Vanguard® Health Care Fund
Schedule of Investments (unaudited)
As of October 31, 2023
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
Shares | Market Value ($000) | ||
Common Stocks (98.2%) | |||
Belgium (3.2%) | |||
1 | UCB SA | 10,647,286 | 778,743 |
* | Argenx SE | 1,170,371 | 550,521 |
* | Galapagos NV | 1,175,458 | 39,109 |
1,368,373 | |||
Brazil (0.0%) | |||
*,2 | Hapvida Participacoes e Investimentos SA | 8,909,471 | 6,521 |
China (1.2%) | |||
2 | WuXi AppTec Co. Ltd. Class H | 11,971,416 | 143,855 |
* | Legend Biotech Corp. ADR | 1,511,284 | 99,850 |
*,2 | Wuxi Biologics Cayman Inc. | 10,465,200 | 65,070 |
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 69,910,000 | 64,890 | |
*,3 | Zai Lab Ltd. ADR | 1,995,154 | 50,278 |
* | Zai Lab Ltd. | 16,916,600 | 43,172 |
*,2 | Remegen Co. Ltd. Class H | 4,397,500 | 25,044 |
492,159 | |||
Denmark (2.7%) | |||
* | Genmab A/S | 2,088,852 | 590,483 |
Novo Nordisk A/S Class B | 3,386,878 | 326,753 | |
* | Ascendis Pharma A/S ADR | 1,893,751 | 169,131 |
*,3 | Genmab A/S ADR | 2,285,855 | 64,918 |
1,151,285 | |||
Italy (0.1%) | |||
DiaSorin SpA | 552,359 | 49,504 | |
Japan (8.1%) | |||
Daiichi Sankyo Co. Ltd. | 43,976,590 | 1,133,901 | |
1 | Eisai Co. Ltd. | 19,123,817 | 1,013,148 |
Chugai Pharmaceutical Co. Ltd. | 28,320,400 | 839,886 | |
Otsuka Holdings Co. Ltd. | 7,660,100 | 257,731 | |
Terumo Corp. | 6,976,400 | 190,862 | |
Asahi Intecc Co. Ltd. | 2,023,500 | 34,000 | |
3,469,528 | |||
Switzerland (5.8%) | |||
Novartis AG (Registered) | 21,909,275 | 2,051,137 | |
Alcon Inc. | 3,393,208 | 242,873 | |
* | Sandoz Group AG | 4,472,143 | 116,271 |
Tecan Group AG (Registered) | 236,453 | 68,051 | |
2,478,332 | |||
United Kingdom (6.6%) | |||
AstraZeneca plc | 19,618,370 | 2,456,292 | |
GSK plc | 11,995,095 | 213,834 |
Shares | Market Value ($000) | ||
* | Immunocore Holdings plc ADR | 2,085,568 | 92,599 |
Genus plc | 1,791,160 | 46,593 | |
* | Verona Pharma plc ADR | 1,160,032 | 16,183 |
2,825,501 | |||
United States (70.5%) | |||
Eli Lilly & Co. | 6,162,883 | 3,413,806 | |
UnitedHealth Group Inc. | 6,201,994 | 3,321,540 | |
Merck & Co. Inc. | 20,479,587 | 2,103,254 | |
Pfizer Inc. | 58,865,924 | 1,798,943 | |
Humana Inc. | 2,265,222 | 1,186,274 | |
Elevance Health Inc. | 2,560,815 | 1,152,597 | |
Abbott Laboratories | 11,672,803 | 1,103,664 | |
* | Biogen Inc. | 4,558,453 | 1,082,815 |
Danaher Corp. | 5,113,563 | 981,906 | |
* | Boston Scientific Corp. | 18,544,793 | 949,308 |
Thermo Fisher Scientific Inc. | 2,108,134 | 937,635 | |
* | Alnylam Pharmaceuticals Inc. | 5,524,903 | 838,680 |
Stryker Corp. | 3,019,829 | 816,018 | |
* | Vertex Pharmaceuticals Inc. | 2,140,609 | 775,136 |
* | Regeneron Pharmaceuticals Inc. | 943,378 | 735,731 |
Zoetis Inc. | 4,469,317 | 701,683 | |
HCA Healthcare Inc. | 2,796,119 | 632,314 | |
* | Centene Corp. | 8,903,692 | 614,177 |
* | Edwards Lifesciences Corp. | 9,386,095 | 598,082 |
