 78,491,821 | 62,526,672 | |
End of Period | 75,916,941 | 78,491,821 |
ETF Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $162.69 | $137.11 | $125.38 | $104.09 | $107.10 | $86.66 |
Investment Operations | ||||||
Net Investment Income1 | 1.482 | 2.736 | 2.299 | 2.214 | 2.084 | 1.951 |
Net Realized and Unrealized Gain (Loss) on Investments | (9.593) | 25.504 | 11.728 | 21.210 | (3.056) | 20.408 |
Total from Investment Operations | (8.111) | 28.240 | 14.027 | 23.424 | (.972) | 22.359 |
Distributions | ||||||
Dividends from Net Investment Income | (1.389) | (2.660) | (2.297) | (2.134) | (2.038) | (1.919) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (1.389) | (2.660) | (2.297) | (2.134) | (2.038) | (1.919) |
Net Asset Value, End of Period | $153.19 | $162.69 | $137.11 | $125.38 | $104.09 | $107.10 |
Total Return | -4.97% | 20.71% | 11.44% | 22.68% | -0.87% | 26.10% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $63,819 | $65,589 | $51,842 | $42,217 | $30,969 | $28,717 |
Ratio of Total Expenses to Average Net Assets | 0.06% | 0.06% | 0.06% | 0.06% | 0.06% | 0.08% |
Ratio of Net Investment Income to Average Net Assets | 1.93% | 1.74% | 1.84% | 1.90% | 2.01% | 2.06% |
Portfolio Turnover Rate2 | 11% | 26% | 25% | 14% | 16% | 14% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $44.15 | $37.21 | $34.03 | $28.25 | $29.07 | $23.52 |
Investment Operations | ||||||
Net Investment Income1 | .398 | .734 | .617 | .594 | .560 | .528 |
Net Realized and Unrealized Gain (Loss) on Investments | (2.605) | 6.920 | 3.179 | 5.757 | (.830) | 5.542 |
Total from Investment Operations | (2.207) | 7.654 | 3.796 | 6.351 | (.270) | 6.070 |
Distributions | ||||||
Dividends from Net Investment Income | (.373) | (.714) | (.616) | (.571) | (.550) | (.520) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (.373) | (.714) | (.616) | (.571) | (.550) | (.520) |
Net Asset Value, End of Period | $41.57 | $44.15 | $37.21 | $34.03 | $28.25 | $29.07 |
Total Return2 | -4.97% | 20.67% | 11.44% | 22.65% | -0.89% | 26.11% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $12,098 | $12,903 | $10,685 | $9,955 | $6,755 | $6,014 |
Ratio of Total Expenses to Average Net Assets | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% |
Ratio of Net Investment Income to Average Net Assets | 1.91% | 1.72% | 1.82% | 1.87% | 1.99% | 2.06% |
Portfolio Turnover Rate3 | 11% | 26% | 25% | 14% | 16% | 14% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
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. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution 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. |
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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 75,614,703 | — | — | 75,614,703 |
Temporary Cash Investments | 198,447 | — | — | 198,447 |
Total | 75,813,150 | — | — | 75,813,150 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 10,877 | — | — | 10,877 |
Liabilities | ||||
Swap Contracts | — | 1,422 | — | 1,422 |
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. |
D. | As of July 31, 2022, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 58,133,102 |
Gross Unrealized Appreciation | 19,687,635 |
Gross Unrealized Depreciation | (1,996,710) |
Net Unrealized Appreciation (Depreciation) | 17,690,925 |
E. | During the six months ended July 31, 2022, the fund purchased $14,316,029,000 of investment securities and sold $12,273,708,000 of investment securities, other than temporary cash investments. Purchases and sales include $5,775,086,000 and $3,922,035,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares. |
F. | Capital share transactions for each class of shares were: |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
ETF Shares | |||||
Issued | 6,003,404 | 38,666 | 22,417,718 | 148,569 | |
Issued in Lieu of Cash Distributions | — | — | — | — | |
Redeemed | (3,924,746) | (25,200) | (18,304,576) | (123,525) | |
Net Increase (Decrease)—ETF Shares | 2,078,658 | 13,466 | 4,113,142 | 25,044 | |
Admiral Shares | |||||
Issued | 779,928 | 18,583 | 1,970,820 | 46,680 | |
Issued in Lieu of Cash Distributions | 92,770 | 2,299 | 176,877 | 4,201 | |
Redeemed | (919,628) | (22,118) | (1,931,895) | (45,799) | |
Net Increase (Decrease)—Admiral Shares | (46,930) | (1,236) | 215,802 | 5,082 |
G. | Management has determined that no events or transactions occurred subsequent to July 31, 2022, that would require recognition or disclosure in these financial statements. |
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/imgdb2f3f052.jpg)
All rights reserved.
