UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07239
Name of Registrant: | Vanguard Horizon Funds |
Address of Registrant: | P.O. Box 2600 |
Valley Forge, PA 19482 |
Name and address of agent for service: | Anne E. Robinson, Esquire |
P.O. Box 876 | |
Valley Forge, PA 19482 |
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: September 30
Date of reporting period: October 1, 2020—September 30, 2021
Item 1: Reports to Shareholders
Your Fund’s Performance at a Glance | 1 |
Advisor’s Report | 2 |
About Your Fund’s Expenses | 4 |
Performance Summary | 6 |
Financial Statements | 8 |
• | For the 12 months ended September 30, 2021, Vanguard Strategic Equity Fund returned 47.98%. It outperformed its benchmark, the MSCI US Small + Mid Cap 2200 Index, which returned 43.85%. |
• | The global economy rebounded faster than many had expected after the pandemic-induced contraction in the spring of 2020. Swift and extensive fiscal and monetary support from policymakers has been one of the keys to the rebound. Stock returns were excellent for the 12-month period, reflecting the recovery following the sharp downturn at the start of the pandemic. |
• | The fund’s relative performance was helped most by stock selection in information technology, health care, materials, and financials; it was hurt the most by selection in industrials and communication services. |
• | For the 10 years ended September 30, the fund posted an average annual return of nearly 16%. This result was slightly below that of its benchmark index. |
Average Annual Total Returns Periods Ended September 30, 2021 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 30.96% | 16.43% | 17.11% |
Russell 2000 Index (Small-caps) | 47.68 | 10.54 | 13.45 |
Russell 3000 Index (Broad U.S. market) | 31.88 | 16.00 | 16.85 |
FTSE All-World ex US Index (International) | 24.73 | 8.49 | 9.28 |
Bonds | |||
Bloomberg U.S. Aggregate Bond Index (Broad taxable market) | -0.90% | 5.36% | 2.94% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | 2.63 | 5.06 | 3.26 |
FTSE Three-Month U.S. Treasury Bill Index | 0.06 | 1.14 | 1.13 |
CPI | |||
Consumer Price Index | 5.39% | 2.81% | 2.59% |
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended September 30, 2021 | |||
Strategic Equity Fund | Beginning Account Value 3/31/2021 | Ending Account Value 9/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,065.30 | $0.88 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,024.22 | 0.86 |
Average Annual Total Returns Periods Ended September 30, 2021 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Strategic Equity Fund | 47.98% | 13.34% | 15.73% | $43,097 | |
MSCI US Small + Mid Cap 2200 Index | 43.85 | 14.96 | 15.88 | 43,674 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 32.13 | 16.82 | 16.56 | 46,280 |
Communication Services | 4.1% |
Consumer Discretionary | 12.7 |
Consumer Staples | 2.5 |
Energy | 4.3 |
Financials | 14.5 |
Health Care | 13.5 |
Industrials | 14.1 |
Information Technology | 17.7 |
Materials | 5.2 |
Real Estate | 7.8 |
Utilities | 3.6 |
Shares | Market Value• ($000) | ||
Common Stocks (99.4%) | |||
Communication Services (4.0%) | |||
New York Times Co. Class A | 797,702 | 39,303 | |
* | Liberty Global plc Class C | 1,226,325 | 36,128 |
News Corp. Class B | 1,254,970 | 29,153 | |
Omnicom Group Inc. | 354,916 | 25,717 | |
News Corp. Class A | 923,115 | 21,721 | |
* | Playtika Holding Corp. | 707,301 | 19,543 |
* | Take-Two Interactive Software Inc. | 102,064 | 15,725 |
TEGNA Inc. | 743,240 | 14,657 | |
* | Yelp Inc. Class A | 348,603 | 12,982 |
* | Cargurus Inc. | 391,027 | 12,282 |
* | Discovery Inc. Class C | 477,791 | 11,596 |
*,1 | AMC Entertainment Holdings Inc. Class A | 303,709 | 11,559 |
* | Liberty Global plc Class A | 358,054 | 10,670 |
Interpublic Group of Cos. Inc. | 282,748 | 10,368 | |
Sinclair Broadcast Group Inc. Class A | 306,928 | 9,723 | |
ViacomCBS Inc. Class B | 218,666 | 8,639 | |
* | Roku Inc. | 24,002 | 7,521 |
* | IAC/InterActiveCorp. | 51,852 | 6,756 |
* | Liberty Media Corp.-Liberty Formula One Class C | 83,130 | 4,274 |
* | Zillow Group Inc. Class A | 30,613 | 2,712 |
* | Madison Square Garden Sports Corp. | 13,820 | 2,570 |
* | ZoomInfo Technologies Inc. Class A | 37,978 | 2,324 |
* | PubMatic Inc. Class A | 68,597 | 1,807 |
317,730 | |||
Consumer Discretionary (12.6%) | |||
* | Deckers Outdoor Corp. | 132,598 | 47,762 |
Papa John's International Inc. | 306,041 | 38,864 | |
PulteGroup Inc. | 755,093 | 34,674 | |
Brunswick Corp. | 357,941 | 34,101 | |
Darden Restaurants Inc. | 224,307 | 33,976 | |
* | Etsy Inc. | 155,167 | 32,269 |
Foot Locker Inc. | 669,523 | 30,570 | |
Best Buy Co. Inc. | 273,319 | 28,893 | |
Rent-A-Center Inc. | 513,077 | 28,840 | |
* | AutoNation Inc. | 232,117 | 28,263 |
H&R Block Inc. | 1,076,319 | 26,908 | |
Signet Jewelers Ltd. | 323,689 | 25,558 | |
Service Corp. International | 379,750 | 22,884 |
Shares | Market Value• ($000) | ||
Gentex Corp. | 663,413 | 21,879 | |
Travel + Leisure Co. | 391,829 | 21,366 | |
Polaris Inc. | 176,685 | 21,142 | |
* | Meritage Homes Corp. | 202,117 | 19,605 |
Columbia Sportswear Co. | 192,974 | 18,495 | |
Qurate Retail Inc. Series A | 1,681,744 | 17,137 | |
* | Red Rock Resorts Inc. Class A | 313,674 | 16,066 |
* | Adient plc | 384,353 | 15,931 |
Bath & Body Works Inc. | 248,260 | 15,648 | |
* | Urban Outfitters Inc. | 523,139 | 15,532 |
Tempur Sealy International Inc. | 314,713 | 14,606 | |
Texas Roadhouse Inc. Class A | 144,971 | 13,240 | |
* | Six Flags Entertainment Corp. | 295,662 | 12,566 |
* | Goodyear Tire & Rubber Co. | 692,417 | 12,256 |
Tapestry Inc. | 318,002 | 11,772 | |
* | Abercrombie & Fitch Co. Class A | 307,925 | 11,587 |
* | Revolve Group Inc. | 186,778 | 11,537 |
Kohl's Corp. | 243,623 | 11,472 | |
* | Bloomin' Brands Inc. | 448,181 | 11,205 |
Wendy's Co. | 508,248 | 11,019 | |
Autoliv Inc. | 128,082 | 10,979 | |
* | SeaWorld Entertainment Inc. | 195,883 | 10,836 |
* | NVR Inc. | 2,239 | 10,734 |
* | Ulta Beauty Inc. | 29,585 | 10,678 |
Shutterstock Inc. | 92,305 | 10,460 | |
* | Victoria's Secret & Co. | 176,760 | 9,768 |
* | Vail Resorts Inc. | 28,798 | 9,620 |
* | Scientific Games Corp. Class A | 111,651 | 9,275 |
* | Crocs Inc. | 62,008 | 8,897 |
Macy's Inc. | 349,225 | 7,893 | |
* | Dine Brands Global Inc. | 93,332 | 7,580 |
* | Dave & Buster's Entertainment Inc. | 195,114 | 7,479 |
Wyndham Hotels & Resorts Inc. | 95,623 | 7,381 | |
* | LKQ Corp. | 141,142 | 7,102 |
* | GameStop Corp. Class A | 39,699 | 6,966 |
* | Penn National Gaming Inc. | 93,684 | 6,788 |
Williams-Sonoma Inc. | 37,132 | 6,585 | |
Century Communities Inc. | 107,068 | 6,579 | |
* | Brinker International Inc. | 131,911 | 6,470 |
* | Everi Holdings Inc. | 263,859 | 6,380 |
Shares | Market Value• ($000) | ||
Winnebago Industries Inc. | 86,482 | 6,266 | |
* | Skyline Champion Corp. | 101,984 | 6,125 |
Jack in the Box Inc. | 61,109 | 5,948 | |
* | Under Armour Inc. Class A | 288,858 | 5,829 |
* | Boyd Gaming Corp. | 82,147 | 5,197 |
* | Tenneco Inc. Class A | 359,622 | 5,132 |
* | Tri Pointe Homes Inc. | 233,148 | 4,901 |
Group 1 Automotive Inc. | 25,662 | 4,821 | |
* | MarineMax Inc. | 98,783 | 4,793 |
Aaron's Co. Inc. | 166,515 | 4,586 | |
* | Bed Bath & Beyond Inc. | 257,796 | 4,453 |
Churchill Downs Inc. | 17,500 | 4,201 | |
* | Fossil Group Inc. | 343,566 | 4,071 |
* | Sleep Number Corp. | 42,529 | 3,976 |
* | Terminix Global Holdings Inc. | 93,537 | 3,898 |
Hibbett Inc. | 54,785 | 3,876 | |
Carter's Inc. | 33,725 | 3,279 | |
Ralph Lauren Corp. Class A | 28,605 | 3,176 | |
* | frontdoor Inc. | 68,409 | 2,866 |
* | Tupperware Brands Corp. | 117,461 | 2,481 |
* | WW International Inc. | 133,568 | 2,438 |
* | XPEL Inc. | 28,236 | 2,142 |
* | PVH Corp. | 19,797 | 2,035 |
Buckle Inc. | 51,091 | 2,023 | |
Big Lots Inc. | 46,230 | 2,005 | |
Gap Inc. | 82,062 | 1,863 | |
* | Capri Holdings Ltd. | 38,369 | 1,857 |
Steven Madden Ltd. | 39,752 | 1,596 | |
Wolverine World Wide Inc. | 53,032 | 1,582 | |
993,489 | |||
Consumer Staples (2.5%) | |||
* | Darling Ingredients Inc. | 607,882 | 43,707 |
* | Herbalife Nutrition Ltd. | 611,278 | 25,906 |
Bunge Ltd. | 228,679 | 18,596 | |
Campbell Soup Co. | 428,823 | 17,929 | |
* | TreeHouse Foods Inc. | 359,664 | 14,343 |
Ingles Markets Inc. Class A | 204,811 | 13,524 | |
Medifast Inc. | 48,443 | 9,332 | |
* | BJ's Wholesale Club Holdings Inc. | 158,817 | 8,722 |
J M Smucker Co. | 56,524 | 6,785 | |
* | USANA Health Sciences Inc. | 72,128 | 6,650 |
Conagra Brands Inc. | 155,219 | 5,257 | |
Flowers Foods Inc. | 204,291 | 4,827 | |
* | Hain Celestial Group Inc. | 104,726 | 4,480 |
* | United Natural Foods Inc. | 84,239 | 4,079 |
* | Pilgrim's Pride Corp. | 121,802 | 3,542 |
Ingredion Inc. | 29,149 | 2,595 | |
* | Sprouts Farmers Market Inc. | 98,360 | 2,279 |
Lamb Weston Holdings Inc. | 29,543 | 1,813 | |
194,366 | |||
Energy (4.2%) | |||
APA Corp. | 2,400,871 | 51,451 | |
Cimarex Energy Co. | 500,619 | 43,654 | |
Halliburton Co. | 1,531,846 | 33,118 | |
* | Southwestern Energy Co. | 5,574,724 | 30,884 |
Targa Resources Corp. | 601,406 | 29,595 | |
Pioneer Natural Resources Co. | 149,840 | 24,950 | |
Ovintiv Inc. | 582,434 | 19,150 | |
* | Plains GP Holdings LP Class A | 1,239,822 | 13,359 |
Shares | Market Value• ($000) | ||
Magnolia Oil & Gas Corp. Class A | 639,695 | 11,380 | |
* | Callon Petroleum Co. | 207,268 | 10,173 |
Northern Oil and Gas Inc. | 463,310 | 9,915 | |
PDC Energy Inc. | 191,347 | 9,068 | |
* | Whiting Petroleum Corp. | 153,156 | 8,946 |
* | Cheniere Energy Inc. | 85,431 | 8,344 |
SM Energy Co. | 301,836 | 7,962 | |
Texas Pacific Land Corp. | 4,974 | 6,015 | |
* | Denbury Inc. | 82,406 | 5,789 |
Hess Corp. | 52,434 | 4,096 | |
Antero Midstream Corp. | 258,978 | 2,699 | |
* | Arch Resources Inc. | 28,034 | 2,600 |
333,148 | |||
Financials (14.5%) | |||
KeyCorp. | 2,740,720 | 59,254 | |
Regions Financial Corp. | 2,779,781 | 59,237 | |
Fifth Third Bancorp | 1,368,354 | 58,073 | |
Ally Financial Inc. | 1,081,379 | 55,204 | |
Primerica Inc. | 340,645 | 52,333 | |
Synchrony Financial | 1,024,328 | 50,069 | |
First Horizon Corp. | 2,954,250 | 48,125 | |
Jefferies Financial Group Inc. | 1,207,280 | 44,826 | |
Zions Bancorp NA | 714,880 | 44,244 | |
Walker & Dunlop Inc. | 389,052 | 44,157 | |
Fidelity National Financial Inc. | 898,231 | 40,726 | |
SLM Corp. | 2,204,999 | 38,808 | |
Umpqua Holdings Corp. | 1,714,787 | 34,724 | |
First American Financial Corp. | 480,444 | 32,214 | |
Hanover Insurance Group Inc. | 203,757 | 26,411 | |
Hartford Financial Services Group Inc. | 349,580 | 24,558 | |
PacWest Bancorp | 497,888 | 22,564 | |
Navient Corp. | 1,132,774 | 22,350 | |
Stifel Financial Corp. | 285,730 | 19,418 | |
Bank OZK | 449,870 | 19,335 | |
CNO Financial Group Inc. | 795,057 | 18,716 | |
Prosperity Bancshares Inc. | 247,831 | 17,628 | |
Globe Life Inc. | 188,877 | 16,816 | |
Evercore Inc. Class A | 121,921 | 16,297 | |
* | Credit Acceptance Corp. | 27,363 | 16,016 |
New York Community Bancorp Inc. | 1,236,250 | 15,911 | |
Unum Group | 633,450 | 15,874 | |
Assured Guaranty Ltd. | 258,453 | 12,098 | |
* | PROG Holdings Inc. | 269,962 | 11,341 |
Invesco Ltd. | 469,680 | 11,324 | |
* | Brighthouse Financial Inc. | 248,369 | 11,234 |
Virtu Financial Inc. Class A | 428,839 | 10,477 | |
Popular Inc. | 124,535 | 9,673 | |
Nelnet Inc. Class A | 121,261 | 9,609 | |
Equitable Holdings Inc. | 322,346 | 9,554 | |
Comerica Inc. | 117,665 | 9,472 | |
Cboe Global Markets Inc. | 71,590 | 8,867 | |
International Bancshares Corp. | 210,765 | 8,776 | |
Universal Insurance Holdings Inc. | 659,073 | 8,594 | |
First Hawaiian Inc. | 287,643 | 8,442 | |
FNB Corp. | 675,910 | 7,854 | |
OneMain Holdings Inc. | 135,493 | 7,497 |
Shares | Market Value• ($000) | ||
American Equity Investment Life Holding Co. | 253,342 | 7,491 | |
Carlyle Group Inc. | 155,393 | 7,347 | |
Brightsphere Investment Group Inc. | 274,542 | 7,174 | |
Synovus Financial Corp. | 157,706 | 6,922 | |
Old Republic International Corp. | 237,877 | 5,502 | |
Associated Banc-Corp. | 245,229 | 5,253 | |
Kinsale Capital Group Inc. | 28,464 | 4,603 | |
Ameris Bancorp | 84,899 | 4,405 | |
Everest Re Group Ltd. | 16,607 | 4,165 | |
First BanCorp (XNYS) | 308,019 | 4,051 | |
PennyMac Financial Services Inc. | 63,448 | 3,879 | |
* | Encore Capital Group Inc. | 67,007 | 3,301 |
Loews Corp. | 54,785 | 2,955 | |
LPL Financial Holdings Inc. | 18,635 | 2,921 | |
* | Upstart Holdings Inc. | 7,538 | 2,385 |
White Mountains Insurance Group Ltd. | 1,880 | 2,011 | |
B Riley Financial Inc. | 32,477 | 1,917 | |
UMB Financial Corp. | 17,924 | 1,733 | |
1,136,715 | |||
Health Care (13.5%) | |||
* | Charles River Laboratories International Inc. | 148,270 | 61,187 |
West Pharmaceutical Services Inc. | 127,759 | 54,239 | |
Bruker Corp. | 625,546 | 48,855 | |
* | Laboratory Corp. of America Holdings | 163,498 | 46,015 |
* | DaVita Inc. | 393,122 | 45,704 |
Chemed Corp. | 87,702 | 40,792 | |
* | Medpace Holdings Inc. | 213,818 | 40,471 |
* | Veeva Systems Inc. Class A | 128,731 | 37,096 |
* | Mettler-Toledo International Inc. | 26,207 | 36,096 |
* | Incyte Corp. | 522,730 | 35,953 |
* | IQVIA Holdings Inc. | 135,568 | 32,474 |
* | ABIOMED Inc. | 97,461 | 31,725 |
* | Tenet Healthcare Corp. | 439,778 | 29,219 |
* | Alkermes plc | 916,913 | 28,278 |
Cardinal Health Inc. | 454,755 | 22,492 | |
* | Myriad Genetics Inc. | 693,834 | 22,404 |
* | United Therapeutics Corp. | 108,154 | 19,963 |
* | Novavax Inc. | 80,878 | 16,767 |
* | Sarepta Therapeutics Inc. | 181,033 | 16,742 |
* | 10X Genomics Inc. Class A | 113,172 | 16,476 |
* | Enanta Pharmaceuticals Inc. | 274,611 | 15,601 |
* | ImmunoGen Inc. | 2,539,191 | 14,397 |
* | Avantor Inc. | 346,552 | 14,174 |
* | AMN Healthcare Services Inc. | 123,308 | 14,150 |
* | Quidel Corp. | 91,471 | 12,911 |
* | STAAR Surgical Co. | 98,811 | 12,700 |
* | Hologic Inc. | 153,602 | 11,337 |
PerkinElmer Inc. | 63,186 | 10,949 | |
DENTSPLY SIRONA Inc. | 184,082 | 10,686 | |
* | Corcept Therapeutics Inc. | 491,288 | 9,669 |
Universal Health Services Inc. Class B | 68,653 | 9,500 | |
Cerner Corp. | 129,782 | 9,152 | |
* | CRISPR Therapeutics AG | 81,500 | 9,122 |
* | Amedisys Inc. | 60,883 | 9,078 |
Shares | Market Value• ($000) | ||
* | CareDx Inc. | 138,202 | 8,758 |
* | Emergent BioSolutions Inc. | 163,368 | 8,180 |
* | Catalent Inc. | 57,236 | 7,616 |
* | Bluebird Bio Inc. | 397,238 | 7,591 |
*,1 | Clovis Oncology Inc. | 1,679,012 | 7,488 |
* | Tandem Diabetes Care Inc. | 59,931 | 7,155 |
Bio-Techne Corp. | 14,521 | 7,036 | |
* | LHC Group Inc. | 44,360 | 6,961 |
Cooper Cos. Inc. | 16,834 | 6,958 | |
* | MacroGenics Inc. | 326,422 | 6,835 |
* | Maravai LifeSciences Holdings Inc. Class A | 137,957 | 6,771 |
* | Endo International plc | 1,850,583 | 5,996 |
*,1 | Intercept Pharmaceuticals Inc. | 403,227 | 5,988 |
* | MEDNAX Inc. | 201,885 | 5,740 |
* | ACADIA Pharmaceuticals Inc. | 337,674 | 5,609 |
* | Globus Medical Inc. Class A | 72,973 | 5,591 |
Owens & Minor Inc. | 175,267 | 5,484 | |
* | Exelixis Inc. | 256,032 | 5,413 |
* | Akebia Therapeutics Inc. | 1,833,311 | 5,280 |
* | Prestige Consumer Healthcare Inc. | 93,202 | 5,230 |
Select Medical Holdings Corp. | 137,273 | 4,965 | |
* | Joint Corp. | 50,551 | 4,955 |
* | Natera Inc. | 42,244 | 4,708 |
* | Neurocrine Biosciences Inc. | 49,015 | 4,701 |
Quest Diagnostics Inc. | 31,881 | 4,633 | |
* | ICU Medical Inc. | 17,430 | 4,068 |
* | Community Health Systems Inc. | 335,750 | 3,928 |
* | Puma Biotechnology Inc. | 540,434 | 3,788 |
* | Henry Schein Inc. | 48,864 | 3,721 |
* | Cara Therapeutics Inc. | 215,399 | 3,328 |
* | Syneos Health Inc. | 34,615 | 3,028 |
* | Waters Corp. | 8,187 | 2,925 |
*,1 | Co-Diagnostics Inc. | 289,221 | 2,814 |
* | Fulgent Genetics Inc. | 31,189 | 2,805 |
* | Ionis Pharmaceuticals Inc. | 81,687 | 2,740 |
*,1 | GoodRx Holdings Inc. Class A | 65,780 | 2,698 |
* | Prothena Corp. plc | 37,057 | 2,640 |
* | Atea Pharmaceuticals Inc. | 75,106 | 2,633 |
* | Sangamo Therapeutics Inc. | 247,844 | 2,233 |
* | Inari Medical Inc. | 26,440 | 2,144 |
*,1 | Tilray Inc. Class 2 | 187,681 | 2,119 |
Ensign Group Inc. | 27,638 | 2,070 | |
* | Travere Thrapeutics Inc. | 78,661 | 1,908 |
* | Organogenesis Holdings Inc. Class A | 116,256 | 1,655 |
* | NuVasive Inc. | 27,356 | 1,637 |
* | Agenus Inc. | 256,669 | 1,348 |
1,058,246 | |||
Industrials (14.0%) | |||
* | United Rentals Inc. | 156,533 | 54,932 |
WW Grainger Inc. | 130,974 | 51,481 | |
Owens Corning | 551,838 | 47,182 | |
Booz Allen Hamilton Holding Corp. Class A | 558,975 | 44,355 | |
Dover Corp. | 263,817 | 41,024 | |
Allison Transmission Holdings Inc. | 1,109,545 | 39,189 |
Shares | Market Value• ($000) | ||
Expeditors International of Washington Inc. | 319,885 | 38,108 | |
AGCO Corp. | 309,584 | 37,933 | |
Robert Half International Inc. | 365,107 | 36,631 | |
Huntington Ingalls Industries Inc. | 164,265 | 31,713 | |
Triton International Ltd. | 556,097 | 28,939 | |
Oshkosh Corp. | 280,007 | 28,664 | |
* | Atkore Inc. | 325,058 | 28,254 |
* | CACI International Inc. Class A | 107,067 | 28,062 |
* | Meritor Inc. | 1,293,041 | 27,555 |
* | Alaska Air Group Inc. | 432,379 | 25,337 |
Rush Enterprises Inc. Class A | 549,336 | 24,808 | |
EMCOR Group Inc. | 213,749 | 24,662 | |
GrafTech International Ltd. | 2,224,866 | 22,961 | |
Ryder System Inc. | 271,671 | 22,470 | |
ManpowerGroup Inc. | 179,659 | 19,454 | |
Wabash National Corp. | 1,229,767 | 18,606 | |
UFP Industries Inc. | 264,584 | 17,986 | |
* | Beacon Roofing Supply Inc. | 362,617 | 17,319 |
ManTech International Corp. Class A | 224,022 | 17,008 | |
JB Hunt Transport Services Inc. | 97,255 | 16,263 | |
Terex Corp. | 371,881 | 15,656 | |
* | SkyWest Inc. | 301,655 | 14,884 |
Old Dominion Freight Line Inc. | 51,138 | 14,624 | |
* | Middleby Corp. | 84,663 | 14,436 |
Werner Enterprises Inc. | 303,670 | 13,443 | |
Allegion plc | 99,705 | 13,179 | |
Boise Cascade Co. | 243,264 | 13,131 | |
