Vanguard® Equity Income Fund
Schedule of Investments (unaudited)
As of December 31, 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 (98.0%) | |||
Communication Services (4.0%) | |||
Comcast Corp. Class A | 21,272,115 | 1,070,626 | |
Verizon Communications Inc. | 14,177,313 | 736,653 | |
AT&T Inc. | 5,814,639 | 143,040 | |
Omnicom Group Inc. | 1,080,221 | 79,148 | |
Interpublic Group of Cos. Inc. | 1,937,975 | 72,577 | |
Lumen Technologies Inc. | 2,438,425 | 30,602 | |
2,132,646 | |||
Consumer Discretionary (5.6%) | |||
Home Depot Inc. | 2,362,372 | 980,408 | |
Lowe's Cos. Inc. | 2,512,043 | 649,313 | |
McDonald's Corp. | 2,173,564 | 582,667 | |
TJX Cos. Inc. | 3,221,761 | 244,596 | |
Target Corp. | 678,091 | 156,937 | |
Best Buy Co. Inc. | 920,411 | 93,514 | |
H&R Block Inc. | 3,882,113 | 91,463 | |
Whirlpool Corp. | 202,857 | 47,602 | |
Foot Locker Inc. | 925,326 | 40,372 | |
Polaris Inc. | 227,773 | 25,034 | |
Big Lots Inc. | 344,082 | 15,501 | |
Hanesbrands Inc. | 860,501 | 14,388 | |
Garmin Ltd. | 82,218 | 11,196 | |
Newell Brands Inc. | 367,599 | 8,028 | |
2,961,019 | |||
Consumer Staples (13.8%) | |||
Procter & Gamble Co. | 9,164,124 | 1,499,067 | |
Philip Morris International Inc. | 8,674,117 | 824,041 | |
Mondelez International Inc. Class A | 11,084,403 | 735,007 | |
PepsiCo Inc. | 3,955,647 | 687,135 | |
Coca-Cola Co. | 9,114,145 | 539,649 | |
Archer-Daniels-Midland Co. | 7,477,257 | 505,388 | |
Kimberly-Clark Corp. | 3,008,602 | 429,989 | |
Walmart Inc. | 2,389,450 | 345,730 | |
Unilever plc ADR | 5,766,419 | 310,176 | |
Nestle SA ADR | 2,038,625 | 286,162 | |
Kellogg Co. | 3,540,425 | 228,074 | |
Altria Group Inc. | 4,386,690 | 207,885 | |
Colgate-Palmolive Co. | 1,825,557 | 155,793 | |
Tyson Foods Inc. Class A | 1,513,850 | 131,947 | |
Hershey Co. | 591,565 | 114,450 | |
General Mills Inc. | 1,435,731 | 96,740 | |
Kroger Co. | 1,019,999 | 46,165 | |
Coca-Cola Europacific Partners plc | 590,332 | 33,017 |
Shares | Market Value ($000) | ||
Nu Skin Enterprises Inc. Class A | 537,561 | 27,281 | |
Bunge Ltd. | 226,646 | 21,160 | |
Medifast Inc. | 69,500 | 14,555 | |
Campbell Soup Co. | 315,957 | 13,732 | |
Conagra Brands Inc. | 397,344 | 13,569 | |
7,266,712 | |||
Energy (6.4%) | |||
ConocoPhillips | 9,962,601 | 719,101 | |
Pioneer Natural Resources Co. | 3,931,293 | 715,024 | |
Chevron Corp. | 3,228,679 | 378,885 | |
1 | TC Energy Corp. | 6,728,741 | 312,939 |
Coterra Energy Inc. | 16,267,453 | 309,082 | |
Exxon Mobil Corp. | 3,888,706 | 237,950 | |
EOG Resources Inc. | 1,759,984 | 156,339 | |
Phillips 66 | 1,900,932 | 137,741 | |
Kinder Morgan Inc. | 6,685,577 | 106,033 | |
Schlumberger NV | 2,926,105 | 87,637 | |
Halliburton Co. | 3,165,570 | 72,397 | |
Targa Resources Corp. | 1,361,484 | 71,124 | |
