Vanguard Equity Income Fund
Schedule of Investments (unaudited)
As of December 31, 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 (5.6%) | ||
Comcast Corp. Class A | 19,498,909 | 1,021,743 |
Verizon Communications Inc. | 14,528,800 | 853,567 |
AT&T Inc. | 6,517,346 | 187,439 |
CenturyLink Inc. | 7,760,400 | 75,664 |
Omnicom Group Inc. | 1,155,940 | 72,096 |
Interpublic Group of Cos. Inc. | 1,929,829 | 45,389 |
2,255,898 | ||
Consumer Discretionary (4.2%) | ||
McDonald's Corp. | 2,278,247 | 488,866 |
TJX Cos. Inc. | 3,756,523 | 256,533 |
Lowe's Cos. Inc. | 1,319,525 | 211,797 |
VF Corp. | 2,278,565 | 194,612 |
Home Depot Inc. | 589,819 | 156,668 |
Whirlpool Corp. | 487,004 | 87,899 |
Best Buy Co. Inc. | 838,813 | 83,705 |
Target Corp. | 471,584 | 83,249 |
H&R Block Inc. | 3,518,189 | 55,798 |
Newell Brands Inc. | 1,758,405 | 37,331 |
Big Lots Inc. | 446,793 | 19,181 |
Polaris Inc. | 73,305 | 6,985 |
1,682,624 | ||
Consumer Staples (13.4%) | ||
Procter & Gamble Co. | 7,748,432 | 1,078,117 |
Philip Morris International Inc. | 8,012,901 | 663,388 |
Coca-Cola Co. | 11,817,115 | 648,051 |
PepsiCo Inc. | 3,669,027 | 544,117 |
Mondelez International Inc. Class A | 7,279,688 | 425,643 |
Archer-Daniels-Midland Co. | 6,471,318 | 326,219 |
Walmart Inc. | 2,170,107 | 312,821 |
Kellogg Co. | 3,898,572 | 242,608 |
Unilever plc ADR | 3,933,278 | 237,413 |
Altria Group Inc. | 3,959,050 | 162,321 |
Nestle SA ADR | 1,110,000 | 130,758 |
General Mills Inc. | 1,758,919 | 103,424 |
Kimberly-Clark Corp. | 751,722 | 101,355 |
Conagra Brands Inc. | 2,231,265 | 80,906 |
Clorox Co. | 385,817 | 77,904 |
Campbell Soup Co. | 1,561,914 | 75,519 |
Kraft Heinz Co. | 1,561,218 | 54,112 |
Coca-Cola European Partners plc | 564,646 | 28,136 |
J M Smucker Co. | 226,482 | 26,181 |
Bunge Ltd. | 257,325 | 16,875 |
Hershey Co. | 75,357 | 11,479 |
Tyson Foods Inc. Class A | 157,983 | 10,180 |
Colgate-Palmolive Co. | 97,399 | 8,329 |
5,365,856 | ||
Energy (4.2%) | ||
Phillips 66 | 4,518,969 | 316,057 |
^ TC Energy Corp. | 5,541,096 | 225,274 |
ConocoPhillips | 5,565,657 | 222,571 |
Chevron Corp. | 2,467,644 | 208,393 |
Pioneer Natural Resources Co. | 1,397,997 | 159,218 |
Exxon Mobil Corp. | 3,537,993 | 145,836 |
Kinder Morgan Inc. | 10,472,079 | 143,153 |
Halliburton Co. | 3,515,132 | 66,436 |
Williams Cos. Inc. | 3,277,895 | 65,722 |
Schlumberger Ltd. | 2,618,681 | 57,166 |
Devon Energy Corp. | 2,569,632 | 40,626 |
Targa Resources Corp. | 962,300 | 25,385 |
Valero Energy Corp. | 410,164 | 23,203 |
1,699,040 | ||
Financials (20.0%) | ||
JPMorgan Chase & Co. | 11,123,219 | 1,413,427 |
Bank of America Corp. | 32,436,547 | 983,152 |
Morgan Stanley | 9,215,085 | 631,510 |
BlackRock Inc. | 834,568 | 602,174 |
Progressive Corp. | 6,052,801 | 598,501 |
MetLife Inc. | 12,685,008 | 595,561 |
Chubb Ltd. | 3,546,619 | 545,896 |
Truist Financial Corp. | 8,070,609 | 386,824 |
PNC Financial Services Group Inc. | 1,977,420 | 294,636 |
