Vanguard Equity Income Fund | ||
Schedule of Investments(unaudited) | ||
As of December 31, 2019 | ||
Market | ||
Value | ||
Shares | ($000) | |
Common Stocks (97.6%)1 | ||
Communication Services (6.2%) | ||
Verizon Communications Inc. | 17,684,003 | 1,085,798 |
Comcast Corp. Class A | 16,982,513 | 763,704 |
AT&T Inc. | 7,642,874 | 298,684 |
BCE Inc. | 2,705,282 | 125,332 |
CenturyLink Inc. | 4,931,573 | 65,146 |
TEGNA Inc. | 2,702,597 | 45,106 |
Omnicom Group Inc. | 552,289 | 44,746 |
Sinclair Broadcast Group Inc. Class A | 615,927 | 20,535 |
2,449,051 | ||
Consumer Discretionary (4.0%) | ||
Home Depot Inc. | 1,853,760 | 404,824 |
McDonald's Corp. | 1,090,720 | 215,537 |
Lowe's Cos. Inc. | 1,518,139 | 181,812 |
Target Corp. | 1,201,921 | 154,098 |
Cie Generale des Etablissements Michelin SCA | 937,856 | 115,412 |
General Motors Co. | 2,762,184 | 101,096 |
Whirlpool Corp. | 534,998 | 78,928 |
Carnival Corp. | 1,158,578 | 58,891 |
Brinker International Inc. | 1,391,280 | 58,434 |
Hanesbrands Inc. | 2,598,828 | 38,593 |
Best Buy Co. Inc. | 404,302 | 35,498 |
Las Vegas Sands Corp. | 473,700 | 32,704 |
Darden Restaurants Inc. | 273,378 | 29,801 |
Autoliv Inc. | 273,093 | 23,052 |
H&R Block Inc. | 670,103 | 15,734 |
Newell Brands Inc. | 609,513 | 11,715 |
1,556,129 | ||
Consumer Staples (12.3%) | ||
Procter & Gamble Co. | 5,730,524 | 715,742 |
Coca-Cola Co. | 12,756,553 | 706,075 |
Philip Morris International Inc. | 7,430,866 | 632,292 |
PepsiCo Inc. | 3,321,741 | 453,982 |
Unilever NV | 6,740,123 | 387,288 |
Walmart Inc. | 2,840,694 | 337,588 |
Sysco Corp. | 3,450,220 | 295,132 |
Archer-Daniels-Midland Co. | 5,949,814 | 275,774 |
Mondelez International Inc. Class A | 4,788,488 | 263,750 |
Nestle SA | 1,923,021 | 208,196 |
Kraft Heinz Co. | 2,821,772 | 90,664 |
Kimberly-Clark Corp. | 599,326 | 82,437 |
Coca-Cola European Partners plc | 1,539,871 | 78,349 |
Coty Inc. Class A | 4,936,930 | 55,540 |
Bunge Ltd. | 918,827 | 52,879 |
Molson Coors Brewing Co. Class B | 926,236 | 49,924 |
Altria Group Inc. | 829,026 | 41,377 |
Campbell Soup Co. | 783,669 | 38,729 |
Hershey Co. | 181,150 | 26,625 |
Flowers Foods Inc. | 612,757 | 13,321 |
Kellogg Co. | 123,318 | 8,529 |
Colgate-Palmolive Co. | 95,528 | 6,576 |
JM Smucker Co. | 61,515 | 6,406 |
General Mills Inc. | 113,182 | 6,062 |
4,833,237 | ||
Energy (7.9%) | ||
Chevron Corp. | 6,767,694 | 815,575 |
Exxon Mobil Corp. | 10,203,997 | 712,035 |
Suncor Energy Inc. | 14,488,442 | 475,221 |
^ TC Energy Corp. (XTSE) | 5,910,312 | 314,780 |
Kinder Morgan Inc. | 13,064,223 | 276,570 |
Phillips 66 | 2,067,627 | 230,354 |
ConocoPhillips | 1,086,643 | 70,664 |
Murphy Oil Corp. | 2,223,719 | 59,596 |
Valero Energy Corp. | 576,422 | 53,982 |
Delek US Holdings Inc. | 687,596 | 23,055 |
CVR Energy Inc. | 411,016 | 16,617 |
Schlumberger Ltd. | 241,194 | 9,696 |
ONEOK Inc. | 114,249 | 8,645 |
Helmerich & Payne Inc. | 167,922 | 7,629 |
Archrock Inc. | 648,621 | 6,512 |
3,080,931 | ||
Financials (18.7%) | ||
JPMorgan Chase & Co. | 11,277,350 | 1,572,063 |
Bank of America Corp. | 24,585,253 | 865,893 |
MetLife Inc. | 9,962,953 | 507,812 |
Progressive Corp. | 5,809,762 | 420,569 |
Truist Financial Corp. | 6,734,171 | 379,268 |
PNC Financial Services Group Inc. | 2,374,131 | 378,983 |
Wells Fargo & Co. | 5,483,021 | 294,987 |
Citigroup Inc. | 3,670,859 | 293,265 |
Chubb Ltd. | 1,598,958 | 248,894 |
Marsh & McLennan Cos. Inc. | 2,073,537 | 231,013 |
M&T Bank Corp. | 1,242,258 | 210,873 |
US Bancorp | 2,979,262 | 176,640 |
