Vanguard® Equity Income Fund
Schedule of Investments (unaudited)
As of December 31, 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 (97.8%) | |||
Communication Services (2.1%) | |||
Comcast Corp. Class A | 23,698,340 | 828,731 | |
Verizon Communications Inc. | 6,676,384 | 263,050 | |
AT&T Inc. | 4,062,864 | 74,797 | |
1,166,578 | |||
Consumer Discretionary (5.8%) | |||
Home Depot Inc. | 3,756,672 | 1,186,582 | |
TJX Cos. Inc. | 6,550,925 | 521,454 | |
Lennar Corp. Class A | 4,177,581 | 378,071 | |
Lowe's Cos. Inc. | 1,680,966 | 334,916 | |
McDonald's Corp. | 788,310 | 207,743 | |
Target Corp. | 668,814 | 99,680 | |
Advance Auto Parts Inc. | 652,009 | 95,865 | |
Best Buy Co. Inc. | 1,130,695 | 90,693 | |
Williams-Sonoma Inc. | 602,250 | 69,211 | |
Whirlpool Corp. | 295,892 | 41,857 | |
Starbucks Corp. | 411,491 | 40,820 | |
Macy's Inc. | 1,227,805 | 25,354 | |
H&R Block Inc. | 654,515 | 23,896 | |
Travel & Leisure Co. | 492,342 | 17,921 | |
Wendy's Co. | 590,018 | 13,352 | |
3,147,415 | |||
Consumer Staples (12.2%) | |||
Procter & Gamble Co. | 6,425,086 | 973,786 | |
Philip Morris International Inc. | 8,301,609 | 840,206 | |
Mondelez International Inc. Class A | 11,290,126 | 752,487 | |
1 | Unilever plc ADR | 13,511,320 | 680,295 |
Archer-Daniels-Midland Co. | 6,625,616 | 615,188 | |
Keurig Dr Pepper Inc. | 12,094,687 | 431,296 | |
Kellogg Co. | 5,403,103 | 384,917 | |
Walmart Inc. | 2,566,604 | 363,919 | |
Kimberly-Clark Corp. | 2,449,162 | 332,474 | |
PepsiCo Inc. | 1,259,480 | 227,538 | |
Coca-Cola Co. | 3,509,382 | 223,232 | |
Altria Group Inc. | 4,453,019 | 203,547 | |
Hershey Co. | 635,500 | 147,163 | |
Kroger Co. | 3,053,359 | 136,119 | |
Tyson Foods Inc. Class A | 1,863,837 | 116,024 | |
Colgate-Palmolive Co. | 1,257,740 | 99,097 | |
Coca-Cola Europacific Partners plc | 590,332 | 32,657 | |
Medifast Inc. | 194,440 | 22,429 | |
Ingredion Inc. | 200,407 | 19,626 |
Shares | Market Value ($000) | ||
Nu Skin Enterprises Inc. Class A | 230,221 | 9,706 | |
6,611,706 | |||
Energy (9.6%) | |||
ConocoPhillips | 11,627,239 | 1,372,014 | |
EOG Resources Inc. | 9,779,094 | 1,266,588 | |
Coterra Energy Inc. | 21,071,539 | 517,728 | |
Exxon Mobil Corp. | 4,534,853 | 500,194 | |
Chevron Corp. | 2,096,061 | 376,222 | |
Phillips 66 | 3,244,293 | 337,666 | |
1 | TC Energy Corp. | 8,191,855 | 326,585 |
Marathon Petroleum Corp. | 1,621,776 | 188,759 | |
Valero Energy Corp. | 1,206,336 | 153,036 | |
Diamondback Energy Inc. | 438,055 | 59,917 | |
APA Corp. | 972,830 | 45,412 | |
Halliburton Co. | 691,112 | 27,195 | |
5,171,316 | |||
Financials (18.0%) | |||
JPMorgan Chase & Co. | 14,377,944 | 1,928,082 | |
Morgan Stanley | 11,162,893 | 949,069 | |
MetLife Inc. | 12,260,992 | 887,328 | |
Chubb Ltd. | 3,211,871 | 708,539 | |
Truist Financial Corp. | 11,085,895 | 477,026 | |
M&T Bank Corp. | 3,267,444 | 473,975 | |
Bank of America Corp. | 12,259,488 | 406,034 | |
Blackstone Inc. | 5,158,874 | 382,737 | |
American International Group Inc. | 5,680,990 | 359,266 | |
Raymond James Financial Inc. | 3,320,357 | 354,780 | |
Royal Bank of Canada | 3,745,256 | 352,121 | |
Wells Fargo & Co. | 7,255,628 | 299,585 | |
Citigroup Inc. | 4,592,548 | 207,721 | |
Aflac Inc. | 2,321,185 | 166,986 | |
Ameriprise Financial Inc. | 471,536 | 146,822 | |
Discover Financial Services | 1,255,244 | 122,801 | |
Allstate Corp. | 892,956 | 121,085 | |
Zions Bancorp NA | 2,215,710 | 108,924 | |
Synchrony Financial | 3,255,317 | 106,970 | |
Hartford Financial Services Group Inc. | 1,396,066 | 105,864 | |
Bank of New York Mellon Corp. | 2,306,795 | 105,005 | |
Jefferies Financial Group Inc. | 2,931,818 | 100,503 | |