Landstar System Inc. | 82,010 | 12,943 | |
* | Atlas Air Worldwide Holdings Inc. | 156,634 | 12,794 |
Tetra Tech Inc. | 74,657 | 11,149 | |
Herman Miller Inc. | 295,103 | 11,114 | |
Lincoln Electric Holdings Inc. | 83,308 | 10,729 | |
* | Avis Budget Group Inc. | 89,820 | 10,465 |
Fortune Brands Home & Security Inc. | 114,190 | 10,211 | |
* | TrueBlue Inc. | 360,610 | 9,765 |
ABM Industries Inc. | 210,105 | 9,457 | |
* | AECOM | 142,934 | 9,026 |
Acuity Brands Inc. | 49,476 | 8,578 | |
* | Copart Inc. | 55,787 | 7,739 |
Primoris Services Corp. | 303,349 | 7,429 | |
* | SiteOne Landscape Supply Inc. | 33,198 | 6,622 |
* | Lyft Inc. Class A | 122,288 | 6,553 |
* | MasTec Inc. | 72,965 | 6,295 |
ADT Inc. | 752,520 | 6,088 | |
Nielsen Holdings plc | 292,139 | 5,606 | |
* | Generac Holdings Inc. | 12,237 | 5,001 |
Matson Inc. | 56,250 | 4,540 | |
Ennis Inc. | 238,646 | 4,499 | |
Timken Co. | 66,747 | 4,367 | |
* | Sensata Technologies Holding plc | 73,923 | 4,045 |
Pitney Bowes Inc. | 554,896 | 4,001 | |
* | Quad/Graphics Inc. | 845,269 | 3,592 |
* | Clean Harbors Inc. | 33,923 | 3,524 |
* | JELD-WEN Holding Inc. | 138,961 | 3,478 |
Donaldson Co. Inc. | 47,743 | 2,741 |
Shares | Market Value• ($000) | ||
* | MYR Group Inc. | 23,791 | 2,367 |
ArcBest Corp. | 26,972 | 2,206 | |
EnerSys | 25,573 | 1,904 | |
Watsco Inc. | 5,502 | 1,456 | |
1,100,533 | |||
Information Technology (17.6%) | |||
* | Cadence Design Systems Inc. | 511,331 | 77,436 |
* | EPAM Systems Inc. | 103,613 | 59,109 |
CDW Corp. | 312,559 | 56,892 | |
* | Dropbox Inc. Class A | 1,793,824 | 52,416 |
* | Manhattan Associates Inc. | 339,680 | 51,981 |
Jabil Inc. | 886,461 | 51,743 | |
Amkor Technology Inc. | 1,793,770 | 44,755 | |
* | Teradata Corp. | 765,804 | 43,919 |
* | Synopsys Inc. | 145,877 | 43,677 |
* | Box Inc. Class A | 1,787,088 | 42,300 |
* | Gartner Inc. | 136,246 | 41,402 |
MKS Instruments Inc. | 253,108 | 38,197 | |
* | Fortinet Inc. | 118,133 | 34,500 |
* | GoDaddy Inc. Class A | 482,976 | 33,663 |
* | Zebra Technologies Corp. Class A | 64,847 | 33,423 |
* | Western Digital Corp. | 570,308 | 32,188 |
Avnet Inc. | 785,963 | 29,057 | |
* | Flex Ltd. | 1,578,995 | 27,917 |
* | Trade Desk Inc. Class A | 389,710 | 27,397 |
* | Advanced Micro Devices Inc. | 256,006 | 26,343 |
* | Unisys Corp. | 1,001,495 | 25,178 |
* | Nutanix Inc. Class A | 662,362 | 24,971 |
Maximus Inc. | 292,225 | 24,313 | |
* | CommScope Holding Co. Inc. | 1,730,189 | 23,513 |
* | Domo Inc. Class B | 272,993 | 23,052 |
* | Cirrus Logic Inc. | 251,938 | 20,747 |
Seagate Technology Holdings plc | 244,162 | 20,148 | |
* | Mimecast Ltd. | 300,535 | 19,114 |
CSG Systems International Inc. | 360,272 | 17,365 | |
* | Elastic NV | 113,811 | 16,957 |
* | Ultra Clean Holdings Inc. | 386,005 | 16,444 |
Monolithic Power Systems Inc. | 33,046 | 16,017 | |
* | Avaya Holdings Corp. | 806,917 | 15,969 |
* | Fair Isaac Corp. | 39,005 | 15,521 |
* | Workiva Inc. Class A | 109,856 | 15,485 |
* | Arrow Electronics Inc. | 129,068 | 14,493 |
* | Alarm.com Holdings Inc. | 181,943 | 14,226 |
Kulicke & Soffa Industries Inc. | 234,285 | 13,654 | |
* | Concentrix Corp. | 73,519 | 13,013 |
* | Tenable Holdings Inc. | 275,734 | 12,722 |
* | Trimble Inc. | 149,419 | 12,290 |
* | SMART Global Holdings Inc. | 269,378 | 11,987 |
Alliance Data Systems Corp. | 115,397 | 11,642 | |
* | Zendesk Inc. | 95,663 | 11,134 |
* | Synaptics Inc. | 55,426 | 9,962 |
* | DXC Technology Co. | 286,108 | 9,616 |
* | MACOM Technology Solutions Holdings Inc. Class H | 134,656 | 8,735 |
* | Verint Systems Inc. | 160,088 | 7,170 |
* | Cohu Inc. | 213,349 | 6,814 |
Shares | Market Value• ($000) | ||
* | Ichor Holdings Ltd. | 134,428 | 5,524 |
SYNNEX Corp. | 52,917 | 5,509 | |
* | Plantronics Inc. | 214,052 | 5,503 |
* | Pure Storage Inc. Class A | 205,449 | 5,169 |
* | Vonage Holdings Corp. | 298,202 | 4,807 |
* | CommVault Systems Inc. | 61,910 | 4,663 |
* | Qualtrics International Inc. Class A | 105,501 | 4,509 |
* | FireEye Inc. | 245,909 | 4,377 |
* | LiveRamp Holdings Inc. | 90,658 | 4,282 |
* | Digital Turbine Inc. | 57,154 | 3,929 |
* | Calix Inc. | 75,961 | 3,755 |
* | Ambarella Inc. | 21,830 | 3,400 |
* | MaxLinear Inc. | 66,227 | 3,262 |
* | Semtech Corp. | 39,995 | 3,118 |
Pegasystems Inc. | 23,326 | 2,965 | |
Dolby Laboratories Inc. Class A | 32,036 | 2,819 | |
* | Enphase Energy Inc. | 18,155 | 2,723 |
* | SPS Commerce Inc. | 15,616 | 2,519 |
* | ON Semiconductor Corp. | 53,178 | 2,434 |
* | Aspen Technology Inc. | 17,297 | 2,124 |
* | Yext Inc. | 163,127 | 1,962 |
* | 8x8 Inc. | 76,905 | 1,799 |
* | Fabrinet | 16,110 | 1,651 |
QAD Inc. Class A | 18,600 | 1,626 | |
1,384,996 | |||
Materials (5.2%) | |||
Louisiana-Pacific Corp. | 778,891 | 47,801 | |
Nucor Corp. | 448,779 | 44,200 | |
Reliance Steel & Aluminum Co. | 284,752 | 40,554 | |
Avery Dennison Corp. | 182,312 | 37,777 | |
Huntsman Corp. | 1,124,825 | 33,284 | |
Westlake Chemical Corp. | 313,354 | 28,559 | |
Commercial Metals Co. | 669,305 | 20,387 | |
Steel Dynamics Inc. | 345,806 | 20,223 | |
Olin Corp. | 355,437 | 17,150 | |
Mosaic Co. | 411,225 | 14,689 | |
CF Industries Holdings Inc. | 251,996 | 14,066 | |
Greif Inc. Class A | 190,188 | 12,286 | |
* | Alcoa Corp. | 198,956 | 9,737 |
* | Axalta Coating Systems Ltd. | 325,608 | 9,505 |
* | O-I Glass Inc. | 609,421 | 8,696 |
* | TimkenSteel Corp. | 659,400 | 8,625 |
Celanese Corp. Class A | 54,285 | 8,178 | |
Packaging Corp. of America | 57,771 | 7,940 | |
Avient Corp. | 156,545 | 7,256 | |
Element Solutions Inc. | 293,077 | 6,354 | |
Royal Gold Inc. | 52,805 | 5,042 | |
Cabot Corp. | 62,127 | 3,114 | |
Sealed Air Corp. | 50,821 | 2,784 | |
Schnitzer Steel Industries Inc. Class A | 35,635 | 1,561 | |
409,768 | |||
Real Estate (7.7%) | |||
Gaming and Leisure Properties Inc. | 1,056,457 | 48,935 | |
Extra Space Storage Inc. | 284,260 | 47,753 | |
Life Storage Inc. | 405,173 | 46,490 | |
Lamar Advertising Co. Class A | 356,620 | 40,459 | |
Brixmor Property Group Inc. | 1,674,709 | 37,028 |
Shares | Market Value• ($000) | ||
Sabra Health Care REIT Inc. | 1,995,495 | 29,374 | |
Iron Mountain Inc. | 659,938 | 28,674 | |
Spirit Realty Capital Inc. | 462,121 | 21,276 | |
Invitation Homes Inc. | 531,748 | 20,382 | |
* | Host Hotels & Resorts Inc. | 1,244,882 | 20,329 |
PotlatchDeltic Corp. | 360,883 | 18,614 | |
Omega Healthcare Investors Inc. | 614,402 | 18,407 | |
Mid-America Apartment Communities Inc. | 88,741 | 16,572 | |
Brandywine Realty Trust | 1,125,081 | 15,099 | |
Uniti Group Inc. | 1,184,240 | 14,649 | |
* | Xenia Hotels & Resorts Inc. | 800,179 | 14,195 |
Tanger Factory Outlet Centers Inc. | 754,463 | 12,298 | |
CubeSmart | 243,741 | 11,809 | |
* | Redfin Corp. | 232,825 | 11,665 |
Outfront Media Inc. | 425,221 | 10,716 | |
National Retail Properties Inc. | 231,722 | 10,008 | |
Piedmont Office Realty Trust Inc. Class A | 568,566 | 9,910 | |
Healthcare Trust of America Inc. Class A | 323,248 | 9,588 | |
American Homes 4 Rent Class A | 250,979 | 9,567 | |
SITE Centers Corp. | 598,289 | 9,238 | |
Macerich Co. | 457,142 | 7,639 | |
VICI Properties Inc. | 259,850 | 7,382 | |
Medical Properties Trust Inc. | 367,771 | 7,381 | |
* | Ryman Hospitality Properties Inc. | 78,704 | 6,587 |
* | GEO Group Inc. | 865,976 | 6,469 |
Apple Hospitality REIT Inc. | 351,044 | 5,522 | |
Universal Health Realty Income Trust | 94,854 | 5,243 | |
Vornado Realty Trust | 113,217 | 4,756 | |
National Storage Affiliates Trust | 71,994 | 3,801 | |
* | Sunstone Hotel Investors Inc. | 288,229 | 3,441 |
Regency Centers Corp. | 49,745 | 3,349 | |
STORE Capital Corp. | 93,489 | 2,994 | |
Lexington Realty Trust | 202,964 | 2,588 | |
Federal Realty Investment Trust | 21,422 | 2,528 | |
Healthcare Realty Trust Inc. | 75,869 | 2,259 | |
EPR Properties | 43,995 | 2,172 | |
Apartment Income REIT Corp. | 31,593 | 1,542 | |
608,688 | |||
Utilities (3.6%) | |||
AES Corp. | 2,166,745 | 49,467 | |
Evergy Inc. | 763,238 | 47,473 | |
UGI Corp. | 938,605 | 40,003 | |
NRG Energy Inc. | 707,213 | 28,875 | |
CMS Energy Corp. | 482,636 | 28,828 | |
NextEra Energy Partners LP | 218,692 | 16,481 | |
MDU Resources Group Inc. | 444,668 | 13,193 | |
Hawaiian Electric Industries Inc. | 261,150 | 10,663 | |
Southwest Gas Holdings Inc. | 126,267 | 8,445 |
Shares | Market Value• ($000) | ||
Portland General Electric Co. | 149,713 | 7,035 | |
Vistra Corp. | 383,556 | 6,559 | |
National Fuel Gas Co. | 110,551 | 5,806 | |
OGE Energy Corp. | 158,804 | 5,234 | |
New Jersey Resources Corp. | 138,664 | 4,827 | |
American States Water Co. | 39,964 | 3,418 | |
Pinnacle West Capital Corp. | 32,187 | 2,329 | |
IDACORP Inc. | 17,283 | 1,787 | |
Spire Inc. | 26,410 | 1,616 | |
282,039 | |||
Total Common Stocks (Cost $5,963,980) | 7,819,718 | ||
Temporary Cash Investments (0.8%) | |||
Money Market Fund (0.8%) | |||
2,3 | Vanguard Market Liquidity Fund, 0.068% (Cost $60,629) | 606,361 | 60,636 |
Total Investments (100.2%) (Cost $6,024,609) | 7,880,354 | ||
Other Assets and Liabilities—Net (-0.2%) | (14,641) | ||
Net Assets (100%) | 7,865,713 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $22,582,000. |
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 $23,250,000 was received for securities on loan. |
REIT—Real Estate Investment Trust. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini Russell 2000 Index | December 2021 | 149 | 16,396 | (266) |
E-mini S&P 500 Index | December 2021 | 76 | 16,331 | (611) |
E-mini S&P Mid-Cap 400 Index | December 2021 | 49 | 12,903 | (355) |
(1,232) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $5,963,980) | 7,819,718 |
Affiliated Issuers (Cost $60,629) | 60,636 |
Total Investments in Securities | 7,880,354 |
Investment in Vanguard | 269 |
Cash Collateral Pledged—Futures Contracts | 2,473 |
Receivables for Investment Securities Sold | 671 |
Receivables for Accrued Income | 6,762 |
Receivables for Capital Shares Issued | 2,772 |
Total Assets | 7,893,301 |
Liabilities | |
Due to Custodian | 672 |
Payables for Investment Securities Purchased | 2 |
Collateral for Securities on Loan | 23,250 |
Payables for Capital Shares Redeemed | 2,547 |
Payables to Vanguard | 560 |
Variation Margin Payable—Futures Contracts | 557 |
Total Liabilities | 27,588 |
Net Assets | 7,865,713 |
At September 30, 2021, net assets consisted of: | |
Paid-in Capital | 4,644,119 |
Total Distributable Earnings (Loss) | 3,221,594 |
Net Assets | 7,865,713 |
Net Assets | |
Applicable to 178,498,121 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 7,865,713 |
Net Asset Value Per Share | $44.07 |
Year Ended September 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends | 96,311 |
Interest1 | 30 |
Securities Lending—Net | 1,614 |
Total Income | 97,955 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 1,730 |
Management and Administrative | 10,266 |
Marketing and Distribution | 438 |
Custodian Fees | 39 |
Auditing Fees | 32 |
Shareholders’ Reports | 63 |
Trustees’ Fees and Expenses | 3 |
Total Expenses | 12,571 |
Net Investment Income | 85,384 |
Realized Net Gain (Loss) | |
Investment Securities Sold1 | 1,424,970 |
Futures Contracts | 12,777 |
Realized Net Gain (Loss) | 1,437,747 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | 1,162,378 |
Futures Contracts | (859) |
Change in Unrealized Appreciation (Depreciation) | 1,161,519 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,684,650 |
1 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $28,000, $7,000, and ($8,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Year Ended September 30, | ||
2021 ($000) | 2020 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 85,384 | 96,847 |
Realized Net Gain (Loss) | 1,437,747 | 20,999 |
Change in Unrealized Appreciation (Depreciation) | 1,161,519 | (281,308) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,684,650 | (163,462) |
Distributions | ||
Total Distributions | (118,963) | (213,745) |
Capital Share Transactions | ||
Issued | 934,119 | 570,926 |
Issued in Lieu of Cash Distributions | 110,108 | 199,995 |
Redeemed | (1,580,498) | (1,655,893) |
Net Increase (Decrease) from Capital Share Transactions | (536,271) | (884,972) |
Total Increase (Decrease) | 2,029,416 | (1,262,179) |
Net Assets | ||
Beginning of Period | 5,836,297 | 7,098,476 |
End of Period | 7,865,713 | 5,836,297 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $30.31 | $31.87 | $37.21 | $34.89 | $30.41 |
Investment Operations | |||||
Net Investment Income1 | .465 | .459 | .449 | .392 | .504 |
Net Realized and Unrealized Gain (Loss) on Investments | 13.937 | (1.041) | (2.980) | 4.781 | 4.988 |
Total from Investment Operations | 14.402 | (.582) | (2.531) | 5.173 | 5.492 |
Distributions | |||||
Dividends from Net Investment Income | (.479) | (.444) | (.395) | (.460) | (.509) |
Distributions from Realized Capital Gains | (.163) | (.534) | (2.414) | (2.393) | (.503) |
Total Distributions | (.642) | (.978) | (2.809) | (2.853) | (1.012) |
Net Asset Value, End of Period | $44.07 | $30.31 | $31.87 | $37.21 | $34.89 |
Total Return2 | 47.98% | -2.09% | -5.63% | 15.63% | 18.28% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $7,866 | $5,836 | $7,098 | $7,946 | $7,051 |
Ratio of Total Expenses to Average Net Assets | 0.17% | 0.17% | 0.17% | 0.17% | 0.18% |
Ratio of Net Investment Income to Average Net Assets | 1.15% | 1.53% | 1.42% | 1.10% | 1.53% |
Portfolio Turnover Rate | 59% | 61% | 60% | 82% | 81% |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
A. | The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. |
B. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
C. | 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. |
D. | Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These |
Amount ($000) | |
Paid-in Capital | 96,424 |
Total Distributable Earnings (Loss) | (96,424) |
Amount ($000) | |
Undistributed Ordinary Income | 262,497 |
Undistributed Long-Term Gains | 1,104,350 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 1,854,747 |
Year Ended September 30, | ||
2021 Amount ($000) | 2020 Amount ($000) | |
Ordinary Income* | 88,680 | 97,026 |
Long-Term Capital Gains | 30,283 | 116,719 |
Total | 118,963 | 213,745 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 6,025,607 |
Gross Unrealized Appreciation | 2,151,918 |
Gross Unrealized Depreciation | (297,171) |
Net Unrealized Appreciation (Depreciation) | 1,854,747 |
E. | During the year ended September 30, 2021, the fund purchased $4,248,413,000 of investment securities and sold $4,809,974,000 of investment securities, other than temporary cash investments. |
F. | Capital shares issued and redeemed were: |
Year Ended September 30, | ||
2021 Shares (000) | 2020 Shares (000) | |
Issued | 22,762 | 20,190 |
Issued in Lieu of Cash Distributions | 3,045 | 6,031 |
Redeemed | (39,868) | (56,402) |
Net Increase (Decrease) in Shares Outstanding | (14,061) | (30,181) |
G. | Management has determined that no other events or transactions occurred subsequent to September 30, 2021, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
November 17, 2021
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
John T. Marcante | Lauren Valente |
Chris D. Mclsaac |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Your Fund’s Performance at a Glance | 1 |
Advisor’s Report | 2 |
About Your Fund’s Expenses | 6 |
Performance Summary | 8 |
Financial Statements | 10 |
• | Vanguard Capital Opportunity Fund returned 34.84% for Admiral Shares and 34.75% for Investor Shares for the 12 months ended September 30, 2021, ahead of the 30.45% return of its benchmark, the Russell Midcap Growth Index. |
• | The global economy rebounded faster than many had expected after the pandemic-induced contraction in the spring of 2020. Countries that have been more successful in containing the virus have generally fared better economically. Swift and extensive fiscal and monetary support from policymakers has also been key to the rebound. Stock returns were excellent for the year under review, reflecting the recovery following the sharp downturn at the start of the pandemic. |
• | Value stocks outperformed their growth counterparts, and small-capitalization stocks outdistanced mid- and large-caps for the period. |
• | In the bond markets, yields moved higher across much of the developed world during the fiscal year amid concerns about inflation and the prospect of central banks scaling back their bond-buying programs or raising interest rates. |
• | Relative to the benchmark, the fund’s return was helped most by stock selection in the financial, communication services, and industrial sectors. Selection in health care was the biggest detractor. |
Average Annual Total Returns Periods Ended September 30, 2021 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 30.96% | 16.43% | 17.11% |
Russell 2000 Index (Small-caps) | 47.68 | 10.54 | 13.45 |
Russell 3000 Index (Broad U.S. market) | 31.88 | 16.00 | 16.85 |
FTSE All-World ex US Index (International) | 24.73 | 8.49 | 9.28 |
Bonds | |||
Bloomberg U.S. Aggregate Bond Index (Broad taxable market) | -0.90% | 5.36% | 2.94% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | 2.63 | 5.06 | 3.26 |
FTSE Three-Month U.S. Treasury Bill Index | 0.06 | 1.14 | 1.13 |
CPI | |||
Consumer Price Index | 5.39% | 2.81% | 2.59% |
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended September 30, 2021 | |||
Beginning Account Value 3/31/2021 | Ending Account Value 9/30/2021 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Capital Opportunity Fund | |||
Investor Shares | $1,000.00 | $1,059.10 | $2.22 |
Admiral™ Shares | 1,000.00 | 1,059.50 | 1.86 |
Based on Hypothetical 5% Yearly Return | |||
Capital Opportunity Fund | |||
Investor Shares | $1,000.00 | $1,022.91 | $2.18 |
Admiral Shares | 1,000.00 | 1,023.26 | 1.83 |
Average Annual Total Returns Periods Ended September 30, 2021 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Capital Opportunity Fund Investor Shares | 34.75% | 18.22% | 18.87% | $56,331 | |
