Vanguard® Equity Income Fund
Schedule of Investments (unaudited)
As of June 30, 2021
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 (97.3%) | |||
Communication Services (4.7%) | |||
Comcast Corp. Class A | 18,764,730 | 1,069,965 | |
Verizon Communications Inc. | 13,617,152 | 762,969 | |
AT&T Inc. | 6,757,488 | 194,481 | |
Omnicom Group Inc. | 1,307,310 | 104,572 | |
Lumen Technologies Inc. | 7,465,066 | 101,450 | |
Interpublic Group of Cos. Inc. | 2,121,344 | 68,922 | |
2,302,359 | |||
Consumer Discretionary (4.9%) | |||
Home Depot Inc. | 2,820,357 | 899,383 | |
McDonald's Corp. | 2,149,057 | 496,411 | |
Lowe's Cos. Inc. | 1,446,434 | 280,565 | |
TJX Cos. Inc. | 1,918,823 | 129,367 | |
Target Corp. | 519,202 | 125,512 | |
Best Buy Co. Inc. | 993,419 | 114,223 | |
H&R Block Inc. | 3,999,200 | 93,901 | |
Polaris Inc. | 434,180 | 59,465 | |
Whirlpool Corp. | 239,693 | 52,258 | |
Big Lots Inc. | 613,254 | 40,481 | |
Newell Brands Inc. | 1,211,782 | 33,288 | |
Foot Locker Inc. | 340,535 | 20,987 | |
Williams-Sonoma Inc. | 72,446 | 11,566 | |
2,357,407 | |||
Consumer Staples (14.0%) | |||
Procter & Gamble Co. | 9,423,702 | 1,271,540 | |
Philip Morris International Inc. | 9,026,313 | 894,598 | |
Mondelez International Inc. Class A | 12,149,107 | 758,590 | |
PepsiCo Inc. | 4,038,124 | 598,329 | |
Coca-Cola Co. | 9,537,906 | 516,096 | |
Archer-Daniels-Midland Co. | 6,281,358 | 380,650 | |
Unilever plc ADR | 6,320,375 | 369,742 | |
Kimberly-Clark Corp. | 2,577,356 | 344,799 | |
Walmart Inc. | 2,389,941 | 337,029 | |
Nestle SA ADR | 2,160,041 | 269,444 | |
Kellogg Co. | 3,702,347 | 238,172 | |
Altria Group Inc. | 4,059,685 | 193,566 | |
General Mills Inc. | 1,889,510 | 115,128 | |
Tyson Foods Inc. Class A | 1,443,750 | 106,491 | |
Conagra Brands Inc. | 2,038,694 | 74,168 | |
Campbell Soup Co. | 1,505,786 | 68,649 | |
Clorox Co. | 281,114 | 50,575 | |
Colgate-Palmolive Co. | 545,977 | 44,415 |
Shares | Market Value ($000) | ||
Hershey Co. | 232,255 | 40,454 | |
Coca-Cola Europacific Partners plc | 590,332 | 35,018 | |
Kraft Heinz Co. | 704,080 | 28,712 | |
Nu Skin Enterprises Inc. Class A | 431,137 | 24,424 | |
Walgreens Boots Alliance Inc. | 365,084 | 19,207 | |
Medifast Inc. | 58,464 | 16,544 | |
Kroger Co. | 316,434 | 12,123 | |
Bunge Ltd. | 124,014 | 9,692 | |
J M Smucker Co. | 61,037 | 7,909 | |
6,826,064 | |||
Energy (5.9%) | |||
Pioneer Natural Resources Co. | 3,686,597 | 599,146 | |
ConocoPhillips | 8,307,981 | 505,956 | |
Phillips 66 | 3,865,947 | 331,776 | |
1 | TC Energy Corp. | 6,336,183 | 313,538 |
Exxon Mobil Corp. | 3,886,620 | 245,168 | |
Chevron Corp. | 2,332,356 | 244,291 | |
Kinder Morgan Inc. | 7,474,048 | 136,252 | |
Schlumberger NV | 4,035,267 | 129,169 | |
Halliburton Co. | 3,546,212 | 81,988 | |
Williams Cos. Inc. | 2,952,708 | 78,394 | |
Devon Energy Corp. | 2,163,573 | 63,155 | |
Targa Resources Corp. | 1,361,484 | 60,518 | |