U.S. Patent Nos. 6,879,964.
Vanguard Marketing Corporation, Distributor.
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/g392181imga73e7fe01.jpg)
• | 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 July 31, 2022 | |||
Beginning Account Value 1/31/2022 | Ending Account Value 7/31/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Global ESG Select Stock Fund | |||
Investor Shares | $1,000.00 | $ 917.90 | $2.71 |
Admiral™ Shares | 1,000.00 | 918.50 | 2.24 |
Based on Hypothetical 5% Yearly Return | |||
Global ESG Select Stock Fund | |||
Investor Shares | $1,000.00 | $1,021.97 | $2.86 |
Admiral Shares | 1,000.00 | 1,022.46 | 2.36 |
United States | 46.3% |
United Kingdom | 9.2 |
Japan | 6.8 |
Netherlands | 6.8 |
France | 6.6 |
Spain | 5.8 |
Canada | 4.7 |
Switzerland | 3.2 |
Hong Kong | 3.1 |
Denmark | 2.6 |
Singapore | 2.6 |
Taiwan | 2.3 |
Shares | Market Value• ($000) | |||||
Common Stocks (97.1%) | ||||||
Canada (4.6%) | ||||||
Bank of Nova Scotia | 355,279 | 21,644 | ||||
BCE Inc. | 275,847 | 13,937 | ||||
35,581 | ||||||
Denmark (2.5%) | ||||||
Vestas Wind Systems A/S | 744,808 | 19,576 | ||||
France (6.4%) | ||||||
Cie Generale des Etablissements Michelin SCA | 696,291 | 19,486 | ||||
Schneider Electric SE | 120,063 | 16,605 | ||||
L'Oreal SA | 35,194 | 13,305 | ||||
49,396 | ||||||
Hong Kong (3.0%) | ||||||
AIA Group Ltd. | 2,323,000 | 23,338 | ||||
Japan (6.7%) | ||||||
Recruit Holdings Co. Ltd. | 814,400 | 30,436 | ||||
Mitsubishi UFJ Financial Group Inc. | 3,726,800 | 20,999 | ||||
51,435 | ||||||
Netherlands (6.6%) | ||||||
Koninklijke DSM NV | 128,274 | 20,543 | ||||
ING Groep NV | 1,909,926 | 18,553 | ||||
Wolters Kluwer NV | 109,509 | 11,893 | ||||
50,989 | ||||||
Singapore (2.5%) | ||||||
DBS Group Holdings Ltd. | 857,387 | 19,564 | ||||
Spain (5.6%) | ||||||
Industria de Diseno Textil SA | 1,081,232 | 26,260 | ||||
Iberdrola SA | 1,628,203 | 17,387 | ||||
43,647 | ||||||
Switzerland (3.2%) | ||||||
Novartis AG (Registered) | 283,851 | 24,391 | ||||
Taiwan (2.2%) | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,006,000 | 17,252 |
Shares | Market Value• ($000) | |||||
United Kingdom (8.9%) | ||||||
Compass Group plc | 869,432 | 20,376 | ||||
Diageo plc | 384,969 | 18,237 | ||||
National Grid plc | 1,122,582 | 15,458 | ||||
GSK plc | 699,895 | 14,705 | ||||
68,776 | ||||||
United States (44.9%) | ||||||
Microsoft Corp. | 146,989 | 41,266 | ||||
Starbucks Corp. | 354,863 | 30,085 | ||||
Texas Instruments Inc. | 135,082 | 24,165 | ||||
Home Depot Inc. | 79,252 | 23,850 | ||||
Merck & Co. Inc. | 260,890 | 23,308 | ||||
Visa Inc. Class A | 108,644 | 23,045 | ||||
Deere & Co. | 66,373 | 22,778 | ||||
Northern Trust Corp. | 216,108 | 21,563 | ||||
Cisco Systems Inc. | 457,323 | 20,749 | ||||
Prologis Inc. | 150,129 | 19,901 | ||||
Ecolab Inc. | 100,382 | 16,580 | ||||
Baxter International Inc. | 264,985 | 15,544 | ||||
Accenture plc Class A | 48,332 | 14,802 | ||||
Progressive Corp. | 126,915 | 14,603 | ||||
Automatic Data Processing Inc. | 54,145 | 13,055 | ||||
Colgate-Palmolive Co. | 163,895 | 12,905 | ||||
Trane Technologies plc | 64,598 | 9,495 | ||||
347,694 | ||||||
Total Common Stocks (Cost $716,086) | 751,639 |
Shares | Market Value• ($000) | |||||
Temporary Cash Investments (2.9%) | ||||||
Money Market Fund (2.9%) | ||||||
1 | Vanguard Market Liquidity Fund, 1.903% (Cost $22,072) | 220,804 | 22,072 | |||
Total Investments (100.0%) (Cost $738,158) | 773,711 | |||||
Other Assets and Liabilities—Net (0.0%) | 195 | |||||
Net Assets (100%) | 773,906 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $716,086) | 751,639 |
Affiliated Issuers (Cost $22,072) | 22,072 |
Total Investments in Securities | 773,711 |
Investment in Vanguard | 26 |
Cash | 347 |
Receivables for Investment Securities Sold | 1,491 |
Receivables for Accrued Income | 1,168 |
Receivables for Capital Shares Issued | 562 |
Total Assets | 777,305 |
Liabilities | |
Due to Custodian | 1,490 |
Payables for Investment Securities Purchased | 30 |