Blackstone Group LP Class A | 4,320,868 | 280,035 |
Citigroup Inc. | 4,017,354 | 247,710 |
Wells Fargo & Co. | 5,291,705 | 159,704 |
Travelers Cos. Inc. | 890,003 | 124,930 |
Aflac Inc. | 2,355,088 | 104,731 |
Fifth Third Bancorp | 3,389,105 | 93,438 |
Citizens Financial Group Inc. | 2,544,468 | 90,990 |
Regions Financial Corp. | 5,629,585 | 90,749 |
Equitable Holdings Inc. | 3,310,075 | 84,705 |
Unum Group | 3,006,693 | 68,973 |
Jefferies Financial Group Inc. | 2,469,486 | 60,749 |
Virtu Financial Inc. Class A | 2,334,407 | 58,757 |
First American Financial Corp. | 1,128,702 | 58,275 |
T. Rowe Price Group Inc. | 347,915 | 52,671 |
Prudential Financial Inc. | 668,274 | 52,172 |
Synchrony Financial | 1,393,358 | 48,363 |
KeyCorp | 2,339,741 | 38,395 |
First Horizon Corp. | 2,877,860 | 36,721 |
Bank of New York Mellon Corp. | 862,860 | 36,620 |
Huntington Bancshares Inc. | 2,448,643 | 30,926 |
US Bancorp | 547,978 | 25,530 |
PacWest Bancorp | 1,003,760 | 25,495 |
CME Group Inc. | 131,243 | 23,893 |
Cullen/Frost Bankers Inc. | 242,291 | 21,135 |
Ally Financial Inc. | 388,772 | 13,864 |
Prosperity Bancshares Inc. | 193,392 | 13,414 |
MGIC Investment Corp. | 939,899 | 11,796 |
People's United Financial Inc. | 801,474 | 10,363 |
M&T Bank Corp. | 78,075 | 9,939 |
Invesco Ltd. | 517,416 | 9,019 |
OneMain Holdings Inc. | 148,767 | 7,165 |
8,042,908 | ||
Health Care (17.9%) | ||
Johnson & Johnson | 11,087,573 | 1,744,962 |
Pfizer Inc. | 24,483,950 | 901,254 |
Eli Lilly and Co. | 4,415,072 | 745,441 |
Merck & Co. Inc. | 8,667,056 | 708,965 |
Medtronic plc | 4,985,598 | 584,013 |
UnitedHealth Group Inc. | 1,449,428 | 508,286 |
Becton Dickinson and Co. | 1,508,500 | 377,457 |
CVS Health Corp. | 4,396,761 | 300,299 |
Roche Holding AG | 703,584 | 245,057 |
AstraZeneca plc ADR | 4,711,246 | 235,515 |
Novartis AG | 2,493,691 | 234,801 |
AbbVie Inc. | 1,570,829 | 168,314 |
Gilead Sciences Inc. | 2,320,348 | 135,184 |
Bristol-Myers Squibb Co. | 1,765,523 | 109,515 |
Amgen Inc. | 429,354 | 98,717 |
Cardinal Health Inc. | 1,532,679 | 82,090 |
7,179,870 | ||
Industrials (10.4%) | ||
Lockheed Martin Corp. | 1,811,222 | 642,948 |
Raytheon Technologies Corp. | 5,985,950 | 428,055 |
Eaton Corp. plc | 3,178,524 | 381,868 |
Union Pacific Corp. | 1,799,965 | 374,789 |
Caterpillar Inc. | 1,896,261 | 345,157 |
General Dynamics Corp. | 2,101,369 | 312,726 |
Deere & Co. | 1,131,602 | 304,457 |
Honeywell International Inc. | 1,095,051 | 232,917 |
Johnson Controls International plc | 4,004,508 | 186,570 |
Trane Technologies plc | 986,628 | 143,219 |
United Parcel Service Inc. Class B | 802,677 | 135,171 |
Cummins Inc. | 491,517 | 111,623 |
Illinois Tool Works Inc. | 520,617 | 106,143 |
Fastenal Co. | 2,028,466 | 99,050 |
3M Co. | 490,182 | 85,679 |
Nielsen Holdings plc | 4,037,605 | 84,265 |
CH Robinson Worldwide Inc. | 592,787 | 55,645 |
Watsco Inc. | 234,031 | 53,020 |
