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, 2021—September 30, 2022
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, 2022, Vanguard Strategic Equity Fund returned –14.81%. It outperformed its benchmark, the MSCI US Small + Mid Cap 2200 Index, which returned –19.57%. |
• | The 12 months were a challenging period for stocks. Inflation soared to multidecade highs, fueled in part by higher energy and food prices after Russia’s invasion of Ukraine. Then, price increases broadened to other categories of goods and services, adding to concerns that inflation would remain stubbornly high. That prompted aggressive tightening by the Federal Reserve to bring inflation back in check and increased fears of a recession. |
• | The fund’s relative performance was helped most by stock selection in information technology, industrials, and consumer discretionary; selection in utilities, financials, and consumer staples detracted from performance. |
• | For the 10 years ended September 30, 2022, the fund posted an average annual return of 10.91%. This result was slightly above that of its benchmark index, which returned 10.55%. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | -17.22% | 7.95% | 9.00% |
Russell 2000 Index (Small-caps) | -23.50 | 4.29 | 3.55 |
Russell 3000 Index (Broad U.S. market) | -17.63 | 7.70 | 8.62 |
FTSE All-World ex US Index (International) | -24.76 | -0.95 | -0.38 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | -14.61% | -3.22% | -0.23% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | -11.50 | -1.85 | 0.59 |
FTSE Three-Month U.S. Treasury Bill Index | 0.63 | 0.57 | 1.12 |
CPI | |||
Consumer Price Index | 8.20% | 4.95% | 3.76% |
• | 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, 2022 | |||
Strategic Equity Fund | Beginning Account Value 3/31/2022 | Ending Account Value 9/30/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $818.90 | $0.78 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,024.22 | 0.86 |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Strategic Equity Fund | -14.81% | 6.14% | 10.91% | $28,171 | |
MSCI US Small + Mid Cap 2200 Index | -19.57 | 6.62 | 10.55 | 27,261 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | -18.05 | 8.48 | 11.28 | 29,120 |
Communication Services | 3.4% |
Consumer Discretionary | 11.1 |
Consumer Staples | 3.9 |
Energy | 5.9 |
Financials | 15.2 |
Health Care | 12.3 |
Industrials | 14.1 |
Information Technology | 15.2 |
Materials | 5.3 |
Real Estate | 8.2 |
Utilities | 5.4 |
Shares | Market Value• ($000) | ||
Common Stocks (99.5%) | |||
Communication Services (3.4%) | |||
* | Yelp Inc. Class A | 823,274 | 27,917 |
* | Iridium Communications Inc. | 557,706 | 24,745 |
News Corp. Class B | 1,277,301 | 19,696 | |
News Corp. Class A | 1,179,648 | 17,824 | |
New York Times Co. Class A | 612,870 | 17,620 | |
Interpublic Group of Cos. Inc. | 570,449 | 14,604 | |
* | Pinterest Inc. Class A | 481,859 | 11,227 |
* | Live Nation Entertainment Inc. | 118,684 | 9,025 |
Cogent Communications Holdings Inc. | 165,328 | 8,624 | |
Omnicom Group Inc. | 126,117 | 7,957 | |
* | Altice USA Inc. Class A | 1,295,955 | 7,555 |
* | Playtika Holding Corp. | 707,301 | 6,642 |
* | PubMatic Inc. Class A | 347,813 | 5,784 |
* | TripAdvisor Inc. | 243,041 | 5,366 |
* | Madison Square Garden Sports Corp. | 38,529 | 5,265 |
Cable One Inc. | 5,368 | 4,579 | |
Sinclair Broadcast Group Inc. Class A | 245,145 | 4,435 | |
* | ZipRecruiter Inc. Class A | 264,455 | 4,364 |
Fox Corp. Class B | 128,272 | 3,656 | |
* | Endeavor Group Holdings Inc. Class A | 153,215 | 3,104 |
* | ZoomInfo Technologies Inc. Class A | 66,759 | 2,781 |
* | Radius Global Infrastructure Inc. Class A (XNMS) | 167,633 | 1,579 |
* | Liberty Media Corp.- Liberty SiriusXM Class C | 36,649 | 1,382 |
*,1 | AMC Entertainment Holdings Inc. Class A | 133,800 | 933 |
216,664 | |||
Consumer Discretionary (11.1%) | |||
Genuine Parts Co. | 337,116 | 50,338 | |
* | Ulta Beauty Inc. | 100,854 | 40,462 |
* | AutoNation Inc. | 326,760 | 33,287 |
Service Corp. International | 497,660 | 28,735 | |
LKQ Corp. | 579,257 | 27,312 | |
PulteGroup Inc. | 663,706 | 24,889 | |
* | NVR Inc. | 5,582 | 22,256 |
Tapestry Inc. | 761,653 | 21,654 |
Shares | Market Value• ($000) | ||
* | Skyline Champion Corp. | 347,496 | 18,372 |
* | Expedia Group Inc. | 194,835 | 18,254 |
Travel + Leisure Co. | 529,488 | 18,066 | |
Toll Brothers Inc. | 408,774 | 17,169 | |
Boyd Gaming Corp. | 359,952 | 17,152 | |
Buckle Inc. | 503,737 | 15,948 | |
Winnebago Industries Inc. | 298,832 | 15,901 | |
* | Tri Pointe Homes Inc. | 887,192 | 13,405 |
MGM Resorts International | 447,376 | 13,296 | |
Signet Jewelers Ltd. | 226,129 | 12,932 | |
Texas Roadhouse Inc. Class A | 144,971 | 12,650 | |
Brunswick Corp. | 191,573 | 12,538 | |
* | SeaWorld Entertainment Inc. | 262,055 | 11,926 |
* | Dollar Tree Inc. | 87,115 | 11,856 |
Harley-Davidson Inc. | 329,575 | 11,496 | |
* | Stride Inc. | 253,370 | 10,649 |
* | Meritage Homes Corp. | 131,587 | 9,247 |
Group 1 Automotive Inc. | 64,175 | 9,169 | |
Tractor Supply Co. | 45,976 | 8,546 | |
Shutterstock Inc. | 170,128 | 8,535 | |
* | Hyatt Hotels Corp. Class A | 104,175 | 8,434 |
* | Six Flags Entertainment Corp. | 466,976 | 8,265 |
Macy's Inc. | 516,821 | 8,099 | |
* | Under Armour Inc. Class C | 1,342,200 | 8,000 |
Columbia Sportswear Co. | 115,029 | 7,741 | |
H&R Block Inc. | 176,334 | 7,501 | |
* | Capri Holdings Ltd. | 191,859 | 7,375 |
Red Rock Resorts Inc. Class A | 211,376 | 7,242 | |
Wendy's Co. | 377,430 | 7,054 | |
* | Dave & Buster's Entertainment Inc. | 214,366 | 6,652 |
Academy Sports & Outdoors Inc. | 157,417 | 6,640 | |
* | Goodyear Tire & Rubber Co. | 636,567 | 6,423 |
Steven Madden Ltd. | 224,050 | 5,975 | |
Bath & Body Works Inc. | 171,065 | 5,577 | |
* | Etsy Inc. | 53,678 | 5,375 |
* | Taylor Morrison Home Corp. Class A | 222,358 | 5,185 |
Marriott Vacations Worldwide Corp. | 40,476 | 4,932 | |
* | MarineMax Inc. | 164,700 | 4,906 |
* | Cavco Industries Inc. | 22,249 | 4,578 |
* | Chegg Inc. | 208,430 | 4,392 |
Williams-Sonoma Inc. | 37,132 | 4,376 |
Shares | Market Value• ($000) | ||
* | WW International Inc. | 1,083,540 | 4,258 |
* | Everi Holdings Inc. | 259,747 | 4,213 |
* | RH | 16,645 | 4,096 |
Patrick Industries Inc. | 88,219 | 3,868 | |
* | American Axle & Manufacturing Holdings Inc. | 445,318 | 3,042 |
* | Scientific Games Corp. Class A | 63,447 | 2,721 |
Dine Brands Global Inc. | 38,332 | 2,436 | |
Qurate Retail Inc. Series A | 1,170,079 | 2,352 | |
* | Fox Factory Holding Corp. | 29,688 | 2,348 |
* | Asbury Automotive Group Inc. | 14,751 | 2,229 |
* | Deckers Outdoor Corp. | 6,343 | 1,983 |
* | XPEL Inc. | 28,236 | 1,820 |
Thor Industries Inc. | 24,441 | 1,710 | |
Hibbett Inc. | 32,602 | 1,624 | |
Aaron's Co. Inc. | 166,515 | 1,619 | |
* | Stitch Fix Inc. Class A | 393,901 | 1,556 |
Oxford Industries Inc. | 14,790 | 1,328 | |
Vail Resorts Inc. | 6,009 | 1,296 | |
LCI Industries | 12,609 | 1,279 | |
Century Communities Inc. | 29,065 | 1,243 | |
Gentex Corp. | 47,372 | 1,129 | |
Wyndham Hotels & Resorts Inc. | 18,073 | 1,109 | |
* | Dorman Products Inc. | 12,020 | 987 |
* | Fossil Group Inc. | 269,416 | 921 |
* | Tupperware Brands Corp. | 117,461 | 769 |
702,698 | |||
Consumer Staples (3.8%) | |||