Fidelity National Financial Inc. | 2,319,935 | 87,276 | |
Goldman Sachs Group Inc. | 242,876 | 83,399 | |
Ally Financial Inc. | 3,119,116 | 76,262 | |
MGIC Investment Corp. | 5,530,917 | 71,902 | |
SLM Corp. | 3,035,861 | 50,395 | |
Popular Inc. | 745,322 | 49,430 | |
Unum Group | 1,077,488 | 44,209 | |
US Bancorp | 959,065 | 41,825 | |
Assurant Inc. | 311,175 | 38,916 | |
Radian Group Inc. | 1,979,616 | 37,751 | |
Comerica Inc. | 559,169 | 37,380 | |
Fifth Third Bancorp | 1,069,776 | 35,099 | |
BlackRock Inc. | 48,327 | 34,246 | |
Travelers Cos. Inc. | 164,351 | 30,814 | |
PNC Financial Services Group Inc. | 192,681 | 30,432 | |
Jackson Financial Inc. Class A | 844,152 | 29,368 | |
OneMain Holdings Inc. | 661,462 | 22,033 | |
East West Bancorp Inc. | 285,840 | 18,837 |
Shares | Market Value ($000) | ||
Lincoln National Corp. | 428,803 | 13,173 | |
First American Financial Corp. | 216,285 | 11,320 | |
PacWest Bancorp | 397,148 | 9,115 | |
9,724,405 | |||
Health Care (17.7%) | |||
Pfizer Inc. | 32,692,625 | 1,675,170 | |
Johnson & Johnson | 9,241,296 | 1,632,475 | |
Merck & Co. Inc. | 13,927,859 | 1,545,296 | |
Eli Lilly & Co. | 3,313,138 | 1,212,078 | |
* | AstraZeneca plc ADR | 7,112,465 | 482,225 |
Roche Holding AG | 1,300,465 | 408,655 | |
AbbVie Inc. | 2,353,565 | 380,360 | |
UnitedHealth Group Inc. | 698,215 | 370,180 | |
Becton Dickinson and Co. | 1,283,154 | 326,306 | |
Elevance Health Inc. | 608,510 | 312,147 | |
Medtronic plc | 4,004,236 | 311,209 | |
Amgen Inc. | 1,048,781 | 275,452 | |
CVS Health Corp. | 2,690,437 | 250,722 | |
Bristol-Myers Squibb Co. | 2,198,676 | 158,195 | |
Gilead Sciences Inc. | 1,660,233 | 142,531 | |
Viatris Inc. | 4,733,821 | 52,687 | |
Organon & Co. | 671,461 | 18,754 | |
9,554,442 | |||
Industrials (9.6%) | |||
General Dynamics Corp. | 2,680,493 | 665,057 | |
Johnson Controls International plc | 8,186,962 | 523,966 | |
Emerson Electric Co. | 4,763,639 | 457,595 | |
Siemens AG (Registered) | 3,220,217 | 443,911 | |
L3Harris Technologies Inc. | 2,121,685 | 441,756 | |
Raytheon Technologies Corp. | 4,158,579 | 419,684 | |
Honeywell International Inc. | 1,956,882 | 419,360 | |
Eaton Corp. plc | 2,414,683 | 378,985 | |
Canadian National Railway Co. | 2,725,798 | 323,794 | |
Lockheed Martin Corp. | 507,236 | 246,765 | |
Caterpillar Inc. | 655,435 | 157,016 | |
Waste Management Inc. | 942,696 | 147,890 | |
United Parcel Service Inc. Class B | 793,153 | 137,882 | |
Cummins Inc. | 440,066 | 106,624 | |
Triton International Ltd. | 1,374,136 | 94,513 | |
ManpowerGroup Inc. | 1,008,628 | 83,928 | |
CH Robinson Worldwide Inc. | 390,321 | 35,738 | |
3M Co. | 286,792 | 34,392 | |
Snap-on Inc. | 100,175 | 22,889 | |
PACCAR Inc. | 207,724 | 20,558 | |
nVent Electric plc | 334,111 | 12,853 | |
5,175,156 | |||
Information Technology (9.4%) | |||
Cisco Systems Inc. | 20,790,727 | 990,470 | |
QUALCOMM Inc. | 7,732,392 | 850,099 | |
Broadcom Inc. | 1,068,558 | 597,463 | |
Analog Devices Inc. | 3,239,971 | 531,452 | |
Corning Inc. | 11,973,741 | 382,441 | |
NXP Semiconductors NV | 2,352,362 | 371,744 | |
TE Connectivity Ltd. | 2,915,593 | 334,710 | |
Fidelity National Information Services Inc. | 4,856,936 | 329,543 | |
HP Inc. | 4,872,435 | 130,922 | |
Texas Instruments Inc. | 649,177 | 107,257 |
Shares | Market Value ($000) | ||
Automatic Data Processing Inc. | 447,034 | 106,779 | |
Western Union Co. | 6,368,225 | 87,690 | |
NetApp Inc. | 1,318,310 | 79,178 | |
International Business Machines Corp. | 471,153 | 66,381 | |
Intel Corp. | 1,962,871 | 51,879 | |
KLA Corp. | 134,535 | 50,724 | |
5,068,732 | |||
Materials (4.0%) | |||
LyondellBasell Industries NV Class A | 6,260,938 | 519,846 | |