Russell Midcap Growth Index | 30.45 | 19.27 | 17.54 | 50,349 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 32.13 | 16.82 | 16.56 | 46,280 |
One Year | Five Years | Ten Years | Final Value of a $50,000 Investment | ||
Capital Opportunity Fund Admiral Shares | 34.84% | 18.30% | 18.95% | $283,630 | |
Russell Midcap Growth Index | 30.45 | 19.27 | 17.54 | 251,744 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 32.13 | 16.82 | 16.56 | 231,402 |
Communication Services | 5.5% |
Consumer Discretionary | 11.8 |
Consumer Staples | 0.0 |
Energy | 2.0 |
Financials | 8.6 |
Health Care | 30.6 |
Industrials | 12.1 |
Information Technology | 29.2 |
Materials | 0.2 |
Shares | Market Value• ($000) | ||
Common Stocks (97.4%) | |||
Communication Services (5.4%) | |||
* | Alphabet Inc. Class A | 136,950 | 366,139 |
* | Alphabet Inc. Class C | 122,600 | 326,767 |
* | Baidu Inc. ADR | 1,576,010 | 242,312 |
* | Facebook Inc. Class A | 206,700 | 70,152 |
Electronic Arts Inc. | 387,100 | 55,065 | |
* | Take-Two Interactive Software Inc. | 108,520 | 16,720 |
* | Live Nation Entertainment Inc. | 153,850 | 14,020 |
* | ZoomInfo Technologies Inc. Class A | 211,800 | 12,960 |
* | Walt Disney Co. | 48,657 | 8,231 |
* | Roblox Corp. Class A | 44,300 | 3,347 |
* | Snap Inc. Class A | 22,500 | 1,662 |
* | Pinterest Inc. Class A | 16,250 | 828 |
* | Madison Square Garden Sports Corp. | 3,100 | 576 |
* | Madison Square Garden Entertainment Corp. | �� 3,100 | 225 |
1,119,004 | |||
Consumer Discretionary (11.5%) | |||
* | Tesla Inc. | 613,230 | 475,548 |
* | Alibaba Group Holding Ltd. ADR | 2,400,000 | 355,320 |
* | CarMax Inc. | 1,933,597 | 247,423 |
* | Amazon.com Inc. | 72,700 | 238,823 |
TJX Cos. Inc. | 2,880,800 | 190,075 | |
Sony Group Corp. ADR | 1,478,125 | 163,451 | |
* | XPeng Inc. ADR | 4,181,419 | 148,608 |
* | Entain plc | 4,634,192 | 132,360 |
* | Capri Holdings Ltd. | 1,532,500 | 74,188 |
* | Royal Caribbean Cruises Ltd. | 817,900 | 72,752 |
* | Carnival Corp. | 2,527,245 | 63,206 |
eBay Inc. | 610,300 | 42,520 | |
Ross Stores Inc. | 342,400 | 37,270 | |
* | DoorDash Inc. Class A | 155,600 | 32,051 |
* | Burlington Stores Inc. | 80,850 | 22,927 |
* | Marriott International Inc. Class A | 131,300 | 19,444 |
* | Norwegian Cruise Line Holdings Ltd. | 564,625 | 15,081 |
Newell Brands Inc. | 597,200 | 13,222 | |
* | Ollie's Bargain Outlet Holdings Inc. | 195,990 | 11,814 |
* | Hilton Worldwide Holdings Inc. | 76,333 | 10,084 |
Shares | Market Value• ($000) | ||
* | Las Vegas Sands Corp. | 261,200 | 9,560 |
* | Ulta Beauty Inc. | 23,000 | 8,301 |
Restaurant Brands International Inc. | 88,500 | 5,415 | |
Whirlpool Corp. | 20,000 | 4,077 | |
* | AutoZone Inc. | 2,070 | 3,515 |
Darden Restaurants Inc. | 15,000 | 2,272 | |
* | Five Below Inc. | 9,100 | 1,609 |
2,400,916 | |||
Consumer Staples (0.0%) | |||
*,1 | Beyond Meat Inc. | 8,000 | 842 |
Energy (1.9%) | |||
Pioneer Natural Resources Co. | 877,823 | 146,166 | |
Hess Corp. | 1,666,694 | 130,186 | |
*,1 | Transocean Ltd. | 11,836,496 | 44,860 |
EOG Resources Inc. | 358,121 | 28,747 | |
Cabot Oil & Gas Corp. | 1,267,150 | 27,573 | |
* | Southwestern Energy Co. | 3,499,100 | 19,385 |
* | TechnipFMC plc | 82,200 | 619 |
* | Technip Energies NV | 37,200 | 583 |
398,119 | |||
Financials (8.4%) | |||
Morgan Stanley | 3,633,141 | 353,541 | |
Charles Schwab Corp. | 3,619,600 | 263,652 | |
Raymond James Financial Inc. | 2,466,150 | 227,576 | |
Bank of America Corp. | 4,957,917 | 210,464 | |
Northern Trust Corp. | 1,564,851 | 168,707 | |
Wells Fargo & Co. | 3,216,210 | 149,264 | |
Goldman Sachs Group Inc. | 262,750 | 99,327 | |
JPMorgan Chase & Co. | 510,700 | 83,596 | |
Discover Financial Services | 600,000 | 73,710 | |
CME Group Inc. | 221,054 | 42,747 | |
Progressive Corp. | 306,700 | 27,723 | |
Tradeweb Markets Inc. Class A | 210,000 | 16,964 | |
LPL Financial Holdings Inc. | 93,000 | 14,579 | |
MarketAxess Holdings Inc. | 26,710 | 11,237 | |
Citigroup Inc. | 78,300 | 5,495 | |
1,748,582 |
Shares | Market Value• ($000) | ||
Health Care (29.8%) | |||
Eli Lilly & Co. | 4,185,468 | 967,052 | |
* | Biogen Inc. | 2,062,587 | 583,692 |
* | BioNTech SE ADR | 2,057,936 | 561,796 |
Amgen Inc. | 2,191,449 | 466,012 | |
* | BioMarin Pharmaceutical Inc. | 5,210,600 | 402,727 |
* | BeiGene Ltd. ADR | 995,231 | 361,269 |
* | Seagen Inc. | 1,881,142 | 319,418 |
Thermo Fisher Scientific Inc. | 540,908 | 309,037 | |
Novartis AG ADR | 2,502,300 | 204,638 | |
Bristol-Myers Squibb Co. | 3,133,830 | 185,429 | |
* | Edwards Lifesciences Corp. | 1,635,000 | 185,098 |
* | Boston Scientific Corp. | 4,204,406 | 182,429 |
* | Illumina Inc. | 365,400 | 148,210 |
* | Elanco Animal Health Inc. (XNYS) | 4,615,626 | 147,192 |
* | Charles River Laboratories International Inc. | 337,470 | 139,264 |
Roche Holding AG | 375,013 | 136,868 | |
AstraZeneca plc ADR | 2,187,100 | 131,357 | |
PerkinElmer Inc. | 737,987 | 127,886 | |
* | LivaNova plc | 1,453,940 | 115,138 |
* | Alkermes plc | 3,312,000 | 102,142 |
* | QIAGEN NV | 1,735,236 | 89,677 |
Abbott Laboratories | 654,900 | 77,363 | |
Zimmer Biomet Holdings Inc. | 400,800 | 58,661 | |
* | Allogene Therapeutics Inc. | 2,026,180 | 52,073 |
* | FibroGen Inc. | 3,893,071 | 39,787 |
Agilent Technologies Inc. | 213,000 | 33,554 | |
Medtronic plc | 157,000 | 19,680 | |
Alcon Inc. | 118,960 | 9,573 | |
2 | Siemens Healthineers AG | 136,900 | 8,879 |
* | Bridgebio Pharma Inc. | 139,900 | 6,557 |
* | Guardant Health Inc. | 49,883 | 6,236 |
* | Omnicell Inc. | 37,130 | 5,511 |
* | Repligen Corp. | 12,870 | 3,719 |
* | ImmunoGen Inc. | 519,127 | 2,943 |
* | IQVIA Holdings Inc. | 4,992 | 1,196 |
Danaher Corp. | 3,367 | 1,025 | |
* | Waters Corp. | 2,796 | 999 |
* | Adaptive Biotechnologies Corp. | 28,100 | 955 |
Cerner Corp. | 9,400 | 663 | |
Humana Inc. | 1,575 | 613 | |
6,196,318 | |||
Industrials (11.8%) | |||
* | Southwest Airlines Co. | 8,387,114 | 431,349 |
FedEx Corp. | 1,601,274 | 351,143 | |
* | AECOM | 4,714,930 | 297,748 |
Jacobs Engineering Group Inc. | 2,023,619 | 268,190 | |
* | Airbus SE | 1,417,564 | 187,935 |
* | United Airlines Holdings Inc. | 3,728,793 | 177,379 |
* | Delta Air Lines Inc. | 3,070,610 | 130,839 |
* | American Airlines Group Inc. | 5,025,500 | 103,123 |
* | JetBlue Airways Corp. | 5,626,350 | 86,027 |
* | TransDigm Group Inc. | 114,619 | 71,588 |
* | Lyft Inc. Class A | 1,254,665 | 67,237 |
Shares | Market Value• ($000) | ||
IDEX Corp. | 216,730 | 44,852 | |
Old Dominion Freight Line Inc. | 153,200 | 43,812 | |
Textron Inc. | 626,400 | 43,729 | |
Curtiss-Wright Corp. | 316,900 | 39,986 | |
* | Ryanair Holdings plc ADR | 194,900 | 21,451 |
* | Uber Technologies Inc. | 394,600 | 17,678 |
Carrier Global Corp. | 320,400 | 16,584 | |
AMETEK Inc. | 110,000 | 13,641 | |
Rockwell Automation Inc. | 41,300 | 12,144 | |
Union Pacific Corp. | 60,000 | 11,761 | |
Caterpillar Inc. | 60,000 | 11,518 | |
* | TuSimple Holdings Inc. Class A | 72,900 | 2,707 |
2,452,421 | |||
Information Technology (28.4%) | |||
Microsoft Corp. | 1,970,800 | 555,608 | |
* | Adobe Inc. | 651,700 | 375,197 |
Micron Technology Inc. | 4,997,627 | 354,732 | |
NetApp Inc. | 3,918,570 | 351,731 | |
Texas Instruments Inc. | 1,766,820 | 339,600 | |
Asml Holding NV GDR (Registered) | 450,567 | 335,722 | |
KLA Corp. | 993,410 | 332,306 | |
* | Splunk Inc. | 2,086,000 | 301,865 |
* | Flex Ltd. | 16,555,582 | 292,703 |
* | Trimble Inc. | 3,377,021 | 277,760 |
* | Descartes Systems Group Inc. | 2,216,665 | 180,126 |
QUALCOMM Inc. | 1,279,230 | 164,995 | |
Universal Display Corp. | 855,214 | 146,207 | |
Entegris Inc. | 1,154,300 | 145,326 | |
NVIDIA Corp. | 686,600 | 142,236 | |
Corning Inc. | 3,844,124 | 140,272 | |
* | PayPal Holdings Inc. | 538,630 | 140,157 |
Visa Inc. Class A | 507,800 | 113,112 | |
Intuit Inc. | 195,100 | 105,258 | |
* | Nuance Communications Inc. | 1,833,360 | 100,908 |
* | Cree Inc. | 916,500 | 73,989 |
Jabil Inc. | 1,237,500 | 72,233 | |
* | BlackBerry Ltd. | 7,169,876 | 69,763 |
Telefonaktiebolaget LM Ericsson ADR | 5,961,500 | 66,769 | |
Intel Corp. | 1,216,310 | 64,805 | |
* | Unity Software Inc. | 495,084 | 62,504 |
* | FormFactor Inc. | 1,665,541 | 62,175 |
HP Inc. | 1,998,100 | 54,668 | |
Teradyne Inc. | 471,200 | 51,441 | |
* | MongoDB Inc. Class A | 94,600 | 44,605 |
Hewlett Packard Enterprise Co. | 3,034,430 | 43,241 | |
* | WEX Inc. | 239,890 | 42,254 |
*,1 | VMware Inc. Class A | 282,300 | 41,978 |
* | Keysight Technologies Inc. | 245,710 | 40,368 |
Oracle Corp. | 420,000 | 36,595 | |
* | Autodesk Inc. | 121,200 | 34,563 |
* | salesforce.com Inc. | 105,000 | 28,478 |
* | Cerence Inc. | 219,700 | 21,115 |
* | Plantronics Inc. | 798,800 | 20,537 |
* | Nutanix Inc. Class A | 442,400 | 16,679 |
Analog Devices Inc. | 90,600 | 15,174 | |
* | Crowdstrike Holdings Inc. Class A | 59,400 | 14,599 |
Shares | Market Value• ($000) | ||
* | Palo Alto Networks Inc. | 20,800 | 9,963 |
* | Zoom Video Communications Inc. Class A | 32,700 | 8,551 |
* | Western Digital Corp. | 107,180 | 6,049 |
* | Nokia OYJ ADR | 690,000 | 3,761 |
Mastercard Inc. Class A | 9,600 | 3,338 | |
Applied Materials Inc. | 10,700 | 1,377 | |
* | DocuSign Inc. Class A | 3,500 | 901 |
* | Okta Inc. | 3,000 | 712 |
* | RingCentral Inc. Class A | 2,750 | 598 |
* | Arista Networks Inc. | 50 | 17 |
5,909,621 | |||
Materials (0.2%) | |||
* | Ivanhoe Mines Ltd. Class A | 4,059,100 | 25,958 |
Albemarle Corp. | 26,500 | 5,803 | |
31,761 | |||
Total Common Stocks (Cost $7,188,705) | 20,257,584 | ||
Temporary Cash Investments (2.9%) | |||
Money Market Fund (2.9%) | |||
3,4 | Vanguard Market Liquidity Fund, 0.068% (Cost $608,770) | 6,088,820 | 608,882 |
Total Investments (100.3%) (Cost $7,797,475) | 20,866,466 | ||
Other Assets and Liabilities—Net (-0.3%) | (53,928) | ||
Net Assets (100%) | 20,812,538 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $44,176,000. |
2 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2021, the aggregate value was $8,879,000, representing 0.0% of net assets. |
3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
4 | Collateral of $45,825,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. |
Purchase Commitments | ||||
Shares | Total Commitment ($000) | Unrealized Appreciation ($000) | Unrealized Depreciation ($000) | |
1Reinvent Technology Partners Y – PIPE | 7,385,000 | $73,850 | $— | $7,850 |
1Represents a commitment to purchase shares directly from a publicly traded company in a private placement transaction. Settlement is conditioned on several contingent factors and the fund has not taken delivery as of September 30, 2021. Securities received will be restricted from resale until they become effectively registered with the U.S. Securities and Exchange Commission. Value determined using significant unobservable inputs. |
PIPE—Private Investment in Public Entity. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $7,188,705) | 20,257,584 |
Affiliated Issuers (Cost $608,770) | 608,882 |
Total Investments in Securities | 20,866,466 |
Investment in Vanguard | 724 |
Receivables for Investment Securities Sold | 738 |
Receivables for Accrued Income | 16,680 |
Receivables for Capital Shares Issued | 2,414 |
Total Assets | 20,887,022 |
Liabilities | |
Due to Custodian | 1,092 |
Payables for Investment Securities Purchased | 2,431 |
Collateral for Securities on Loan | 45,825 |
Payables to Investment Advisor | 12,160 |
Payables for Capital Shares Redeemed | 3,925 |
Payables to Vanguard | 1,201 |
Unrealized Depreciation—Purchase Commitments | 7,850 |
Total Liabilities | 74,484 |
Net Assets | 20,812,538 |
At September 30, 2021, net assets consisted of: | |
Paid-in Capital | 5,942,991 |
Total Distributable Earnings (Loss) | 14,869,547 |
Net Assets | 20,812,538 |
Investor Shares—Net Assets | |
Applicable to 17,902,059 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,584,870 |
Net Asset Value Per Share—Investor Shares | $88.53 |
Admiral Shares—Net Assets | |
Applicable to 94,027,649 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 19,227,668 |
Net Asset Value Per Share—Admiral Shares | $204.49 |
Year Ended September 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 149,563 |
Interest2 | 423 |
Securities Lending—Net | 2,906 |
Total Income | 152,892 |
Expenses | |
Investment Advisory Fees—Note B | 46,146 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 3,358 |
Management and Administrative—Admiral Shares | 23,136 |
Marketing and Distribution—Investor Shares | 102 |
Marketing and Distribution—Admiral Shares | 408 |
Custodian Fees | 397 |
Auditing Fees | 30 |
Shareholders’ Reports—Investor Shares | 21 |
Shareholders’ Reports—Admiral Shares | 51 |
Trustees’ Fees and Expenses | 14 |
Total Expenses | 73,663 |
Net Investment Income | 79,229 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 1,940,535 |
Foreign Currencies | 164 |
Realized Net Gain (Loss) | 1,940,699 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 3,716,144 |
Purchase Commitments | (7,850) |
Foreign Currencies | (89) |
Change in Unrealized Appreciation (Depreciation) | 3,708,205 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 5,728,133 |
1 | Dividends are net of foreign withholding taxes of $3,474,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $423,000, $20,000, and ($21,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Year Ended September 30, | ||
2021 ($000) | 2020 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 79,229 | 122,807 |
Realized Net Gain (Loss) | 1,940,699 | 1,576,845 |
Change in Unrealized Appreciation (Depreciation) | 3,708,205 | 1,060,175 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 5,728,133 | 2,759,827 |
Distributions | ||
Investor Shares | (141,974) | (111,496) |
Admiral Shares | (1,495,145) | (986,047) |
Total Distributions | (1,637,119) | (1,097,543) |
Capital Share Transactions | ||
Investor Shares | (300,478) | (338,204) |
Admiral Shares | 108,916 | (713,366) |
Net Increase (Decrease) from Capital Share Transactions | (191,562) | (1,051,570) |
Total Increase (Decrease) | 3,899,452 | 610,714 |
Net Assets | ||
Beginning of Period | 16,913,086 | 16,302,372 |
End of Period | 20,812,538 | 16,913,086 |
Investor Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $71.69 | $64.38 | $75.87 | $65.51 | $54.99 |
Investment Operations | |||||
Net Investment Income1 | .276 | .454 | .549 | .428 | .429 |
Net Realized and Unrealized Gain (Loss) on Investments | 23.563 | 11.233 | (5.116) | 12.957 | 13.136 |
Total from Investment Operations | 23.839 | 11.687 | (4.567) | 13.385 | 13.565 |
Distributions | |||||
Dividends from Net Investment Income | (.334) | (.501) | (.473) | (.449) | (.370) |
Distributions from Realized Capital Gains | (6.665) | (3.876) | (6.450) | (2.576) | (2.675) |
Total Distributions | (6.999) | (4.377) | (6.923) | (3.025) | (3.045) |
Net Asset Value, End of Period | $88.53 | $71.69 | $64.38 | $75.87 | $65.51 |
Total Return2 | 34.75% | 18.52% | -5.01% | 21.03% | 25.77% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $1,585 | $1,518 | $1,684 | $2,065 | $2,182 |
Ratio of Total Expenses to Average Net Assets | 0.43% | 0.44% | 0.44% | 0.43% | 0.44% |
Ratio of Net Investment Income to Average Net Assets | 0.33% | 0.69% | 0.84% | 0.62% | 0.73% |
Portfolio Turnover Rate | 7% | 8% | 6% | 10% | 9% |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
Admiral Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $165.62 | $148.73 | $175.34 | $151.28 | $127.00 |
Investment Operations | |||||
Net Investment Income1 | .775 | 1.148 | 1.374 | 1.103 | 1.084 |
Net Realized and Unrealized Gain (Loss) on Investments | 54.409 | 25.968 | (11.834) | 29.937 | 30.333 |
Total from Investment Operations | 55.184 | 27.116 | (10.460) | 31.040 | 31.417 |
Distributions | |||||
Dividends from Net Investment Income | (.916) | (1.270) | (1.241) | (1.030) | (.962) |
Distributions from Realized Capital Gains | (15.398) | (8.956) | (14.909) | (5.950) | (6.175) |
Total Distributions | (16.314) | (10.226) | (16.150) | (6.980) | (7.137) |
Net Asset Value, End of Period | $204.49 | $165.62 | $148.73 | $175.34 | $151.28 |
Total Return2 | 34.84% | 18.60% | -4.95% | 21.12% | 25.86% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $19,228 | $15,395 | $14,618 | $16,372 | $13,621 |
Ratio of Total Expenses to Average Net Assets | 0.36% | 0.37% | 0.37% | 0.36% | 0.37% |
Ratio of Net Investment Income to Average Net Assets | 0.40% | 0.76% | 0.91% | 0.69% | 0.80% |
Portfolio Turnover Rate | 7% | 8% | 6% | 10% | 9% |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
A. | The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. |
B. | PRIMECAP Management Company provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. For the year ended September 30, 2021, the investment advisory fee represented an effective annual basic rate of 0.23% of the fund’s average net assets. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
D. | Various inputs may be used to determine the value of the fund’s investments and other financial instruments. 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 19,746,099 | 511,485 | — | 20,257,584 |
Temporary Cash Investments | 608,882 | — | — | 608,882 |
Total | 20,354,981 | 511,485 | — | 20,866,466 |
Other Financial Instruments | ||||
Liabilities | ||||
Purchase Commitments | — | — | 7,850 | 7,850 |
E. | Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for foreign currency transactions and distributions in connection with fund share redemptions were reclassified between the following accounts: |
Amount ($000) | |
Paid-in Capital | 76,332 |
Total Distributable Earnings (Loss) | (76,332) |
Amount ($000) | |
Undistributed Ordinary Income | 129,809 |
Undistributed Long-Term Gains | 1,681,142 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 13,058,596 |
Year Ended September 30, | ||
2021 Amount ($000) | 2020 Amount ($000) | |
Ordinary Income* | 102,963 | 143,529 |