* | Darling Ingredients Inc. | 412,691 | 27,300 |
Flowers Foods Inc. | 747,460 | 18,455 | |
* | Pilgrim's Pride Corp. | 778,113 | 17,912 |
Ingles Markets Inc. Class A | 225,522 | 17,864 | |
* | Herbalife Nutrition Ltd. | 803,741 | 15,986 |
Cal-Maine Foods Inc. | 262,527 | 14,594 | |
Ingredion Inc. | 177,214 | 14,269 | |
Lamb Weston Holdings Inc. | 161,109 | 12,467 | |
* | BJ's Wholesale Club Holdings Inc. | 167,008 | 12,160 |
Campbell Soup Co. | 222,207 | 10,470 | |
Coca-Cola Consolidated Inc. | 23,339 | 9,609 | |
* | Coty Inc. Class A | 1,517,025 | 9,588 |
* | Hostess Brands Inc. Class A | 325,526 | 7,565 |
Medifast Inc. | 68,945 | 7,471 | |
Albertsons Cos. Inc. Class A | 278,634 | 6,927 | |
Bunge Ltd. | 64,154 | 5,297 | |
Molson Coors Beverage Co. Class B | 92,943 | 4,460 | |
* | elf Beauty Inc. | 113,323 | 4,263 |
* | USANA Health Sciences Inc. | 72,128 | 4,043 |
Kellogg Co. | 56,873 | 3,962 | |
* | Hain Celestial Group Inc. | 212,288 | 3,584 |
* | United Natural Foods Inc. | 96,073 | 3,302 |
J M Smucker Co. | 20,174 | 2,772 | |
Vector Group Ltd. | 247,366 | 2,179 | |
Nu Skin Enterprises Inc. Class A | 41,872 | 1,397 | |
Energizer Holdings Inc. | 53,990 | 1,357 | |
Edgewell Personal Care Co. | 35,591 | 1,331 | |
Church & Dwight Co. Inc. | 14,748 | 1,054 |
Shares | Market Value• ($000) | ||
* | BellRing Brands Inc. | 49,341 | 1,017 |
242,655 | |||
Energy (5.8%) | |||
APA Corp. | 1,271,782 | 43,482 | |
Hess Corp. | 355,289 | 38,723 | |
Halliburton Co. | 1,492,951 | 36,757 | |
SM Energy Co. | 700,728 | 26,354 | |
* | PBF Energy Inc. Class A | 541,377 | 19,035 |
Marathon Oil Corp. | 822,473 | 18,571 | |
Targa Resources Corp. | 287,088 | 17,323 | |
* | Southwestern Energy Co. | 2,742,331 | 16,783 |
Plains GP Holdings LP Class A | 1,352,016 | 14,751 | |
* | Delek US Holdings Inc. | 498,697 | 13,535 |
Cheniere Energy Inc. | 79,798 | 13,239 | |
* | Talos Energy Inc. | 783,537 | 13,046 |
* | Liberty Energy Inc. Class A | 850,975 | 10,790 |
* | Comstock Resources Inc. | 531,135 | 9,183 |
PDC Energy Inc. | 158,015 | 9,132 | |
* | W&T Offshore Inc. | 1,319,506 | 7,732 |
Texas Pacific Land Corp. | 3,935 | 6,993 | |
* | Permian resources Corp. | 854,645 | 5,812 |
* | Antero Resources Corp. | 171,762 | 5,244 |
Murphy Oil Corp. | 136,424 | 4,798 | |
* | Denbury Inc. | 49,416 | 4,263 |
* | Kosmos Energy Ltd. | 744,667 | 3,850 |
* | Nabors Industries Ltd. (XNYS) | 37,667 | 3,821 |
* | Gulfport Energy Corp. | 42,429 | 3,746 |
Range Resources Corp. | 125,109 | 3,160 | |
* | ProPetro Holding Corp. | 377,824 | 3,042 |
CVR Energy Inc. | 102,865 | 2,981 | |
* | US Silica Holdings Inc. | 248,236 | 2,718 |
* | Weatherford International plc | 66,228 | 2,139 |
* | NexTier Oilfield Solutions Inc. | 247,722 | 1,833 |
* | Par Pacific Holdings Inc. | 89,399 | 1,467 |
Continental Resources Inc. | 19,794 | 1,322 | |
* | Callon Petroleum Co. | 35,711 | 1,250 |
Patterson-UTI Energy Inc. | 102,954 | 1,203 | |
Diamondback Energy Inc. | 9,713 | 1,170 | |
369,248 | |||
Financials (15.2%) | |||
W R Berkley Corp. | 712,926 | 46,041 | |
Equitable Holdings Inc. | 1,483,433 | 39,088 | |
Zions Bancorp NA | 715,701 | 36,401 | |
MGIC Investment Corp. | 2,724,584 | 34,929 | |
Ally Financial Inc. | 1,233,509 | 34,329 | |
Radian Group Inc. | 1,754,302 | 33,841 | |
Fidelity National Financial Inc. | 898,231 | 32,516 | |
Hartford Financial Services Group Inc. | 450,494 | 27,904 | |
Comerica Inc. | 378,369 | 26,902 | |
Essent Group Ltd. | 675,435 | 23,552 | |
PacWest Bancorp | 998,522 | 22,567 | |
SLM Corp. | 1,598,479 | 22,363 | |
Stifel Financial Corp. | 425,657 | 22,096 | |
Primerica Inc. | 175,850 | 21,709 | |
KKR & Co. Inc. | 478,220 | 20,563 | |
First BanCorp. (XNYS) | 1,460,330 | 19,977 | |
American Financial Group Inc. | 161,602 | 19,866 | |
LPL Financial Holdings Inc. | 88,633 | 19,365 |
Shares | Market Value• ($000) | ||
Hanover Insurance Group Inc. | 150,004 | 19,222 | |
Evercore Inc. Class A | 229,144 | 18,847 | |
Synovus Financial Corp. | 498,683 | 18,706 | |
CNO Financial Group Inc. | 1,004,722 | 18,055 | |
FNB Corp. | 1,537,696 | 17,837 | |
First Citizens BancShares Inc. Class A | 21,824 | 17,403 | |
Everest Re Group Ltd. | 64,245 | 16,860 | |
Hancock Whitney Corp. | 367,141 | 16,819 | |
Western Alliance Bancorp | 255,800 | 16,816 | |
Loews Corp. | 328,295 | 16,362 | |
* | LendingClub Corp. | 1,474,099 | 16,289 |
First Republic Bank | 102,608 | 13,396 | |
International Bancshares Corp. | 310,505 | 13,196 | |
* | Arch Capital Group Ltd. | 287,746 | 13,104 |
Synchrony Financial | 445,334 | 12,554 | |
Carlyle Group Inc. | 469,380 | 12,129 | |
Axis Capital Holdings Ltd. | 229,450 | 11,277 | |
Bank OZK | 275,096 | 10,883 | |
Affiliated Managers Group Inc. | 95,757 | 10,710 | |
Old National Bancorp | 635,138 | 10,461 | |
Virtu Financial Inc. Class A | 500,707 | 10,400 | |
Wintrust Financial Corp. | 122,092 | 9,957 | |
Associated Banc-Corp. | 465,304 | 9,343 | |
UMB Financial Corp. | 109,884 | 9,262 | |
Popular Inc. | 124,535 | 8,974 | |
* | Brighthouse Financial Inc. | 190,359 | 8,265 |
SouthState Corp. | 100,671 | 7,965 | |
Kinsale Capital Group Inc. | 29,999 | 7,662 | |
Regions Financial Corp. | 380,127 | 7,629 | |
Unum Group | 184,639 | 7,164 | |
Tradeweb Markets Inc. Class A | 117,475 | 6,628 | |
OneMain Holdings Inc. | 200,723 | 5,925 | |
Signature Bank | 37,936 | 5,728 | |
* | Robinhood Markets Inc. Class A | 564,144 | 5,698 |
Webster Financial Corp. | 110,455 | 4,993 | |
Nasdaq Inc. | 80,352 | 4,554 | |
Columbia Banking System Inc. | 155,548 | 4,494 | |
Old Republic International Corp. | 197,359 | 4,131 | |
Navient Corp. | 238,613 | 3,505 | |
Brightsphere Investment Group Inc. | 173,942 | 2,594 | |
Cboe Global Markets Inc. | 20,673 | 2,426 | |
Cadence Bank | 94,710 | 2,407 | |
East West Bancorp Inc. | 31,610 | 2,122 | |
Simmons First National Corp. Class A | 93,570 | 2,039 | |
Assured Guaranty Ltd. | 38,319 | 1,857 | |
First Hawaiian Inc. | 69,187 | 1,704 | |
Northern Trust Corp. | 17,899 | 1,531 | |
* | Green Dot Corp. Class A | 71,458 | 1,356 |
Eagle Bancorp Inc. | 28,582 | 1,281 | |
KeyCorp. | 77,167 | 1,236 | |
First American Financial Corp. | 25,799 | 1,189 | |
Fifth Third Bancorp | 35,931 | 1,148 | |
Invesco Ltd. | 83,752 | 1,147 | |
961,249 |
Shares | Market Value• ($000) | ||
Health Care (12.2%) | |||
AmerisourceBergen Corp. Class A | 302,801 | 40,978 | |
* | ABIOMED Inc. | 165,442 | 40,642 |
Chemed Corp. | 87,702 | 38,287 | |
West Pharmaceutical Services Inc. | 145,506 | 35,806 | |
Laboratory Corp. of America Holdings | 149,104 | 30,538 | |
* | AMN Healthcare Services Inc. | 284,640 | 30,160 |
* | Medpace Holdings Inc. | 183,810 | 28,889 |
* | Alkermes plc | 1,291,430 | 28,838 |
Bruker Corp. | 463,042 | 24,569 | |
* | IQVIA Holdings Inc. | 135,568 | 24,557 |
* | Veeva Systems Inc. Class A | 128,731 | 21,225 |
* | Mettler-Toledo International Inc. | 17,934 | 19,443 |
* | Incyte Corp. | 282,190 | 18,805 |
* | Shockwave Medical Inc. | 64,620 | 17,969 |
* | Deciphera Pharmaceuticals Inc. | 966,515 | 17,881 |
* | STAAR Surgical Co. | 228,614 | 16,129 |
* | ACADIA Pharmaceuticals Inc. | 840,130 | 13,745 |
* | Tenet Healthcare Corp. | 265,379 | 13,688 |
* | ImmunoGen Inc. | 2,615,023 | 12,500 |
* | Intercept Pharmaceuticals Inc. | 873,871 | 12,191 |
* | PTC Therapeutics Inc. | 239,529 | 12,024 |