MSC Industrial Direct Co. Inc. Class A | 575,241 | 48,545 |
Hubbell Inc. Class B | 116,332 | 18,240 |
Snap-on Inc. | 48,378 | 8,279 |
Timken Co. | 105,194 | 8,138 |
nVent Electric plc | 341,541 | 7,954 |
Triton International Ltd. | 154,834 | 7,511 |
GATX Corp. | 62,561 | 5,204 |
4,187,173 | ||
Information Technology (10.3%) | ||
Cisco Systems Inc. | 22,574,628 | 1,010,214 |
Corning Inc. | 11,652,127 | 419,476 |
TE Connectivity Ltd. | 3,241,685 | 392,471 |
Automatic Data Processing Inc. | 1,936,443 | 341,201 |
KLA Corp. | 1,147,575 | 297,119 |
QUALCOMM Inc. | 1,916,713 | 291,992 |
Analog Devices Inc. | 1,888,438 | 278,979 |
Intel Corp. | 5,486,624 | 273,344 |
Texas Instruments Inc. | 1,344,952 | 220,747 |
International Business Machines Corp. | 1,632,959 | 205,557 |
HP Inc. | 5,332,849 | 131,135 |
Broadcom Inc. | 277,397 | 121,458 |
Seagate Technology plc | 1,624,757 | 100,995 |
Western Union Co. | 2,103,594 | 46,153 |
4,130,841 | ||
Materials (3.1%) | ||
Celanese Corp. Class A | 2,364,444 | 307,236 |
PPG Industries Inc. | 2,076,127 | 299,419 |
Corteva Inc. | 2,735,404 | 105,915 |
International Paper Co. | 2,073,500 | 103,094 |
Linde plc | 385,596 | 101,608 |
Dow Inc. | 1,013,793 | 56,265 |
Reliance Steel & Aluminum Co. | 410,776 | 49,190 |
Scotts Miracle -Gro Co. | 226,716 | 45,148 |
Huntsman Corp. | 1,254,842 | 31,547 |
CF Industries Holdings Inc. | 812,959 | 31,470 |
DuPont de Nemours Inc. | 325,064 | 23,115 |
Westrock Co. | 522,826 | 22,759 |
Packaging Corp. of America | 158,087 | 21,802 |
Greif Inc. Class A | 418,080 | 19,600 |
Air Products & Chemicals Inc. | 30,062 | 8,214 |
Nucor Corp. | 121,878 | 6,483 |
1,232,865 | ||
Real Estate (1.0%) | ||
Crown Castle International Corp. | 2,588,813 | 412,113 |
Utilities (7.5%) | ||
Sempra Energy | 3,451,102 | 439,705 |
Dominion Energy Inc. | 5,543,093 | 416,841 |
Exelon Corp. | 9,632,835 | 406,698 |
Duke Energy Corp. | 3,721,615 | 340,751 |
American Electric Power Co. Inc. | 2,965,473 | 246,935 |
Entergy Corp. | 1,523,436 | 152,100 |
Southern Co. | 2,426,854 | 149,082 |
DTE Energy Co. | 1,057,120 | 128,345 |
NextEra Energy Inc. | 1,515,412 | 116,914 |
AES Corp. | 4,959,025 | 116,537 |
UGI Corp. | 2,525,326 | 88,285 |
WEC Energy Group Inc. | 700,801 | 64,495 |
PPL Corp. | 2,248,141 | 63,397 |
Evergy Inc. | 1,118,268 | 62,075 |
FirstEnergy Corp. | 2,022,986 | 61,924 |
CenterPoint Energy Inc. | 1,842,707 | 39,876 |
Public Service Enterprise Group Inc. | 596,801 | 34,793 |
IDACORP Inc. | 305,529 | 29,340 |
NRG Energy Inc. | 570,889 | 21,437 |
Ameren Corp. | 175,057 | 13,665 |
CMS Energy Corp. | 122,402 | 7,468 |
3,000,663 | ||
Total Common Stocks (Cost $29,615,052) | 39,189,851 |
Coupon | |||||
Temporary Cash Investments (2.2%) | |||||
Money Market Fund (1.5%) | |||||
1,2 Vanguard Market Liquidity Fund | 0.111% | 6,226,498 | 622,650 | ||
Face | |||||
Amount | |||||
($000) | |||||
Repurchase Agreements (0.6%) | |||||
Goldman Sachs & Co. | |||||