Long-Term Capital Gains | 1,534,156 | 954,014 |
Total | 1,637,119 | 1,097,543 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 7,800,244 |
Gross Unrealized Appreciation | 13,590,776 |
Gross Unrealized Depreciation | (532,404) |
Net Unrealized Appreciation (Depreciation) | 13,058,372 |
F. | During the year ended September 30, 2021, the fund purchased $1,286,871,000 of investment securities and sold $3,104,045,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Year Ended September 30, | |||||
2021 | 2020 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 204,140 | 2,462 | 148,331 | 2,318 | |
Issued in Lieu of Cash Distributions | 132,306 | 1,724 | 104,117 | 1,530 | |
Redeemed | (636,924) | (7,454) | (590,652) | (8,839) | |
Net Increase (Decrease)—Investor Shares | (300,478) | (3,268) | (338,204) | (4,991) | |
Admiral Shares | |||||
Issued | 910,923 | 4,648 | 593,798 | 3,877 | |
Issued in Lieu of Cash Distributions | 1,313,964 | 7,417 | 875,790 | 5,574 | |
Redeemed | (2,115,971) | (10,991) | (2,182,954) | (14,782) | |
Net Increase (Decrease)—Admiral Shares | 108,916 | 1,074 | (713,366) | (5,331) |
H. | Management has determined that no events or transactions occurred subsequent to September 30, 2021, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
November 19, 2021
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
John T. Marcante | Lauren Valente |
Chris D. Mclsaac |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Your Fund’s Performance at a Glance | 1 |
Advisors’ Report | 2 |
About Your Fund’s Expenses | 6 |
Performance Summary | 8 |
Financial Statements | 10 |
• | Vanguard Global Equity Fund returned 28.29% for the 12 months ended September 30, 2021, surpassing the 27.44% return of its benchmark index, the MSCI All Country World Index. |
• | For the decade ended September 30, 2021, the fund returned an annualized 13.75%, ahead of the benchmark’s 11.90% result. |
• | The global economy rebounded faster than many had expected after the pandemic-induced contraction in the spring of 2020. Countries that have been more successful in containing the virus have generally fared better economically. Swift and extensive fiscal and monetary support from policymakers has also been key to the rebound. |
• | The fund’s outperformance was attributable mainly to stock selection. Among regions, North America, by far the largest weighting in the fund and the index, and emerging markets were the top contributors. Consumer discretionary stocks led the way among sectors. |
Average Annual Total Returns Periods Ended September 30, 2021 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 30.96% | 16.43% | 17.11% |
Russell 2000 Index (Small-caps) | 47.68 | 10.54 | 13.45 |
Russell 3000 Index (Broad U.S. market) | 31.88 | 16.00 | 16.85 |
FTSE All-World ex US Index (International) | 24.73 | 8.49 | 9.28 |
Bonds | |||
Bloomberg U.S. Aggregate Bond Index (Broad taxable market) | -0.90% | 5.36% | 2.94% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | 2.63 | 5.06 | 3.26 |
FTSE Three-Month U.S. Treasury Bill Index | 0.06 | 1.14 | 1.13 |
CPI | |||
Consumer Price Index | 5.39% | 2.81% | 2.59% |
Fund Assets Managed | |||
Investment Advisor | % | $ Million | Investment Strategy |
Baillie Gifford Overseas Ltd. | 49 | 4,440 | A long-term, active, bottom-up investment approach is used to identify companies that can generate above-average growth in earnings and cash flow. |
Marathon Asset Management Limited | 48 | 4,392 | A long-term and contrarian investment philosophy and process with a focus on industry capital cycle analysis and in-depth management assessment. |
Cash Investments | 3 | 231 | These short-term reserves are invested by Vanguard in equity index products to simulate investment in stocks. Each advisor may also maintain a modest cash position. |
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended September 30, 2021 | |||
Global Equity Fund | Beginning Account Value 3/31/2021 | Ending Account Value 9/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,045.00 | $2.31 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.81 | 2.28 |
Average Annual Total Returns Periods Ended September 30, 2021 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Global Equity Fund | 28.29% | 14.98% | 13.75% | $36,282 | |
MSCI All Country World Index Net | 27.44 | 13.20 | 11.90 | 30,794 |
United States | 57.2% |
Japan | 7.0 |
United Kingdom | 5.4 |
China | 3.4 |
Netherlands | 2.6 |
India | 2.5 |
Switzerland | 2.3 |
Taiwan | 2.0 |
Canada | 2.0 |
France | 2.0 |
Ireland | 1.8 |
Singapore | 1.7 |
Hong Kong | 1.6 |
Germany | 1.5 |
Sweden | 1.2 |
South Africa | 1.0 |
Other | 4.8 |
Shares | Market Value• ($000) | ||
Common Stocks (96.3%) | |||
Australia (0.9%) | |||
Orica Ltd. | 1,117,601 | 10,916 | |
Australia & New Zealand Banking Group Ltd. | 318,704 | 6,400 | |
BHP Group Ltd. | 224,096 | 5,985 | |
Macquarie Group Ltd. | 37,686 | 4,869 | |
QBE Insurance Group Ltd. | 550,781 | 4,538 | |
Cleanaway Waste Management Ltd. | 2,296,011 | 4,506 | |
carsales.com Ltd. | 222,577 | 3,995 | |
Brambles Ltd. | 503,469 | 3,871 | |
Newcrest Mining Ltd. | 221,256 | 3,668 | |
Telstra Corp. Ltd. | 990,403 | 2,775 | |
James Hardie Industries plc GDR | 73,461 | 2,606 | |
ALS Ltd. | 279,448 | 2,517 | |
BlueScope Steel Ltd. | 168,126 | 2,436 | |
* | Qantas Airways Ltd. | 545,255 | 2,199 |
Evolution Mining Ltd. | 834,359 | 2,110 | |
Aristocrat Leisure Ltd. | 62,338 | 2,073 | |
* | AMP Ltd. | 2,435,357 | 1,717 |
Beach Energy Ltd. | 1,590,035 | 1,698 | |
Santos Ltd. | 296,039 | 1,516 | |
GUD Holdings Ltd. | 188,571 | 1,376 | |
Metcash Ltd. | 443,871 | 1,242 | |
IPH Ltd. | 176,708 | 1,154 | |
Challenger Ltd. | 251,536 | 1,119 | |
Oil Search Ltd. | 337,459 | 1,050 | |
Domain Holdings Australia Ltd. | 228,865 | 914 | |
GWA Group Ltd. | 425,392 | 833 | |
78,083 | |||
Austria (0.1%) | |||
Wienerberger AG | 116,243 | 3,903 | |
1 | Oesterreichische Post AG | 35,703 | 1,511 |
5,414 | |||
Belgium (0.0%) | |||
Anheuser-Busch InBev SA | 33,524 | 1,901 | |
Brazil (0.2%) | |||
B3 SA - Brasil Bolsa Balcao | 6,557,700 | 15,341 | |
Porto Seguro SA | 769,808 | 6,992 | |
22,333 |
Shares | Market Value• ($000) | ||
Canada (1.9%) | |||
* | Shopify Inc. Class A (XTSE) | 60,535 | 82,072 |
Barrick Gold Corp. (XTSE) | 1,475,001 | 26,624 | |
1 | PrairieSky Royalty Ltd. | 2,166,950 | 23,114 |
*,2 | Spin Master Corp. | 607,088 | 19,704 |
Canadian Natural Resources Ltd. | 410,916 | 15,024 | |
First Quantum Minerals Ltd. | 359,197 | 6,650 | |
173,188 | |||
China (3.3%) | |||
*,2 | Meituan Class B | 2,136,500 | 68,200 |
* | Alibaba Group Holding Ltd. ADR | 332,383 | 49,209 |
Ping An Insurance Group Co. of China Ltd. Class H | 4,468,000 | 30,558 | |
* | Li Auto Inc. ADR | 842,579 | 22,152 |
*,3 | Brilliance China Automotive Holdings Ltd. | 16,914,000 | 15,861 |
China Mengniu Dairy Co. Ltd. | 2,408,000 | 15,507 | |
Shenzhou International Group Holdings Ltd. | 596,500 | 12,660 | |
Li Ning Co. Ltd. | 1,073,500 | 12,373 | |
Weichai Power Co. Ltd. Class H | 5,573,000 | 11,583 | |
Zhongsheng Group Holdings Ltd. | 1,241,000 | 9,948 | |
*,2 | Ping An Healthcare and Technology Co. Ltd. | 1,384,400 | 9,024 |
* | Tencent Music Entertainment Group ADR | 1,199,226 | 8,694 |
Autohome Inc. ADR | 173,470 | 8,141 | |
Midea Group Co. Ltd. Class A (XSEC) | 714,600 | 7,684 | |
* | Baidu Inc. ADR | 45,748 | 7,034 |
2 | BOC Aviation Ltd. | 461,700 | 3,853 |
* | KE Holdings Inc. ADR | 138,399 | 2,527 |
* | Vipshop Holdings Ltd. ADR | 144,896 | 1,614 |
Uni-President China Holdings Ltd. | 408,000 | 387 | |
Skshu Paint Co. Ltd. Class A | 3,900 | 60 | |
297,069 |
Shares | Market Value• ($000) | ||
Denmark (0.8%) | |||
* | Genmab A/S | 63,017 | 27,533 |
Novo Nordisk A/S Class B | 107,135 | 10,327 | |
Vestas Wind Systems A/S | 228,643 | 9,173 | |
GN Store Nord A/S | 82,384 | 5,698 | |
Coloplast A/S Class B | 35,438 | 5,541 | |
* | Demant A/S | 81,143 | 4,089 |
Carlsberg A/S Class B | 23,721 | 3,870 | |
2 | Orsted A/S | 18,020 | 2,375 |
68,606 | |||
Finland (0.1%) | |||
Sampo OYJ Class A | 78,545 | 3,884 | |
Wartsila OYJ Abp | 202,466 | 2,411 | |
6,295 | |||
France (1.9%) | |||
Pernod Ricard SA | 316,811 | 69,845 | |
Legrand SA | 250,706 | 26,863 | |
EssilorLuxottica SA | 137,798 | 26,332 | |
* | Ubisoft Entertainment SA | 184,936 | 11,074 |
Eurofins Scientific SE | 82,565 | 10,579 | |
Edenred | 85,410 | 4,598 | |
1 | BNP Paribas SA | 69,095 | 4,421 |
Schneider Electric SE | 26,271 | 4,376 | |
ArcelorMittal SA | 106,714 | 3,267 | |
AXA SA | 107,976 | 2,992 | |
Thales SA | 25,471 | 2,470 | |
Alten SA | 12,970 | 1,898 | |
* | JCDecaux SA | 51,591 | 1,366 |
Vicat SA | 18,209 | 809 | |
ArcelorMittal SA (XAMS) | 4,408 | 135 | |
171,025 | |||
Germany (1.5%) | |||
adidas AG | 123,558 | 38,829 | |
Henkel AG & Co. KGaA Preference Shares | 271,424 | 25,109 | |
Deutsche Boerse AG | 146,390 | 23,754 | |
Beiersdorf AG | 132,952 | 14,346 | |
Henkel AG & Co. KGaA | 91,349 | 7,858 | |
* | HelloFresh SE | 71,713 | 6,610 |
Volkswagen AG Preference Shares | 13,297 | 2,964 | |
Brenntag SE | 31,847 | 2,958 | |
BASF SE | 38,381 | 2,910 | |
Fresenius Medical Care AG & Co. KGaA | 36,997 | 2,595 | |
Stabilus SA | 25,284 | 1,766 | |
Bayerische Motoren Werke AG | 18,281 | 1,736 | |
131,435 | |||
Greece (0.0%) | |||
* | Eurobank Ergasias Services and Holdings SA | 2,277,271 | 2,120 |
* | Fourlis Holdings SA | 338,976 | 1,565 |
3,685 | |||
Hong Kong (1.5%) | |||
AIA Group Ltd. | 8,664,800 | 99,683 | |
Techtronic Industries Co. Ltd. | 729,000 | 14,406 | |
* | Sands China Ltd. | 4,076,800 | 8,343 |
Jardine Matheson Holdings Ltd. | 94,200 | 4,979 | |
Stella International Holdings Ltd. | 2,452,673 | 3,122 |
Shares | Market Value• ($000) | ||
* | Galaxy Entertainment Group Ltd. | 494,000 | 2,535 |
Swire Pacific Ltd. Class A | 277,500 | 1,642 | |
ASM Pacific Technology Ltd. | 111,300 | 1,215 | |
CK Hutchison Holdings Ltd. | 113,692 | 759 | |
First Pacific Co. Ltd. | 2,047,250 | 736 | |
Johnson Electric Holdings Ltd. | 345,500 | 736 | |
* | Esprit Holdings Ltd. (XHKG) | 7,129,614 | 633 |
138,789 | |||
India (2.4%) | |||
Housing Development Finance Corp. Ltd. | 1,718,915 | 63,527 | |
2 | Reliance Industries Ltd. GDR | 885,052 | 60,110 |
ICICI Bank Ltd. ADR | 1,613,703 | 30,451 | |
HDFC Bank Ltd. ADR | 290,067 | 21,201 | |
Tata Consultancy Services Ltd. | 349,813 | 17,728 | |
Infosys Ltd. ADR | 479,175 | 10,662 | |
Havells India Ltd. | 409,421 | 7,526 | |
Dabur India Ltd. | 618,206 | 5,130 | |
Marico Ltd. | 563,242 | 4,156 | |
Shriram Transport Finance Co. Ltd. | 45,581 | 793 | |
221,284 | |||
Indonesia (0.2%) | |||
Bank Central Asia Tbk PT | 5,544,400 | 13,505 | |
Ireland (1.7%) | |||
* | Ryanair Holdings plc ADR | 817,647 | 89,990 |
CRH plc (XDUB) | 1,154,301 | 54,166 | |
* | Flutter Entertainment plc (XDUB) | 20,310 | 3,995 |
* | Bank of Ireland Group plc | 519,452 | 3,081 |
* | Flutter Entertainment plc | 15,191 | 3,013 |
* | Irish Continental Group plc | 213,148 | 1,067 |
*,3 | Irish Bank Resolution Corp. | 122,273 | — |
155,312 | |||
Italy (0.1%) | |||
CNH Industrial NV | 301,444 | 5,067 | |
UniCredit SpA | 185,974 | 2,461 | |
*,1 | Saipem SpA | 915,841 | 2,247 |
9,775 | |||
Japan (6.7%) | |||
Olympus Corp. | 3,006,000 | 65,795 | |
Sysmex Corp. | 408,800 | 50,776 | |
SMC Corp. | 63,500 | 39,618 | |
Advantest Corp. | 436,800 | 38,923 | |
CyberAgent Inc. | 1,898,800 | 36,633 | |
KDDI Corp. | 1,102,100 | 36,285 | |
Bridgestone Corp. | 626,700 | 29,650 | |
Toyota Motor Corp. | 1,635,500 | 29,140 | |
Denso Corp. | 349,400 | 22,815 | |
Tokio Marine Holdings Inc. | 397,500 | 21,308 | |
Secom Co. Ltd. | 241,400 | 17,460 | |
Sompo Holdings Inc. | 371,900 | 16,135 | |
Kyocera Corp. | 243,600 | 15,228 | |
Hoshizaki Corp. | 151,600 | 13,789 |
Shares | Market Value• ($000) | ||
MS&AD Insurance Group Holdings Inc. | 397,900 | 13,308 | |
Hitachi Ltd. | 194,700 | 11,519 | |
Koito Manufacturing Co. Ltd. | 165,400 | 9,946 | |
Nippon Telegraph & Telephone Corp. | 248,800 | 6,894 | |
Sohgo Security Services Co. Ltd. | 126,400 | 5,683 | |
TDK Corp. | 150,900 | 5,442 | |
Daiwa House Industry Co. Ltd. | 158,800 | 5,294 | |
SCSK Corp. | 249,000 | 5,267 | |
USS Co. Ltd. | 304,600 | 5,185 | |
Sumitomo Mitsui Financial Group Inc. | 145,000 | 5,101 | |
ITOCHU Corp. | 166,500 | 4,849 | |
Seven & i Holdings Co. Ltd. | 106,400 | 4,844 | |
East Japan Railway Co. | 65,600 | 4,636 | |
Nissan Chemical Corp. | 79,000 | 4,620 | |
Toyota Industries Corp. | 49,900 | 4,106 | |
* | Maeda Corp. | 515,300 | 4,087 |
Daifuku Co. Ltd. | 41,300 | 3,873 | |
Marui Group Co. Ltd. | 186,000 | 3,590 | |
Sumitomo Mitsui Trust Holdings Inc. | 104,200 | 3,589 | |
NTT Data Corp. | 184,300 | 3,563 | |
Dai-ichi Life Holdings Inc. | 144,500 | 3,160 | |
Kirin Holdings Co. Ltd. | 167,800 | 3,114 | |
Omron Corp. | 31,100 | 3,077 | |
Persol Holdings Co. Ltd. | 119,300 | 2,974 | |
Sekisui Chemical Co. Ltd. | 168,800 | 2,900 | |
Matsumotokiyoshi Holdings Co. Ltd. | 64,200 | 2,882 | |
Air Water Inc. | 167,300 | 2,674 | |
Japan Post Holdings Co. Ltd. | 317,600 | 2,670 | |
Nintendo Co. Ltd. | 5,500 | 2,628 | |
Yakult Honsha Co. Ltd. | 49,900 | 2,526 | |
Fukuoka Financial Group Inc. | 137,100 | 2,453 | |
Takeda Pharmaceutical Co. Ltd. | 72,400 | 2,388 | |
Sumitomo Metal Mining Co. Ltd. | 63,700 | 2,303 | |
Sumitomo Electric Industries Ltd. | 165,700 | 2,203 | |
Taiheiyo Cement Corp. | 104,900 | 2,167 | |
TechnoPro Holdings Inc. | 66,700 | 2,006 | |
Nomura Co. Ltd. | 220,400 | 1,983 | |
Senko Group Holdings Co. Ltd. | 210,500 | 1,926 | |
Daiwa Securities Group Inc. | 323,800 | 1,887 | |
Casio Computer Co. Ltd. | 111,900 | 1,853 | |
NSK Ltd. | 272,500 | 1,847 | |
Fuji Media Holdings Inc. | 163,300 | 1,728 | |
Sawai Group Holdings Co. Ltd. | 34,600 | 1,610 | |
NEC Corp. | 26,000 | 1,409 | |
Aeon Delight Co. Ltd. | 42,100 | 1,338 | |
Alfresa Holdings Corp. | 80,900 | 1,209 | |
Bandai Namco Holdings Inc. | 50 | 4 | |
Nippon Television Holdings Inc. | 70 | 1 | |
607,871 |
Shares | Market Value• ($000) | ||
Kenya (0.0%) | |||
* | East African Breweries Ltd. | 747,497 | 1,156 |
Luxembourg (0.0%) | |||
L'Occitane International SA | 521,630 | 1,740 | |
Mexico (0.1%) | |||
Grupo Aeroportuario del Pacifico SAB de CV Class B | 381,048 | 4,430 | |
* | Genomma Lab Internacional SAB de CV Class B | 2,967,573 | 2,817 |
* | Grupo Financiero Inbursa SAB de CV Class O | 2,230,614 | 2,090 |
Fomento Economico Mexicano SAB de CV ADR | 9,411 | 816 | |
Grupo Televisa SAB ADR | 17,233 | 189 | |
10,342 | |||
Netherlands (2.5%) | |||
* | Prosus NV | 1,320,308 | 105,679 |
Unilever plc | 1,169,704 | 63,183 | |
*,2 | Adyen NV | 13,603 | 38,025 |
ASML Holding NV | 14,343 | 10,715 | |
Heineken NV | 32,486 | 3,391 | |
Koninklijke Ahold Delhaize NV | 83,301 | 2,774 | |
*,2 | Just Eat Takeaway.com NV | 34,147 | 2,495 |
Koninklijke KPN NV | 552,659 | 1,739 | |
Boskalis Westminster | 55,364 | 1,685 | |
229,686 | |||
New Zealand (0.0%) | |||
Fletcher Building Ltd. | 456,060 | 2,259 | |
Norway (0.8%) | |||
* | Adevinta ASA | 1,594,397 | 27,322 |
Schibsted ASA Class A | 554,322 | 26,313 | |
Schibsted ASA Class B | 205,592 | 8,703 | |
Equinor ASA | 188,205 | 4,786 | |
DNB Bank ASA | 81,504 | 1,853 | |
68,977 | |||
Peru (0.1%) | |||
Southern Copper Corp. | 191,615 | 10,757 | |
Russia (0.6%) | |||
Sberbank of Russia PJSC ADR | 1,577,068 | 29,402 | |
3 | Severstal PAO GDR (Registered) | 445,819 | 9,389 |
*,3 | Mail.Ru Group Ltd. GDR (Registered) (XLON) | 413,964 | 8,494 |
X5 Retail Group NV GDR (Registered) | 154,592 | 4,993 | |
52,278 | |||
Singapore (1.6%) | |||
* | Sea Ltd. ADR | 409,962 | 130,667 |
DBS Group Holdings Ltd. | 298,800 | 6,621 | |
United Overseas Bank Ltd. | 190,200 | 3,598 | |
Singapore Telecommunications Ltd. | 1,464,800 | 2,637 | |
Great Eastern Holdings Ltd. | 146,500 | 2,295 |
Shares | Market Value• ($000) | ||
Delfi Ltd. | 3,564,400 | 2,000 | |
Singapore Land Group Ltd. | 134,300 | 260 | |
148,078 | |||
South Africa (0.9%) | |||
Naspers Ltd. Class N | 306,470 | 50,653 | |
* | Bid Corp. Ltd. | 335,819 | 7,215 |
Clicks Group Ltd. | 377,276 | 6,957 | |
Capitec Bank Holdings Ltd. | 42,657 | 5,172 | |
*,2 | Pepkor Holdings Ltd. | 3,398,810 | 4,869 |
African Rainbow Minerals Ltd. | 315,606 | 4,028 | |
Anglo American Platinum Ltd. | 43,402 | 3,749 | |
Tiger Brands Ltd. | 207,984 | 2,575 | |
85,218 | |||
South Korea (0.7%) | |||
Samsung Electronics Co. Ltd. | 860,642 | 53,355 | |
SK Hynix Inc. | 109,189 | 9,347 | |
62,702 | |||
Spain (0.1%) | |||
Fluidra SA | 102,781 | 4,075 | |
Viscofan SA | 23,444 | 1,535 | |
2 | Gestamp Automocion SA | 180,482 | 700 |
Acerinox SA | 52,194 | 669 | |
CaixaBank SA | 182,224 | 565 | |
7,544 | |||
Sweden (1.1%) | |||
Atlas Copco AB Class B | 817,707 | 41,561 | |
Epiroc AB Class B | 1,594,898 | 28,249 | |
Svenska Handelsbanken AB Class A | 1,474,138 | 16,509 | |
Assa Abloy AB Class B | 163,276 | 4,736 | |
Swedish Match AB | 496,306 | 4,344 | |
* | Nordic Entertainment Group AB Class B | 59,848 | 3,232 |
Sandvik AB | 134,139 | 3,065 | |
* | Modern Times Group MTG AB Class B | 82,291 | 996 |
102,692 | |||
Switzerland (2.2%) | |||
Nestle SA (Registered) | 558,216 | 67,259 | |
Cie Financiere Richemont SA Class A (Registered) | 489,856 | 50,789 | |
Roche Holding AG | 119,290 | 43,537 | |
*,2 | Wizz Air Holdings plc | 367,207 | 24,678 |
Geberit AG (Registered) | 8,124 | 5,965 | |
ABB Ltd. (Registered) | 68,624 | 2,296 | |
* | Holcim Ltd. | 41,118 | 1,981 |
Adecco Group AG (Registered) | 34,023 | 1,705 | |
198,210 | |||
Taiwan (2.0%) | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 5,520,577 | 114,177 | |
MediaTek Inc. | 335,000 | 10,783 | |
Advantech Co. Ltd. | 823,000 | 10,726 | |
Chailease Holding Co. Ltd. | 1,142,250 | 10,031 | |
Delta Electronics Inc. | 978,351 | 8,766 | |
Giant Manufacturing Co. Ltd. | 760,469 | 8,622 |
Shares | Market Value• ($000) | ||
Uni-President Enterprises Corp. | 1,887,000 | 4,610 | |
Merida Industry Co. Ltd. | 308,547 | 3,225 | |
Chroma ATE Inc. | 476,000 | 2,981 | |
