Vanguard® Equity Income Fund
Schedule of Investments (unaudited)
As of June 30, 2022
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 (97.6%) | |||
Communication Services (3.3%) | |||
Comcast Corp. Class A | 20,700,810 | 812,300 | |
Verizon Communications Inc. | 12,410,584 | 629,837 | |
AT&T Inc. | 4,560,632 | 95,591 | |
Interpublic Group of Cos. Inc. | 2,230,706 | 61,411 | |
Omnicom Group Inc. | 658,962 | 41,917 | |
Lumen Technologies Inc. | 1,282,594 | 13,993 | |
1,655,049 | |||
Consumer Discretionary (5.0%) | |||
Home Depot Inc. | 2,443,866 | 670,279 | |
Lowe's Cos. Inc. | 3,183,083 | 555,989 | |
TJX Cos. Inc. | 6,819,838 | 380,888 | |
McDonald's Corp. | 1,025,942 | 253,285 | |
Starbucks Corp. | 2,385,524 | 182,230 | |
Target Corp. | 1,006,705 | 142,177 | |
H&R Block Inc. | 3,055,377 | 107,916 | |
Best Buy Co. Inc. | 1,476,623 | 96,261 | |
Whirlpool Corp. | 166,327 | 25,759 | |
Genuine Parts Co. | 138,843 | 18,466 | |
Foot Locker Inc. | 716,091 | 18,082 | |
Tapestry Inc. | 574,180 | 17,524 | |
Macy's Inc. | 918,619 | 16,829 | |
Garmin Ltd. | 86,129 | 8,462 | |
2,494,147 | |||
Consumer Staples (12.7%) | |||
Procter & Gamble Co. | 8,190,604 | 1,177,727 | |
Philip Morris International Inc. | 8,601,476 | 849,310 | |
Mondelez International Inc. Class A | 12,483,400 | 775,094 | |
Coca-Cola Co. | 8,448,530 | 531,497 | |
PepsiCo Inc. | 2,927,939 | 487,970 | |
Unilever plc ADR | 9,615,111 | 440,660 | |
Archer-Daniels-Midland Co. | 5,293,050 | 410,741 | |
Kimberly-Clark Corp. | 2,535,410 | 342,661 | |
Walmart Inc. | 2,544,552 | 309,367 | |
Kellogg Co. | 3,467,740 | 247,388 | |
Altria Group Inc. | 4,328,353 | 180,795 | |
Hershey Co. | 660,377 | 142,087 | |
Tyson Foods Inc. Class A | 1,513,850 | 130,282 | |
Kroger Co. | 2,709,817 | 128,256 | |
Colgate-Palmolive Co. | 1,063,821 | 85,255 | |
Bunge Ltd. | 355,047 | 32,199 | |
Coca-Cola Europacific Partners plc | 590,332 | 30,467 | |
Medifast Inc. | 129,514 | 23,378 |
Shares | Market Value ($000) | ||
Nu Skin Enterprises Inc. Class A | 467,552 | 20,245 | |
6,345,379 | |||
Energy (8.1%) | |||
ConocoPhillips | 10,603,454 | 952,296 | |
EOG Resources Inc. | 4,455,880 | 492,107 | |
Coterra Energy Inc. | 17,073,224 | 440,318 | |
1 | TC Energy Corp. | 7,727,618 | 400,309 |
Chevron Corp. | 2,691,907 | 389,734 | |
Exxon Mobil Corp. | 4,478,183 | 383,512 | |
Pioneer Natural Resources Co. | 1,386,002 | 309,189 | |
Phillips 66 | 3,315,438 | 271,833 | |
Diamondback Energy Inc. | 825,537 | 100,014 | |
Halliburton Co. | 2,695,832 | 84,541 | |
Marathon Petroleum Corp. | 884,364 | 72,704 | |
Targa Resources Corp. | 1,153,775 | 68,846 | |
Valero Energy Corp. | 463,661 | 49,278 | |
APA Corp. | 972,830 | 33,952 | |
DTE Midstream LLC | 124,527 | 6,104 | |
4,054,737 | |||
Financials (18.0%) | |||
JPMorgan Chase & Co. | 14,454,833 | 1,627,759 | |