* | Allscripts Healthcare Solutions Inc. | 726,714 | 11,068 |
* | Sarepta Therapeutics Inc. | 95,198 | 10,523 |
* | DaVita Inc. | 126,745 | 10,491 |
* | Evolent Health Inc. Class A | 276,752 | 9,944 |
* | Lantheus Holdings Inc. | 141,163 | 9,928 |
* | Charles River Laboratories International Inc. | 50,368 | 9,912 |
* | Merit Medical Systems Inc. | 173,377 | 9,798 |
* | Ionis Pharmaceuticals Inc. | 211,811 | 9,368 |
* | Inspire Medical Systems Inc. | 51,718 | 9,173 |
* | Mirati Therapeutics Inc. | 119,271 | 8,330 |
* | Haemonetics Corp. | 99,059 | 7,333 |
* | Exact Sciences Corp. | 222,542 | 7,230 |
* | TG Therapeutics Inc. | 1,175,966 | 6,962 |
* | Integra LifeSciences Holdings Corp. | 163,463 | 6,924 |
* | Enanta Pharmaceuticals Inc. | 122,998 | 6,380 |
* | Myriad Genetics Inc. | 331,377 | 6,323 |
* | Tandem Diabetes Care Inc. | 126,680 | 6,062 |
* | Agenus Inc. | 2,935,738 | 6,018 |
BioMarin Pharmaceutical Inc. | 70,053 | 5,938 | |
Quest Diagnostics Inc. | 45,482 | 5,580 | |
* | Exelixis Inc. | 340,332 | 5,336 |
* | United Therapeutics Corp. | 25,287 | 5,295 |
DENTSPLY SIRONA Inc. | 184,082 | 5,219 | |
* | NuVasive Inc. | 115,720 | 5,070 |
* | Horizon Therapeutics plc | 78,610 | 4,865 |
* | Nektar Therapeutics Class A | 1,517,103 | 4,855 |
* | GoodRx Holdings Inc. Class A | 954,526 | 4,458 |
* | Option Care Health Inc. | 138,291 | 4,352 |
* | Avantor Inc. | 200,847 | 3,937 |
* | Health Catalyst Inc. | 370,741 | 3,596 |
Shares | Market Value• ($000) | ||
* | Inovio Pharmaceuticals Inc. | 2,022,520 | 3,489 |
* | Nevro Corp. | 71,415 | 3,328 |
* | Pediatrix Medical Group Inc. | 198,383 | 3,275 |
* | Henry Schein Inc. | 48,864 | 3,214 |
* | 2seventy bio Inc. | 210,012 | 3,056 |
* | Arrowhead Pharmaceuticals Inc. | 89,007 | 2,942 |
* | Glaukos Corp. | 53,727 | 2,860 |
* | Prestige Consumer Healthcare Inc. | 54,373 | 2,709 |
* | Natera Inc. | 60,726 | 2,661 |
* | Theravance Biopharma Inc. | 259,111 | 2,627 |
* | Sangamo Therapeutics Inc. | 467,930 | 2,293 |
* | Cara Therapeutics Inc. | 215,399 | 2,016 |
*,1 | Clovis Oncology Inc. | 1,679,012 | 1,998 |
* | Corcept Therapeutics Inc. | 77,817 | 1,995 |
* | Novavax Inc. | 108,657 | 1,978 |
* | Jazz Pharmaceuticals plc | 14,293 | 1,905 |
* | Zymeworks Inc. | 288,485 | 1,774 |
* | Editas Medicine Inc. Class A | 143,834 | 1,761 |
* | Heron Therapeutics Inc. | 405,319 | 1,710 |
* | Atea Pharmaceuticals Inc. | 278,408 | 1,584 |
* | Masimo Corp. | 11,037 | 1,558 |
* | Rigel Pharmaceuticals Inc. | 1,318,144 | 1,555 |
* | iTeos Therapeutics Inc. | 76,718 | 1,461 |
* | Travere Thrapeutics Inc. | 56,484 | 1,392 |
* | Cytokinetics Inc. | 27,972 | 1,355 |
* | Bridgebio Pharma Inc. | 132,154 | 1,314 |
* | Puma Biotechnology Inc. | 540,434 | 1,281 |
* | Seres Therapeutics Inc. | 195,204 | 1,253 |
* | Neogen Corp. | 86,882 | 1,214 |
* | MacroGenics Inc. | 326,422 | 1,129 |
* | Joint Corp. | 66,951 | 1,052 |
* | Syneos Health Inc. | 20,407 | 962 |
* | Emergent BioSolutions Inc. | 33,247 | 698 |
* | Akebia Therapeutics Inc. | 1,833,311 | 580 |
* | Organogenesis Holdings Inc. Class A | 116,256 | 377 |
775,488 | |||
Industrials (14.0%) | |||
WW Grainger Inc. | 112,311 | 54,941 | |
* | United Rentals Inc. | 177,872 | 48,047 |
Owens Corning | 551,838 | 43,380 | |
Robert Half International Inc. | 498,674 | 38,149 | |
Allison Transmission Holdings Inc. | 1,109,545 | 37,458 | |
* | Atkore Inc. | 385,456 | 29,992 |
* | CACI International Inc. Class A | 97,698 | 25,505 |
Ryder System Inc. | 336,199 | 25,380 | |
* | Builders FirstSource Inc. | 415,657 | 24,490 |
Triton International Ltd. | 430,357 | 23,553 | |
Rush Enterprises Inc. Class A | 527,598 | 23,140 | |
AGCO Corp. | 240,310 | 23,111 | |
UFP Industries Inc. | 316,843 | 22,863 | |
IDEX Corp. | 110,639 | 22,111 | |
ManpowerGroup Inc. | 337,189 | 21,813 | |
* | Clean Harbors Inc. | 197,842 | 21,759 |
* | Univar Solutions Inc. | 922,958 | 20,988 |
Korn Ferry | 421,401 | 19,785 | |
EMCOR Group Inc. | 161,133 | 18,608 | |
Wabash National Corp. | 1,183,418 | 18,414 | |
Dover Corp. | 150,139 | 17,503 |
Shares | Market Value• ($000) | ||
Terex Corp. | 586,907 | 17,455 | |
Textron Inc. | 284,946 | 16,601 | |
Boise Cascade Co. | 265,579 | 15,791 | |
JB Hunt Transport Services Inc. | 97,255 | 15,213 | |
* | Alaska Air Group Inc. | 356,055 | 13,940 |
Matson Inc. | 203,428 | 12,515 | |
Acuity Brands Inc. | 78,221 | 12,317 | |
* | Copart Inc. | 100,311 | 10,673 |
GrafTech International Ltd. | 2,449,929 | 10,559 | |
Encore Wire Corp. | 87,539 | 10,114 | |
AECOM | 142,934 | 9,772 | |
MDU Resources Group Inc. | 313,716 | 8,580 | |
* | ASGN Inc. | 90,919 | 8,216 |
Tetra Tech Inc. | 63,865 | 8,209 | |
Booz Allen Hamilton Holding Corp. Class A | 78,842 | 7,281 | |
American Airlines Group Inc. | 579,696 | 6,980 | |
* | TrueBlue Inc. | 360,610 | 6,880 |
Expeditors International of Washington Inc. | 71,124 | 6,281 | |
Fortune Brands Home & Security Inc. | 114,190 | 6,131 | |
Applied Industrial Technologies Inc. | 56,626 | 5,820 | |
Carlisle Cos. Inc. | 20,329 | 5,700 | |
Watts Water Technologies Inc. Class A | 43,390 | 5,455 | |
* | WillScot Mobile Mini Holdings Corp. | 122,239 | 4,930 |
ArcBest Corp. | 67,203 | 4,888 | |
Ennis Inc. | 238,646 | 4,804 | |
Valmont Industries Inc. | 17,497 | 4,700 | |
Lincoln Electric Holdings Inc. | 36,550 | 4,595 | |
Mueller Industries Inc. | 74,886 | 4,451 | |
* | SkyWest Inc. | 258,836 | 4,209 |
* | Saia Inc. | 21,194 | 4,027 |
Howmet Aerospace Inc. | 129,815 | 4,015 | |
* | United Airlines Holdings Inc. | 121,526 | 3,953 |
Primoris Services Corp. | 223,004 | 3,624 | |
Huntington Ingalls Industries Inc. | 13,420 | 2,973 | |
* | TriNet Group Inc. | 41,395 | 2,948 |
* | MYR Group Inc. | 33,729 | 2,858 |
* | GEO Group Inc. | 358,276 | 2,759 |
* | Hub Group Inc. Class A | 39,154 | 2,701 |
Brink's Co. | 54,340 | 2,632 | |
* | GMS Inc. | 62,769 | 2,511 |
* | Avis Budget Group Inc. | 16,789 | 2,492 |
Donaldson Co. Inc. | 47,743 | 2,340 | |
Esab Corp. | 68,394 | 2,282 | |
Science Applications International Corp. | 25,462 | 2,252 | |
Advanced Drainage Systems Inc. | 14,228 | 1,770 | |
Trinity Industries Inc. | 77,581 | 1,656 | |
EnerSys | 25,573 | 1,488 | |
Genco Shipping & Trading Ltd. | 117,466 | 1,472 | |
BWX Technologies Inc. | 25,058 | 1,262 | |
* | Aerojet Rocketdyne Holdings Inc. | 30,940 | 1,237 |
* | Quad/Graphics Inc. | 156,879 | 402 |
887,704 |
Shares | Market Value• ($000) | ||
Information Technology (15.1%) | |||
CDW Corp. | 324,347 | 50,624 | |
Jabil Inc. | 737,625 | 42,568 | |
* | Nutanix Inc. Class A | 2,032,556 | 42,338 |
* | Manhattan Associates Inc. | 307,336 | 40,885 |
* | Cadence Design Systems Inc. | 245,491 | 40,121 |
* | Gartner Inc. | 136,246 | 37,698 |
* | Synopsys Inc. | 121,794 | 37,209 |
* | Dropbox Inc. Class A | 1,793,259 | 37,156 |
* | CommScope Holding Co. Inc. | 4,008,084 | 36,914 |
* | Arrow Electronics Inc. | 362,130 | 33,385 |
* | Cirrus Logic Inc. | 473,564 | 32,581 |
* | Splunk Inc. | 423,604 | 31,855 |
* | Flex Ltd. | 1,789,383 | 29,811 |
Amkor Technology Inc. | 1,374,050 | 23,428 | |
* | Enphase Energy Inc. | 78,785 | 21,860 |
Avnet Inc. | 574,081 | 20,736 | |
* | RingCentral Inc. Class A | 518,347 | 20,713 |
* | EPAM Systems Inc. | 50,374 | 18,245 |
CSG Systems International Inc. | 343,773 | 18,179 | |
Monolithic Power Systems Inc. | 46,243 | 16,805 | |