Teco Electric and Machinery Co. Ltd. | 2,013,190 | 2,245 | |
King Slide Works Co. Ltd. | 94,267 | 1,310 | |
177,476 | |||
United Kingdom (5.2%) | |||
Prudential plc (XLON) | 4,658,975 | 90,409 | |
BHP Group plc | 2,259,377 | 56,924 | |
Rio Tinto plc | 817,565 | 53,593 | |
Reckitt Benckiser Group plc | 649,799 | 51,048 | |
* | Farfetch Ltd. Class A | 747,946 | 28,033 |
* | Compass Group plc | 1,320,996 | 27,016 |
Spectris plc | 404,695 | 21,004 | |
GlaxoSmithKline plc | 760,521 | 14,353 | |
Hays plc | 5,789,224 | 12,623 | |
BP plc | 1,805,689 | 8,225 | |
Rightmove plc | 784,186 | 7,205 | |
* | Entain plc | 214,209 | 6,118 |
Barclays plc | 2,270,426 | 5,769 | |
3i Group plc | 304,932 | 5,238 | |
Diageo plc | 96,211 | 4,658 | |
Lloyds Banking Group plc | 7,356,313 | 4,579 | |
Intertek Group plc | 64,577 | 4,318 | |
2 | Auto Trader Group plc | 508,650 | 4,011 |
Unilever plc (XLON) | 69,880 | 3,783 | |
DCC plc | 45,360 | 3,782 | |
RELX plc | 127,988 | 3,684 | |
HomeServe plc | 291,065 | 3,539 | |
Glencore plc | 673,460 | 3,168 | |
Bunzl plc | 93,590 | 3,088 | |
* | SSP Group plc | 795,092 | 2,942 |
* | easyJet plc | 315,037 | 2,781 |
* | Rolls-Royce Holdings plc | 1,450,781 | 2,710 |
Admiral Group plc | 62,842 | 2,626 | |
* | ITV plc | 1,824,424 | 2,609 |
2 | ConvaTec Group plc | 865,655 | 2,514 |
DS Smith plc | 426,052 | 2,353 | |
Standard Chartered plc | 360,912 | 2,110 | |
HSBC Holdings plc | 366,000 | 1,919 | |
* | John Wood Group plc | 582,043 | 1,798 |
* | WH Smith plc | 74,526 | 1,711 |
Jupiter Fund Management plc | 509,570 | 1,708 | |
*,1 | TUI AG (XETR) | 387,840 | 1,687 |
Inchcape plc | 142,403 | 1,550 | |
Tesco plc | 438,760 | 1,494 | |
BAE Systems plc | 190,844 | 1,446 | |
Serco Group plc | 788,800 | 1,421 | |
Daily Mail & General Trust plc Class A | 96,290 | 1,397 | |
* | Carnival plc | 51,981 | 1,176 |
Euromoney Institutional Investor plc | 85,920 | 1,170 | |
* | Capita plc | 1,495,326 | 1,019 |
* | Provident Financial plc | 169,417 | 760 |
Prudential plc | 34,700 | 667 | |
Devro plc | 139,305 | 402 | |
International Personal Finance plc | 196,938 | 367 | |
TUI AG | 73,823 | 319 | |
*,2 | Non-Standard Finance plc | 159,227 | 9 |
468,833 |
Shares | Market Value• ($000) | ||
United States (55.1%) | |||
* | Alphabet Inc. Class C | 77,435 | 206,388 |
* | Booking Holdings Inc. | 69,396 | 164,737 |
* | Facebook Inc. Class A | 414,632 | 140,722 |
Oracle Corp. | 1,410,554 | 122,902 | |
Moody's Corp. | 333,071 | 118,277 | |
Microsoft Corp. | 388,891 | 109,636 | |
Anthem Inc. | 293,739 | 109,506 | |
* | Alphabet Inc. Class A | 37,997 | 101,586 |
* | Moderna Inc. | 257,680 | 99,171 |
* | AutoZone Inc. | 56,163 | 95,364 |
* | Amazon.com Inc. | 27,409 | 90,040 |
Johnson & Johnson | 547,741 | 88,460 | |
* | Markel Corp. | 73,964 | 88,397 |
Texas Instruments Inc. | 450,647 | 86,619 | |
First Republic Bank | 403,636 | 77,853 | |
Martin Marietta Materials Inc. | 226,090 | 77,250 | |
* | Tesla Inc. | 99,458 | 77,128 |
Travelers Cos. Inc. | 502,663 | 76,410 | |
Hershey Co. | 408,930 | 69,211 | |
Arthur J Gallagher & Co. | 452,259 | 67,228 | |
Mastercard Inc. Class A | 187,262 | 65,107 | |
Service Corp. International | 1,075,652 | 64,819 | |
* | Berkshire Hathaway Inc. Class B | 231,234 | 63,113 |
* | CBRE Group Inc. Class A | 645,636 | 62,859 |
Albemarle Corp. | 273,839 | 59,963 | |
Merck & Co. Inc. | 794,720 | 59,691 | |
* | Cloudflare Inc. Class A | 521,651 | 58,764 |
* | Waters Corp. | 160,188 | 57,235 |
American Express Co. | 339,306 | 56,844 | |
Estee Lauder Cos. Inc. Class A | 176,252 | 52,863 | |
TJX Cos. Inc. | 797,259 | 52,603 | |
Analog Devices Inc. | 312,940 | 52,411 | |
* | DoorDash Inc. Class A | 250,739 | 51,647 |
Thermo Fisher Scientific Inc. | 90,032 | 51,438 | |
* | CarMax Inc. | 391,562 | 50,104 |
* | Alnylam Pharmaceuticals Inc. | 264,701 | 49,978 |
Electronic Arts Inc. | 349,053 | 49,653 | |
* | Twilio Inc. Class A | 151,535 | 48,347 |
CH Robinson Worldwide Inc. | 552,646 | 48,080 | |
Fastenal Co. | 929,821 | 47,988 | |
* | ABIOMED Inc. | 146,859 | 47,806 |
* | Trade Desk Inc. Class A | 679,022 | 47,735 |
S&P Global Inc. | 110,976 | 47,153 | |
Kimberly-Clark Corp. | 348,362 | 46,137 | |
* | SiteOne Landscape Supply Inc. | 228,014 | 45,482 |
Archer-Daniels-Midland Co. | 743,132 | 44,595 | |
Linde plc | 149,805 | 43,950 | |
Teradyne Inc. | 387,894 | 42,346 | |
ResMed Inc. | 157,997 | 41,640 | |
Broadridge Financial Solutions Inc. | 239,353 | 39,886 | |
* | Globus Medical Inc. Class A | 513,488 | 39,343 |
* | FTI Consulting Inc. | 292,069 | 39,342 |
* | Axon Enterprise Inc. | 221,455 | 38,759 |
PepsiCo Inc. | 256,571 | 38,591 | |
M&T Bank Corp. | 251,543 | 37,565 | |
* | Wayfair Inc. Class A | 140,580 | 35,920 |
Shares | Market Value• ($000) | ||
Progressive Corp. | 382,884 | 34,609 | |
* | Illumina Inc. | 84,944 | 34,454 |
United Parcel Service Inc. Class B | 185,809 | 33,836 | |
Dolby Laboratories Inc. Class A | 380,612 | 33,494 | |
* | Netflix Inc. | 54,822 | 33,460 |
* | Zillow Group Inc. Class C | 375,390 | 33,087 |
Charles Schwab Corp. | 448,811 | 32,691 | |
Activision Blizzard Inc. | 376,144 | 29,110 | |
Wells Fargo & Co. | 627,186 | 29,108 | |
* | Datadog Inc. Class A | 204,843 | 28,955 |
Hartford Financial Services Group Inc. | 409,567 | 28,772 | |
* | Snowflake Inc. Class A | 94,954 | 28,717 |
Procter & Gamble Co. | 197,859 | 27,661 | |
* | DexCom Inc. | 49,818 | 27,244 |
* | Teladoc Health Inc. | 213,959 | 27,132 |
* | Carvana Co. Class A | 89,124 | 26,874 |
Aon plc Class A (XNYS) | 92,155 | 26,335 | |
* | Arista Networks Inc. | 76,481 | 26,282 |
Paychex Inc. | 225,069 | 25,309 | |
Marsh & McLennan Cos. Inc. | 166,984 | 25,286 | |
* | Novocure Ltd. | 212,334 | 24,667 |
* | Certara Inc. | 744,411 | 24,640 |
* | Lyft Inc. Class A | 456,006 | 24,437 |
* | CoStar Group Inc. | 281,143 | 24,195 |
PACCAR Inc. | 299,640 | 23,648 | |
Willis Towers Watson plc | 100,632 | 23,393 | |
* | STAAR Surgical Co. | 176,616 | 22,701 |
MarketAxess Holdings Inc. | 53,509 | 22,511 | |
* | Eventbrite Inc. Class A | 1,147,709 | 21,703 |
Bank of New York Mellon Corp. | 404,509 | 20,970 | |
* | Chegg Inc. | 299,309 | 20,359 |
Expeditors International of Washington Inc. | 169,599 | 20,204 | |
* | Stericycle Inc. | 287,178 | 19,520 |
Union Pacific Corp. | 99,063 | 19,417 | |
Intel Corp. | 351,424 | 18,724 | |
Automatic Data Processing Inc. | 86,613 | 17,316 | |
Citigroup Inc. | 246,740 | 17,316 | |
* | Peloton Interactive Inc. Class A | 198,694 | 17,296 |
* | Howard Hughes Corp. | 192,647 | 16,916 |
* | Spotify Technology SA | 69,845 | 15,739 |
* | Exact Sciences Corp. | 157,126 | 14,998 |
Illinois Tool Works Inc. | 70,667 | 14,602 | |
CME Group Inc. | 75,004 | 14,504 | |
Chubb Ltd. | 83,123 | 14,420 | |
Colgate-Palmolive Co. | 178,648 | 13,502 | |
* | IAC/InterActiveCorp. | 102,202 | 13,316 |
* | Vimeo Inc. | 451,785 | 13,269 |
* | Oscar Health Inc. Class A | 727,943 | 12,659 |
Omnicom Group Inc. | 146,318 | 10,602 | |
3M Co. | 53,114 | 9,317 | |
* | LendingTree Inc. | 35,806 | 5,007 |
Organon & Co. | 51,353 | 1,684 | |
*,2 | Samsonite International SA | 449,400 | 965 |
PriceSmart Inc. | 2,038 | 158 | |
4,993,733 | |||
Total Common Stocks (Cost $5,891,122) | 8,727,251 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (5.2%) | |||
Money Market Fund (5.2%) | |||
4,5 | Vanguard Market Liquidity Fund, 0.068% (Cost $469,278) | 4,693,254 | 469,326 |
Total Investments (101.5%) (Cost $6,360,400) | 9,196,577 | ||
Other Assets and Liabilities—Net (-1.5%) | (133,737) | ||
Net Assets (100%) | 9,062,840 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $14,834,000. |
2 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2021, the aggregate value was $241,532,000, representing 2.7% of net assets. |
3 | Security value determined using significant unobservable inputs. |
4 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
5 | Collateral of $16,647,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. |
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 | December 2021 | 653 | 140,321 | (5,107) |
MSCI EAFE Index | December 2021 | 543 | 61,549 | (2,270) |
MSCI Emerging Markets Index | December 2021 | 471 | 29,334 | (465) |
(7,842) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $5,891,122) | 8,727,251 |
Affiliated Issuers (Cost $469,278) | 469,326 |
Total Investments in Securities | 9,196,577 |
Investment in Vanguard | 305 |
Cash Collateral Pledged—Futures Contracts | 12,523 |
Foreign Currency, at Value (Cost $5,338) | 5,291 |
Receivables for Investment Securities Sold | 16,243 |
Receivables for Accrued Income | 15,756 |
Receivables for Capital Shares Issued | 2,062 |
Total Assets | 9,248,757 |
Liabilities | |
Due to Custodian | 10,348 |
Payables for Investment Securities Purchased | 146,757 |
Collateral for Securities on Loan | 16,647 |
Payables to Investment Advisor | 5,316 |
Payables for Capital Shares Redeemed | 2,222 |
Payables to Vanguard | 833 |
Variation Margin Payable—Futures Contracts | 1,692 |
Deferred Foreign Capital Gains Taxes | 2,102 |
Total Liabilities | 185,917 |
Net Assets | 9,062,840 |
At September 30, 2021, net assets consisted of: | |
Paid-in Capital | 5,505,235 |
Total Distributable Earnings (Loss) | 3,557,605 |
Net Assets | 9,062,840 |
Net Assets | |
Applicable to 218,246,340 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 9,062,840 |
Net Asset Value Per Share | $41.53 |
Year Ended September 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 114,694 |
Interest2 | 277 |
Securities Lending—Net | 329 |
Total Income | 115,300 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 19,269 |
Performance Adjustment | (121) |
The Vanguard Group—Note C | |
Management and Administrative | 17,519 |
Marketing and Distribution | 516 |
Custodian Fees | 264 |
Auditing Fees | 42 |
Shareholders’ Reports | 73 |
Trustees’ Fees and Expenses | 6 |
Total Expenses | 37,568 |
Net Investment Income | 77,732 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 674,174 |
Futures Contracts | 49,788 |
Forward Currency Contracts | 2 |
Foreign Currencies | (556) |
Realized Net Gain (Loss) | 723,408 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,3 | 1,118,445 |
Futures Contracts | (7,343) |
Foreign Currencies | (211) |
Change in Unrealized Appreciation (Depreciation) | 1,110,891 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,912,031 |
1 | Dividends are net of foreign withholding taxes of $6,438,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $265,000, less than $1,000, and $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
3 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $2,102,000. |
Year Ended September 30, | ||
2021 ($000) | 2020 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 77,732 | 66,778 |
Realized Net Gain (Loss) | 723,408 | 154,118 |
Change in Unrealized Appreciation (Depreciation) | 1,110,891 | 669,458 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,912,031 | 890,354 |
Distributions | ||
Total Distributions | (221,418) | (418,327) |
Capital Share Transactions | ||
Issued | 1,446,524 | 877,776 |
Issued in Lieu of Cash Distributions | 201,858 | 381,376 |
Redeemed | (1,085,511) | (1,434,400) |
Net Increase (Decrease) from Capital Share Transactions | 562,871 | (175,248) |
Total Increase (Decrease) | 2,253,484 | 296,779 |
Net Assets | ||
Beginning of Period | 6,809,356 | 6,512,577 |
End of Period | 9,062,840 | 6,809,356 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $33.31 | $30.75 | $32.62 | $29.98 | $25.18 |
Investment Operations | |||||
Net Investment Income1 | .371 | .312 | .7002 | .426 | .351 |
Net Realized and Unrealized Gain (Loss) on Investments | 8.939 | 4.219 | (.354) | 2.618 | 4.823 |
Total from Investment Operations | 9.310 | 4.531 | .346 | 3.044 | 5.174 |
Distributions | |||||
Dividends from Net Investment Income | (.254) | (.742) | (.416) | (.404) | (.374) |
Distributions from Realized Capital Gains | (.836) | (1.229) | (1.800) | — | — |
Total Distributions | (1.090) | (1.971) | (2.216) | (.404) | (.374) |
Net Asset Value, End of Period | $41.53 | $33.31 | $30.75 | $32.62 | $29.98 |
Total Return3 | 28.29% | 15.10% | 2.19% | 10.22% | 20.85% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $9,063 | $6,809 | $6,513 | $5,769 | $5,387 |
Ratio of Total Expenses to Average Net Assets4 | 0.45% | 0.45% | 0.48% | 0.48% | 0.48% |
Ratio of Net Investment Income to Average Net Assets | 0.93% | 1.02% | 2.35%2 | 1.34% | 1.30% |
Portfolio Turnover Rate | 28% | 22% | 49% | 40% | 47% |
1 | Calculated based on average shares outstanding. |
2 | Net investment income per share and the ratio of net investment income to average net assets include $.200 and 0.67%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019. |
3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
4 | Includes performance-based investment advisory fee increases (decreases) of (0.00%), (0.00%), 0.02%, 0.02%, and 0.02%. |
A. | The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. |
B. | The investment advisory firms Baillie Gifford Overseas Ltd. and Marathon Asset Management Limited each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fees of Baillie Gifford Overseas Ltd. and Marathon Asset Management Limited are subject to quarterly adjustments based on performance relative to the MSCI All Country World Index for the preceding three years. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
D. | 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 5,209,388 | 965 | — | 5,210,353 |
Common Stocks—Other | 410,375 | 3,072,779 | 33,744 | 3,516,898 |
Temporary Cash Investments | 469,326 | — | — | 469,326 |
Total | 6,089,089 | 3,073,744 | 33,744 | 9,196,577 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 7,842 | — | — | 7,842 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
E. | At September 30, 2021, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows: |
Statement of Assets and Liabilities | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Unrealized Depreciation—Futures Contracts1 | 7,842 | — | 7,842 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Realized Net Gain (Loss) on Derivatives | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Futures Contracts | 49,788 | — | 49,788 |
Forward Currency Contracts | — | 2 | 2 |
Realized Net Gain (Loss) on Derivatives | 49,788 | 2 | 49,790 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | (7,343) | — | (7,343) |
F. | Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for foreign currency transactions, passive foreign investment companies, and distributions in connection with fund share redemptions were reclassified between the following accounts: |
Amount ($000) | |
Paid-in Capital | 29,902 |
Total Distributable Earnings (Loss) | (29,902) |
Amount ($000) | |
Undistributed Ordinary Income | 137,868 |
Undistributed Long-Term Gains | 598,642 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 2,819,823 |
Year Ended September 30, | ||
2021 Amount ($000) | 2020 Amount ($000) | |
Ordinary Income* | 86,958 | 157,454 |
Long-Term Capital Gains | 134,460 | 260,873 |
Total | 221,418 | 418,327 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 6,374,618 |
Gross Unrealized Appreciation | 3,048,237 |
Gross Unrealized Depreciation | (226,278) |
Net Unrealized Appreciation (Depreciation) | 2,821,959 |
G. | During the year ended September 30, 2021, the fund purchased $2,596,418,000 of investment securities and sold $2,201,007,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Year Ended September 30, | ||
2021 Shares (000) | 2020 Shares (000) | |
Issued | 35,863 | 28,768 |
Issued in Lieu of Cash Distributions | 5,367 | 12,107 |
Redeemed | (27,438) | (48,231) |
Net Increase (Decrease) in Shares Outstanding | 13,792 | (7,356) |
I. | Management has determined that no events or transactions occurred subsequent to September 30, 2021, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
November 19, 2021
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
John T. Marcante | Lauren Valente |
Chris D. Mclsaac |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Your Fund’s Performance at a Glance | 1 |
Advisor’s Report | 2 |
About Your Fund’s Expenses | 4 |
Performance Summary | 6 |
Financial Statements | 8 |
• | Vanguard Strategic Small-Cap Equity Fund returned 56.05% for the 12 months ended September 30, 2021. The fund outperformed its benchmark index, which returned 52.25%. |
• | The global economy rebounded faster than many had expected after the pandemic-induced contraction in the spring of 2020. Swift and extensive fiscal and monetary support from policymakers has been one of the keys to the rebound. Stock returns were excellent for the 12-month period, reflecting the recovery following the sharp downturn at the start of the pandemic. |
• | Small-capitalization stocks outpaced large- and mid-caps, and value stocks returned more than growth stocks. |
• | Health care, information technology, and utilities were the top contributors to performance. Consumer discretionary, real estate, and communication services detracted. |
• | For the 10 years ended September 30, 2021, the fund posted an average annual return of 14.76%. That was below the benchmark’s return of 15.32%. |
Average Annual Total Returns Periods Ended September 30, 2021 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 30.96% | 16.43% | 17.11% |
Russell 2000 Index (Small-caps) | 47.68 | 10.54 | 13.45 |
Russell 3000 Index (Broad U.S. market) | 31.88 | 16.00 | 16.85 |
FTSE All-World ex US Index (International) | 24.73 | 8.49 | 9.28 |
Bonds | |||
Bloomberg U.S. Aggregate Bond Index (Broad taxable market) | -0.90% | 5.36% | 2.94% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | 2.63 | 5.06 | 3.26 |
FTSE Three-Month U.S. Treasury Bill Index | 0.06 | 1.14 | 1.13 |
CPI | |||
Consumer Price Index | 5.39% | 2.81% | 2.59% |
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended September 30, 2021 | |||