Cimarex Energy Co. | 482,235 | 34,938 | |
APA Corp. | 972,830 | 21,042 | |
Marathon Petroleum Corp. | 159,219 | 9,620 | |
2,854,951 | |||
Financials (21.1%) | |||
JPMorgan Chase & Co. | 11,685,737 | 1,817,600 | |
Bank of America Corp. | 34,251,078 | 1,412,172 | |
Morgan Stanley | 9,995,817 | 916,516 | |
MetLife Inc. | 12,532,713 | 750,083 | |
Chubb Ltd. | 4,007,750 | 636,992 | |
BlackRock Inc. | 721,385 | 631,190 | |
Progressive Corp. | 5,843,300 | 573,870 | |
Truist Financial Corp. | 9,217,023 | 511,545 | |
PNC Financial Services Group Inc. | 1,987,742 | 379,182 | |
Blackstone Group Inc. | 3,055,870 | 296,847 | |
Citigroup Inc. | 3,824,041 | 270,551 | |
Wells Fargo & Co. | 5,436,856 | 246,235 | |
M&T Bank Corp. | 1,677,500 | 243,757 | |
Aflac Inc. | 2,458,136 | 131,904 | |
Fifth Third Bancorp | 3,266,694 | 124,886 | |
Synchrony Financial | 2,450,139 | 118,881 | |
Regions Financial Corp. | 5,379,694 | 108,562 | |
Jefferies Financial Group Inc. | 3,023,717 | 103,411 | |
Citizens Financial Group Inc. | 2,236,364 | 102,582 | |
Ally Financial Inc. | 2,033,980 | 101,374 | |
Unum Group | 3,050,629 | 86,638 | |
First American Financial Corp. | 1,299,793 | 81,042 | |
First Horizon Corp. | 4,606,521 | 79,601 | |
Virtu Financial Inc. Class A | 2,181,604 | 60,278 | |
U.S. Bancorp | 1,015,393 | 57,847 | |
KeyCorp. | 2,783,669 | 57,483 | |
T Rowe Price Group Inc. | 260,663 | 51,603 | |
Prudential Financial Inc. | 500,266 | 51,262 | |
PacWest Bancorp | 1,030,423 | 42,412 |
Shares | Market Value ($000) | ||
Discover Financial Services | 299,178 | 35,390 | |
OneMain Holdings Inc. | 554,367 | 33,212 | |
Bank of New York Mellon Corp. | 639,708 | 32,772 | |
Fidelity National Financial Inc. | 666,497 | 28,966 | |
Equitable Holdings Inc. | 875,693 | 26,665 | |
New York Community Bancorp Inc. | 1,772,003 | 19,527 | |
Huntington Bancshares Inc. | 1,314,832 | 18,763 | |
Prosperity Bancshares Inc. | 178,447 | 12,812 | |
CME Group Inc. | 40,339 | 8,579 | |
MGIC Investment Corp. | 82,337 | 1,120 | |
10,264,112 | |||
Health Care (16.4%) | |||
Johnson & Johnson | 11,066,632 | 1,823,117 | |
Eli Lilly & Co. | 4,403,781 | 1,010,756 | |
Pfizer Inc. | 22,347,470 | 875,127 | |
Merck & Co. Inc. | 11,229,034 | 873,282 | |
UnitedHealth Group Inc. | 1,297,342 | 519,508 | |
Becton Dickinson and Co. | 1,683,096 | 409,312 | |
Medtronic plc | 2,431,545 | 301,828 | |
Anthem Inc. | 790,015 | 301,628 | |
Baxter International Inc. | 3,364,407 | 270,835 | |
1 | AstraZeneca plc ADR | 4,474,083 | 267,997 |
Roche Holding AG | 668,168 | 251,791 | |
Novartis AG (Registered) | 2,368,166 | 216,040 | |
Bristol-Myers Squibb Co. | 3,020,691 | 201,842 | |
Gilead Sciences Inc. | 2,813,050 | 193,707 | |
AbbVie Inc. | 1,415,587 | 159,452 | |
Cardinal Health Inc. | 1,842,080 | 105,164 | |
Amgen Inc. | 359,898 | 87,725 | |
CVS Health Corp. | 858,300 | 71,616 | |
* | Organon & Co. | 411,887 | 12,464 |