American International Group Inc. | 3,290,623 | 168,908 |
BlackRock Inc. | 327,353 | 164,560 |
Travelers Cos. Inc. | 1,165,380 | 159,599 |
Principal Financial Group Inc. | 2,027,688 | 111,523 |
Fifth Third Bancorp | 3,243,506 | 99,705 |
Synchrony Financial | 2,713,619 | 97,717 |
Prudential Financial Inc. | 1,037,403 | 97,246 |
Regions Financial Corp. | 5,571,160 | 95,601 |
Ameriprise Financial Inc. | 571,815 | 95,253 |
Citizens Financial Group Inc. | 2,233,025 | 90,683 |
LPL Financial Holdings Inc. | 857,464 | 79,101 |
AXA Equitable Holdings Inc. | 3,183,146 | 78,878 |
Aflac Inc. | 1,424,226 | 75,342 |
Unum Group | 1,951,800 | 56,914 |
Morgan Stanley | 873,899 | 44,674 |
First American Financial Corp. | 743,481 | 43,360 |
Comerica Inc. | 583,321 | 41,853 |
Cincinnati Financial Corp. | 336,571 | 35,390 |
T. Rowe Price Group Inc. | 285,756 | 34,816 |
Huntington Bancshares Inc. | 1,754,900 | 26,464 |
PacWest Bancorp | 631,406 | 24,164 |
CME Group Inc. | 91,343 | 18,334 |
Cullen/Frost Bankers Inc. | 180,728 | 17,672 |
KeyCorp | 759,691 | 15,376 |
7,353,393 | ||
Health Care (16.8%) | ||
Johnson & Johnson | 8,054,200 | 1,174,866 |
Pfizer Inc. | 23,430,501 | 918,007 |
Merck & Co. Inc. | 8,983,124 | 817,015 |
Eli Lilly & Co. | 4,041,372 | 531,158 |
UnitedHealth Group Inc. | 1,302,429 | 382,888 |
Bristol-Myers Squibb Co. | 5,859,269 | 376,107 |
Medtronic plc | 3,204,829 | 363,588 |
Koninklijke Philips NV | 6,871,039 | 335,883 |
Roche Holding AG | 979,787 | 318,434 |
CVS Health Corp. | 4,186,274 | 310,998 |
Novartis AG | 2,960,758 | 280,353 |
AstraZeneca plc ADR | 5,206,398 | 259,591 |
AbbVie Inc. | 2,715,293 | 240,412 |
Gilead Sciences Inc. | 1,886,678 | 122,596 |
Amgen Inc. | 402,155 | 96,948 |
Cardinal Health Inc. | 1,587,771 | 80,309 |
6,609,153 | ||
Industrials (9.8%) | ||
Lockheed Martin Corp. | 1,460,794 | 568,804 |
Deere & Co. | 2,314,468 | 401,005 |
Eaton Corp. plc | 3,786,139 | 358,623 |
Union Pacific Corp. | 1,963,349 | 354,954 |
Caterpillar Inc. | 2,373,561 | 350,528 |
Ingersoll-Rand plc | 1,784,614 | 237,211 |
United Technologies Corp. | 1,518,218 | 227,368 |
Honeywell International Inc. | 1,283,646 | 227,205 |
Raytheon Co. | 817,111 | 179,552 |
BAE Systems plc | 22,309,605 | 167,040 |
3M Co. | 863,042 | 152,258 |
PACCAR Inc. | 1,349,200 | 106,722 |
Johnson Controls International plc | 2,541,898 | 103,481 |
Cummins Inc. | 501,090 | 89,675 |
CH Robinson Worldwide Inc. | 1,025,121 | 80,165 |
Nielsen Holdings plc | 2,790,108 | 56,639 |
General Electric Co. | 4,314,703 | 48,152 |
KAR Auction Services Inc. | 1,884,640 | 41,066 |
United Parcel Service Inc. Class B | 258,476 | 30,257 |
GATX Corp. | 314,087 | 26,022 |
Illinois Tool Works Inc. | 117,682 | 21,139 |
Delta Air Lines Inc. | 251,971 | 14,735 |
3,842,601 | ||
Information Technology (10.0%) | ||
Cisco Systems Inc. | 17,972,853 | 861,978 |
Intel Corp. | 14,286,428 | 855,043 |
Analog Devices Inc. | 2,439,363 | 289,894 |
KLA Corp. | 1,522,459 | 271,257 |
Corning Inc. | 8,709,307 | 253,528 |
TE Connectivity Ltd. | 2,599,379 | 249,124 |
Texas Instruments Inc. | 1,706,043 | 218,868 |
International Business Machines Corp. | 1,243,866 | 166,728 |
QUALCOMM Inc. | 1,418,465 | 125,151 |
Maxim Integrated Products Inc. | 2,013,726 | 123,864 |
HP Inc. | 5,495,639 | 112,935 |
Broadcom Inc. | 356,037 | 112,515 |
Western Digital Corp. | 1,724,807 | 109,474 |
Western Union Co. | 3,184,727 | 85,287 |
Seagate Technology plc | 1,078,848 | 64,191 |
Automatic Data Processing Inc. | 95,222 | 16,235 |