Strategic Small-Cap Equity Fund | Beginning Account Value 3/31/2021 | Ending Account Value 9/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,048.20 | $1.33 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.77 | 1.32 |
Average Annual Total Returns Periods Ended September 30, 2021 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Strategic Small-Cap Equity Fund | 56.05% | 12.18% | 14.76% | $39,607 | |
MSCI US Small Cap 1750 Index | 52.25 | 14.06 | 15.32 | 41,596 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 32.13 | 16.82 | 16.56 | 46,280 |
Communication Services | 2.7% |
Consumer Discretionary | 12.7 |
Consumer Staples | 3.3 |
Energy | 4.9 |
Financials | 16.3 |
Health Care | 15.7 |
Industrials | 15.7 |
Information Technology | 14.7 |
Materials | 4.3 |
Real Estate | 7.3 |
Utilities | 2.4 |
Shares | Market Value• ($000) | ||
Common Stocks (99.4%) | |||
Communication Services (2.7%) | |||
New York Times Co. Class A | 180,993 | 8,918 | |
TEGNA Inc. | 400,591 | 7,900 | |
* | Consolidated Communications Holdings Inc. | 706,664 | 6,494 |
* | Cargurus Inc. | 202,892 | 6,373 |
* | Cars.com Inc. | 421,219 | 5,328 |
Nexstar Media Group Inc. Class A | 16,176 | 2,458 | |
* | Iridium Communications Inc. | 48,730 | 1,942 |
* | Yelp Inc. Class A | 39,950 | 1,488 |
Gray Television Inc. | 30,456 | 695 | |
Sinclair Broadcast Group Inc. Class A | 21,650 | 686 | |
* | Gogo Inc. | 30,074 | 520 |
* | PubMatic Inc. Class A | 19,639 | 517 |
* | EverQuote Inc. Class A | 19,194 | 358 |
43,677 | |||
Consumer Discretionary (12.6%) | |||
* | Deckers Outdoor Corp. | 32,407 | 11,673 |
Brunswick Corp. | 101,704 | 9,689 | |
Foot Locker Inc. | 157,884 | 7,209 | |
* | frontdoor Inc. | 159,274 | 6,674 |
* | Tri Pointe Homes Inc. | 300,769 | 6,322 |
* | Tenneco Inc. Class A | 412,573 | 5,887 |
* | Gentherm Inc. | 64,171 | 5,193 |
* | American Axle & Manufacturing Holdings Inc. | 585,202 | 5,156 |
* | Crocs Inc. | 34,740 | 4,985 |
Signet Jewelers Ltd. | 61,941 | 4,891 | |
* | AutoNation Inc. | 36,570 | 4,453 |
Hibbett Inc. | 62,136 | 4,396 | |
* | Scientific Games Corp. Class A | 52,510 | 4,362 |
Kohl's Corp. | 91,021 | 4,286 | |
* | Everi Holdings Inc. | 173,545 | 4,196 |
Shutterstock Inc. | 36,341 | 4,118 | |
Papa John's International Inc. | 30,782 | 3,909 | |
* | Qurate Retail Inc. Series A | 369,986 | 3,770 |
* | Skyline Champion Corp. | 62,346 | 3,745 |
Movado Group Inc. | 113,186 | 3,564 | |
* | Revolve Group Inc. | 57,543 | 3,555 |
Shares | Market Value• ($000) | ||
Texas Roadhouse Inc. Class A | 37,669 | 3,440 | |
Williams-Sonoma Inc. | 18,870 | 3,346 | |
Churchill Downs Inc. | 13,464 | 3,233 | |
Tempur Sealy International Inc. | 66,589 | 3,090 | |
Jack in the Box Inc. | 31,054 | 3,023 | |
Oxford Industries Inc. | 31,966 | 2,882 | |
* | SeaWorld Entertainment Inc. | 50,023 | 2,767 |
* | Perdoceo Education Corp. | 257,135 | 2,715 |
* | Ruth's Hospitality Group Inc. | 130,725 | 2,707 |
* | Abercrombie & Fitch Co. Class A | 71,908 | 2,706 |
Wendy's Co. | 121,842 | 2,642 | |
* | Dine Brands Global Inc. | 31,336 | 2,545 |
Ethan Allen Interiors Inc. | 103,428 | 2,451 | |
* | Victoria's Secret & Co. | 44,219 | 2,444 |
Winnebago Industries Inc. | 31,888 | 2,310 | |
* | Master Craft Boat Holdings Inc. | 89,729 | 2,250 |
Macy's Inc. | 91,934 | 2,078 | |
* | Adtalem Global Education Inc. | 52,377 | 1,980 |
Group 1 Automotive Inc. | 10,507 | 1,974 | |
* | Urban Outfitters Inc. | 65,811 | 1,954 |
Aaron's Co. Inc. | 67,709 | 1,865 | |
* | Capri Holdings Ltd. | 38,177 | 1,848 |
* | Sleep Number Corp. | 18,928 | 1,769 |
* | Brinker International Inc. | 35,935 | 1,763 |
Del Taco Restaurants Inc. | 198,903 | 1,737 | |
* | Goodyear Tire & Rubber Co. | 95,146 | 1,684 |
* | Dave & Buster's Entertainment Inc. | 43,807 | 1,679 |
* | Boyd Gaming Corp. | 26,293 | 1,663 |
* | Conn's Inc. | 68,553 | 1,565 |
Travel + Leisure Co. | 28,173 | 1,536 | |
* | Red Rock Resorts Inc. Class A | 29,392 | 1,506 |
* | MarineMax Inc. | 30,766 | 1,493 |
* | Lumber Liquidators Holdings Inc. | 79,326 | 1,482 |
* | Fossil Group Inc. | 121,434 | 1,439 |
* | Bed Bath & Beyond Inc. | 82,933 | 1,433 |
* | Red Robin Gourmet Burgers Inc. | 57,833 | 1,334 |
* | XPEL Inc. | 16,989 | 1,289 |
* | WW International Inc. | 47,560 | 868 |
Shares | Market Value• ($000) | ||
* | Duluth Holdings Inc. Class B | 61,651 | 840 |
* | Bloomin' Brands Inc. | 33,245 | 831 |
* | Fiesta Restaurant Group Inc. | 71,921 | 788 |
Steven Madden Ltd. | 18,564 | 746 | |
* | Meritage Homes Corp. | 7,385 | 716 |
* | Lovesac Co. | 10,716 | 708 |
* | Academy Sports & Outdoors Inc. | 16,942 | 678 |
* | Six Flags Entertainment Corp. | 15,725 | 668 |
* | Overstock.com Inc. | 7,606 | 593 |
* | Chuy's Holdings Inc. | 18,146 | 572 |
Haverty Furniture Cos. Inc. | 16,769 | 565 | |
* | Lands' End Inc. | 23,020 | 542 |
* | Penn National Gaming Inc. | 7,352 | 533 |
* | Genesco Inc. | 9,167 | 529 |
* | El Pollo Loco Holdings Inc. | 27,230 | 460 |
* | American Public Education Inc. | 15,155 | 388 |
* | Modine Manufacturing Co. | 32,154 | 364 |
Sonic Automotive Inc. Class A | 5,980 | 314 | |
* | Groupon Inc. Class A | 12,133 | 277 |
203,635 | |||
Consumer Staples (3.2%) | |||
Coca-Cola Consolidated Inc. | 24,551 | 9,677 | |
Ingles Markets Inc. Class A | 107,020 | 7,066 | |
* | Darling Ingredients Inc. | 90,208 | 6,486 |
John B Sanfilippo & Son Inc. | 71,690 | 5,858 | |
Vector Group Ltd. | 389,534 | 4,967 | |
* | Herbalife Nutrition Ltd. | 86,027 | 3,646 |
* | USANA Health Sciences Inc. | 37,027 | 3,414 |
* | BJ's Wholesale Club Holdings Inc. | 48,719 | 2,676 |
* | Central Garden & Pet Co. Class A | 54,604 | 2,348 |
PriceSmart Inc. | 24,916 | 1,932 | |
Nu Skin Enterprises Inc. Class A | 44,201 | 1,789 | |
Medifast Inc. | 8,628 | 1,662 | |
* | Pilgrim's Pride Corp. | 37,674 | 1,096 |
52,617 | |||
Energy (4.9%) | |||
APA Corp. | 595,098 | 12,753 | |
Cimarex Energy Co. | 133,287 | 11,623 | |
Targa Resources Corp. | 172,493 | 8,488 | |
* | Southwestern Energy Co. | 1,124,889 | 6,232 |
Ovintiv Inc. | 168,408 | 5,537 | |
Northern Oil and Gas Inc. | 196,860 | 4,213 | |
* | Whiting Petroleum Corp. | 64,083 | 3,743 |
PDC Energy Inc. | 69,250 | 3,282 | |
Magnolia Oil & Gas Corp. Class A | 144,076 | 2,563 | |
* | Comstock Resources Inc. | 232,706 | 2,408 |
SM Energy Co. | 90,259 | 2,381 | |
* | Denbury Inc. | 33,198 | 2,332 |
* | CONSOL Energy Inc. | 82,987 | 2,159 |
* | EnLink Midstream LLC | 313,494 | 2,138 |
* | Oceaneering International Inc. | 128,290 | 1,709 |
Texas Pacific Land Corp. | 1,407 | 1,702 | |
* | Callon Petroleum Co. | 29,115 | 1,429 |
Shares | Market Value• ($000) | ||
* | Arch Resources Inc. | 13,535 | 1,255 |
* | REX American Resources Corp. | 13,944 | 1,114 |
* | TechnipFMC plc | 143,414 | 1,080 |
* | Range Resources Corp. | 37,902 | 858 |
* | W&T Offshore Inc. | 131,840 | 490 |
79,489 | |||
Financials (16.2%) | |||
PacWest Bancorp | 241,817 | 10,959 | |
Primerica Inc. | 70,373 | 10,811 | |
SLM Corp. | 555,639 | 9,779 | |
International Bancshares Corp. | 220,233 | 9,171 | |
CNO Financial Group Inc. | 382,513 | 9,004 | |
FNB Corp. | 757,605 | 8,803 | |
Hancock Whitney Corp. | 175,652 | 8,277 | |
Umpqua Holdings Corp. | 406,298 | 8,228 | |
OFG Bancorp | 318,344 | 8,029 | |
Stifel Financial Corp. | 110,748 | 7,526 | |
Hanover Insurance Group Inc. | 57,163 | 7,409 | |
Ameris Bancorp | 139,504 | 7,237 | |
Stewart Information Services Corp. | 110,943 | 7,018 | |
OneMain Holdings Inc. | 126,189 | 6,982 | |
Prosperity Bancshares Inc. | 94,280 | 6,706 | |
* | Enova International Inc. | 190,095 | 6,568 |
New York Community Bancorp Inc. | 429,602 | 5,529 | |
Walker & Dunlop Inc. | 47,938 | 5,441 | |
Navient Corp. | 275,597 | 5,438 | |
Popular Inc. | 69,229 | 5,377 | |
Hope Bancorp Inc. | 366,289 | 5,289 | |
Associated Banc-Corp. | 242,438 | 5,193 | |
Brightsphere Investment Group Inc. | 187,964 | 4,912 | |
First Financial Bancorp | 189,491 | 4,436 | |
First BanCorp (XNYS) | 300,440 | 3,951 | |
Bank OZK | 90,001 | 3,868 | |
Synovus Financial Corp. | 84,152 | 3,693 | |
CVB Financial Corp. | 173,377 | 3,532 | |
Nelnet Inc. Class A | 42,595 | 3,375 | |
Banner Corp. | 59,977 | 3,311 | |
B Riley Financial Inc. | 52,666 | 3,109 | |
Janus Henderson Group plc | 75,010 | 3,100 | |
First American Financial Corp. | 45,022 | 3,019 | |
Affiliated Managers Group Inc. | 19,656 | 2,970 | |
Universal Insurance Holdings Inc. | 218,341 | 2,847 | |
PennyMac Financial Services Inc. | 45,059 | 2,754 | |
Federated Hermes Inc. | 80,999 | 2,632 | |
United Community Banks Inc. | 78,009 | 2,560 | |
Pacific Premier Bancorp Inc. | 56,847 | 2,356 | |
* | Encore Capital Group Inc. | 47,722 | 2,351 |
* | Mr Cooper Group Inc. | 55,344 | 2,279 |
Oppenheimer Holdings Inc. Class A | 50,330 | 2,279 | |
Cowen Inc. Class A | 62,103 | 2,131 | |
* | PROG Holdings Inc. | 49,765 | 2,091 |
Westamerica BanCorp | 33,964 | 1,911 | |
* | Enstar Group Ltd. | 7,454 | 1,750 |
Shares | Market Value• ($000) | ||
Columbia Banking System Inc. | 41,185 | 1,565 | |
Southside Bancshares Inc. | 39,049 | 1,495 | |
S&T Bancorp Inc. | 47,642 | 1,404 | |
Meta Financial Group Inc. | 25,402 | 1,333 | |
SouthState Corp. | 17,443 | 1,302 | |
HomeStreet Inc. | 31,524 | 1,297 | |
WSFS Financial Corp. | 24,141 | 1,239 | |
Piper Sandler Cos. | 8,860 | 1,227 | |
* | Silvergate Capital Corp. Class A | 10,472 | 1,210 |
* | Upstart Holdings Inc. | 3,651 | 1,155 |
Old National Bancorp | 64,922 | 1,100 | |
Radian Group Inc. | 39,292 | 893 | |
Virtus Investment Partners Inc. | 2,861 | 888 | |
Hilltop Holdings Inc. | 23,907 | 781 | |
First Busey Corp. | 31,341 | 772 | |
Virtu Financial Inc. Class A | 31,110 | 760 | |
Wintrust Financial Corp. | 9,159 | 736 | |
Towne Bank | 22,946 | 714 | |
Seacoast Banking Corp. of Florida | 20,443 | 691 | |
Curo Group Holdings Corp. | 35,374 | 613 | |
Central Pacific Financial Corp. | 23,633 | 607 | |
Sandy Spring Bancorp Inc. | 12,017 | 551 | |
* | Brighthouse Financial Inc. | 11,617 | 525 |
BOK Financial Corp. | 5,278 | 473 | |
Moelis & Co. Class A | 7,645 | 473 | |
First Interstate BancSystem Inc. Class A | 11,145 | 449 | |
First Merchants Corp. | 9,744 | 408 | |
UMB Financial Corp. | 4,092 | 396 | |
Northfield Bancorp Inc. | 20,453 | 351 | |
Preferred Bank | 5,257 | 351 | |
Heartland Financial USA Inc. | 7,108 | 342 | |
Safety Insurance Group Inc. | 4,301 | 341 | |
American Equity Investment Life Holding Co. | 10,007 | 296 | |
262,729 | |||
Health Care (15.6%) | |||
* | AMN Healthcare Services Inc. | 87,382 | 10,027 |
* | Charles River Laboratories International Inc. | 22,275 | 9,192 |
* | Medpace Holdings Inc. | 47,481 | 8,987 |
Bruker Corp. | 110,512 | 8,631 | |
* | LHC Group Inc. | 50,788 | 7,969 |
* | Tenet Healthcare Corp. | 113,237 | 7,523 |
* | Sarepta Therapeutics Inc. | 70,514 | 6,521 |
* | Alkermes plc | 210,131 | 6,480 |
Select Medical Holdings Corp. | 164,894 | 5,964 | |
* | Veeva Systems Inc. Class A | 19,154 | 5,520 |
* | Myriad Genetics Inc. | 159,495 | 5,150 |
* | STAAR Surgical Co. | 39,573 | 5,086 |
* | Atara Biotherapeutics Inc. | 264,307 | 4,731 |
* | Travere Thrapeutics Inc. | 193,407 | 4,690 |
* | Enanta Pharmaceuticals Inc. | 81,997 | 4,658 |
* | Quidel Corp. | 32,576 | 4,598 |
* | Amedisys Inc. | 30,374 | 4,529 |
* | ICU Medical Inc. | 17,628 | 4,114 |
Shares | Market Value• ($000) | ||
* | Agenus Inc. | 778,442 | 4,087 |
* | Tandem Diabetes Care Inc. | 32,264 | 3,852 |
* | Repligen Corp. | 12,479 | 3,606 |
* | Globus Medical Inc. Class A | 46,726 | 3,580 |
* | NextGen Healthcare Inc. | 242,549 | 3,420 |
* | CytomX Therapeutics Inc. | 555,119 | 2,826 |
* | Natera Inc. | 25,065 | 2,793 |
* | Ionis Pharmaceuticals Inc. | 81,204 | 2,724 |
* | ImmunoGen Inc. | 472,454 | 2,679 |
* | ModivCare Inc. | 14,678 | 2,666 |
* | CareDx Inc. | 42,034 | 2,664 |
* | Neogen Corp. | 61,112 | 2,654 |
* | Novavax Inc. | 12,695 | 2,632 |
* | Endo International plc | 780,115 | 2,528 |
* | Joint Corp. | 25,211 | 2,471 |
* | Inogen Inc. | 56,743 | 2,445 |
* | Precision BioSciences Inc. | 207,463 | 2,394 |
* | ACADIA Pharmaceuticals Inc. | 140,923 | 2,341 |
* | AngioDynamics Inc. | 83,983 | 2,178 |
* | Community Health Systems Inc. | 183,967 | 2,152 |
* | CorVel Corp. | 11,429 | 2,128 |
*,1 | Clovis Oncology Inc. | 456,739 | 2,037 |
* | Tivity Health Inc. | 87,923 | 2,027 |
Ensign Group Inc. | 26,438 | 1,980 | |
* | Emergent BioSolutions Inc. | 39,497 | 1,978 |
* | Pacific Biosciences of California Inc. | 75,403 | 1,927 |
* | MEDNAX Inc. | 67,015 | 1,905 |
* | Maravai LifeSciences Holdings Inc. Class A | 36,128 | 1,773 |
* | Bluebird Bio Inc. | 89,801 | 1,716 |
* | Intellia Therapeutics Inc. | 12,789 | 1,716 |
* | Intercept Pharmaceuticals Inc. | 114,167 | 1,695 |
* | Invitae Corp. | 58,153 | 1,653 |
* | Prestige Consumer Healthcare Inc. | 28,728 | 1,612 |
* | Puma Biotechnology Inc. | 227,827 | 1,597 |
* | Apellis Pharmaceuticals Inc. | 47,421 | 1,563 |
* | MacroGenics Inc. | 74,540 | 1,561 |
* | Inari Medical Inc. | 19,054 | 1,545 |
Owens & Minor Inc. | 49,017 | 1,534 | |
* | Theravance Biopharma Inc. | 186,722 | 1,382 |
* | PTC Therapeutics Inc. | 35,917 | 1,336 |
* | Meridian Bioscience Inc. | 68,224 | 1,313 |
* | RadNet Inc. | 44,354 | 1,300 |
*,1 | Esperion Therapeutics Inc. | 103,744 | 1,250 |
* | Prothena Corp. plc | 17,486 | 1,246 |
* | Minerva Neurosciences Inc. | 715,684 | 1,245 |
* | AnaptysBio Inc. | 45,021 | 1,221 |
* | NanoString Technologies Inc. | 24,321 | 1,168 |
* | Omnicell Inc. | 7,807 | 1,159 |
* | Option Care Health Inc. | 47,267 | 1,147 |
* | Dynavax Technologies Corp. | 56,210 | 1,080 |
* | Twist Bioscience Corp. | 9,851 | 1,054 |
* | Merus NV | 45,011 | 990 |
* | Radius Health Inc. | 79,111 | 982 |
* | Blueprint Medicines Corp. | 9,377 | 964 |
* | Akebia Therapeutics Inc. | 331,679 | 955 |
U.S. Physical Therapy Inc. | 8,264 | 914 | |
* | Allogene Therapeutics Inc. | 35,521 | 913 |
Shares | Market Value• ($000) | ||
* | Envista Holdings Corp. | 21,718 | 908 |
* | Computer Programs and Systems Inc. | 23,856 | 846 |
* | Zymeworks Inc. | 28,859 | 838 |
* | Tactile Systems Technology Inc. | 18,794 | 835 |
* | Fulgent Genetics Inc. | 8,976 | 807 |
* | Veracyte Inc. | 16,258 | 755 |
* | Assembly Biosciences Inc. | 212,676 | 740 |
* | Pennant Group Inc. | 25,714 | 722 |
* | Allscripts Healthcare Solutions Inc. | 53,621 | 717 |
* | UniQure N.V. | 22,388 | 717 |
* | Vanda Pharmaceuticals Inc. | 41,616 | 713 |
* | Molecular Templates Inc. | 104,179 | 699 |
* | Shockwave Medical Inc. | 3,387 | 697 |
* | Athira Pharma Inc. | 73,583 | 690 |
LeMaitre Vascular Inc. | 12,951 | 688 | |
* | Personalis Inc. | 35,394 | 681 |
* | Cross Country Healthcare Inc. | 31,636 | 672 |
* | Inspire Medical Systems Inc. | 2,593 | 604 |
* | Sangamo Therapeutics Inc. | 66,774 | 602 |
* | Anavex Life Sciences Corp. | 31,116 | 559 |
*,1 | Ocugen Inc. | 74,227 | 533 |
* | Turning Point Therapeutics Inc. | 7,969 | 529 |
* | Deciphera Pharmaceuticals Inc. | 15,501 | 527 |
*,1 | Co-Diagnostics Inc. | 53,218 | 518 |
National HealthCare Corp. | 7,339 | 514 | |
* | Denali Therapeutics Inc. | 9,921 | 500 |
* | Seres Therapeutics Inc. | 71,026 | 494 |
* | Apollo Medical Holdings Inc. | 5,373 | 489 |
* | Xencor Inc. | 14,949 | 488 |
* | Essa Pharma Inc. | 59,917 | 479 |
* | Precigen Inc. | 95,719 | 478 |
* | FibroGen Inc. | 46,574 | 476 |
* | Odonate Therapeutics Inc. | 161,720 | 471 |
* | REGENXBIO Inc. | 11,228 | 471 |
* | Inovio Pharmaceuticals Inc. | 64,601 | 463 |
* | Harmony Biosciences Holdings Inc. | 11,979 | 459 |
* | Fate Therapeutics Inc. | 7,716 | 457 |
* | Orthofix Medical Inc. | 11,187 | 426 |
Chemed Corp. | 850 | 395 | |
* | BioCryst Pharmaceuticals Inc. | 27,362 | 393 |
* | GlycoMimetics Inc. | 177,063 | 388 |
* | Cardiovascular Systems Inc. | 11,630 | 382 |
* | Rigel Pharmaceuticals Inc. | 104,846 | 381 |
* | C4 Therapeutics Inc. | 8,027 | 359 |
* | Sage Therapeutics Inc. | 7,947 | 352 |
* | Amneal Pharmaceuticals Inc. | 61,720 | 330 |
* | Vir Biotechnology Inc. | 7,406 | 322 |
* | Organogenesis Holdings Inc. Class A | 21,709 | 309 |
* | Arcutis Biotherapeutics Inc. | 12,589 | 301 |
* | Spectrum Pharmaceuticals Inc. | 134,742 | 294 |
* | MiMedx Group Inc. | 47,702 | 289 |
* | Voyager Therapeutics Inc. | 102,911 | 271 |
* | WaVe Life Sciences Ltd. | 48,932 | 240 |
Shares | Market Value• ($000) | ||
*,1 | Acorda Therapeutics Inc. | 38,060 | 175 |
253,071 | |||
Industrials (15.6%) | |||
EMCOR Group Inc. | 89,737 | 10,354 | |
AGCO Corp. | 84,247 | 10,323 | |
Kforce Inc. | 160,298 | 9,560 | |
Allison Transmission Holdings Inc. | 264,619 | 9,346 | |
Rush Enterprises Inc. Class A | 204,573 | 9,239 | |
Hillenbrand Inc. | 199,840 | 8,523 | |
* | Atkore Inc. | 93,405 | 8,119 |
Boise Cascade Co. | 142,656 | 7,701 | |
* | GMS Inc. | 166,309 | 7,284 |
Triton International Ltd. | 136,892 | 7,124 | |
ABM Industries Inc. | 155,987 | 7,021 | |
ArcBest Corp. | 80,925 | 6,617 | |
* | Clean Harbors Inc. | 58,440 | 6,070 |
Terex Corp. | 141,300 | 5,949 | |
Oshkosh Corp. | 57,064 | 5,842 | |
Mueller Industries Inc. | 136,693 | 5,618 | |
ManpowerGroup Inc. | 50,057 | 5,420 | |
Ryder System Inc. | 64,422 | 5,328 | |
Booz Allen Hamilton Holding Corp. Class A | 60,358 | 4,789 | |
* | Titan Machinery Inc. | 182,769 | 4,736 |
Ennis Inc. | 238,271 | 4,491 | |
Applied Industrial Technologies Inc. | 49,304 | 4,444 | |
Tetra Tech Inc. | 29,714 | 4,438 | |
* | Avis Budget Group Inc. | 37,790 | 4,403 |
UFP Industries Inc. | 62,533 | 4,251 | |
nVent Electric plc | 128,860 | 4,166 | |
Franklin Electric Co. Inc. | 51,058 | 4,077 | |
Acuity Brands Inc. | 23,347 | 4,048 | |
GrafTech International Ltd. | 383,888 | 3,962 | |
* | Veritiv Corp. | 36,995 | 3,313 |
* | Meritor Inc. | 152,219 | 3,244 |
* | SkyWest Inc. | 62,566 | 3,087 |
Herman Miller Inc. | 81,956 | 3,086 | |
Primoris Services Corp. | 125,155 | 3,065 | |
Matson Inc. | 37,651 | 3,039 | |
Deluxe Corp. | 81,897 | 2,939 | |
HNI Corp. | 70,324 | 2,582 | |
Encore Wire Corp. | 24,841 | 2,356 | |