0.07%, 1/4/21 (Dated 12/31/20, | |||||
Repurchased Value $138,200,000, | |||||
collateralized by Federal Home Loan | |||||
Mortgage Corp. 2.500%–6.000%, 2/1/22– | |||||
2/1/48, and Federal National Mortgage | |||||
Assn. 2.500%–7.000%, 11/1/21–11/1/50, | |||||
with a value of $140,964,000) | 138,200 | 138,200 | |||
Nomura International plc | |||||
0.05%, 1/4/21 (Dated 12/31/20, | |||||
Repurchased Value $50,300,000, | |||||
collateralized by U.S. Treasury Note/Bond | |||||
0.625%–2.375%, 2/15/43–11/15/49, with a | |||||
value of $51,306,000) | 50,300 | 50,300 | |||
RBS Securities, Inc. | |||||
0.05%, 1/4/21 (Dated 12/31/20, | |||||
Repurchased Value $38,300,000, | |||||
collateralized by U.S. Treasury Note/Bond | |||||
3.125%–3.375%, 5/15/44–8/15/44, with a | |||||
value of $39,066,000) | 38,300 | 38,300 | |||
226,800 | |||||
Maturity | |||||
Date | |||||
U.S. Government and Agency Obligations (0.1%) | |||||
3 | United States Cash Management Bill | 0.083% | 3/30/21 | 4,200 | 4,199 |
3 | United States Treasury Bill | 0.095% | 1/28/21 | 35,800 | 35,798 |
39,997 | |||||
Total Temporary Cash Investments (Cost $889,262) | 889,447 | ||||
Total Investments (99.8%) (Cost $30,504,314) | 40,079,298 | ||||
Other Assets and Liabilities—Net (0.2%) | 79,260 | ||||
Net Assets (100%) | 40,158,558 | ||||
Cost is in $000. |
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $19,246,000.
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 $20,356,000 was received for securities on loan.
3 Securities with a value of $38,307,000 have been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.
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 | March 2021 | 3,787 | 709,835 | 15,214 |
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 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 securities pledged as initial margin for
open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. 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 he ld 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 co llateral 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 and derivatives.
These inputs are summarized in three broad levels for financial statement purposes. The inputs or
methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine
the fair value of investments). Any investments and derivatives valued with significant unobservable
inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund's investments and derivatives as of
December 31, 2020, based on the inputs used to value them:
Level 1 | Level 2 | Level 3 | Total | |
($000) | ($000) | ($000) | ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 38,709,993 | 479,858 | — | 39,189,851 |
Temporary Cash Investments | 622,650 | 266,797 | — | 889,447 |
Total | 39,332,643 | 746,655 | — | 40,079,298 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 4,387 | — | — | 4,387 |
1 Represents variation margin on the last day of the reporting period. |