APA Corp. | 972,830 | 26,159 | |
Williams Cos. Inc. | 669,718 | 17,439 | |
Marathon Petroleum Corp. | 139,460 | 8,924 | |
* | DTE Midstream LLC | 124,527 | 5,975 |
3,362,749 | |||
Financials (19.9%) | |||
JPMorgan Chase & Co. | 11,565,648 | 1,831,420 | |
Bank of America Corp. | 33,082,947 | 1,471,860 | |
Morgan Stanley | 11,205,582 | 1,099,940 | |
MetLife Inc. | 13,776,263 | 860,879 | |
Chubb Ltd. | 4,418,267 | 854,095 | |
BlackRock Inc. | 664,053 | 607,980 | |
Truist Financial Corp. | 8,340,194 | 488,318 | |
PNC Financial Services Group Inc. | 2,151,103 | 431,339 | |
Progressive Corp. | 4,000,344 | 410,635 | |
Wells Fargo & Co. | 6,165,311 | 295,812 | |
M&T Bank Corp. | 1,729,972 | 265,689 | |
Citigroup Inc. | 4,090,166 | 247,005 | |
Aflac Inc. | 2,206,897 | 128,861 | |
Regions Financial Corp. | 5,541,208 | 120,798 | |
Synchrony Financial | 2,465,204 | 114,361 | |
Ally Financial Inc. | 2,339,100 | 111,365 | |
Jefferies Financial Group Inc. | 2,667,608 | 103,503 | |
First American Financial Corp. | 1,299,633 | 101,670 | |
Fifth Third Bancorp | 2,091,585 | 91,089 | |
Hartford Financial Services Group Inc. | 1,261,523 | 87,096 | |
Citizens Financial Group Inc. | 1,709,268 | 80,763 | |
KeyCorp. | 3,274,870 | 75,748 | |
Unum Group | 3,043,945 | 74,790 | |
Fidelity National Financial Inc. | 1,251,415 | 65,299 | |
Discover Financial Services | 529,348 | 61,171 | |
PacWest Bancorp | 1,216,538 | 54,951 | |
US Bancorp | 977,859 | 54,926 | |
OneMain Holdings Inc. | 1,088,903 | 54,489 | |
First Horizon Corp. | 3,103,138 | 50,674 | |
Equitable Holdings Inc. | 1,306,359 | 42,836 | |
Comerica Inc. | 385,849 | 33,569 | |
Virtu Financial Inc. Class A | 1,043,954 | 30,097 |
Shares | Market Value ($000) | ||
Invesco Ltd. | 1,207,734 | 27,802 | |
Ameriprise Financial Inc. | 69,673 | 21,018 | |
Carlyle Group Inc. | 212,155 | 11,647 | |
CME Group Inc. | 40,339 | 9,216 | |
New York Community Bancorp Inc. | 745,116 | 9,098 | |
Prudential Financial Inc. | 83,463 | 9,034 | |
Travelers Cos. Inc. | 55,251 | 8,643 | |
10,499,486 | |||
Health Care (16.1%) | |||
Johnson & Johnson | 10,567,735 | 1,807,822 | |
Pfizer Inc. | 23,404,013 | 1,382,007 | |
Eli Lilly & Co. | 3,631,544 | 1,003,105 | |
Merck & Co. Inc. | 11,205,465 | 858,787 | |
UnitedHealth Group Inc. | 1,183,664 | 594,365 | |
Becton Dickinson and Co. | 1,535,542 | 386,158 | |
Anthem Inc. | 761,446 | 352,961 | |
Baxter International Inc. | 4,085,804 | 350,725 | |
AstraZeneca plc ADR | 5,686,092 | 331,215 | |
Roche Holding AG | 641,331 | 266,063 | |
Medtronic plc | 2,254,262 | 233,203 | |
Bristol-Myers Squibb Co. | 3,389,905 | 211,361 | |
Gilead Sciences Inc. | 2,875,878 | 208,818 | |
AbbVie Inc. | 1,424,413 | 192,866 | |
CVS Health Corp. | 1,234,131 | 127,313 | |
Cardinal Health Inc. | 1,766,815 | 90,973 | |
