Vanguard Equity Income Fund
Schedule of Investments (unaudited)
As of June 30, 2020
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.
Market | ||
Value | ||
Shares | ($000) | |
Common Stocks (97.6%) | ||
Communication Services (6.0%) | ||
Verizon Communications Inc. | 15,600,981 | 860,082 |
Comcast Corp. Class A | 20,155,408 | 785,658 |
AT&T Inc. | 7,424,795 | 224,452 |
CenturyLink Inc. | 7,055,768 | 70,769 |
Omnicom Group Inc. | 994,636 | 54,307 |
TEGNA Inc. | 737,501 | 8,216 |
2,003,484 | ||
Consumer Discretionary (4.7%) | ||
McDonald's Corp. | 2,493,180 | 459,917 |
Home Depot Inc. | 1,452,419 | 363,845 |
Lowe's Cos. Inc. | 1,519,725 | 205,345 |
VF Corp. | 2,919,013 | 177,885 |
Target Corp. | 980,188 | 117,554 |
^ Cie Generale des Etablissements Michelin SCA | 832,394 | 86,764 |
Whirlpool Corp. | 495,200 | 64,143 |
Best Buy Co. Inc. | 498,248 | 43,482 |
H&R Block Inc. | 2,448,469 | 34,964 |
Newell Brands Inc. | 1,548,908 | 24,597 |
Hanesbrands Inc. | 1,707,690 | 19,280 |
1,597,776 | ||
Consumer Staples (12.5%) | ||
Procter & Gamble Co. | 7,648,098 | 914,483 |
Coca-Cola Co. | 12,772,279 | 570,665 |
Philip Morris International Inc. | 7,331,915 | 513,674 |
PepsiCo Inc. | 3,607,027 | 477,065 |
Mondelez International Inc. Class A | 7,573,588 | 387,238 |
Walmart Inc. | 2,170,107 | 259,935 |
^ Unilever NV | 4,694,278 | 250,064 |
Archer-Daniels-Midland Co. | 6,259,218 | 249,743 |
Kraft Heinz Co. | 3,001,502 | 95,718 |
Kimberly-Clark Corp. | 658,124 | 93,026 |
Altria Group Inc. | 1,892,765 | 74,291 |
Campbell Soup Co. | 1,440,735 | 71,504 |
Sysco Corp. | 1,174,681 | 64,208 |
Coca-Cola European Partners plc | 1,567,901 | 59,204 |
Conagra Brands Inc. | 1,109,232 | 39,012 |
Bunge Ltd. | 738,158 | 30,360 |
Clorox Co. | 119,498 | 26,214 |
Kellogg Co. | 155,610 | 10,280 |
Hershey Co. | 74,971 | 9,718 |
J M Smucker Co. | 68,797 | 7,279 |
Colgate-Palmolive Co. | 95,528 | 6,998 |
General Mills Inc. | 108,318 | 6,678 |
4,217,357 |
Energy (4.8%) | ||
Chevron Corp. | 4,591,173 | 409,670 |
Phillips 66 | 3,829,054 | 275,309 |
^ TC Energy Corp. | 5,805,996 | 248,047 |
Exxon Mobil Corp. | 4,255,981 | 190,328 |
Kinder Morgan Inc. | 12,215,640 | 185,311 |
ConocoPhillips | 3,756,672 | 157,855 |
Schlumberger Ltd. | 2,010,663 | 36,976 |
Valero Energy Corp. | 517,957 | 30,466 |
Murphy Oil Corp. | 2,026,153 | 27,961 |
Williams Cos. Inc. | 1,047,918 | 19,932 |
Delek US Holdings Inc. | 800,932 | 13,944 |
CVR Energy Inc. | 561,924 | 11,300 |
Devon Energy Corp. | 955,658 | 10,837 |
1,617,936 | ||
Financials (16.8%) | ||
JPMorgan Chase & Co. | 10,078,544 | 947,988 |
Bank of America Corp. | 25,805,383 | 612,878 |
Progressive Corp. | 6,742,495 | 540,141 |
MetLife Inc. | 11,659,508 | 425,805 |
BlackRock Inc. | 781,424 | 425,165 |
Chubb Ltd. | 2,915,047 | 369,103 |
Truist Financial Corp. | 7,515,732 | 282,216 |
PNC Financial Services Group Inc. | 2,202,594 | 231,735 |
Blackstone Group LP Class A | 3,662,668 | 207,527 |
Citigroup Inc. | 3,947,471 | 201,716 |