Payables for Capital Shares Redeemed | 1,355 |
Payables to Investment Advisor | 443 |
Payables to Vanguard | 81 |
Total Liabilities | 3,399 |
Net Assets | 773,906 |
At July 31, 2022, net assets consisted of: | |
Paid-in Capital | 731,213 |
Total Distributable Earnings (Loss) | 42,693 |
Net Assets | 773,906 |
Investor Shares—Net Assets | |
Applicable to 5,645,414 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 159,714 |
Net Asset Value Per Share—Investor Shares | $28.29 |
Admiral Shares—Net Assets | |
Applicable to 17,354,073 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 614,192 |
Net Asset Value Per Share—Admiral Shares | $35.39 |
Six Months Ended July 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends 1 | 9,846 |
Interest 2 | 70 |
Total Income | 9,916 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 828 |
Performance Adjustment | 75 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 232 |
Management and Administrative—Admiral Shares | 604 |
Marketing and Distribution—Investor Shares | 8 |
Marketing and Distribution—Admiral Shares | 14 |
Custodian Fees | 16 |
Shareholders’ Reports—Investor Shares | 12 |
Shareholders’ Reports—Admiral Shares | 5 |
Trustees’ Fees and Expenses | — |
Other Expenses | 10 |
Total Expenses | 1,804 |
Net Investment Income | 8,112 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 647 |
Foreign Currencies | (69) |
Realized Net Gain (Loss) | 578 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | (70,534) |
Foreign Currencies | (21) |
Change in Unrealized Appreciation (Depreciation) | (70,555) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (61,865) |
1 | Dividends are net of foreign withholding taxes of $877,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $70,000, ($8,000), and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 8,112 | 9,979 | |
Realized Net Gain (Loss) | 578 | 9,849 | |
Change in Unrealized Appreciation (Depreciation) | (70,555) | 70,974 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (61,865) | 90,802 | |
Distributions | |||
Investor Shares | (819) | (4,101) | |
Admiral Shares | (3,050) | (14,372) | |
Total Distributions | (3,869) | (18,473) | |
Capital Share Transactions | |||
Investor Shares | 5,671 | 65,231 | |
Admiral Shares | 58,796 | 304,765 | |
Net Increase (Decrease) from Capital Share Transactions | 64,467 | 369,996 | |
Total Increase (Decrease) | (1,267) | 442,325 | |
Net Assets | |||
Beginning of Period | 775,173 | 332,848 | |
End of Period | 773,906 | 775,173 |
Investor Shares | ||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | May 21, 20191 to January 31, 2020 | |
2022 | 2021 | |||
Net Asset Value, Beginning of Period | $30.97 | $26.32 | $22.34 | $20.00 |
Investment Operations | ||||
Net Investment Income2 | .305 | .487 | .378 | .258 |
Net Realized and Unrealized Gain (Loss) on Investments | (2.839) | 5.004 | 3.866 | 2.257 |
Total from Investment Operations | (2.534) | 5.491 | 4.244 | 2.515 |
Distributions | ||||
Dividends from Net Investment Income | (.027) | (.386) | (.229) | (.167) |
Distributions from Realized Capital Gains | (.119) | (.455) | (.035) | (.008) |
Total Distributions | (.146) | (.841) | (.264) | (.175) |
Net Asset Value, End of Period | $28.29 | $30.97 | $26.32 | $22.34 |
Total Return3 | -8.21% | 20.86% | 19.06% | 12.57% |
Ratios/Supplemental Data | ||||
Net Assets, End of Period (Millions) | $160 | $169 | $86 | $34 |
Ratio of Total Expenses to Average Net Assets | 0.57% 4 | 0.56% 4 | 0.55% 4 | 0.58% 5,6 |
Ratio of Net Investment Income to Average Net Assets | 2.10% | 1.61% | 1.62% | 1.81% 5 |
Portfolio Turnover Rate | 18% | 19% | 21% | 15% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | The subscription period for the fund was May 21, 2019, to June 4, 2019, during which time all assets were held in cash. Performance measurement began June 5, 2019, the first business day after the subscription period, at a net asset value of $20.00. |