Amgen Inc. | 324,807 | 73,072 | |
8,470,814 | |||
Industrials (9.5%) | |||
Johnson Controls International plc | 7,480,269 | 608,221 | |
Eaton Corp. plc | 3,356,463 | 580,064 | |
General Dynamics Corp. | 2,688,498 | 560,471 | |
Raytheon Technologies Corp. | 5,749,948 | 494,841 | |
Caterpillar Inc. | 2,201,913 | 455,224 | |
Lockheed Martin Corp. | 1,263,542 | 449,075 | |
Union Pacific Corp. | 1,211,711 | 305,266 | |
L3Harris Technologies Inc. | 1,352,656 | 288,440 | |
United Parcel Service Inc. Class B | 958,449 | 205,434 | |
Honeywell International Inc. | 884,899 | 184,510 | |
Illinois Tool Works Inc. | 736,253 | 181,707 | |
3M Co. | 886,936 | 157,546 | |
Cummins Inc. | 568,541 | 124,022 | |
Emerson Electric Co. | 856,644 | 79,642 | |
Nielsen Holdings plc | 3,819,097 | 78,330 | |
Watsco Inc. | 205,237 | 64,215 | |
nVent Electric plc | 1,274,731 | 48,440 | |
Triton International Ltd. | 669,913 | 40,349 | |
ManpowerGroup Inc. | 286,010 | 27,837 | |
Fastenal Co. | 273,262 | 17,505 | |
Snap-on Inc. | 69,582 | 14,987 | |
ABM Industries Inc. | 349,136 | 14,262 | |
Timken Co. | 175,203 | 12,140 | |
4,992,528 | |||
Information Technology (10.0%) | |||
Cisco Systems Inc. | 21,990,872 | 1,393,562 | |
Texas Instruments Inc. | 3,667,705 | 691,252 | |
TE Connectivity Ltd. | 3,138,008 | 506,286 | |
Analog Devices Inc. | 2,674,144 | 470,034 |
Shares | Market Value ($000) | ||
Corning Inc. | 9,783,210 | 364,229 | |
QUALCOMM Inc. | 1,960,484 | 358,514 | |
Intel Corp. | 6,307,118 | 324,817 | |
International Business Machines Corp. | 1,900,977 | 254,085 | |
Broadcom Inc. | 322,349 | 214,494 | |
HP Inc. | 4,666,633 | 175,792 | |
Fidelity National Information Services Inc. | 1,554,800 | 169,706 | |
Seagate Technology Holdings plc | 1,025,256 | 115,833 | |
Automatic Data Processing Inc. | 413,955 | 102,073 | |
KLA Corp. | 191,880 | 82,530 | |
Western Union Co. | 1,955,684 | 34,889 | |
Hewlett Packard Enterprise Co. | 1,325,562 | 20,904 | |
5,279,000 | |||
Materials (4.4%) | |||
PPG Industries Inc. | 3,135,506 | 540,687 | |
Celanese Corp. Class A | 3,065,231 | 515,143 | |
LyondellBasell Industries NV Class A | 4,344,990 | 400,738 | |
Dow Inc. | 2,329,997 | 132,157 | |
Nucor Corp. | 1,143,288 | 130,506 | |
Linde plc | 361,487 | 125,230 | |
Reliance Steel & Aluminum Co. | 618,143 | 100,275 | |
1 | Rio Tinto plc ADR | 1,265,496 | 84,712 |
International Paper Co. | 1,562,641 | 73,413 | |
Steel Dynamics Inc. | 1,174,123 | 72,878 | |
CF Industries Holdings Inc. | 985,398 | 69,747 | |
Packaging Corp. of America | 252,030 | 34,314 | |
Huntsman Corp. | 612,481 | 21,363 | |
Westrock Co. | 398,092 | 17,659 | |
Greif Inc. Class A | 199,602 | 12,050 | |
* | Sylvamo Corp. | 178,191 | 4,970 |
2,335,842 | |||
Real Estate (0.6%) | |||
Crown Castle International Corp. | 1,570,459 | 327,818 | |