Wells Fargo & Co. | 6,592,039 | 168,756 |
Morgan Stanley | 2,598,582 | 125,512 |
Travelers Cos. Inc. | 1,064,363 | 121,391 |
M&T Bank Corp. | 883,726 | 91,881 |
Ameriprise Financial Inc. | 596,077 | 89,435 |
Fifth Third Bancorp | 3,528,987 | 68,039 |
Regions Financial Corp. | 6,019,265 | 66,934 |
LPL Financial Holdings Inc. | 825,694 | 64,734 |
Equitable Holdings Inc. | 3,298,601 | 63,630 |
Citizens Financial Group Inc. | 2,455,784 | 61,984 |
Prudential Financial Inc. | 998,018 | 60,779 |
US Bancorp | 1,491,792 | 54,928 |
Unum Group | 2,843,550 | 47,175 |
First American Financial Corp. | 870,904 | 41,821 |
Aflac Inc. | 1,149,652 | 41,422 |
CME Group Inc. | 242,966 | 39,492 |
Synchrony Financial | 1,648,763 | 36,537 |
KeyCorp | 2,381,465 | 29,006 |
Cincinnati Financial Corp. | 358,828 | 22,976 |
Huntington Bancshares Inc. | 2,535,613 | 22,909 |
Cullen/Frost Bankers Inc. | 266,867 | 19,938 |
PacWest Bancorp | 909,204 | 17,920 |
T. Rowe Price Group Inc. | 99,417 | 12,278 |
Comerica Inc. | 306,547 | 11,679 |
Bank of New York Mellon Corp. | 205,277 | 7,934 |
People's United Financial Inc. | 548,598 | 6,347 |
Virtu Financial Inc. Class A | 247,774 | 5,847 |
Prosperity Bancshares Inc. | 97,427 | 5,785 |
Jefferies Financial Group Inc. | 370,640 | 5,763 |
MGIC Investment Corp. | 563,577 | 4,616 |
First Horizon National Corp. | 459,841 | 4,580 |
5,666,302 | ||
Health Care (18.1%) | ||
Johnson & Johnson | 8,795,945 | 1,236,974 |
Pfizer Inc. | 24,670,107 | 806,712 |
Merck & Co. Inc. | 8,891,356 | 687,569 |
Eli Lilly and Co. | 2,823,353 | 463,538 |
UnitedHealth Group Inc. | 1,518,728 | 447,949 |
Medtronic plc | 4,463,498 | 409,303 |
CVS Health Corp. | 4,560,061 | 296,267 |
AbbVie Inc. | 2,863,994 | 281,187 |
AstraZeneca plc ADR | 5,091,846 | 269,308 |
Roche Holding AG | 737,223 | 255,411 |
Koninklijke Philips NV | 5,537,138 | 258,685 |
Novartis AG | 2,612,916 | 227,640 |
Gilead Sciences Inc. | 1,895,535 | 145,842 |
Bristol-Myers Squibb Co. | 2,339,331 | 137,553 |
Amgen Inc. | 443,366 | 104,572 |
Cardinal Health Inc. | 1,481,876 | 77,339 |
6,105,849 | ||
Industrials (10.1%) | ||
Lockheed Martin Corp. | 1,340,777 | 489,276 |
Union Pacific Corp. | 2,349,965 | 397,309 |
General Dynamics Corp. | 2,161,979 | 323,129 |
Deere & Co. | 2,032,502 | 319,408 |
Eaton Corp. plc | 3,445,924 | 301,449 |
Raytheon Technologies Corp. | 4,530,077 | 279,143 |
Caterpillar Inc. | 1,957,179 | 247,583 |
Honeywell International Inc. | 1,271,551 | 183,854 |
Trane Technologies plc | 2,028,128 | 180,463 |
Cummins Inc. | 609,949 | 105,680 |
Johnson Controls International plc | 2,921,975 | 99,756 |
PACCAR Inc. | 1,246,192 | 93,278 |
Illinois Tool Works Inc. | 471,462 | 82,435 |
United Parcel Service Inc. Class B | 614,627 | 68,334 |
CH Robinson Worldwide Inc. | 840,832 | 66,476 |
3M Co. | 420,602 | 65,610 |
Nielsen Holdings plc | 2,905,781 | 43,180 |
General Electric Co. | 4,314,703 | 29,469 |
GATX Corp. | 281,289 | 17,153 |
Fastenal Co. | 201,805 | 8,645 |
MSC Industrial Direct Co. Inc. Class A | 86,413 | 6,292 |