Xerox Holdings Corp. | 175,642 | 6,476 |
3,922,548 | ||
Materials (2.7%) | ||
Celanese Corp. Class A | 2,058,179 | 253,403 |
Dow Inc. | 3,971,682 | 217,370 |
Nutrien Ltd. | 1,731,468 | 82,955 |
International Paper Co. | 1,772,796 | 81,637 |
CF Industries Holdings Inc. | 1,474,977 | 70,416 |
Linde plc | 324,727 | 69,134 |
Air Products & Chemicals Inc. | 269,962 | 63,438 |
Reliance Steel & Aluminum Co. | 387,557 | 46,414 |
DuPont de Nemours Inc. | 540,325 | 34,689 |
Corteva Inc. | 1,118,040 | 33,049 |
Huntsman Corp. | 1,117,515 | 26,999 |
Domtar Corp. | 676,886 | 25,884 |
Scotts Miracle-Gro Co. | 194,649 | 20,668 |
Greif Inc. Class A | 426,380 | 18,846 |
Packaging Corp. of America | 57,058 | 6,390 |
1,051,292 | ||
Real Estate (1.3%) | ||
Crown Castle International Corp. | 3,518,667 | 500,179 |
Utilities (7.9%) | ||
Sempra Energy | 2,903,156 | 439,770 |
Dominion Energy Inc. | 4,394,740 | 363,972 |
NextEra Energy Inc. | 1,239,208 | 300,087 |
Duke Energy Corp. | 2,859,940 | 260,855 |
Eversource Energy | 3,024,427 | 257,288 |
American Electric Power Co. Inc. | 2,717,703 | 256,850 |
Exelon Corp. | 5,335,078 | 243,226 |
UGI Corp. | 4,295,074 | 193,966 |
Southern Co. | 2,433,693 | 155,026 |
FirstEnergy Corp. | 2,191,113 | 106,488 |
AES Corp. | 4,978,610 | 99,074 |
Entergy Corp. | 799,485 | 95,778 |
Ameren Corp. | 849,199 | 65,219 |
PPL Corp. | 1,701,918 | 61,065 |
Evergy Inc. | 904,114 | 58,849 |
PNM Resources Inc. | 1,070,374 | 54,279 |
IDACORP Inc. | 487,396 | 52,054 |
Pinnacle West Capital Corp. | 198,690 | 17,868 |
MDU Resources Group Inc. | 320,543 | 9,523 |
NRG Energy Inc. | 134,838 | 5,360 |
3,096,597 | ||
Total Common Stocks (Cost $28,228,726) | 38,295,111 |
Market | |||
Value | |||
Shares | ($000) | ||
Temporary Cash Investments (2.5%)1 | |||
Money Market Fund (2.0%) | |||
2,3 Vanguard Market Liquidity Fund, 1.816% | 7,877,092 | 787,788 | |
Face | |||
Amount | |||
($000) | |||
Repurchase Agreements (0.4%) | |||
Goldman Sachs & Co. 1.550%, 1/2/20 (Dated 12/31/19, | |||
Repurchase Value $61,205,000, collateralized by Federal | |||
Home Loan Mortgage Corp. 6.000%, 12/1/36, Federal | |||
National Mortgage Assn. 3.000%-4.000%, 10/1/27-9/1/47, | |||
and Government National Mortgage Assn. 2.500%-6.500%, | |||
11/20/24-4/20/49, with a value of $62,424,000) | 61,200 | 61,200 | |
Nomura International plc 1.550%, 1/2/20 (Dated 12/31/19, | |||
Repurchase Value $25,102,000, collateralized by U.S. | |||
Treasury Note/Bond 1.500%-2.000%, 9/30/24-1/15/26, with | |||
a value of $25,602,000) | 25,100 | 25,100 | |
RBS Securities, Inc. 1.550%, 1/2/20 (Dated 12/31/19, | |||
Repurchase Value $67,306,000, collateralized by U.S. | |||
Treasury Note/Bond 0.375%, 7/15/25, with a value of | |||
$68,646,000) | 67,300 | 67,300 | |
Societe Generale 1.550%, 1/2/20 (Dated 12/31/19, | |||
Repurchase Value $10,501,000, collateralized by Federal | |||
Home Loan Mortgage Corp. 5.329%-5.971%, 2/15/20- | |||
11/1/30, Federal National Mortgage Assn. 4.000%, 3/1/48, | |||
and U.S. Treasury Note/Bond 3.000%-5.250%, 11/15/28- | |||
5/15/42, with a value of $10,710,000) | 10,500 | 10,500 | |
164,100 | |||
U.S. Government and Agency Obligations (0.1%) | |||
4 | United States Treasury Bill, 1.544%-1.817%, 1/30/20 | 4,470 | 4,465 |
4 | United States Treasury Bill, 1.566%-1.872%, 2/20/20 | 10,800 | 10,777 |
4 | United States Treasury Bill, 1.527%, 4/30/20 | 11,300 | 11,243 |
26,485 | |||
Total Temporary Cash Investments (Cost $978,296) | 978,373 | ||
Total Investments (100.1%) (Cost $29,207,022) | 39,273,484 | ||