1 | Rio Tinto plc ADR | 6,323,269 | 450,217 |
PPG Industries Inc. | 3,461,863 | 435,295 | |
Celanese Corp. Class A | 2,404,072 | 245,792 | |
Reliance Steel & Aluminum Co. | 625,283 | 126,582 | |
Steel Dynamics Inc. | 1,193,163 | 116,572 | |
Linde plc | 322,341 | 105,141 | |
CF Industries Holdings Inc. | 1,198,966 | 102,152 | |
Nucor Corp. | 273,856 | 36,097 | |
Chemours Co. | 563,412 | 17,252 | |
Huntsman Corp. | 343,639 | 9,443 | |
2,164,389 | |||
Real Estate (1.4%) | |||
Crown Castle Inc. | 3,139,748 | 425,876 | |
Welltower Inc. | 5,051,582 | 331,131 | |
757,007 | |||
Utilities (8.0%) | |||
1 | Exelon Corp. | 18,524,447 | 800,812 |
1 | American Electric Power Co. Inc. | 7,978,645 | 757,572 |
NextEra Energy Inc. | 8,013,766 | 669,951 | |
Atmos Energy Corp. | 4,953,972 | 555,192 | |
Sempra Energy (XNYS) | 3,196,153 | 493,933 | |
WEC Energy Group Inc. | 1,434,246 | 134,475 | |
PPL Corp. | 4,486,297 | 131,090 | |
Duke Energy Corp. | 1,183,225 | 121,860 | |
UGI Corp. | 2,749,178 | 101,912 | |
NRG Energy Inc. | 3,050,455 | 97,065 | |
Vistra Corp. | 3,467,598 | 80,448 | |
Edison International | 1,246,483 | 79,301 | |
National Fuel Gas Co. | 1,074,848 | 68,038 | |
Portland General Electric Co. | 1,288,339 | 63,129 | |
IDACORP Inc. | 453,692 | 48,931 | |
Eversource Energy | 424,216 | 35,566 | |
DTE Energy Co. | 236,289 | 27,771 | |
AES Corp. | 621,246 | 17,867 | |
Evergy Inc. | 257,551 | 16,208 | |
Southern Co. | 125,443 | 8,958 | |
4,310,079 | |||
Total Common Stocks (Cost $41,121,466) | 52,851,225 | ||
Temporary Cash Investments (2.1%) | |||
Money Market Fund (1.8%) | |||
2,3 | Vanguard Market Liquidity Fund, 4.334% | 9,831,116 | 983,013 |
Face Amount ($000) | Market Value ($000) | ||
Repurchase Agreements (0.3%) | |||
Goldman Sachs & Co. 4.240%, 1/3/23 (Dated 12/30/22, Repurchase Value $43,120,000, collateralized by Freddie Mac 3.000%–6.000%, 10/1/42–12/1/52, and Ginnie Mae 3.500%–7.000%, 11/20/38–2/20/69, with a value of $43,962,000) | 43,100 | 43,100 | |
NatWest Markets plc 4.250%, 1/3/23 (Dated 12/30/22, Repurchase Value $72,634,000, collateralized by U.S. Treasury Note/Bond 0.375%–2.125%, 2/29/24–11/15/24, with a value of $74,052,000) | 72,600 | 72,600 | |
Nomura International plc 4.270%, 1/3/23 (Dated 12/30/22, Repurchase Value $48,123,000, collateralized by U.S. Treasury Inflation Indexed Note/Bond 3.875%, 4/15/29, and U.S. Treasury Note/Bond 1.750%–2.750%, 3/31/23–5/31/29, with a value of $49,062,000) | 48,100 | 48,100 | |
163,800 | |||
Total Temporary Cash Investments (Cost $1,146,694) | 1,146,813 | ||
Total Investments (99.9%) (Cost $42,268,160) | 53,998,038 | ||
Other Assets and Liabilities—Net (0.1%) | 68,410 | ||
Net Assets (100%) | 54,066,448 | ||
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 $227,250,000. |
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 $238,975,000 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 2023 | 4,291 | 828,378 | (4,646) |
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 by methods deemed by the valuation designee to represent fair value and subject to oversight 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. 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.
D. 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).
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, 2022, based on the inputs used to value them:
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 51,998,659 | 852,566 | — | 52,851,225 |
Temporary Cash Investments | 983,013 | 163,800 | — | 1,146,813 |
Total | 52,981,672 | 1,016,366 | — | 53,998,038 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 4,646 | — | — | 4,646 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. |