* | Moderna Inc. | 6,006,382 | 456,245 |
*,1 | Apellis Pharmaceuticals Inc. | 8,783,055 | 427,383 |
Agilent Technologies Inc. | 3,576,445 | 369,697 | |
* | agilon health Inc. | 19,042,628 | 342,767 |
* | IQVIA Holdings Inc. | 1,797,052 | 324,961 |
Laboratory Corp. of America Holdings | 1,485,818 | 296,762 | |
* | Molina Healthcare Inc. | 729,664 | 242,942 |
Teleflex Inc. | 1,217,493 | 224,932 | |
* | Acadia Healthcare Co. Inc. | 3,047,446 | 224,018 |
* | Waters Corp. | 811,122 | 193,477 |
* | Insulet Corp. | 1,457,112 | 193,169 |
* | Illumina Inc. | 1,744,376 | 190,870 |
* | United Therapeutics Corp. | 842,593 | 187,780 |
* | Alkermes plc | 7,675,410 | 185,668 |
* | Blueprint Medicines Corp. | 2,857,677 | 168,203 |
* | Exact Sciences Corp. | 2,624,777 | 161,660 |
* | Sarepta Therapeutics Inc. | 2,283,656 | 153,713 |
* | Karuna Therapeutics Inc. | 900,108 | 149,967 |
* | Align Technology Inc. | 714,731 | 131,932 |
*,1 | REVOLUTION Medicines Inc. | 6,449,517 | 127,700 |
* | Cytokinetics Inc. | 3,334,530 | 116,242 |
* | Vaxcyte Inc. | 2,365,953 | 113,802 |
* | Denali Therapeutics Inc. | 5,100,454 | 96,042 |
* | ImmunoGen Inc. | 6,287,201 | 93,428 |
Encompass Health Corp. | 1,448,032 | 90,589 | |
* | Shockwave Medical Inc. | 425,258 | 87,714 |
* | Roivant Sciences Ltd. | 9,572,139 | 82,703 |
* | Evolent Health Inc. Class A | 3,351,619 | 81,880 |
*,1 | Sage Therapeutics Inc. | 4,304,671 | 80,626 |
* | Rocket Pharmaceuticals Inc. | 4,092,055 | 74,066 |
* | Ionis Pharmaceuticals Inc. | 1,646,123 | 72,874 |
* | Amicus Therapeutics Inc. | 6,120,321 | 67,140 |
* | Prothena Corp. plc | 1,782,583 | 64,993 |
* | Option Care Health Inc. | 2,086,842 | 57,868 |
Shares | Market Value ($000) | ||
* | Celldex Therapeutics Inc. | 2,219,651 | 52,206 |
* | PTC Therapeutics Inc. | 2,749,139 | 51,546 |
* | Surgery Partners Inc. | 2,158,143 | 49,918 |
* | Agios Pharmaceuticals Inc. | 2,179,303 | 45,787 |
* | Syndax Pharmaceuticals Inc. | 3,092,082 | 43,536 |
* | Privia Health Group Inc. | 2,035,900 | 42,795 |
* | Xenon Pharmaceuticals Inc. | 1,281,157 | 39,716 |
* | Intellia Therapeutics Inc. | 1,534,651 | 38,443 |
* | Morphic Holding Inc. | 1,237,989 | 24,698 |
* | TG Therapeutics Inc. | 3,066,304 | 23,703 |
*,3 | RayzeBio Inc. | 1,198,440 | 23,250 |
* | Kymera Therapeutics Inc. | 1,442,019 | 16,828 |
*,3 | MoonLake Immunotherapeutics | 213,700 | 11,072 |
30,140,874 | |||
Total Common Stocks (Cost $28,168,959) | 41,982,077 | ||
Temporary Cash Investments (1.8%) | |||
Money Market Fund (0.1%) | |||
4,5 | Vanguard Market Liquidity Fund, 5.420% | 224,870 | 22,485 |
Face Amount ($000) | |||
Repurchase Agreements (1.7%) | |||
Bank of America Securities, LLC, 5.300%, 11/1/23 (Dated 10/31/23, Repurchase Value $23,804,000, collateralized by U.S. Treasury Note/Bond 4.500%, 7/15/26, with a value of $24,276,000) | 23,800 | 23,800 | |