* | Box Inc. Class A | 674,748 | 16,457 |
* | Fortinet Inc. | 329,126 | 16,170 |
* | MaxLinear Inc. | 452,097 | 14,747 |
* | GoDaddy Inc. Class A | 202,254 | 14,336 |
* | Everbridge Inc. | 452,972 | 13,988 |
* | Teradata Corp. | 413,897 | 12,856 |
* | Axcelis Technologies Inc. | 205,571 | 12,449 |
* | Extreme Networks Inc. | 867,397 | 11,337 |
* | Pure Storage Inc. Class A | 400,696 | 10,967 |
* | CommVault Systems Inc. | 189,071 | 10,028 |
* | Diodes Inc. | 151,132 | 9,810 |
* | Kyndryl Holdings Inc. | 1,161,933 | 9,609 |
* | ON Semiconductor Corp. | 150,648 | 9,390 |
* | Domo Inc. Class B | 521,462 | 9,381 |
* | SMART Global Holdings Inc. | 538,756 | 8,550 |
Xerox Holdings Corp. | 588,409 | 7,696 | |
* | Unisys Corp. | 1,001,495 | 7,561 |
* | Fair Isaac Corp. | 17,577 | 7,242 |
* | Toast Inc. Class A | 419,117 | 7,008 |
* | Lattice Semiconductor Corp. | 141,848 | 6,980 |
* | ExlService Holdings Inc. | 43,319 | 6,383 |
* | Yext Inc. | 1,408,005 | 6,280 |
* | Elastic NV | 87,252 | 6,259 |
NetApp Inc. | 95,235 | 5,890 | |
* | 8x8 Inc. | 1,627,880 | 5,616 |
* | Ultra Clean Holdings Inc. | 191,484 | 4,931 |
Kulicke & Soffa Industries Inc. | 124,679 | 4,804 | |
* | Super Micro Computer Inc. | 86,908 | 4,786 |
* | AvidXchange Holdings Inc. | 541,434 | 4,559 |
* | Payoneer Global Inc. | 739,883 | 4,476 |
* | Ciena Corp. | 103,230 | 4,174 |
Pegasystems Inc. | 125,542 | 4,035 | |
* | Ichor Holdings Ltd. | 161,689 | 3,915 |
* | LivePerson Inc. | 405,108 | 3,816 |
* | New Relic Inc. | 61,443 | 3,526 |
* | Cohu Inc. | 123,732 | 3,190 |
* | Alarm.com Holdings Inc. | 46,483 | 3,015 |
* | Fabrinet | 30,349 | 2,897 |
* | Western Digital Corp. | 79,862 | 2,600 |
Shares | Market Value• ($000) | ||
*,1 | Avaya Holdings Corp. | 1,554,851 | 2,472 |
Concentrix Corp. | 19,581 | 2,186 | |
Juniper Networks Inc. | 81,232 | 2,122 | |
* | Semtech Corp. | 66,867 | 1,967 |
* | Alpha & Omega Semiconductor Ltd. | 55,692 | 1,713 |
Hewlett Packard Enterprise Co. | 126,589 | 1,517 | |
* | Fastly Inc. Class A | 156,427 | 1,433 |
* | KnowBe4 Inc. Class A | 68,154 | 1,418 |
National Instruments Corp. | 35,499 | 1,340 | |
DocuSign Inc. Class A | 24,332 | 1,301 | |
* | Impinj Inc. | 15,937 | 1,275 |
* | NCR Corp. | 61,137 | 1,162 |
* | Photronics Inc. | 74,439 | 1,088 |
955,819 | |||
Materials (5.3%) | |||
Reliance Steel & Aluminum Co. | 240,845 | 42,006 | |
CF Industries Holdings Inc. | 371,228 | 35,731 | |
Packaging Corp. of America | 305,202 | 34,271 | |
Albemarle Corp. | 127,766 | 33,786 | |
Mosaic Co. | 533,763 | 25,797 | |
Chemours Co. | 692,448 | 17,069 | |
Olin Corp. | 372,028 | 15,953 | |
Warrior Met Coal Inc. | 478,644 | 13,613 | |
Huntsman Corp. | 485,873 | 11,923 | |
* | O-I Glass Inc. | 892,726 | 11,561 |
Greif Inc. Class A | 190,188 | 11,330 | |
Westrock Co. | 322,278 | 9,955 | |
Steel Dynamics Inc. | 133,172 | 9,449 | |
Sonoco Products Co. | 147,878 | 8,389 | |
Tronox Holdings plc Class A | 529,828 | 6,490 | |
Eagle Materials Inc. | 55,465 | 5,945 | |
* | TimkenSteel Corp. | 363,535 | 5,449 |
Avery Dennison Corp. | 33,000 | 5,369 | |
Celanese Corp. Class A | 54,285 | 4,904 | |
Alcoa Corp. | 117,838 | 3,966 | |
Commercial Metals Co. | 109,116 | 3,871 | |
Louisiana-Pacific Corp. | 68,353 | 3,499 | |
Sensient Technologies Corp. | 49,054 | 3,401 | |
Sylvamo Corp. | 93,952 | 3,185 | |
Balchem Corp. | 24,103 | 2,931 | |
* | Arconic Corp. | 103,563 | 1,765 |
* | Ingevity Corp. | 25,518 | 1,547 |
Schnitzer Steel Industries Inc. Class A | 35,635 | 1,014 | |
334,169 | |||
Real Estate (8.2%) | |||
Extra Space Storage Inc. | 306,480 | 52,932 | |
Life Storage Inc. | 305,701 | 33,859 | |
Camden Property Trust | 269,901 | 32,240 | |
Invitation Homes Inc. | 930,237 | 31,414 | |
Brixmor Property Group Inc. | 1,674,709 | 30,932 | |
Host Hotels & Resorts Inc. | 1,752,367 | 27,828 | |
Mid-America Apartment Communities Inc. | 173,697 | 26,935 | |
National Retail Properties Inc. | 652,187 | 25,996 | |
CubeSmart | 616,207 | 24,685 | |
Gaming and Leisure Properties Inc. | 487,961 | 21,587 | |
Spirit Realty Capital Inc. | 573,749 | 20,747 | |
Highwoods Properties Inc. | 654,240 | 17,638 | |
Sabra Health Care REIT Inc. | 1,266,416 | 16,615 |
Shares | Market Value• ($000) | ||
Outfront Media Inc. | 933,899 | 14,186 | |
Essential Properties Realty Trust Inc. | 626,112 | 12,178 | |
National Storage Affiliates Trust | 284,768 | 11,841 | |
Apple Hospitality REIT Inc. | 809,520 | 11,382 | |
* | Xenia Hotels & Resorts Inc. | 800,179 | 11,035 |
Piedmont Office Realty Trust Inc. Class A | 929,191 | 9,812 | |
* | DiamondRock Hospitality Co. | 1,278,477 | 9,601 |
Essex Property Trust Inc. | 36,178 | 8,763 | |
EPR Properties | 215,956 | 7,744 | |
PotlatchDeltic Corp. | 185,068 | 7,595 | |
SITE Centers Corp. | 636,551 | 6,818 | |
Federal Realty Investment Trust | 71,071 | 6,405 | |
Lamar Advertising Co. Class A | 54,301 | 4,479 | |
Park Hotels & Resorts Inc. | 378,273 | 4,259 | |
Universal Health Realty Income Trust | 94,854 | 4,099 | |
Brandywine Realty Trust | 558,664 | 3,771 | |
RLJ Lodging Trust | 326,039 | 3,300 | |
First Industrial Realty Trust Inc. | 54,630 | 2,448 | |
Kilroy Realty Corp. | 50,879 | 2,143 | |
Regency Centers Corp. | 38,618 | 2,080 | |
Tanger Factory Outlet Centers Inc. | 126,256 | 1,727 | |
Rayonier Inc. | 55,099 | 1,651 | |
Paramount Group Inc. | 239,341 | 1,491 | |
Uniti Group Inc. | 192,340 | 1,337 | |
Kite Realty Group Trust | 71,977 | 1,239 | |
EastGroup Properties Inc. | 8,286 | 1,196 | |
515,988 | |||
Utilities (5.4%) | |||
Evergy Inc. | 726,903 | 43,178 | |
NiSource Inc. | 1,701,017 | 42,849 | |
AES Corp. | 1,631,395 | 36,870 | |
National Fuel Gas Co. | 572,710 | 35,250 | |
Constellation Energy Corp. | 324,771 | 27,018 | |
Alliant Energy Corp. | 364,496 | 19,315 | |
FirstEnergy Corp. | 459,343 | 16,996 |
Shares | Market Value• ($000) | ||
Portland General Electric Co. | 379,342 | 16,486 | |
Edison International | 272,538 | 15,420 | |
Hawaiian Electric Industries Inc. | 423,401 | 14,675 | |
PPL Corp. | 527,605 | 13,375 | |
NRG Energy Inc. | 301,157 | 11,525 | |
UGI Corp. | 348,358 | 11,262 | |
Pinnacle West Capital Corp. | 168,319 | 10,858 | |
Vistra Corp. | 323,104 | 6,785 | |
CMS Energy Corp. | 105,561 | 6,148 | |
New Jersey Resources Corp. | 130,016 | 5,032 | |
IDACORP Inc. | 34,566 | 3,422 | |
ALLETE Inc. | 67,169 | 3,362 | |
Essential Utilities Inc. | 30,651 | 1,268 | |
Otter Tail Corp. | 19,606 | 1,206 | |
342,300 | |||
Total Common Stocks (Cost $6,404,666) | 6,303,982 | ||
Temporary Cash Investments (0.5%) | |||
Money Market Fund (0.5%) | |||
2,3 | Vanguard Market Liquidity Fund, 2.828% (Cost $32,627) | 326,431 | 32,633 |
Total Investments (100.0%) (Cost $6,437,293) | 6,336,615 | ||
Other Assets and Liabilities—Net (0.0%) | (622) | ||
Net Assets (100%) | 6,335,993 | ||
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 $4,745,000. |
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 $6,576,000 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 2022 | 92 | 7,681 | (307) |
E-mini S&P 500 Index | December 2022 | 78 | 14,046 | (1,495) |
E-mini S&P Mid-Cap 400 Index | December 2022 | 49 | 10,820 | (1,586) |
(3,388) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $6,404,666) | 6,303,982 |
Affiliated Issuers (Cost $32,627) | 32,633 |