Other Assets and Liabilities-Net (-0.1%)3,4 | (23,881) | ||
Net Assets (100%) | 39,249,603 |
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $35,231,000.
1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After
giving effect to futures investments, the fund's effective common stock and temporary cash investment positions
represent 99.6% and 0.5%, respectively, of net assets.
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 $37,044,000 was received for securities on loan.
4 Securities with a value of $25,666,000 and cash of $5,396,000 have been segregated as initial margin for open
futures contracts.
ADR—American Depositary Receipt.
Equity Income Fund | ||||
Derivative Financial Instruments Outstanding as of Period End | ||||
Futures Contracts | ||||
($000) | ||||
Number of | Value and | |||
Long | Unrealized | |||
(Short) | Notional | Appreciation | ||
Expiration | Contracts | Amount | (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | March 2020 | 4,823 | 779,180 | 10,700 |
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 at their fair
values calculated according to procedures adopted 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. 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. Futures Contracts: The fund uses index futures contracts to a limited
extent, with the objective of maintaining full exposure to the stock market
Equity Income Fund
while maintaining liquidity. The fund may purchase or sell futures
contracts to achieve a desired level of investment, whether to accommodate
portfolio turnover or cash flows from capital share transactions. The
primary risks associated with the use of futures contracts are imperfect
correlation between changes in market values of stocks held by the fund and
the prices of futures contracts, and the possibility of an illiquid market.
Counterparty risk involving futures is mitigated because a regulated
clearinghouse is the counterparty instead of the clearing broker. To
further mitigate counterparty risk, the fund trades futures contracts on an
exchange, monitors the financial strength of its clearing brokers and
clearinghouse, and has entered into clearing agreements with its clearing
brokers. The clearinghouse imposes initial margin requirements to secure
the fund's performance and requires daily settlement of variation margin
representing changes in the market value of each contract. Any assets
pledged as initial margin for open contracts are noted in the Schedule of
Investments.
Futures contracts are valued at their quoted daily settlement prices. The
notional amounts of the contracts are not recorded in the Schedule of
Investments. Fluctuations in the value of the contracts are recorded in the
Statement of Net Assets as an asset (liability).
D. 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.
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—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.
Equity Income Fund
The following table summarizes the market value of the fund's investments
and derivatives as of December 31, 2019, based on the inputs used to value
them:
Level 1 | Level 2 | Level 3 | ||
Investments | ($000) | ($000) | ($000) | |
Common Stocks | 36,869,793 | 1,425,318 | — | |
Temporary Cash Investments | 787,788 | 190,585 | — | |
FuturesContracts—Assets1 | 1,970 | — | — | |
FuturesContracts—Liabilities1 | (59) | — | — | |
Total | 37,659,492 | 1,615,903 | — | |
1 Represents variation margin on the last day of the reporting period. |