Hubbell Inc. Class B | 24,126 | 3,025 |
3,410,947 | ||
Information Technology (12.1%) | ||
Cisco Systems Inc. | 21,164,239 | 987,100 |
Intel Corp. | 15,166,332 | 907,402 |
Corning Inc. | 12,209,227 | 316,219 |
TE Connectivity Ltd. | 3,396,585 | 276,992 |
KLA Corp. | 1,259,839 | 245,013 |
Automatic Data Processing Inc. | 1,508,034 | 224,531 |
Analog Devices Inc. | 1,774,938 | 217,678 |
Texas Instruments Inc. | 1,617,767 | 205,408 |
International Business Machines Corp. | 1,449,769 | 175,089 |
QUALCOMM Inc. | 1,528,270 | 139,393 |
HP Inc. | 5,332,849 | 92,952 |
Broadcom Inc. | 277,397 | 87,549 |
Seagate Technology plc | 1,565,773 | 75,799 |
Maxim Integrated Products Inc. | 1,049,418 | 63,605 |
Western Union Co. | 2,030,740 | 43,905 |
4,058,635 | ||
Materials (2.7%) | ||
PPG Industries Inc. | 2,175,427 | 230,726 |
Celanese Corp. Class A | 2,477,444 | 213,902 |
Linde plc | 379,390 | 80,472 |
International Paper Co. | 1,572,144 | 55,355 |
Air Products & Chemicals Inc. | 222,275 | 53,670 |
DuPont de Nemours Inc. | 880,795 | 46,797 |
Reliance Steel & Aluminum Co. | 468,042 | 44,431 |
Corteva Inc. | 1,582,013 | 42,382 |
CF Industries Holdings Inc. | 1,234,740 | 34,746 |
Dow Inc. | 847,369 | 34,539 |
Huntsman Corp. | 1,265,872 | 22,748 |
Scotts Miracle -Gro Co. | 134,794 | 18,126 |
Greif Inc. Class A | 440,884 | 15,171 |
Packaging Corp. of America | 149,745 | 14,944 |
908,009 | ||
Real Estate (1.4%) | ||
Crown Castle International Corp. | 2,848,713 | 476,732 |
Utilities (8.4%) | ||
Dominion Energy Inc. | 5,891,268 | 478,253 |
Sempra Energy | 3,160,361 | 370,489 |
Exelon Corp. | 9,837,917 | 357,018 |
Duke Energy Corp. | 3,483,632 | 278,307 |
FirstEnergy Corp. | 6,579,079 | 255,137 |
American Electric Power Co. Inc. | 2,674,373 | 212,987 |
Eversource Energy | 1,856,050 | 154,553 |
Southern Co. | 2,433,693 | 126,187 |
NextEra Energy Inc. | 352,814 | 84,735 |
UGI Corp. | 2,646,126 | 84,147 |
AES Corp. | 5,178,760 | 75,040 |
Evergy Inc. | 1,050,927 | 62,310 |
Entergy Corp. | 647,304 | 60,724 |
PPL Corp. | 2,133,025 | 55,118 |
Ameren Corp. | 715,794 | 50,363 |
PNM Resources Inc. | 1,291,701 | 49,653 |
IDACORP Inc. | 422,820 | 36,942 |
Public Service Enterprise Group Inc. | 228,951 | 11,255 |
WEC Energy Group Inc. | 97,950 | 8,585 |
Pinnacle West Capital Corp. | 68,856 | 5,047 |
MDU Resources Group Inc. | 221,242 | 4,907 |
2,821,757 | ||
Total Common Stocks (Cost $28,259,398) | 32,884,784 |
Temporary Cash Investments (2.9%) | |||
Money Market Fund (2.0%) | |||
1,2 Vanguard Market Liquidity Fund, 0.227% | 6,717,178 | 671,718 | |
Face | |||
Amount | |||
($000) | |||
Repurchase Agreements (0.8%) | |||
Goldman Sachs & Co. | |||
0.070%, 7/1/20 (Dated 6/30/20, Repurchase Value | |||
$94,700,000, collateralized by Federal Home Loan Mortgage | |||
Corp., 2.500%-6.500%, 6/1/26-8/1/49, Federal National | |||
Mortgage Assn., 3.500%-5.500%, 8/1/28-12/1/49, and | |||
Government National Mortgage Assn., 2.700%-6.500%, | |||
6/20/27-2/15/55, with a value of $96,594,000) | 94,700 | 94,700 | |