7,953,191 | |||
Industrials (10.0%) | |||
Lockheed Martin Corp. | 1,822,273 | 689,457 | |
Johnson Controls International plc | 8,195,166 | 562,434 | |
Eaton Corp. plc | 3,678,815 | 545,127 | |
Raytheon Technologies Corp. | 6,188,562 | 527,946 | |
Caterpillar Inc. | 2,249,952 | 489,657 | |
General Dynamics Corp. | 2,257,847 | 425,062 | |
Union Pacific Corp. | 1,307,033 | 287,456 | |
United Parcel Service Inc. Class B | 991,016 | 206,102 | |
Honeywell International Inc. | 910,988 | 199,825 | |
Waste Management Inc. | 1,156,500 | 162,037 | |
Illinois Tool Works Inc. | 643,111 | 143,774 | |
Cummins Inc. | 524,427 | 127,861 | |
3M Co. | 610,840 | 121,331 | |
Nielsen Holdings plc | 4,014,850 | 99,047 | |
Fastenal Co. | 1,361,563 | 70,801 | |
Watsco Inc. | 202,000 | 57,901 | |
PACCAR Inc. | 398,435 | 35,560 | |
nVent Electric plc | 1,109,614 | 34,664 | |
Triton International Ltd. | 525,936 | 27,528 | |
CH Robinson Worldwide Inc. | 175,319 | 16,422 | |
ABM Industries Inc. | 328,678 | 14,577 | |
Timken Co. | 151,104 | 12,178 | |
Snap-on Inc. | 53,198 | 11,886 | |
4,868,633 |
Shares | Market Value ($000) | ||
Information Technology (8.8%) | |||
Cisco Systems Inc. | 23,425,574 | 1,241,555 | |
TE Connectivity Ltd. | 3,439,485 | 465,053 | |
Corning Inc. | 10,722,957 | 438,569 | |
Automatic Data Processing Inc. | 1,697,629 | 337,183 | |
Analog Devices Inc. | 1,793,442 | 308,759 | |
Intel Corp. | 5,054,699 | 283,771 | |
International Business Machines Corp. | 1,683,828 | 246,832 | |
QUALCOMM Inc. | 1,682,593 | 240,493 | |
Texas Instruments Inc. | 1,065,887 | 204,970 | |
HP Inc. | 4,666,633 | 140,886 | |
Broadcom Inc. | 294,038 | 140,209 | |
Seagate Technology Holdings plc | 1,237,372 | 108,802 | |
KLA Corp. | 236,914 | 76,810 | |
Western Union Co. | 2,049,021 | 47,066 | |
4,280,958 | |||
Materials (3.6%) | |||
PPG Industries Inc. | 2,357,373 | 400,211 | |
Celanese Corp. Class A | 2,405,240 | 364,634 | |
Rio Tinto plc ADR | 2,591,200 | 217,376 | |
Nucor Corp. | 1,302,178 | 124,918 | |
Dow Inc. | 1,959,607 | 124,004 | |
International Paper Co. | 1,960,103 | 120,174 | |
Linde plc | 361,487 | 104,506 | |
Reliance Steel & Aluminum Co. | 553,902 | 83,584 | |
CF Industries Holdings Inc. | 1,098,069 | 56,496 | |
Steel Dynamics Inc. | 921,022 | 54,893 | |
Newmont Corp. | 587,986 | 37,266 | |
Huntsman Corp. | 910,329 | 24,142 | |
Westrock Co. | 411,318 | 21,890 | |
Packaging Corp. of America | 94,547 | 12,804 | |
Greif Inc. Class A | 206,726 | 12,517 | |
1,759,415 | |||
Real Estate (1.0%) | |||
Crown Castle International Corp. | 2,463,772 | 480,682 | |
Utilities (6.9%) | |||
Sempra Energy | 3,835,662 | 508,149 | |
Dominion Energy Inc. | 6,714,697 | 494,000 | |
Duke Energy Corp. | 3,910,618 | 386,056 | |
Exelon Corp. | 7,817,347 | 346,387 | |
American Electric Power Co. Inc. | 3,781,707 | 319,895 | |
Entergy Corp. | 2,302,261 | 229,535 | |