Morgan Stanley | 11,883,213 | 903,837 | |
MetLife Inc. | 13,419,097 | 842,585 | |
Chubb Ltd. | 4,260,181 | 837,466 | |
BlackRock Inc. | 766,342 | 466,733 | |
Progressive Corp. | 3,901,238 | 453,597 | |
Truist Financial Corp. | 7,902,102 | 374,797 | |
M&T Bank Corp. | 2,314,849 | 368,964 | |
Bank of America Corp. | 11,623,253 | 361,832 | |
Royal Bank of Canada | 3,493,005 | 338,229 | |
PNC Financial Services Group Inc. | 2,060,718 | 325,120 | |
Wells Fargo & Co. | 7,009,670 | 274,569 | |
Blackstone Inc. | 2,220,997 | 202,622 | |
Citigroup Inc. | 4,320,293 | 198,690 | |
Hartford Financial Services Group Inc. | 1,396,066 | 91,345 | |
Synchrony Financial | 3,255,317 | 89,912 | |
Ally Financial Inc. | 2,652,308 | 88,879 | |
Unum Group | 2,479,936 | 84,367 | |
Fidelity National Financial Inc. | 2,280,523 | 84,288 | |
Jefferies Financial Group Inc. | 2,931,818 | 80,977 | |
Ameriprise Financial Inc. | 322,839 | 76,732 | |
Aflac Inc. | 1,367,955 | 75,689 | |
Allstate Corp. | 571,680 | 72,449 | |
Regions Financial Corp. | 3,531,946 | 66,224 | |
First American Financial Corp. | 1,162,418 | 61,515 | |
Goldman Sachs Group Inc. | 204,700 | 60,800 | |
OneMain Holdings Inc. | 1,591,260 | 59,481 | |
Discover Financial Services | 560,708 | 53,032 | |
Equitable Holdings Inc. | 1,693,944 | 44,161 | |
Fifth Third Bancorp | 1,230,962 | 41,360 | |
US Bancorp | 898,355 | 41,342 | |
Comerica Inc. | 512,751 | 37,626 | |
PacWest Bancorp | 1,385,148 | 36,928 | |
Zions Bancorp NA | 629,633 | 32,048 | |
SLM Corp. | 1,832,333 | 29,207 | |
Invesco Ltd. | 1,791,575 | 28,898 | |
Travelers Cos. Inc. | 133,464 | 22,573 |
Shares | Market Value ($000) | ||
MGIC Investment Corp. | 1,466,278 | 18,475 | |
Virtu Financial Inc. Class A | 595,431 | 13,939 | |
Franklin Resources Inc. | 366,403 | 8,541 | |
Citizens Financial Group Inc. | 228,581 | 8,158 | |
KeyCorp. | 472,160 | 8,135 | |
Jackson Financial Inc. Class A | 288,946 | 7,729 | |
State Street Corp. | 107,263 | 6,613 | |
9,008,223 | |||
Health Care (19.7%) | |||
Johnson & Johnson | 10,392,185 | 1,844,717 | |
Pfizer Inc. | 32,430,501 | 1,700,331 | |
Merck & Co. Inc. | 13,842,683 | 1,262,037 | |
Eli Lilly & Co. | 3,693,442 | 1,197,525 | |
UnitedHealth Group Inc. | 1,145,749 | 588,491 | |
Elevance Health Inc. | 1,032,095 | 498,068 | |
AstraZeneca plc ADR | 6,702,400 | 442,828 | |
Medtronic plc | 3,858,926 | 346,339 | |
Roche Holding AG | 988,683 | 330,517 | |
Becton Dickinson and Co. | 1,328,342 | 327,476 | |
AbbVie Inc. | 1,991,844 | 305,071 | |
Baxter International Inc. | 4,425,696 | 284,263 | |
CVS Health Corp. | 2,181,857 | 202,171 | |
Gilead Sciences Inc. | 3,095,169 | 191,312 | |
Bristol-Myers Squibb Co. | 1,543,564 | 118,854 | |
Cardinal Health Inc. | 1,535,038 | 80,236 | |
Amgen Inc. | 308,344 | 75,020 | |
Viatris Inc. | 3,835,127 | 40,154 | |