Total Investments in Securities | 6,336,615 |
Investment in Vanguard | 261 |
Cash Collateral Pledged—Futures Contracts | 1,903 |
Receivables for Investment Securities Sold | 79 |
Receivables for Accrued Income | 5,948 |
Receivables for Capital Shares Issued | 1,627 |
Total Assets | 6,346,433 |
Liabilities | |
Due to Custodian | 15 |
Payables for Investment Securities Purchased | 49 |
Collateral for Securities on Loan | 6,576 |
Payables for Capital Shares Redeemed | 2,993 |
Payables to Vanguard | 463 |
Variation Margin Payable—Futures Contracts | 344 |
Total Liabilities | 10,440 |
Net Assets | 6,335,993 |
1 Includes $4,745 of securities on loan. | |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 5,754,559 |
Total Distributable Earnings (Loss) | 581,434 |
Net Assets | 6,335,993 |
Net Assets | |
Applicable to 206,385,984 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 6,335,993 |
Net Asset Value Per Share | $30.70 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends | 117,595 |
Interest1 | 245 |
Securities Lending—Net | 428 |
Total Income | 118,268 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 855 |
Management and Administrative | 11,399 |
Marketing and Distribution | 509 |
Custodian Fees | 37 |
Auditing Fees | 29 |
Shareholders’ Reports | 95 |
Trustees’ Fees and Expenses | 3 |
Other Expenses | 14 |
Total Expenses | 12,941 |
Net Investment Income | 105,327 |
Realized Net Gain (Loss) | |
Investment Securities Sold1 | 748,392 |
Futures Contracts | (7,430) |
Realized Net Gain (Loss) | 740,962 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | (1,956,423) |
Futures Contracts | (2,156) |
Change in Unrealized Appreciation (Depreciation) | (1,958,579) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,112,290) |
1 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $233,000, ($11,000), $1,000, and ($1,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 105,327 | 85,384 |
Realized Net Gain (Loss) | 740,962 | 1,437,747 |
Change in Unrealized Appreciation (Depreciation) | (1,958,579) | 1,161,519 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,112,290) | 2,684,650 |
Distributions | ||
Total Distributions | (1,479,168) | (118,963) |
Capital Share Transactions | ||
Issued | 689,147 | 934,119 |
Issued in Lieu of Cash Distributions | 1,370,549 | 110,108 |
Redeemed | (997,958) | (1,580,498) |
Net Increase (Decrease) from Capital Share Transactions | 1,061,738 | (536,271) |
Total Increase (Decrease) | (1,529,720) | 2,029,416 |
Net Assets | ||
Beginning of Period | 7,865,713 | 5,836,297 |
End of Period | 6,335,993 | 7,865,713 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $44.07 | $30.31 | $31.87 | $37.21 | $34.89 |
Investment Operations | |||||
Net Investment Income1 | .517 | .465 | .459 | .449 | .392 |
Net Realized and Unrealized Gain (Loss) on Investments | (5.606) | 13.937 | (1.041) | (2.980) | 4.781 |
Total from Investment Operations | (5.089) | 14.402 | (.582) | (2.531) | 5.173 |
Distributions | |||||
Dividends from Net Investment Income | (.526) | (.479) | (.444) | (.395) | (.460) |
Distributions from Realized Capital Gains | (7.755) | (.163) | (.534) | (2.414) | (2.393) |
Total Distributions | (8.281) | (.642) | (.978) | (2.809) | (2.853) |
Net Asset Value, End of Period | $30.70 | $44.07 | $30.31 | $31.87 | $37.21 |
Total Return2 | -14.81% | 47.98% | -2.09% | -5.63% | 15.63% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $6,336 | $7,866 | $5,836 | $7,098 | $7,946 |
Ratio of Total Expenses to Average Net Assets | 0.17% | 0.17% | 0.17% | 0.17% | 0.17% |
Ratio of Net Investment Income to Average Net Assets | 1.39% | 1.15% | 1.53% | 1.42% | 1.10% |
Portfolio Turnover Rate | 62% | 59% | 61% | 60% | 82% |
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 | 48,702 |
Total Distributable Earnings (Loss) | (48,702) |
Amount ($000) | |
Undistributed Ordinary Income | 72,418 |
Undistributed Long-Term Gains | 612,296 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | (103,280) |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 312,396 | 88,680 |
Long-Term Capital Gains | 1,166,772 | 30,283 |
Total | 1,479,168 | 118,963 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 6,439,895 |
Gross Unrealized Appreciation | 888,704 |
Gross Unrealized Depreciation | (991,984) |
Net Unrealized Appreciation (Depreciation) | (103,280) |
E. | During the year ended September 30, 2022, the fund purchased $4,658,870,000 of investment securities and sold $4,957,467,000 of investment securities, other than temporary cash investments. |
F. | Capital shares issued and redeemed were: |
Year Ended September 30, | ||
2022 Shares (000) | 2021 Shares (000) | |
Issued | 17,927 | 22,762 |
Issued in Lieu of Cash Distributions | 36,883 | 3,045 |
Redeemed | (26,922) | (39,868) |
Net Increase (Decrease) in Shares Outstanding | 27,888 | (14,061) |
G. | Management has determined that no events or transactions occurred subsequent to September 30, 2022, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
November 17, 2022
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
Chris D. Mclsaac | Lauren Valente |
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 |
• | The 12 months ended September 30, 2022, were a challenging period for financial markets. Vanguard Capital Opportunity Fund returned –20.39% for Admiral Shares and –20.45% for Investor Shares for the period. The fund’s benchmark, the Russell Midcap Growth Index, returned –29.50%. |
• | Early on, pent-up demand helped spur global growth and push down unemployment rates. The economic backdrop deteriorated, however, as inflation soared to multidecade highs, fueled in part by higher energy and food prices in the wake of Russia’s invasion of Ukraine. Price increases then broadened to other categories of goods and services, adding to concerns that inflation would remain stubbornly high. That prompted aggressive tightening by the Federal Reserve to bring inflation back in check and increased fears of a recession. |
• | Small-, mid-, and large-capitalization stocks all posted negative returns for the 12-month period. Large-capitalization stocks held up better than mid- and small-caps, while value stocks outperformed growth. |
• | Relative to the benchmark, the fund’s return was helped most by stock selection in the health care sector, with holdings in communication services and financials also contributing. Selection among industrial stocks detracted most from relative return. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | -17.22% | 7.95% | 9.00% |
Russell 2000 Index (Small-caps) | -23.50 | 4.29 | 3.55 |
Russell 3000 Index (Broad U.S. market) | -17.63 | 7.70 | 8.62 |
FTSE All-World ex US Index (International) | -24.76 | -0.95 | -0.38 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | -14.61% | -3.22% | -0.23% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | -11.50 | -1.85 | 0.59 |
FTSE Three-Month U.S. Treasury Bill Index | 0.63 | 0.57 | 1.12 |
CPI | |||
Consumer Price Index | 8.20% | 4.95% | 3.76% |
• | 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, 2022 | |||
Beginning Account Value 3/31/2022 | Ending Account Value 9/30/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Capital Opportunity Fund | |||
Investor Shares | $1,000.00 | $809.60 | $1.95 |
Admiral™ Shares | 1,000.00 | 809.90 | 1.63 |