DTE Energy Co. | 1,498,514 | 194,207 | |
Southern Co. | 2,110,915 | 127,731 | |
UGI Corp. | 2,417,626 | 111,960 | |
AES Corp. | 4,275,714 | 111,468 | |
NextEra Energy Inc. | 1,277,489 | 93,614 | |
Evergy Inc. | 1,463,602 | 88,445 | |
PPL Corp. | 2,923,906 | 81,782 | |
FirstEnergy Corp. | 1,315,660 | 48,956 | |
CenterPoint Energy Inc. | 1,792,590 | 43,954 | |
WEC Energy Group Inc. | 420,412 | 37,396 | |
Public Service Enterprise Group Inc. | 621,976 | 37,157 | |
NRG Energy Inc. | 800,342 | 32,254 | |
IDACORP Inc. | 310,815 | 30,304 |
Shares | Market Value ($000) | ||
CMS Energy Corp. | 348,790 | 20,607 | |
3,343,857 | |||
Total Common Stocks (Cost $33,237,719) | 47,291,629 | ||
Temporary Cash Investments (3.3%) | |||
Money Market Fund (2.9%) | |||
2,3 | Vanguard Market Liquidity Fund, 0.056% | 14,065,766 | 1,406,576 |
Face Amount ($000) | |||
Repurchase Agreements (0.4%) | |||
Goldman Sachs & Co. 0.050%, 7/1/21 (Dated 6/30/21, Repurchase Value $106,100,000, collateralized by Federal National Mortgage Association 4.000%, 4/1/41, Government National Mortgage Association 2.000%–8.500%, 3/20/27–2/20/51, and U.S.Treasury Note/Bond 2.250%, 8/15/27, with a value of $108,222,000) | 106,100 | 106,100 | |
Nomura International plc 0.050%, 7/1/21 (Dated 6/30/21, Repurchase Value $26,900,000, collateralized by U.S.Treasury Note/Bond 1.375%, 8/15/50, with a value of $27,438,000) | 26,900 | 26,900 | |
RBS Securities Inc. 0.050%, 7/1/21 (Dated 6/30/21, Repurchase Value $58,600,000, collateralized by U.S.Treasury Note/Bond 3.000%, 2/15/47, with a value of $59,772,000) | 58,600 | 58,600 | |
191,600 | |||
U.S. Government and Agency Obligations (0.0%) | |||
4 | U.S. Treasury Bill, 0.020%, 8/26/21 | 4,000 | 4,000 |
Total Temporary Cash Investments (Cost $1,601,993) | 1,602,176 | ||
Total Investments (100.6%) (Cost $34,839,712) | 48,893,805 | ||
Other Assets and Liabilities—Net (-0.6%) | (283,575) | ||
Net Assets (100%) | 48,610,230 | ||
Cost is in $000. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $316,160,000. |
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 $329,686,000 was received for securities on loan. |
4 | Securities with a value of $2,447,000 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) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | September 2021 | 4,874 | 1,045,132 | 14,664 |
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 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 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 June 30, 2021, based on the inputs used to value them:
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 46,823,798 | 467,831 | — | 47,291,629 |
Temporary Cash Investments | 1,406,576 | 195,600 | — | 1,602,176 |
Total | 48,230,374 | 663,431 | — | 48,893,805 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 14,664 | — | — | 14,664 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. |