Genco Shipping & Trading Ltd. | 108,461 | 2,183 | |
* | Cornerstone Building Brands Inc. | 143,371 | 2,095 |
* | Masonite International Corp. | 19,691 | 2,090 |
Douglas Dynamics Inc. | 57,184 | 2,076 | |
Argan Inc. | 44,801 | 1,956 | |
Heidrick & Struggles International Inc. | 39,346 | 1,756 | |
* | JELD-WEN Holding Inc. | 69,900 | 1,750 |
* | Hub Group Inc. Class A | 24,711 | 1,699 |
* | Beacon Roofing Supply Inc. | 33,954 | 1,622 |
Exponent Inc. | 13,848 | 1,567 | |
Brady Corp. Class A | 30,497 | 1,546 | |
Wabash National Corp. | 99,134 | 1,500 | |
Astec Industries Inc. | 25,759 | 1,386 | |
* | Herc Holdings Inc. | 8,468 | 1,384 |
* | American Woodmark Corp. | 19,499 | 1,275 |
* | AECOM | 18,816 | 1,188 |
H&E Equipment Services Inc. | 32,607 | 1,132 |
Shares | Market Value• ($000) | ||
* | Daseke Inc. | 121,587 | 1,120 |
Matthews International Corp. Class A | 31,537 | 1,094 | |
* | SPX Corp. | 18,825 | 1,006 |
Schneider National Inc. Class B | 42,704 | 971 | |
* | Tutor Perini Corp. | 73,861 | 959 |
Watts Water Technologies Inc. Class A | 4,879 | 820 | |
Pitney Bowes Inc. | 113,017 | 815 | |
REV Group Inc. | 46,399 | 796 | |
* | Blue Bird Corp. | 35,721 | 745 |
* | Manitowoc Co. Inc. | 34,372 | 736 |
Kelly Services Inc. Class A | 38,267 | 722 | |
Interface Inc. Class A | 41,285 | 625 | |
* | NOW Inc. | 79,744 | 610 |
* | TrueBlue Inc. | 21,957 | 595 |
* | Quad/Graphics Inc. | 135,304 | 575 |
Global Industrial Co. | 14,500 | 549 | |
* | Spirit Airlines Inc. | 17,352 | 450 |
* | MYR Group Inc. | 3,950 | 393 |
* | MRC Global Inc. | 51,185 | 376 |
*,1 | Nikola Corp. | 32,284 | 344 |
* | Allegiant Travel Co. | 1,690 | 330 |
Timken Co. | 5,040 | 330 | |
253,120 | |||
Information Technology (14.6%) | |||
* | Manhattan Associates Inc. | 83,470 | 12,773 |
Jabil Inc. | 214,651 | 12,529 | |
MKS Instruments Inc. | 71,876 | 10,847 | |
TTEC Holdings Inc. | 98,920 | 9,252 | |
* | Box Inc. Class A | 380,430 | 9,005 |
* | CommScope Holding Co. Inc. | 536,134 | 7,286 |
* | Teradata Corp. | 126,918 | 7,279 |
* | Concentrix Corp. | 40,029 | 7,085 |
Maximus Inc. | 78,241 | 6,510 | |
* | Nutanix Inc. Class A | 164,330 | 6,195 |
* | A10 Networks Inc. | 456,950 | 6,160 |
Avnet Inc. | 161,687 | 5,978 | |
* | Extreme Networks Inc. | 539,417 | 5,313 |
* | Domo Inc. Class B | 58,569 | 4,946 |
Alliance Data Systems Corp. | 46,663 | 4,708 | |
* | Super Micro Computer Inc. | 121,028 | 4,426 |
* | Alpha & Omega Semiconductor Ltd. | 139,070 | 4,363 |
* | Workiva Inc. Class A | 30,201 | 4,257 |
* | Avaya Holdings Corp. | 208,457 | 4,125 |
* | Alarm.com Holdings Inc. | 52,271 | 4,087 |
* | Ultra Clean Holdings Inc. | 94,821 | 4,039 |
* | Allegro MicroSystems Inc. | 115,237 | 3,683 |
* | Unisys Corp. | 145,228 | 3,651 |
* | Digital Turbine Inc. | 53,048 | 3,647 |
Amkor Technology Inc. | 145,353 | 3,627 | |
SYNNEX Corp. | 32,371 | 3,370 | |
CSG Systems International Inc. | 69,154 | 3,333 | |
* | Pure Storage Inc. Class A | 127,575 | 3,210 |
* | Tenable Holdings Inc. | 67,418 | 3,111 |
* | Vonage Holdings Corp. | 185,806 | 2,995 |
* | Plantronics Inc. | 110,603 | 2,844 |
* | Fabrinet | 27,598 | 2,829 |
* | Diebold Nixdorf Inc. | 265,758 | 2,687 |
* | SMART Global Holdings Inc. | 60,309 | 2,684 |
* | Sanmina Corp. | 69,002 | 2,659 |
Shares | Market Value• ($000) | ||
* | LiveRamp Holdings Inc. | 55,583 | 2,625 |
* | MACOM Technology Solutions Holdings Inc. Class H | 40,404 | 2,621 |
* | Agilysys Inc. | 49,789 | 2,607 |
* | Axcelis Technologies Inc. | 54,831 | 2,579 |
* | MaxLinear Inc. | 50,853 | 2,504 |
* | Mimecast Ltd. | 39,180 | 2,492 |
* | CommVault Systems Inc. | 31,535 | 2,375 |
* | Ichor Holdings Ltd. | 49,953 | 2,053 |
* | Zuora Inc. Class A | 119,516 | 1,982 |
* | Verint Systems Inc. | 41,400 | 1,854 |
* | Benefitfocus Inc. | 166,496 | 1,848 |
* | International Money Express Inc. | 105,444 | 1,761 |
Xperi Holding Corp. | 92,527 | 1,743 | |
* | Yext Inc. | 128,996 | 1,552 |
* | NeoPhotonics Corp. | 165,276 | 1,439 |
* | Brightcove Inc. | 116,126 | 1,340 |
* | Plexus Corp. | 14,416 | 1,289 |
* | Calix Inc. | 23,782 | 1,175 |
ADTRAN Inc. | 60,729 | 1,139 | |
* | Veeco Instruments Inc. | 50,925 | 1,131 |
* | Momentive Global Inc. | 53,591 | 1,050 |
* | Conduent Inc. | 145,216 | 957 |
QAD Inc. Class A | 10,840 | 947 | |
* | Riot Blockchain Inc. | 36,126 | 928 |
* | Advanced Micro Devices Inc. | 8,956 | 922 |
* | Arlo Technologies Inc. | 132,892 | 852 |
* | NETGEAR Inc. | 25,993 | 829 |
* | Infinera Corp. | 91,561 | 762 |
* | FireEye Inc. | 40,137 | 714 |
* | Itron Inc. | 8,933 | 676 |
* | Cambium Networks Corp. | 18,649 | 675 |
* | Marathon Digital Holdings Inc. | 19,764 | 624 |
* | Semtech Corp. | 6,732 | 525 |
* | Cohu Inc. | 16,220 | 518 |
* | SecureWorks Corp. Class A | 24,748 | 492 |
* | Cognyte Software Ltd. | 20,682 | 425 |
* | 3D Systems Corp. | 8,849 | 244 |
235,742 | |||
Materials (4.3%) | |||
Louisiana-Pacific Corp. | 190,211 | 11,673 | |
Schnitzer Steel Industries Inc. Class A | 180,114 | 7,891 | |
Olin Corp. | 156,821 | 7,566 | |
Commercial Metals Co. | 201,665 | 6,143 | |
Eagle Materials Inc. | 36,609 | 4,802 | |
U.S. Steel Corp. | 179,360 | 3,940 | |
* | TimkenSteel Corp. | 245,621 | 3,213 |
* | O-I Glass Inc. | 188,202 | 2,686 |
Trinseo SA | 46,437 | 2,507 | |
* | AdvanSix Inc. | 54,451 | 2,164 |
Cabot Corp. | 40,796 | 2,045 | |
Element Solutions Inc. | 90,605 | 1,964 | |
Sensient Technologies Corp. | 20,774 | 1,892 | |
Huntsman Corp. | 49,907 | 1,477 | |
Warrior Met Coal Inc. | 61,629 | 1,434 | |
SunCoke Energy Inc. | 198,790 | 1,248 | |
Worthington Industries Inc. | 18,418 | 971 | |
* | Orion Engineered Carbons SA | 51,544 | 940 |
Tredegar Corp. | 72,983 | 889 | |
Stepan Co. | 7,014 | 792 |
Shares | Market Value• ($000) | ||
Innospec Inc. | 8,522 | 718 | |
* | Koppers Holdings Inc. | 21,380 | 668 |
* | Cleveland-Cliffs Inc. | 24,484 | 485 |
* | Clearwater Paper Corp. | 12,336 | 473 |
Hawkins Inc. | 9,500 | 331 | |
68,912 | |||
Real Estate (7.3%) | |||
Life Storage Inc. | 106,295 | 12,196 | |
PotlatchDeltic Corp. | 188,782 | 9,737 | |
Piedmont Office Realty Trust Inc. Class A | 492,075 | 8,577 | |
Brixmor Property Group Inc. | 273,755 | 6,053 | |
SITE Centers Corp. | 372,840 | 5,757 | |
Outfront Media Inc. | 159,438 | 4,018 | |
Sabra Health Care REIT Inc. | 263,560 | 3,880 | |
1 | Tanger Factory Outlet Centers Inc. | 230,461 | 3,756 |
* | GEO Group Inc. | 483,538 | 3,612 |
Alexander & Baldwin Inc. | 146,544 | 3,435 | |
Global Net Lease Inc. | 210,462 | 3,372 | |
* | Ryman Hospitality Properties Inc. | 39,125 | 3,275 |
Urban Edge Properties | 176,464 | 3,231 | |
* | Redfin Corp. | 61,887 | 3,101 |
Innovative Industrial Properties Inc. | 11,871 | 2,744 | |
American Finance Trust Inc. | 338,943 | 2,725 | |
Macerich Co. | 161,565 | 2,700 | |
* | Sunstone Hotel Investors Inc. | 217,572 | 2,598 |
National Storage Affiliates Trust | 47,315 | 2,498 | |
Uniti Group Inc. | 200,957 | 2,486 | |
RE/MAX Holdings Inc. Class A | 72,013 | 2,244 | |
Apple Hospitality REIT Inc. | 141,531 | 2,226 | |
American Assets Trust Inc. | 59,167 | 2,214 | |
Highwoods Properties Inc. | 47,364 | 2,077 | |
* | Apartment Investment and Management Co. Class A | 286,866 | 1,965 |
Office Properties Income Trust | 75,821 | 1,921 | |
Alexander's Inc. | 7,342 | 1,913 | |
Universal Health Realty Income Trust | 32,007 | 1,769 | |
One Liberty Properties Inc. | 49,038 | 1,495 | |
RPT Realty | 101,168 | 1,291 | |
* | DiamondRock Hospitality Co. | 125,939 | 1,190 |
* | Summit Hotel Properties Inc. | 115,401 | 1,111 |
City Office REIT Inc. | 59,087 | 1,055 | |
UMH Properties Inc. | 43,220 | 990 | |
Spirit Realty Capital Inc. | 20,754 | 955 |
Shares | Market Value• ($000) | ||
Service Properties Trust | 76,454 | 857 | |
EPR Properties | 16,588 | 819 | |
* | Chatham Lodging Trust | 49,135 | 602 |
Kite Realty Group Trust | 23,751 | 484 | |
Preferred Apartment Communities Inc. Class A | 37,794 | 462 | |
Retail Value Inc. | 14,991 | 395 | |
Easterly Government Properties Inc. Class A | 16,363 | 338 | |
118,124 | |||
Utilities (2.4%) | |||
MDU Resources Group Inc. | 306,042 | 9,080 | |
Hawaiian Electric Industries Inc. | 159,244 | 6,502 | |
Otter Tail Corp. | 104,319 | 5,839 | |
National Fuel Gas Co. | 106,225 | 5,579 | |
Portland General Electric Co. | 57,871 | 2,719 | |
Southwest Gas Holdings Inc. | 36,150 | 2,418 | |
New Jersey Resources Corp. | 62,523 | 2,176 | |
Unitil Corp. | 33,551 | 1,435 | |
Spire Inc. | 15,685 | 960 | |
Clearway Energy Inc. Class A | 22,718 | 641 | |
IDACORP Inc. | 5,874 | 607 | |
MGE Energy Inc. | 6,120 | 450 | |
American States Water Co. | 5,218 | 446 | |
38,852 | |||
Total Common Stocks (Cost $1,357,057) | 1,609,968 | ||
Temporary Cash Investments (0.9%) | |||
Money Market Fund (0.9%) | |||
2,3 | Vanguard Market Liquidity Fund, 0.068% (Cost $14,954) | 149,563 | 14,956 |
Total Investments (100.3%) (Cost $1,372,011) | 1,624,924 | ||
Other Assets and Liabilities—Net (-0.3%) | (5,562) | ||
Net Assets (100%) | 1,619,362 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $5,458,000. |
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 $5,878,000 was received for securities on loan. |
REIT—Real Estate Investment Trust. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini Russell 2000 Index | December 2021 | 83 | 9,133 | (123) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $1,357,057) | 1,609,968 |
Affiliated Issuers (Cost $14,954) | 14,956 |
Total Investments in Securities | 1,624,924 |
Investment in Vanguard | 55 |
Cash Collateral Pledged—Futures Contracts | 573 |
Receivables for Investment Securities Sold | 3,968 |
Receivables for Accrued Income | 762 |
Receivables for Capital Shares Issued | 695 |
Total Assets | 1,630,977 |
Liabilities | |
Due to Custodian | 409 |
Payables for Investment Securities Purchased | 810 |
Collateral for Securities on Loan | 5,878 |
Payables for Capital Shares Redeemed | 4,251 |
Payables to Vanguard | 174 |
Variation Margin Payable—Futures Contracts | 93 |
Total Liabilities | 11,615 |
Net Assets | 1,619,362 |
At September 30, 2021, net assets consisted of: | |
Paid-in Capital | 1,124,677 |
Total Distributable Earnings (Loss) | 494,685 |
Net Assets | 1,619,362 |
Net Assets | |
Applicable to 36,883,731 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,619,362 |
Net Asset Value Per Share | $43.90 |
Year Ended September 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends | 18,941 |
Interest1 | 7 |
Securities Lending—Net | 527 |
Total Income | 19,475 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 1,077 |
Management and Administrative | 2,511 |
Marketing and Distribution | 105 |
Custodian Fees | 15 |
Auditing Fees | 32 |
Shareholders’ Reports | 23 |
Trustees’ Fees and Expenses | 1 |
Total Expenses | 3,764 |
Net Investment Income | 15,711 |
Realized Net Gain (Loss) | |
Investment Securities Sold1 | 310,338 |
Futures Contracts | 3,172 |
Realized Net Gain (Loss) | 313,510 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | 228,398 |
Futures Contracts | (107) |
Change in Unrealized Appreciation (Depreciation) | 228,291 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 557,512 |
1 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $6,000, $2,000, and ($2,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Year Ended September 30, | ||
2021 ($000) | 2020 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 15,711 | 16,041 |
Realized Net Gain (Loss) | 313,510 | (45,372) |
Change in Unrealized Appreciation (Depreciation) | 228,291 | (52,669) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 557,512 | (82,000) |
Distributions | ||
Total Distributions | (15,307) | (58,643) |
Capital Share Transactions | ||
Issued | 616,207 | 213,872 |
Issued in Lieu of Cash Distributions | 13,795 | 53,758 |
Redeemed | (581,418) | (493,499) |
Net Increase (Decrease) from Capital Share Transactions | 48,584 | (225,869) |
Total Increase (Decrease) | 590,789 | (366,512) |
Net Assets | ||
Beginning of Period | 1,028,573 | 1,395,085 |
End of Period | 1,619,362 | 1,028,573 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $28.48 | $31.41 | $40.21 | $36.99 | $31.45 |
Investment Operations | |||||
Net Investment Income1 | .435 | .392 | .393 | .373 | .462 |
Net Realized and Unrealized Gain (Loss) on Investments | 15.424 | (1.955) | (5.888) | 5.294 | 5.545 |
Total from Investment Operations | 15.859 | (1.563) | (5.495) | 5.667 | 6.007 |
Distributions | |||||
Dividends from Net Investment Income | (.439) | (.393) | (.378) | (.394) | (.467) |
Distributions from Realized Capital Gains | — | (.974) | (2.927) | (2.053) | — |
Total Distributions | (.439) | (1.367) | (3.305) | (2.447) | (.467) |
Net Asset Value, End of Period | $43.90 | $28.48 | $31.41 | $40.21 | $36.99 |
Total Return2 | 56.05% | -5.55% | -12.91% | 16.13% | 19.19% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $1,619 | $1,029 | $1,395 | $1,917 | $1,673 |
Ratio of Total Expenses to Average Net Assets | 0.26% | 0.26% | 0.26% | 0.29% | 0.29% |
Ratio of Net Investment Income to Average Net Assets | 1.08% | 1.35% | 1.22% | 0.99% | 1.34% |
Portfolio Turnover Rate | 76% | 66% | 67% | 88% | 91% |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
A. | The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. |
B. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
C. | 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. |
D. | Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, |
Amount ($000) | |
Paid-in Capital | 26,763 |
Total Distributable Earnings (Loss) | (26,763) |
Amount ($000) | |
Undistributed Ordinary Income | 52,114 |
Undistributed Long-Term Gains | 189,873 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 252,698 |
Year Ended September 30, | ||
2021 Amount ($000) | 2020 Amount ($000) | |
Ordinary Income* | 15,307 | 16,850 |
Long-Term Capital Gains | — | 41,793 |
Total | 15,307 | 58,643 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 1,372,226 |
Gross Unrealized Appreciation | 347,239 |
Gross Unrealized Depreciation | (94,541) |
Net Unrealized Appreciation (Depreciation) | 252,698 |
E. | During the year ended September 30, 2021, the fund purchased $1,121,462,000 of investment securities and sold $1,073,544,000 of investment securities, other than temporary cash investments. |
F. | Capital shares issued and redeemed were: |
Year Ended September 30, | ||
2021 Shares (000) | 2020 Shares (000) | |
Issued | 14,866 | 7,704 |
Issued in Lieu of Cash Distributions | 389 | 1,637 |
Redeemed | (14,491) | (17,640) |
Net Increase (Decrease) in Shares Outstanding | 764 | (8,299) |
G. | Management has determined that no events or transactions occurred subsequent to September 30, 2021, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
November 17, 2021
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
John T. Marcante | Lauren Valente |
Chris D. Mclsaac |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
1 | |
2 | |
6 | |
8 | |
10 |
• | Vanguard International Core Stock Fund returned 28.44% for Investor Shares and 28.47% for Admiral Shares for the year ended September 30, 2021. The fund outperformed its benchmark, the MSCI All Country World Index ex USA, which returned 23.92%. |
• | The global economy rebounded faster than many had expected after the pandemic-induced contraction in the spring of 2020. Countries that have been more successful in containing the virus have generally fared better economically. Swift and extensive fiscal and monetary support from policymakers has also been key to the rebound. |
• | The fund’s benchmark-relative performance was driven primarily by the communication services and consumer discretionary sectors. Among regions, Europe, which constituted more than 40 percent of the fund, contributed most to relative performance, followed by emerging markets. |
Average Annual Total Returns Periods Ended September 30, 2021 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 30.96% | 16.43% | 17.11% |
Russell 2000 Index (Small-caps) | 47.68 | 10.54 | 13.45 |
Russell 3000 Index (Broad U.S. market) | 31.88 | 16.00 | 16.85 |
FTSE All-World ex US Index (International) | 24.73 | 8.49 | 9.28 |
Bonds | |||
Bloomberg U.S. Aggregate Bond Index (Broad taxable market) | -0.90% | 5.36% | 2.94% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | 2.63 | 5.06 | 3.26 |
FTSE Three-Month U.S. Treasury Bill Index | 0.06 | 1.14 | 1.13 |
CPI | |||
Consumer Price Index | 5.39% | 2.81% | 2.59% |
Equity Portfolio Manager
Global Industry Analyst
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund’s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended September 30, 2021 | |||
Beginning Account Value 3/31/2021 | Ending Account Value 9/30/2021 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
International Core Stock Fund | |||
Investor Shares | $1,000.00 | $1,024.60 | $2.28 |
Admiral™ Shares | 1,000.00 | 1,025.40 | 1.78 |
Based on Hypothetical 5% Yearly Return | |||
International Core Stock Fund | |||
Investor Shares | $1,000.00 | $1,022.81 | $2.28 |
Admiral Shares | 1,000.00 | 1,023.31 | 1.78 |
Average Annual Total Returns Periods Ended September 30, 2021 | ||||
One Year | Since Inception (10/16/2019) | Final Value of a $10,000 Investment | ||
International Core Stock Fund Investor Shares | 28.44% | 13.19% | $12,742 | |
MSCI All Country World Index ex USA | 23.92 | 12.41 | 12,571 |
One Year | Since Inception (10/16/2019) | Final Value of a $50,000 Investment | ||
International Core Stock Fund Admiral Shares | 28.47% | 13.29% | $63,827 | |
MSCI All Country World Index ex USA | 23.92 | 12.41 | 62,855 |
Japan | 16.0% |
France | 10.6 |
United Kingdom | 8.3 |
China | 8.3 |
Switzerland | 6.5 |
Germany | 6.4 |
Canada | 5.6 |
South Korea | 5.3 |
Taiwan | 5.2 |
Netherlands | 3.8 |
Australia | 3.1 |
Sweden | 2.3 |
India | 2.2 |
Spain | 2.0 |
Austria | 1.8 |
Thailand | 1.6 |
Mexico | 1.6 |
Ireland | 1.3 |
Norway | 1.2 |
Hong Kong | 1.2 |
Finland | 1.1 |
South Africa | 1.1 |
Other | 3.5 |
Shares | Market Value• ($000) | |||||