9,835,410 | |||
Industrials (8.9%) | |||
General Dynamics Corp. | 2,681,511 | 593,284 | |
Johnson Controls International plc | 10,469,916 | 501,300 | |
Eaton Corp. plc | 3,268,978 | 411,858 | |
Raytheon Technologies Corp. | 4,255,989 | 409,043 | |
L3Harris Technologies Inc. | 1,581,273 | 382,194 | |
Canadian National Railway Co. | 3,141,133 | 353,329 | |
Honeywell International Inc. | 1,905,374 | 331,173 | |
Caterpillar Inc. | 1,532,776 | 273,999 | |
Northrop Grumman Corp. | 549,273 | 262,866 | |
United Parcel Service Inc. Class B | 935,600 | 170,784 | |
Emerson Electric Co. | 1,752,639 | 139,405 | |
3M Co. | 1,039,841 | 134,566 | |
Lockheed Martin Corp. | 291,427 | 125,302 | |
Cummins Inc. | 525,761 | 101,750 | |
Triton International Ltd. | 1,091,155 | 57,449 | |
Nielsen Holdings plc | 2,335,078 | 54,220 | |
ManpowerGroup Inc. | 670,818 | 51,257 | |
nVent Electric plc | 1,396,222 | 43,744 | |
Fastenal Co. | 621,173 | 31,009 | |
Watsco Inc. | 108,647 | 25,947 | |
Snap-on Inc. | 58,411 | 11,509 | |
ABM Industries Inc. | 184,400 | 8,007 | |
4,473,995 | |||
Information Technology (9.4%) | |||
Cisco Systems Inc. | 20,664,951 | 881,154 | |
Texas Instruments Inc. | 4,405,501 | 676,905 | |
QUALCOMM Inc. | 4,116,043 | 525,783 | |
Analog Devices Inc. | 3,390,111 | 495,261 |
Shares | Market Value ($000) | ||
Broadcom Inc. | 784,275 | 381,009 | |
TE Connectivity Ltd. | 3,036,997 | 343,636 | |
Corning Inc. | 10,615,853 | 334,506 | |
NXP Semiconductors NV | 1,937,847 | 286,859 | |
Intel Corp. | 4,240,746 | 158,646 | |
Fidelity National Information Services Inc. | 1,554,800 | 142,529 | |
HP Inc. | 4,140,363 | 135,721 | |
Automatic Data Processing Inc. | 447,034 | 93,895 | |
Seagate Technology Holdings plc | 1,072,348 | 76,609 | |
International Business Machines Corp. | 488,366 | 68,952 | |
KLA Corp. | 191,880 | 61,225 | |
Western Union Co. | 2,969,205 | 48,903 | |
Hewlett Packard Enterprise Co. | 1,406,156 | 18,646 | |
4,730,239 | |||
Materials (3.7%) | |||
LyondellBasell Industries NV Class A | 5,335,013 | 466,600 | |
PPG Industries Inc. | 3,640,298 | 416,232 | |
Celanese Corp. Class A | 2,165,678 | 254,705 | |
Reliance Steel & Aluminum Co. | 625,283 | 106,211 | |
Dow Inc. | 2,012,209 | 103,850 | |
Nucor Corp. | 987,316 | 103,086 | |
CF Industries Holdings Inc. | 1,197,204 | 102,636 | |
Linde plc | 332,719 | 95,667 | |
Steel Dynamics Inc. | 1,267,292 | 83,831 | |
1 | Rio Tinto plc ADR | 1,265,496 | 77,195 |
Olin Corp. | 508,296 | 23,524 | |
Greif Inc. Class A | 150,987 | 9,419 | |
Huntsman Corp. | 299,404 | 8,488 | |
Westrock Co. | 195,588 | 7,792 | |
1,859,236 | |||
Real Estate (0.6%) | |||
Crown Castle International Corp. | 1,661,420 | 279,750 | |
Utilities (8.2%) | |||
American Electric Power Co. Inc. | 7,317,950 | 702,084 | |
Exelon Corp. | 15,022,130 | 680,803 | |