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, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Capital Opportunity Fund Investor Shares | -20.45% | 7.87% | 13.65% | $35,960 | |
Russell Midcap Growth Index | -29.50 | 7.62 | 10.85 | 28,019 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | -18.05 | 8.48 | 11.28 | 29,120 |
One Year | Five Years | Ten Years | Final Value of a $50,000 Investment | ||
Capital Opportunity Fund Admiral Shares | -20.39% | 7.95% | 13.73% | $181,073 | |
Russell Midcap Growth Index | -29.50 | 7.62 | 10.85 | 140,097 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | -18.05 | 8.48 | 11.28 | 145,598 |
Communication Services | 5.5% |
Consumer Discretionary | 10.6 |
Energy | 3.6 |
Financials | 8.2 |
Health Care | 35.4 |
Industrials | 11.7 |
Information Technology | 24.7 |
Materials | 0.3 |
Shares | Market Value• ($000) | ||
Common Stocks (94.3%) | |||
Communication Services (5.2%) | |||
* | Alphabet Inc. Class A | 2,372,800 | 226,958 |
* | Alphabet Inc. Class C | 2,132,600 | 205,049 |
* | Baidu Inc. ADR | 1,649,600 | 193,812 |
* | Pinterest Inc. Class A | 2,987,850 | 69,617 |
Electronic Arts Inc. | 373,100 | 43,171 | |
* | Meta Platforms Inc. Class A | 285,400 | 38,723 |
* | Live Nation Entertainment Inc. | 153,850 | 11,699 |
* | Roblox Corp. Class A | 246,900 | 8,849 |
* | Walt Disney Co. | 81,557 | 7,693 |
* | ZoomInfo Technologies Inc. Class A | 174,700 | 7,278 |
* | Twitter Inc. | 160,700 | 7,045 |
* | Netflix Inc. | 7,010 | 1,650 |
* | Madison Square Garden Sports Corp. | 3,100 | 424 |
* | Snap Inc. Class A | 23,000 | 226 |
* | Madison Square Garden Entertainment Corp. | 3,100 | 137 |
822,331 | |||
Consumer Discretionary (10.0%) | |||
* | Tesla Inc. | 1,528,290 | 405,379 |
* | Alibaba Group Holding Ltd. ADR | 2,456,700 | 196,511 |
TJX Cos. Inc. | 2,752,600 | 170,992 | |
* | CarMax Inc. | 1,722,697 | 113,733 |
* | Amazon.com Inc. | 897,100 | 101,372 |
Sony Group Corp. ADR | 1,484,225 | 95,065 | |
Entain plc | 7,180,853 | 85,858 | |
* | XPeng Inc. Class A ADR | 6,224,719 | 74,385 |
* | Capri Holdings Ltd. | 1,707,737 | 65,645 |
* | Royal Caribbean Cruises Ltd. | 1,171,700 | 44,407 |
Ross Stores Inc. | 403,900 | 34,037 | |
eBay Inc. | 566,000 | 20,835 | |
* | Flutter Entertainment plc (XDUB) | 170,598 | 18,719 |
* | Carnival Corp. | 2,522,045 | 17,730 |
* | Burlington Stores Inc. | 147,950 | 16,554 |
* | Ollie's Bargain Outlet Holdings Inc. | 310,890 | 16,042 |
Marriott International Inc. Class A | 112,500 | 15,766 | |
Restaurant Brands International Inc. | 234,900 | 12,492 |
Shares | Market Value• ($000) | ||
* | Las Vegas Sands Corp. | 258,500 | 9,699 |
* | Ulta Beauty Inc. | 23,000 | 9,227 |
Hilton Worldwide Holdings Inc. | 76,333 | 9,207 | |
* | Rivian Automotive Inc. Class A | 258,000 | 8,491 |
Newell Brands Inc. | 578,000 | 8,028 | |
* | Norwegian Cruise Line Holdings Ltd. | 483,125 | 5,488 |
* | DoorDash Inc. Class A | 108,750 | 5,378 |
* | AutoZone Inc. | 2,270 | 4,862 |
Dollar General Corp. | 15,350 | 3,682 | |
Darden Restaurants Inc. | 22,900 | 2,893 | |
* | Five Below Inc. | 9,100 | 1,253 |
1,573,730 | |||
Energy (3.4%) | |||
Pioneer Natural Resources Co. | 1,014,423 | 219,653 | |
Hess Corp. | 1,776,674 | 193,640 | |
EOG Resources Inc. | 363,321 | 40,594 | |
Coterra Energy Inc. | 1,153,350 | 30,125 | |
* | Transocean Ltd. (XNYS) | 11,836,496 | 29,236 |
* | Southwestern Energy Co. | 3,330,000 | 20,380 |
* | TechnipFMC plc | 742,200 | 6,279 |
Technip Energies NV | 14,200 | 161 | |
540,068 | |||
Financials (7.7%) | |||
Raymond James Financial Inc. | 3,046,360 | 301,041 | |
Northern Trust Corp. | 1,699,351 | 145,396 | |
Morgan Stanley | 1,836,560 | 145,107 | |
Wells Fargo & Co. | 3,236,995 | 130,192 | |
Bank of America Corp. | 3,691,317 | 111,478 | |
MarketAxess Holdings Inc. | 278,430 | 61,948 | |
Goldman Sachs Group Inc. | 198,550 | 58,185 | |
CME Group Inc. | 286,154 | 50,686 | |
Discover Financial Services | 551,300 | 50,124 | |
Charles Schwab Corp. | 573,100 | 41,189 | |
LPL Financial Holdings Inc. | 163,900 | 35,809 | |
Progressive Corp. | 281,600 | 32,725 | |
JPMorgan Chase & Co. | 292,490 | 30,565 | |
Tradeweb Markets Inc. Class A | 440,000 | 24,825 |
Shares | Market Value• ($000) | ||
Citigroup Inc. | 68,100 | 2,838 | |
1,222,108 | |||
Health Care (33.4%) | |||
Eli Lilly & Co. | 3,829,178 | 1,238,165 | |
* | Biogen Inc. | 2,069,277 | 552,497 |
Amgen Inc. | 2,163,909 | 487,745 | |
* | BioMarin Pharmaceutical Inc. | 5,173,100 | 438,524 |
1 | BioNTech SE ADR | 2,076,166 | 280,033 |
* | Seagen Inc. | 1,828,192 | 250,152 |
Thermo Fisher Scientific Inc. | 483,498 | 245,225 | |
Bristol-Myers Squibb Co. | 3,147,050 | 223,724 | |
Novartis AG ADR | 2,277,330 | 173,100 | |
* | Boston Scientific Corp. | 4,103,606 | 158,933 |
* | BeiGene Ltd. ADR | 976,781 | 131,690 |
AstraZeneca plc ADR | 2,143,160 | 117,531 | |
* | Edwards Lifesciences Corp. | 1,418,900 | 117,244 |
Roche Holding AG | 337,338 | 109,815 | |
* | LivaNova plc | 1,589,220 | 80,685 |
PerkinElmer Inc. | 650,680 | 78,296 | |
* | Elanco Animal Health Inc. (XNYS) | 5,324,966 | 66,083 |
Zimmer Biomet Holdings Inc. | 614,810 | 64,278 | |
* | Alkermes plc | 2,841,380 | 63,448 |
* | QIAGEN NV | 1,533,957 | 63,322 |
* | Illumina Inc. | 314,900 | 60,080 |
* | FibroGen Inc. | 4,460,971 | 58,037 |
* | Charles River Laboratories International Inc. | 272,990 | 53,724 |
Abbott Laboratories | 490,900 | 47,500 | |
* | Allogene Therapeutics Inc. | 2,844,580 | 30,721 |
Agilent Technologies Inc. | 206,780 | 25,134 | |
Medtronic plc | 149,500 | 12,072 | |
Danaher Corp. | 34,195 | 8,832 | |
* | Omnicell Inc. | 90,910 | 7,912 |
Alcon Inc. | 118,960 | 6,921 | |
2 | Siemens Healthineers AG | 133,680 | 5,734 |
* | Repligen Corp. | 24,608 | 4,604 |
* | Bridgebio Pharma Inc. | 340,900 | 3,389 |
* | Guardant Health Inc. | 62,586 | 3,369 |
* | ImmunoGen Inc. | 503,827 | 2,408 |
* | IQVIA Holdings Inc. | 9,292 | 1,683 |
* | Waters Corp. | 5,796 | 1,562 |
Humana Inc. | 1,575 | 764 | |
* | Zimvie Inc. | 61,381 | 606 |
* | Adaptive Biotechnologies Corp. | 28,100 | 200 |
5,275,742 | |||
Industrials (11.0%) | |||
AECOM | 4,629,136 | 316,494 | |
FedEx Corp. | 1,698,674 | 252,202 | |
* | Southwest Airlines Co. | 7,906,219 | 243,828 |
Jacobs Solutions Inc. | 2,020,029 | 219,153 | |
Airbus SE | 1,375,391 | 118,559 | |
* | United Airlines Holdings Inc. | 3,623,103 | 117,860 |
* | Delta Air Lines Inc. | 2,874,090 | 80,647 |
TransDigm Group Inc. | 114,619 | 60,154 |
Shares | Market Value• ($000) | ||
* | American Airlines Group Inc. | 4,938,230 | 59,456 |
Curtiss-Wright Corp. | 312,600 | 43,502 | |
IDEX Corp. | 199,950 | 39,960 | |
Old Dominion Freight Line Inc. | 130,900 | 32,564 | |
Textron Inc. | 537,250 | 31,300 | |
* | Lyft Inc. Class A | 1,212,265 | 15,966 |
*,1 | Aurora Innovation Inc. | 7,030,000 | 15,536 |
* | Ryanair Holdings plc ADR | 256,700 | 14,996 |
* | Uber Technologies Inc. | 537,600 | 14,246 |
AMETEK Inc. | 110,000 | 12,475 | |
Union Pacific Corp. | 60,000 | 11,689 | |
* | JetBlue Airways Corp. | 1,729,800 | 11,469 |
Caterpillar Inc. | 60,000 | 9,845 | |
Carrier Global Corp. | 268,900 | 9,562 | |
Rockwell Automation Inc. | 40,000 | 8,604 | |
* | TuSimple Holdings Inc. Class A | 82,200 | 625 |
1,740,692 | |||
Information Technology (23.3%) | |||