Common Stocks (98.6%) | ||||||
Australia (3.1%) | ||||||
Australia & New Zealand Banking Group Ltd. | 349,514 | 7,019 | ||||
BHP Group plc | 235,564 | 5,935 | ||||
Brambles Ltd. | 465,857 | 3,582 | ||||
16,536 | ||||||
Austria (1.8%) | ||||||
Erste Group Bank AG | 114,546 | 5,029 | ||||
*,1 | BAWAG Group AG | 70,784 | 4,480 | |||
9,509 | ||||||
Canada (5.6%) | ||||||
Royal Bank of Canada | 93,793 | 9,333 | ||||
Brookfield Asset Management Inc. Class A | 148,319 | 7,948 | ||||
Barrick Gold Corp. | 404,846 | 7,310 | ||||
Intact Financial Corp. | 39,980 | 5,286 | ||||
29,877 | ||||||
China (8.1%) | ||||||
China Merchants Bank Co. Ltd. Class H | 896,500 | 7,134 | ||||
ENN Energy Holdings Ltd. | 411,500 | 6,787 | ||||
China Longyuan Power Group Corp. Ltd. Class H | 2,759,000 | 6,770 | ||||
Tencent Holdings Ltd. | 111,100 | 6,633 | ||||
Midea Group Co. Ltd. Class A | 616,700 | 6,631 | ||||
1 | CSC Financial Co. Ltd. Class H | 4,486,500 | 5,014 | |||
Zhongsheng Group Holdings Ltd. | 591,789 | 4,744 | ||||
43,713 | ||||||
Finland (1.1%) | ||||||
* | Nokia OYJ | 1,098,617 | 6,059 | |||
France (10.5%) | ||||||
TotalEnergies SE | 230,026 | 10,995 | ||||
* | Airbus SE | 79,333 | 10,518 | |||
Credit Agricole SA | 559,614 | 7,692 | ||||
AXA SA | 275,271 | 7,629 | ||||
Pernod Ricard SA | 29,350 | 6,470 |
Shares | Market Value• ($000) | |||||
Bureau Veritas SA | 173,215 | 5,345 | ||||
Capgemini SE | 23,600 | 4,894 | ||||
Edenred | 50,710 | 2,730 | ||||
56,273 | ||||||
Germany (6.3%) | ||||||
Siemens AG (Registered) | 47,675 | 7,797 | ||||
Brenntag SE | 69,279 | 6,436 | ||||
Volkswagen AG Preference Shares | 28,199 | 6,286 | ||||
Wacker Chemie AG | 28,080 | 5,223 | ||||
* | Commerzbank AG | 701,793 | 4,648 | |||
United Internet AG (Registered) | 87,602 | 3,389 | ||||
33,779 | ||||||
Greece (0.7%) | ||||||
Hellenic Telecommunications Organization SA | 188,840 | 3,545 | ||||
Hong Kong (1.1%) | ||||||
Sun Hung Kai Properties Ltd. | 488,000 | 6,093 | ||||
India (2.2%) | ||||||
Power Grid Corp. of India Ltd. | 2,011,650 | 5,129 | ||||
Mahindra & Mahindra Ltd. | 359,453 | 3,871 | ||||
* | Axis Bank Ltd. | 263,975 | 2,706 | |||
11,706 | ||||||
Ireland (1.3%) | ||||||
Smurfit Kappa Group plc | 130,754 | 6,884 | ||||
Italy (0.9%) | ||||||
Enel SpA | 635,689 | 4,879 | ||||
Japan (15.8%) | ||||||
KDDI Corp. | 276,600 | 9,107 | ||||
Mitsui Fudosan Co. Ltd. | 335,100 | 7,960 | ||||
Fujitsu Ltd. | 43,700 | 7,897 | ||||
Seven & i Holdings Co. Ltd. | 172,900 | 7,871 | ||||
Mitsubishi UFJ Financial Group Inc. | 1,290,500 | 7,629 | ||||
Tokio Marine Holdings Inc. | 118,400 | 6,347 |
Shares | Market Value• ($000) | |||||
Isuzu Motors Ltd. | 479,500 | 6,239 | ||||
ITOCHU Corp. | 213,600 | 6,221 | ||||
Yamaha Motor Co. Ltd. | 210,500 | 5,860 | ||||
T&D Holdings Inc. | 398,400 | 5,465 | ||||
Astellas Pharma Inc. | 304,600 | 5,014 | ||||
Ono Pharmaceutical Co. Ltd. | 204,800 | 4,670 | ||||
ORIX Corp. | 238,900 | 4,470 | ||||
84,750 | ||||||
Mexico (1.6%) | ||||||
Wal-Mart de Mexico SAB de CV | 2,543,500 | 8,642 | ||||
Netherlands (3.7%) | ||||||
Royal Dutch Shell plc Class A | 501,034 | 11,142 | ||||
Koninklijke Philips NV | 122,137 | 5,426 | ||||
* | AerCap Holdings NV | 59,533 | 3,442 | |||
20,010 | ||||||
Norway (1.2%) | ||||||
Norsk Hydro ASA | 863,121 | 6,442 | ||||
Other (1.1%) | ||||||
2 | Vanguard FTSE Developed Markets ETF | 112,979 | 5,704 | |||
Russia (0.8%) | ||||||
Sberbank of Russia PJSC ADR | 229,700 | 4,282 | ||||
South Africa (1.0%) | ||||||
Anglo American plc | 160,091 | 5,611 | ||||
South Korea (5.2%) | ||||||
Samsung Electronics Co. Ltd. | 226,381 | 14,035 | ||||
SK Telecom Co. Ltd. | 27,723 | 7,530 | ||||
KB Financial Group Inc. | 134,521 | 6,256 | ||||
27,821 | ||||||
Spain (2.0%) | ||||||
Industria de Diseno Textil SA | 171,845 | 6,323 | ||||
Acciona SA | 26,286 | 4,370 | ||||
10,693 | ||||||
Sweden (2.2%) | ||||||
Alfa Laval AB | 183,752 | 6,854 | ||||
Volvo AB Class B | 230,305 | 5,142 | ||||
11,996 | ||||||
Switzerland (6.4%) | ||||||
Nestle SA (Registered) | 115,726 | 13,944 | ||||
Roche Holding AG | 25,677 | 9,371 | ||||
Novartis AG (Registered) | 104,793 | 8,593 | ||||
PSP Swiss Property AG (Registered) | 19,227 | 2,317 | ||||
34,225 |
Shares | Market Value• ($000) | |||||
Taiwan (5.2%) | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 779,000 | 16,111 | ||||
Hon Hai Precision Industry Co. Ltd. | 2,028,309 | 7,571 | ||||
Uni-President Enterprises Corp. | 1,663,000 | 4,063 | ||||
27,745 | ||||||
Thailand (1.6%) | ||||||
Kasikornbank PCL (Foreign) | 1,415,800 | 5,516 | ||||
Thai Beverage PCL | 6,573,100 | 3,157 | ||||
8,673 | ||||||
United Kingdom (8.1%) | ||||||
AstraZeneca plc | 80,031 | 9,645 | ||||
WPP plc | 572,576 | 7,671 | ||||
Standard Chartered plc | 1,255,276 | 7,338 | ||||
* | Compass Group plc | 356,686 | 7,295 | |||
Next plc | 49,626 | 5,459 | ||||
B&M European Value Retail SA | 447,034 | 3,547 | ||||
Hikma Pharmaceuticals plc | 84,544 | 2,781 | ||||
43,736 | ||||||
Total Common Stocks (Cost $495,397) | 529,183 | |||||
Temporary Cash Investments (1.0%) | ||||||
Money Market Fund (1.0%) | ||||||
3 | Vanguard Market Liquidity Fund, 0.068% (Cost $5,419) | 54,188 | 5,419 | |||
Total Investments (99.6%) (Cost $500,816) | 534,602 | |||||
Other Assets and Liabilities—Net (0.4%) | 2,122 | |||||
Net Assets (100%) | 536,724 |
Cost is in $000. | |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2021, the aggregate value was $9,494,000, representing 1.8% of net assets. |
2 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
ADR—American Depositary Receipt. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $490,555) | 523,479 |
Affiliated Issuers (Cost $10,261) | 11,123 |
Total Investments in Securities | 534,602 |
Investment in Vanguard | 18 |
Foreign Currency, at Value (Cost $219) | 218 |
Receivables for Investment Securities Sold | 14,019 |
Receivables for Accrued Income | 2,226 |
Receivables for Capital Shares Issued | 633 |
Total Assets | 551,716 |
Liabilities | |
Due to Custodian | 10,863 |
Payables for Investment Securities Purchased | 3,237 |
Payables for Capital Shares Redeemed | 432 |
Payables to Investment Advisor | 255 |
Payables to Vanguard | 41 |
Deferred Foreign Capital Gains Taxes | 164 |
Total Liabilities | 14,992 |
Net Assets | 536,724 |
Statement of Assets and Liabilities (continued) | |
At September 30, 2021, net assets consisted of: | |
($000s, except shares and per-share amounts) | Amount |
Paid-in Capital | 486,376 |
Total Distributable Earnings (Loss) | 50,348 |
Net Assets | 536,724 |
Investor Shares—Net Assets | |
Applicable to 5,628,320 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 70,350 |
Net Asset Value Per Share—Investor Shares | $12.50 |
Admiral Shares—Net Assets | |
Applicable to 18,638,949 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 466,374 |
Net Asset Value Per Share—Admiral Shares | $25.02 |
Year Ended September 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 11,614 |
Dividends—Affiliated Issuers | 289 |
Interest—Unaffiliated Issuers | — |
Interest—Affiliated Issuers | 6 |
Securities Lending—Net | 51 |
Total Income | 11,960 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 690 |
Performance Adjustment | 17 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 140 |
Management and Administrative—Admiral Shares | 475 |
Marketing and Distribution—Investor Shares | 5 |
Marketing and Distribution—Admiral Shares | 14 |
Custodian Fees | 31 |
Auditing Fees | 40 |
Shareholders’ Reports—Investor Shares | 5 |
Shareholders’ Reports—Admiral Shares | 2 |
Trustees’ Fees and Expenses | — |
Total Expenses | 1,419 |
Net Investment Income | 10,541 |
Realized Net Gain (Loss) | |
Investment Securities Sold—Unaffiliated Issuers | 15,958 |
Investment Securities Sold—Affiliated Issuers | 684 |
Foreign Currencies | (109) |
Realized Net Gain (Loss) | 16,533 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers2 | 32,911 |
Investment Securities—Affiliated Issuers | 933 |
Foreign Currencies | (19) |
Change in Unrealized Appreciation (Depreciation) | 33,825 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 60,899 |
1 | Dividends are net of foreign withholding taxes of $1,366,000. |
2 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $161,000. |
Year Ended September 30, 2021 | October 1, 20191 to September 30, 2020 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 10,541 | 3,610 | |
Realized Net Gain (Loss) | 16,533 | (7,864) | |
Change in Unrealized Appreciation (Depreciation) | 33,825 | (215) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 60,899 | (4,469) | |
Distributions | |||
Investor Shares | (814) | (42) | |
Admiral Shares | (3,445) | (160) | |
Total Distributions | (4,259) | (202) | |
Capital Share Transactions | |||
Investor Shares | 20,492 | 40,253 | |
Admiral Shares | 271,650 | 152,360 | |
Net Increase (Decrease) from Capital Share Transactions | 292,142 | 192,613 | |
Total Increase (Decrease) | 348,782 | 187,942 | |
Net Assets | |||
Beginning of Period | 187,942 | — | |
End of Period | 536,724 | 187,942 |
1 | Commencement of subscription period for the fund. |
Investor Shares | ||
For a Share Outstanding Throughout Each Period | Year Ended September 30, 2021 | October 1, 20191 to September 30, 2020 |
Net Asset Value, Beginning of Period | $9.91 | $10.00 |
Investment Operations | ||
Net Investment Income2 | .307 | .190 |
Net Realized and Unrealized Gain (Loss) on Investments | 2.490 | (.269) |
Total from Investment Operations | 2.797 | (.079) |
Distributions | ||
Dividends from Net Investment Income | (.207) | (.011) |
Distributions from Realized Capital Gains | — | — |
Total Distributions | (.207) | (.011) |
Net Asset Value, End of Period | $12.50 | $9.91 |
Total Return3 | 28.44% | -0.79% |
Ratios/Supplemental Data | ||
Net Assets, End of Period (Millions) | $70 | $39 |
Ratio of Total Expenses to Average Net Assets4 | 0.45% | 0.46%5,6 |
Ratio of Net Investment Income to Average Net Assets | 2.53% | 2.04%5 |
Portfolio Turnover Rate | 89% | 80% |
1 | The subscription period for the fund was October 1, 2019, to October 15, 2019, during which time all assets were held in cash. Performance measurement began October 16, 2019, the first business day after the subscription period, at a net asset value of $10.00. |
2 | Calculated based on average shares outstanding. |
3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
4 | Includes performance-based investment advisory fee increases (decreases) of 0.00%. Performance-based investment advisory fees did not apply before fiscal year 2021. |
5 | Annualized. |
6 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.45%. |
Admiral Shares | ||
For a Share Outstanding Throughout Each Period | Year Ended September 30, 2021 | October 1, 20191 to September 30, 2020 |
Net Asset Value, Beginning of Period | $19.85 | $20.00 |
Investment Operations | ||
Net Investment Income2 | .684 | .401 |
Net Realized and Unrealized Gain (Loss) on Investments | 4.921 | (.527) |
Total from Investment Operations | 5.605 | (.126) |
Distributions | ||
Dividends from Net Investment Income | (.435) | (.024) |
Distributions from Realized Capital Gains | — | — |
Total Distributions | (.435) | (.024) |
Net Asset Value, End of Period | $25.02 | $19.85 |
Total Return3 | 28.47% | -0.64% |
Ratios/Supplemental Data | ||
Net Assets, End of Period (Millions) | $466 | $149 |
Ratio of Total Expenses to Average Net Assets4 | 0.35% | 0.36%5,6 |
Ratio of Net Investment Income to Average Net Assets | 2.78% | 2.15%5 |
Portfolio Turnover Rate | 89% | 80% |
1 | The subscription period for the fund was October 1, 2019, to October 15, 2019, during which time all assets were held in cash. Performance measurement began October 16, 2019, the first business day after the subscription period, at a net asset value of $20.00. |
2 | Calculated based on average shares outstanding. |
3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
4 | Includes performance-based investment advisory fee increases (decreases) of 0.00%. Performance-based investment advisory fees did not apply before fiscal year 2021. |
5 | Annualized. |
6 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.35%. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 38,519 | — | — | 38,519 |
Common Stocks—Other | 9,146 | 481,518 | — | 490,664 |
Temporary Cash Investments | 5,419 | — | — | 5,419 |
Total | 53,084 | 481,518 | — | 534,602 |
Amount ($000) | |
Paid-in Capital | 1,623 |
Total Distributable Earnings (Loss) | (1,623) |
Amount ($000) | |
Undistributed Ordinary Income | 9,212 |
Undistributed Long-Term Gains | 8,335 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 32,801 |
Year Ended September 30, 2021 | Period Ended September 30, 2020 | ||
Amount ($000) | Amount ($000) | ||
Ordinary Income* | 4,259 | 202 | |
Long-Term Capital Gains | — | — | |
Total | 4,259 | 202 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 501,626 |
Gross Unrealized Appreciation | 52,314 |
Gross Unrealized Depreciation | (19,338) |
Net Unrealized Appreciation (Depreciation) | 32,976 |
Year Ended September 30, 2021 | October 1, 20191 to September 30, 2020 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 54,340 | 4,457 | 72,867 | 7,360 | |
Issued in Lieu of Cash Distributions | 679 | 60 | 34 | 3 | |
Redeemed | (34,527) | (2,855) | (32,648) | (3,397) | |
Net Increase (Decrease)—Investor Shares | 20,492 | 1,662 | 40,253 | 3,966 |
Year Ended September 30, 2021 | October 1, 20191 to September 30, 2020 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Admiral Shares | |||||
Issued | 370,262 | 15,194 | 240,263 | 12,188 | |
Issued in Lieu of Cash Distributions | 2,621 | 116 | 125 | 6 | |
Redeemed | (101,233) | (4,160) | (88,028) | (4,705) | |
Net Increase (Decrease)—Admiral Shares | 271,650 | 11,150 | 152,360 | 7,489 |
1 | Commencement of subscription period for the fund. |
Current Period Transactions | ||||||||
Sep. 30, 2020 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2021 Market Value ($000) | |
Vanguard FTSE Developed Markets ETF | 2,479 | 95,236 | 93,627 | 683 | 933 | 289 | — | 5,704 |
Vanguard Market Liquidity Fund | 6,027 | NA1 | NA1 | 1 | — | 6 | — | 5,419 |
Total | 8,506 | 95,236 | 93,627 | 684 | 933 | 295 | — | 11,123 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
Philadelphia, Pennsylvania
November 19, 2021
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
John T. Marcante | Lauren Valente |
Chris D. McIsaac |
Who Are Deaf or Hard of Hearing > 800-749-7273
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics.
The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.
Item 3: Audit Committee Financial Expert.
All members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts and to be independent: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.
Item 4: Principal Accountant Fees and Services.
(a) Audit Fees.
Audit Fees of the Registrant.
Fiscal Year Ended September 30, 2021: $176,000
Fiscal Year Ended September 30, 2020: $150,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended September 30, 2021: $11,244,694
Fiscal Year Ended September 30, 2020: $10,761,407
Includes fees billed in connection with audits of the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(b) Audit-Related Fees.
Fiscal Year Ended September 30, 2021: $2,955,181
Fiscal Year Ended September 30, 2020: $2,915,863
Includes fees billed in connection with assurance and related services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(c) Tax Fees.
Fiscal Year Ended September 30, 2021: $2,047,574
Fiscal Year Ended September 30, 2020: $247,168
Includes fees billed in connection with tax compliance, planning, and advice services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(d) All Other Fees.
Fiscal Year Ended September 30, 2021: $280,000
Fiscal Year Ended September 30, 2020: $115,000
Includes fees billed for services related to tax reported information provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(e) (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider, and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.
In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.
The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., or other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant.
(2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.
(g) Aggregate Non-Audit Fees.
Fiscal Year Ended September 30, 2021: $2,327,574
Fiscal Year Ended September 30, 2020: $362,168
Includes fees billed for non-audit services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
The Registrant is a listed issuer as defined in rule 10A-3 under the Securities Exchange Act of 1934 (“Exchange Act”). The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.
Item 6: Investments.
Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. In 2020, a third-party service provider began performing certain administrative and accounting services for Vanguard Capital Opportunity Fund, Vanguard Strategic Equity Fund, Vanguard Strategic Small-Cap Equity Fund, and Vanguard Global Equity Fund. There were no other significant changes in the Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a)(1) | Code of Ethics filed herewith. |
(a)(2) | Certifications filed herewith. |
(b) | Certifications field herewith. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD HORIZON FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: November 19, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
VANGUARD HORIZON FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: November 19, 2021
VANGUARD HORIZON FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: November 19, 2021
* By: /s/ Anne E. Robinson
Anne E. Robinson, pursuant to a Power of Attorney filed on November 29, 2021 (see File Number 33-64845), a Power of Attorney filed on October 12, 2021 (see File Number 33-23444), and a Power of Attorney filed on August 26, 2021 (see file Number 811-02652), Incorporated by Reference.