2 | Calculated based on average shares outstanding. |
3 | 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. |
4 | Includes performance-based investment advisory fee increases (decreases) of 0.02%, 0.01%, and 0.00%. |
5 | Annualized. |
6 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.55%. |
Admiral Shares | ||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2022 | Year Ended January 31, | May 21, 20191 to January 31, 2020 | |
2022 | 2021 | |||
Net Asset Value, Beginning of Period | $38.73 | $32.91 | $27.93 | $25.00 |
Investment Operations | ||||
Net Investment Income2 | .395 | .649 | .504 | .338 |
Net Realized and Unrealized Gain (Loss) on Investments | (3.544) | 6.258 | 4.830 | 2.823 |
Total from Investment Operations | (3.149) | 6.907 | 5.334 | 3.161 |
Distributions | ||||
Dividends from Net Investment Income | (.043) | (.517) | (.310) | (.221) |
Distributions from Realized Capital Gains | (.148) | (.570) | (.044) | (.010) |
Total Distributions | (.191) | (1.087) | (.354) | (.231) |
Net Asset Value, End of Period | $35.39 | $38.73 | $32.91 | $27.93 |
Total Return3 | -8.15% | 20.99% | 19.17% | 12.64% |
Ratios/Supplemental Data | ||||
Net Assets, End of Period (Millions) | $614 | $606 | $247 | $74 |
Ratio of Total Expenses to Average Net Assets | 0.47% 4 | 0.46% 4 | 0.45% 4 | 0.48% 5,6 |
Ratio of Net Investment Income to Average Net Assets | 2.18% | 1.71% | 1.71% | 1.89% 5 |
Portfolio Turnover Rate | 18% | 19% | 21% | 15% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | The subscription period for the fund was May 21, 2019, to June 4, 2019, during which time all assets were held in cash. Performance measurement began June 5, 2019, the first business day after the subscription period, at a net asset value of $25.00. |
2 | Calculated based on average shares outstanding. |
3 | 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. |
4 | Includes performance-based investment advisory fee increases (decreases) of 0.02%, 0.01%, and 0.00%. |
5 | Annualized. |
6 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.45%. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 383,275 | — | — | 383,275 |
Common Stocks—Other | — | 368,364 | — | 368,364 |
Temporary Cash Investments | 22,072 | — | — | 22,072 |
Total | 405,347 | 368,364 | — | 773,711 |
Amount ($000) | |
Tax Cost | 739,803 |
Gross Unrealized Appreciation | 81,467 |
Gross Unrealized Depreciation | (47,559) |
Net Unrealized Appreciation (Depreciation) | 33,908 |
Six Months Ended July 31, 2022 | Year Ended January 31, 2022 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 27,394 | 952 | 125,865 | 4,203 | |
Issued in Lieu of Cash Distributions | 713 | 24 | 3,550 | 113 | |
Redeemed | (22,436) | (797) | (64,184) | (2,117) | |
Net Increase (Decrease)—Investor Shares | 5,671 | 179 | 65,231 | 2,199 | |
Admiral Shares | |||||
Issued | 126,583 | 3,610 | 414,883 | 11,050 | |
Issued in Lieu of Cash Distributions | 2,520 | 68 | 11,765 | 301 | |
Redeemed | (70,307) | (1,970) | (121,883) | (3,207) | |
Net Increase (Decrease)—Admiral Shares | 58,796 | 1,708 | 304,765 | 8,144 |
![](https://capedge.com/proxy/N-CSRS/0001104659-22-104035/g392181img4d0d58c52.jpg)
Who Are Deaf or Hard of Hearing > 800-749-7273
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
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) | Not applicable. |
(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 SPECIALIZED FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: September 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 SPECIALIZED FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: September 19, 2022
VANGUARD SPECIALIZED FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: September 19, 2022
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on November 29, 2021 (see File Number 33-64845), a Power of Attorney filed on October 12, 2021 (see File Number 33-23444), and a Power of Attorney filed on August 26, 2021 (see file Number 811-02652), Incorporated by Reference.