Microsoft Corp. | 1,443,390 | 336,165 | |
* | Flex Ltd. | 15,903,242 | 264,948 |
KLA Corp. | 868,370 | 262,795 | |
Micron Technology Inc. | 5,152,467 | 258,139 | |
Texas Instruments Inc. | 1,525,580 | 236,129 | |
* | Trimble Inc. | 3,298,371 | 179,003 |
NetApp Inc. | 2,836,310 | 175,426 | |
* | Splunk Inc. | 2,241,300 | 168,546 |
* | Adobe Inc. | 593,400 | 163,304 |
ASML Holding NV GDR (Registered) | 362,467 | 150,551 | |
* | Descartes Systems Group Inc. | 1,987,665 | 126,276 |
QUALCOMM Inc. | 881,740 | 99,619 | |
Visa Inc. Class A | 552,000 | 98,063 | |
Corning Inc. | 3,182,324 | 92,351 | |
Intel Corp. | 3,364,430 | 86,701 | |
Entegris Inc. | 967,700 | 80,338 | |
* | Wolfspeed Inc. | 774,200 | 80,021 |
Universal Display Corp. | 814,814 | 76,878 | |
Jabil Inc. | 1,177,500 | 67,953 | |
Intuit Inc. | 170,100 | 65,883 | |
NVIDIA Corp. | 462,170 | 56,103 | |
HP Inc. | 1,815,910 | 45,252 | |
* | PayPal Holdings Inc. | 481,700 | 41,460 |
* | Nutanix Inc. Class A | 1,981,619 | 41,277 |
* | FormFactor Inc. | 1,549,441 | 38,813 |
Hewlett Packard Enterprise Co. | 3,203,620 | 38,379 | |
* | WEX Inc. | 298,390 | 37,878 |
Teradyne Inc. | 471,200 | 35,411 | |
* | Autodesk Inc. | 177,600 | 33,176 |
* | BlackBerry Ltd. | 6,813,076 | 32,021 |
Oracle Corp. | 514,000 | 31,390 | |
* | Keysight Technologies Inc. | 177,150 | 27,876 |
* | Salesforce Inc. | 148,000 | 21,288 |
Telefonaktiebolaget LM Ericsson ADR | 3,566,100 | 20,469 | |
VMware Inc. Class A | 187,000 | 19,908 | |
*,1 | Unity Software Inc. | 404,084 | 12,874 |
Analog Devices Inc. | 90,000 | 12,541 | |
* | Western Digital Corp. | 361,280 | 11,760 |
* | MongoDB Inc. Class A | 57,100 | 11,338 |
Shares | Market Value• ($000) | ||
* | Palo Alto Networks Inc. | 62,250 | 10,196 |
* | Crowdstrike Holdings Inc. Class A | 59,400 | 9,790 |
Mastercard Inc. Class A | 28,600 | 8,132 | |
* | Zoom Video Communications Inc. Class A | 93,450 | 6,877 |
* | Gitlab Inc. Class A | 98,550 | 5,048 |
Nokia OYJ ADR | 500,000 | 2,135 | |
Applied Materials Inc. | 10,700 | 877 | |
* | HubSpot Inc. | 825 | 223 |
* | Okta Inc. | 3,500 | 199 |
* | RingCentral Inc. Class A | 2,800 | 112 |
* | Arista Networks Inc. | 200 | 22 |
* | DocuSign Inc. Class A | 200 | 11 |
3,681,925 | |||
Materials (0.3%) | |||
* | Ivanhoe Mines Ltd. Class A | 4,833,900 | 31,110 |
Albemarle Corp. | 61,500 | 16,263 | |
47,373 | |||
Total Common Stocks (Cost $7,546,276) | 14,903,969 | ||
Temporary Cash Investments (6.3%) | |||
Money Market Fund (6.3%) | |||
3,4 | Vanguard Market Liquidity Fund, 2.828% (Cost $1,004,481) | 10,047,667 | 1,004,465 |
Total Investments (100.6%) (Cost $8,550,757) | 15,908,434 | ||
Other Assets and Liabilities—Net (-0.6%) | (98,624) | ||
Net Assets (100%) | 15,809,810 | ||
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 $108,298,000. |
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, 2022, the aggregate value was $5,734,000, 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 $110,545,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $7,546,276) | 14,903,969 |
Affiliated Issuers (Cost $1,004,481) | 1,004,465 |
Total Investments in Securities | 15,908,434 |
Investment in Vanguard | 634 |
Cash | 9,915 |
Receivables for Investment Securities Sold | 8,621 |
Receivables for Accrued Income | 12,107 |
Receivables for Capital Shares Issued | 4,850 |
Total Assets | 15,944,561 |
Liabilities | |
Payables for Investment Securities Purchased | 10,295 |
Collateral for Securities on Loan | 110,545 |
Payables to Investment Advisor | 10,113 |
Payables for Capital Shares Redeemed | 2,893 |
Payables to Vanguard | 905 |
Total Liabilities | 134,751 |
Net Assets | 15,809,810 |
1 Includes $108,298 of securities on loan. | |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 7,090,487 |
Total Distributable Earnings (Loss) | 8,719,323 |
Net Assets | 15,809,810 |
Investor Shares—Net Assets | |
Applicable to 17,539,061 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,113,620 |
Net Asset Value Per Share—Investor Shares | $63.49 |
Admiral Shares—Net Assets | |
Applicable to 100,243,824 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 14,696,190 |
Net Asset Value Per Share—Admiral Shares | $146.60 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 191,759 |
Interest2 | 5,547 |
Securities Lending—Net | 860 |
Total Income | 198,166 |
Expenses | |
Investment Advisory Fees—Note B | 43,891 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 2,632 |
Management and Administrative—Admiral Shares | 22,000 |
Marketing and Distribution—Investor Shares | 92 |
Marketing and Distribution—Admiral Shares | 513 |
Custodian Fees | 390 |
Auditing Fees | 27 |
Shareholders’ Reports—Investor Shares | 23 |
Shareholders’ Reports—Admiral Shares | 73 |
Trustees’ Fees and Expenses | 7 |
Other Expenses | 14 |
Total Expenses | 69,662 |
Expenses Paid Indirectly | (2) |
Net Expenses | 69,660 |
Net Investment Income | 128,506 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 1,535,224 |
Foreign Currencies | 170 |
Realized Net Gain (Loss) | 1,535,394 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | (5,711,314) |
Purchase Commitments | 7,850 |
Foreign Currencies | (314) |
Change in Unrealized Appreciation (Depreciation) | (5,703,778) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (4,039,878) |
1 | Dividends are net of foreign withholding taxes of $3,063,000. |
2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $5,547,000, ($66,000), $10,000, and ($128,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 128,506 | 79,229 |
Realized Net Gain (Loss) | 1,535,394 | 1,940,699 |
Change in Unrealized Appreciation (Depreciation) | (5,703,778) | 3,708,205 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (4,039,878) | 5,728,133 |
Distributions | ||
Investor Shares | (149,097) | (141,974) |
Admiral Shares | (1,902,569) | (1,495,145) |
Total Distributions | (2,051,666) | (1,637,119) |
Capital Share Transactions | ||
Investor Shares | (33,541) | (300,478) |
Admiral Shares | 1,122,357 | 108,916 |
Net Increase (Decrease) from Capital Share Transactions | 1,088,816 | (191,562) |
Total Increase (Decrease) | (5,002,728) | 3,899,452 |
Net Assets | ||
Beginning of Period | 20,812,538 | 16,913,086 |
End of Period | 15,809,810 | 20,812,538 |
Investor Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $88.53 | $71.69 | $64.38 | $75.87 | $65.51 |
Investment Operations | |||||
Net Investment Income1 | .470 | .276 | .454 | .549 | .428 |
Net Realized and Unrealized Gain (Loss) on Investments | (16.748) | 23.563 | 11.233 | (5.116) | 12.957 |
Total from Investment Operations | (16.278) | 23.839 | 11.687 | (4.567) | 13.385 |
Distributions | |||||
Dividends from Net Investment Income | (.295) | (.334) | (.501) | (.473) | (.449) |
Distributions from Realized Capital Gains | (8.467) | (6.665) | (3.876) | (6.450) | (2.576) |
Total Distributions | (8.762) | (6.999) | (4.377) | (6.923) | (3.025) |
Net Asset Value, End of Period | $63.49 | $88.53 | $71.69 | $64.38 | $75.87 |
Total Return2 | -20.45% | 34.75% | 18.52% | -5.01% | 21.03% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $1,114 | $1,585 | $1,518 | $1,684 | $2,065 |
Ratio of Total Expenses to Average Net Assets | 0.43%3 | 0.43% | 0.44% | 0.44% | 0.43% |
Ratio of Net Investment Income to Average Net Assets | 0.61% | 0.33% | 0.69% | 0.84% | 0.62% |