Nomura International plc | |||
0.070%, 7/1/20 (Dated 6/30/20, Repurchase Value | |||
$144,000,000, collateralized by U.S. Treasury Note/Bond, | |||
0.125%-8.750%, 8/15/20-5/15/46, with a value of | |||
$146,880,000) | 144,000 | 144,000 | |
RBS Securities, Inc. | |||
0.070%, 7/1/20 (Dated 6/30/20, Repurchase Value | |||
$16,400,000, collateralized by U.S. Treasury Note/Bond, | |||
0.250%, 7/15/29, with a value of $16,728,000) | 16,400 | 16,400 | |
Societe Generale | |||
0.070%, 7/1/20 (Dated 6/30/20, Repurchase Value | |||
$13,700,000, collateralized by Federal Home Loan Mortgage | |||
Corp., 5.330%-5.950%, 8/15/20-11/1/30, Federal National | |||
Mortgage Assn., 3.500%-4.500%, 8/1/48-9/1/49, | |||
Government National Mortgage Assn., 2.500%-3.125%, | |||
12/20/26-11/20/49, U.S Treasury Bill, 0.000%, 9/17/20, and | |||
U.S. Treasury Note/Bond, 0.125%-2.625%, 4/30/21-2/15/45, | |||
with a value of $13,974,000) | 13,700 | 13,700 | |
268,800 | |||
U.S. Government and Agency Obligations (0.1%) | |||
3 | United States Cash Management Bill, 0.103%-0.135%, 7/14/20 | 4,600 | 4,600 |
3 | United States Cash Management Bill, 0.116%, 9/29/20 | 40,300 | 40,285 |
United States Treasury Bill, 0.120%, 7/30/20 | 2,000 | 2,000 | |
46,885 | |||
Total Temporary Cash Investments (Cost $987,120) | 987,403 | ||
Total Investments (100.5%) (Cost $29,246,518) | 33,872,187 | ||
Other Assets and Liabilities -Net (-0.5%) | (182,728) | ||
Net Assets (100%) | 33,689,459 |
^ Includes partial security positions on loan to broker-dealers. The total value of securities on lo an is $206,408,000.
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.
2 Collateral of $219,157,000 was received for securities on loan.
3 Securities with a value of $41,279,000 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) | ||||
Value and | ||||
Number of | Unrealized | |||
Long (Short) | Notional | Appreciation | ||
Expiration | Contracts | Amount | (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | September 2020 | 3,252 | 502,467 | 10,727 |
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 t he
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 v alue. 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 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
Equity Income Fund
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 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.
The following table summarizes the market value of the fund's investments and derivatives as of June
30, 2020, based on the inputs used to value them:
Level 1 | Level 2 | Level 3 | Total | |
($000) | ($000) | ($000) | ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 32,056,284 | 828,500 | — | 32,884,784 |
Temporary Cash Investments | 671,718 | 315,685 | — | 987,403 |
Total | 32,728,002 | 1,144,185 | — | 33,872,187 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 7,197 | — | — | 7,197 |
1 Represents variation margin on the last day of the reporting period. |