Bank of Nova Scotia, 5.280%, 11/1/23 (Dated 10/31/23, Repurchase Value $96,214,000, collateralized by U.S. Treasury Bill 0.000%, 1/2/24–6/13/24, and U.S. Treasury Note/Bond 4.125%, 7/31/28, with a value of $98,138,000) | 96,200 | 96,200 | |
Barclays Capital Inc., 5.300%, 11/1/23 (Dated 10/31/23, Repurchase Value $67,010,000, collateralized by U.S. Treasury Note/Bond 2.625%, 7/31/29, with a value of $68,340,000) | 67,000 | 67,000 | |
BNP Paribas Securities Corp., 5.280%, 11/1/23 (Dated 10/31/23, Repurchase Value $73,511,000, collateralized by U.S Treasury Bill 0.000%, 1/2/24, U.S. Treasury Inflation Indexed Note/Bond 5.419%, 7/31/24, and U.S. Treasury Note/Bond 0.500%–4.625%, 11/15/24–8/15/50, with a value of $74,970,000) | 73,500 | 73,500 | |
BNP Paribas Securities Corp., 5.300%, 11/1/23 (Dated 10/31/23, Repurchase Value $72,911,000, collateralized by Fannie Mae 1.820%–6.859%, 12/1/30–10/1/53, Freddie Mac 2.000%–7.043%, 5/1/32–12/1/52, Ginnie Mae 2.500%–7.000%, 2/15/31–9/20/63, U.S. Treasury Bill 0.000%, 8/8/24–9/5/24, and U.S. Treasury Note/Bond 0.500%–4.125%, 4/30/26–10/31/27, with a value of $74,358,000) | 72,900 | 72,900 | |
Credit Agricole Securities, 5.280%, 11/1/23 (Dated 10/31/23, Repurchase Value $87,713,000, collateralized by U.S. Treasury Inflation Indexed Note/Bond 0.125%, 10/15/26, with a value of $89,454,000) | 87,700 | 87,700 | |
HSBC Bank USA, 5.280%, 11/1/23 (Dated 10/31/23, Repurchase Value $49,007,000, collateralized by U.S. Treasury Bill 0.000%, 2/13/24–2/22/24, with a value of $49,980,000) | 49,000 | 49,000 |
Face Amount ($000) | Market Value ($000) | ||
HSBC Bank USA, 5.300%, 11/1/23 (Dated 10/31/23, Repurchase Value $59,709,000, collateralized by Fannie Mae 1.500%–6.500%, 9/1/29–5/1/58, Freddie Mac 2.000%–6.000%, 8/1/34–3/1/53, U.S. Treasury Bill 0.000%, 5/16/24, U.S. Treasury Inflation Indexed Note/Bond 2.375%–5.522%, 10/31/24–1/15/25, and U.S. Treasury Note/Bond 0.250%–2.500%, 11/15/23–12/31/24, with a value of $60,894,000) | 59,700 | 59,700 | |
JP Morgan Securities LLC, 5.290%, 11/1/23 (Dated 10/31/23, Repurchase Value $63,009,000, collateralized by U.S. Treasury Bill 0.000%, 12/19/23–3/21/24, and U.S. Treasury Note/Bond 0.125%–4.500%, 11/15/23–2/15/47, with a value of $64,260,000) | 63,000 | 63,000 | |
Natixis SA, 5.280%, 11/1/23 (Dated 10/31/23, Repurchase Value $48,507,000, collateralized by Federal Home Loan Bank 2.840%, 1/27/42, U.S. Treasury Inflation Indexed Note/Bond 0.125%–1.625%, 10/15/27–2/15/53, and U.S. Treasury Note/Bond 0.750%–4.500%, 7/31/24–5/15/46, with a value of $49,470,000) | 48,500 | 48,500 | |
Nomura International plc, 5.280%, 11/1/23 (Dated 10/31/23, Repurchase Value $57,708,000, collateralized by U.S. Treasury Inflation Indexed Note/Bond 0.125%–1.125%, 1/15/32–1/15/33, and U.S. Treasury Note/Bond 0.250%–4.000%, 12/15/24–4/30/30, with a value of $58,933,000) | 57,700 | 57,700 | |