Utilities (7.7%) | |||
Exelon Corp. | 10,476,866 | 605,144 | |
American Electric Power Co. Inc. | 6,643,049 | 591,032 | |
Duke Energy Corp. | 5,254,317 | 551,178 | |
Dominion Energy Inc. | 6,689,799 | 525,551 | |
Sempra Energy (XNYS) | 3,758,217 | 497,137 | |
DTE Energy Co. | 1,957,674 | 234,020 | |
Entergy Corp. | 2,033,298 | 229,051 | |
NextEra Energy Inc. | 1,277,489 | 119,266 | |
Southern Co. | 1,672,461 | 114,698 | |
Evergy Inc. | 1,639,373 | 112,478 | |
AES Corp. | 4,607,829 | 111,970 | |
UGI Corp. | 1,383,009 | 63,494 | |
PPL Corp. | 1,855,832 | 55,786 | |
WEC Energy Group Inc. | 569,967 | 55,327 | |
NRG Energy Inc. | 1,209,477 | 52,104 | |
FirstEnergy Corp. | 1,236,670 | 51,433 | |
IDACORP Inc. | 334,259 | 37,875 | |
NiSource Inc. | 793,883 | 21,919 | |
CMS Energy Corp. | 185,874 | 12,091 | |
4,041,554 | |||
Total Common Stocks (Cost $35,238,993) | 51,670,168 |
Shares | Market Value ($000) | ||
Temporary Cash Investments (2.1%) | |||
Money Market Fund (1.6%) | |||
2,3 | Vanguard Market Liquidity Fund, 0.090% | 8,610,240 | 860,938 |
Face Amount ($000) | |||
Repurchase Agreements (0.5%) | |||
Goldman, Sachs & Co. 0.050%, 1/3/22 (Dated 12/31/21, Repurchase Value $36,600,000, collateralized by Fannie Mae 2.500%–5.500%, 5/1/33–8/1/51, Freddie Mac 2.000%–6.000%, 2/1/23–11/1/51, and Ginnie Mae 3.000%, 9/20/42, with a value of $37,332,000) | 36,600 | 36,600 | |
Nomura International plc 0.050%, 1/3/22 (Dated 12/31/21, Repurchase Value $87,700,000, collateralized by U.S. Treasury Note/Bond 0.250%–2.750%, 2/15/24–1/31/28, with a value of $89,454,000) | 87,700 | 87,700 | |
RBS Securities Inc. 0.050%, 1/3/22 (Dated 12/31/21, Repurchase Value $138,001,000, collateralized by U.S. Treasury Note/Bond 1.250%–2.875%, 9/30/23–9/30/28, with a value of $140,760,000) | 138,000 | 138,000 | |
262,300 | |||
Total Temporary Cash Investments (Cost $1,123,078) | 1,123,238 | ||
Total Investments (100.1%) (Cost $36,362,071) | 52,793,406 | ||
Other Assets and Liabilities—Net (-0.1%) | (58,030) | ||
Net Assets (100%) | 52,735,376 | ||
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 $107,309,000. |
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 $111,673,000 was received for securities on loan. |
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 | March 2022 | 3,366 | 800,856 | 13,298 |
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 December 31, 2021, based on the inputs used to value them:
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 51,404,105 | 266,063 | — | 51,670,168 |
Temporary Cash Investments | 860,938 | 262,300 | — | 1,123,238 |
Total | 52,265,043 | 528,363 | — | 52,793,406 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 13,298 | — | — | 13,298 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. |