Duke Energy Corp. | 5,231,376 | 560,856 | |
Sempra Energy (XNYS) | 3,242,917 | 487,313 | |
Dominion Energy Inc. | 4,872,084 | 388,841 | |
DTE Energy Co. | 1,815,570 | 230,124 | |
Constellation Energy Corp. | 3,902,575 | 223,461 | |
NextEra Energy Inc. | 1,339,760 | 103,778 | |
AES Corp. | 4,927,711 | 103,531 | |
WEC Energy Group Inc. | 919,678 | 92,556 | |
NRG Energy Inc. | 2,317,389 | 88,455 | |
Evergy Inc. | 1,325,247 | 86,472 | |
Vistra Corp. | 3,759,641 | 85,908 | |
NiSource Inc. | 2,596,350 | 76,566 | |
PPL Corp. | 1,517,022 | 41,157 | |
IDACORP Inc. | 387,568 | 41,051 | |
UGI Corp. | 1,037,842 | 40,071 | |
FirstEnergy Corp. | 910,387 | 34,950 | |
Portland General Electric Co. | 453,582 | 21,922 | |
Eversource Energy | 138,538 | 11,702 | |
National Fuel Gas Co. | 171,864 | 11,352 |
Shares | Market Value ($000) | ||
Southern Co. | 125,443 | 8,945 | |
4,121,898 | |||
Total Common Stocks (Cost $38,725,456) | 48,858,063 | ||
Temporary Cash Investments (2.8%) | |||
Money Market Fund (2.5%) | |||
2,3 | Vanguard Market Liquidity Fund, 1.417% | 12,350,746 | 1,234,704 |
Face Amount ($000) | |||
Repurchase Agreements (0.1%) | |||
Goldman, Sachs & Co. 1.500%, 7/1/22 (Dated 6/30/22, Repurchase Value $29,801,000, collateralized by Ginnie Mae 2.690%–5.500%, 1/20/29–3/15/57, with a value of $30,396,000) | 29,800 | 29,800 | |
NatWest Markets plc 1.480%, 7/1/22 (Dated 6/30/22, Repurchase Value $5,200,000, collateralized by U.S. Treasury Note/Bond 2.000%–2.750%, 5/31/24–5/31/29, with a value of $5,304,000) | 5,200 | 5,200 | |
Nomura International plc 1.480%, 7/1/22 (Dated 6/30/22, Repurchase Value $4,800,000, collateralized by U.S. Treasury Note/Bond 2.000%, 8/15/51, with a value of $4,896,000) | 4,800 | 4,800 | |
39,800 | |||
U.S. Government and Agency Obligations (0.2%) | |||
United States Treasury Bill, 0.864%, 7/5/22 | 110,000 | 109,987 | |
Total Temporary Cash Investments (Cost $1,384,445) | 1,384,491 | ||
Total Investments (100.4%) (Cost $40,109,901) | 50,242,554 | ||
Other Assets and Liabilities—Net (-0.4%) | (212,680) | ||
Net Assets (100%) | 50,029,874 | ||
Cost is in $000. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $279,901,000. |
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 $297,376,000 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 | September 2022 | 5,152 | 976,175 | (20,717) |
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, 2022, based on the inputs used to value them:
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 48,527,546 | 330,517 | — | 48,858,063 |
Temporary Cash Investments | 1,234,704 | 149,787 | — | 1,384,491 |
Total | 49,762,250 | 480,304 | — | 50,242,554 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 20,717 | — | — | 20,717 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. |