RBC Capital Markets LLC, 5.290%, 11/1/23 (Dated 10/31/23, Repurchase Value $49,507,000, collateralized by U.S. Treasury Note/Bond 3.125%–3.625%, 8/31/27–3/31/28, with a value of $50,490,000) | 49,500 | 49,500 | |
748,500 | |||
Total Temporary Cash Investments (Cost $770,983) | 770,985 | ||
Total Investments (100.0%) (Cost $28,939,942) | 42,753,062 | ||
Other Assets and Liabilities—Net (0.0%) | 14,092 | ||
Net Assets (100%) | 42,767,154 | ||
Cost is in $000. |
* | Non-income-producing security. |
1 | Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. |
2 | 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 October 31, 2023, the aggregate value was $240,490,000, representing 0.6% of net assets. |
3 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $22,152,000. |
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 $22,393,000 was received for securities on loan. |
ADR—American Depositary Receipt. |
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or
published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Other temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.
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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments as of October 31, 2023, based on the inputs used to value them:
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 30,147,395 | — | — | 30,147,395 |
Common Stocks—Other | 492,959 | 11,341,723 | — | 11,834,682 |
Temporary Cash Investments | 22,485 | 748,500 | — | 770,985 |
Total | 30,662,839 | 12,090,223 | — | 42,753,062 |
E. Certain of the fund’s investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company or the issuer is another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows:
Current Period Transactions | ||||||||
Jan. 31, 2023 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Oct. 31, 2023 Market Value ($000) | |
2seventy bio Inc. | 27,835 | — | 8,155 | (166,975) | 147,295 | — | — | — |
Agios Pharmaceuticals Inc. | 151,775 | — | 68,756 | (135,374) | 98,142 | — | — | NA1 |
Apellis Pharmaceuticals Inc. | NA2 | 244,635 | 23,539 | 6,741 | 29,603 | — | — | 427,383 |
Eisai Co. Ltd. | 1,152,216 | 47,189 | 23,329 | 310 | (163,238) | 10,564 | — | 1,013,148 |
Ironwood Pharmaceuticals Inc. Class A | 125,592 | — | 113,327 | (6,333) | (5,932) | — | — | — |
REVOLUTION Medicines Inc. | NA2 | 81,752 | — | — | (34,034) | — | — | 127,700 |
Sage Therapeutics Inc. | NA2 | 95,967 | — | — | (77,704) | — | — | 80,626 |
UCB SA | 896,839 | — | 21,218 | (4,083) | (92,795) | 11,227 | — | 778,743 |
Vanguard Market Liquidity Fund | 669 | NA3 | NA3 | (2) | 1 | — | — | 22,485 |
Total | 2,354,926 | 469,543 | 258,324 | (305,716) | (98,662) | 21,791 | — | 2,450,085 |
1 | Not applicable—at October 31, 2023, the security was still held, but the issuer was no longer an affiliated company of the fund. |
2 | Not applicable—at January 31, 2023, the issuer was not an affiliated company of the fund. |
3 | Not applicable—purchases and sales are for temporary cash investment purposes. |