Portfolio Turnover Rate | 6% | 7% | 8% | 6% | 10% |
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. |
3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.43%. |
Admiral Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $204.49 | $165.62 | $148.73 | $175.34 | $151.28 |
Investment Operations | |||||
Net Investment Income1 | 1.215 | .775 | 1.148 | 1.374 | 1.103 |
Net Realized and Unrealized Gain (Loss) on Investments | (38.672) | 54.409 | 25.968 | (11.834) | 29.937 |
Total from Investment Operations | (37.457) | 55.184 | 27.116 | (10.460) | 31.040 |
Distributions | |||||
Dividends from Net Investment Income | (.873) | (.916) | (1.270) | (1.241) | (1.030) |
Distributions from Realized Capital Gains | (19.560) | (15.398) | (8.956) | (14.909) | (5.950) |
Total Distributions | (20.433) | (16.314) | (10.226) | (16.150) | (6.980) |
Net Asset Value, End of Period | $146.60 | $204.49 | $165.62 | $148.73 | $175.34 |
Total Return2 | -20.39% | 34.84% | 18.60% | -4.95% | 21.12% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $14,696 | $19,228 | $15,395 | $14,618 | $16,372 |
Ratio of Total Expenses to Average Net Assets | 0.36%3 | 0.36% | 0.37% | 0.37% | 0.36% |
Ratio of Net Investment Income to Average Net Assets | 0.68% | 0.40% | 0.76% | 0.91% | 0.69% |
Portfolio Turnover Rate | 6% | 7% | 8% | 6% | 10% |
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. |
3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.36%. |
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, 2022, 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. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended September 30, 2022, custodian fee offset arrangements reduced the fund’s expenses by $2,000 (an annual rate of less than 0.01% of average net assets). |
E. | Various inputs may be used to determine the value of the fund’s investments. 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 | 14,565,123 | 338,846 | — | 14,903,969 |
Temporary Cash Investments | 1,004,465 | — | — | 1,004,465 |
Total | 15,569,588 | 338,846 | — | 15,908,434 |
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 applicable foreign currency transactions and distributions in connection with fund share redemptions were reclassified between the following accounts: |
Amount ($000) | |
Paid-in Capital | 58,680 |
Total Distributable Earnings (Loss) | (58,680) |
Amount ($000) | |
Undistributed Ordinary Income | 102,749 |
Undistributed Long-Term Gains | 1,269,051 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (415) |
Net Unrealized Gains (Losses) | 7,347,938 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 159,051 | 102,963 |
Long-Term Capital Gains | 1,892,615 | 1,534,156 |
Total | 2,051,666 | 1,637,119 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 8,560,406 |
Gross Unrealized Appreciation | 8,777,982 |
Gross Unrealized Depreciation | (1,429,953) |
Net Unrealized Appreciation (Depreciation) | 7,348,029 |
G. | During the year ended September 30, 2022, the fund purchased $1,152,866,000 of investment securities and sold $2,400,141,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Year Ended September 30, | |||||
2022 | 2021 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 106,036 | 1,323 | 204,140 | 2,462 | |
Issued in Lieu of Cash Distributions | 133,246 | 1,662 | 132,306 | 1,724 | |
Redeemed | (272,823) | (3,348) | (636,924) | (7,454) | |
Net Increase (Decrease)—Investor Shares | (33,541) | (363) | (300,478) | (3,268) | |
Admiral Shares | |||||
Issued | 993,989 | 5,809 | 910,923 | 4,648 | |
Issued in Lieu of Cash Distributions | 1,647,533 | 8,903 | 1,313,964 | 7,417 | |
Redeemed | (1,519,165) | (8,496) | (2,115,971) | (10,991) | |
Net Increase (Decrease)—Admiral Shares | 1,122,357 | 6,216 | 108,916 | 1,074 |
I. | Management has determined that no events or transactions occurred subsequent to September 30, 2022, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
November 18, 2022
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
Chris D. Mclsaac | Lauren Valente |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Your Fund’s Performance at a Glance | 1 |
Advisors' Report | 2 |
About Your Fund’s Expenses | 5 |
Performance Summary | 7 |
Financial Statements | 9 |
Trustees Approve Advisory Arrangements | 27 |
• | The 12 months ended September 30, 2022, were a challenging period for financial markets. Vanguard Global Equity Fund returned –27.52%, lagging the –20.66% return of its benchmark index, the MSCI All Country World Index. |
• | Early on, pent-up demand helped spur global growth and push unemployment rates down. The economic backdrop deteriorated, however, as inflation soared to multidecade highs, fueled in part by higher energy and food prices in the wake of Russia’s invasion of Ukraine. Then price increases broadened to other categories of goods and services, adding to concerns that inflation would remain stubbornly high. That prompted aggressive tightening by many central banks to bring inflation back in check and increased fears of a recession. Late in the period, tax reforms proposed by the U.K. government aimed at shoring up the economy added to the market downturn in that country. |
• | With about 40% of the fund’s assets outside the United States on average, the strengthening of the U.S. dollar relative to other currencies was a headwind, lowering returns from overseas for U.S.-based investors. The fund’s returns were negative across global regions and most sectors. (Utilities were a notable exception.) Relative to the benchmark, the fund’s stock selection underperformed across regions and sectors, except in materials. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | -17.22% | 7.95% | 9.00% |
Russell 2000 Index (Small-caps) | -23.50 | 4.29 | 3.55 |
Russell 3000 Index (Broad U.S. market) | -17.63 | 7.70 | 8.62 |
FTSE All-World ex US Index (International) | -24.76 | -0.95 | -0.38 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | -14.61% | -3.22% | -0.23% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | -11.50 | -1.85 | 0.59 |
FTSE Three-Month U.S. Treasury Bill Index | 0.63 | 0.57 | 1.12 |
CPI | |||
Consumer Price Index | 8.20% | 4.95% | 3.76% |
Fund Assets Managed | |||
Investment Advisor | % | $ Million | Investment Strategy |
Baillie Gifford Overseas Ltd. | 50 | 3,166 | A long-term, active, bottom-up investment approach is used to identify companies that can generate above-average growth in earnings and cash flow. |
Wellington Management Company LLP | 24 | 1,517 | The advisor uses a bottom-up, fundamental approach to identify companies it believes will drive or benefit from innovation. |
Pzena Investment Management, LLC | 24 | 1,476 | A deep-value approach seeks to determine whether the problems affecting undervalued companies are temporary or permanent. |
Cash Investments | 2 | 112 | 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, 2022 | |||
Global Equity Fund | Beginning Account Value 3/31/2022 | Ending Account Value 9/30/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $774.50 | $1.82 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.01 | 2.08 |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Global Equity Fund | -27.52% | 3.81% | 7.96% | $21,519 | |
MSCI All Country World Index Net | -20.66 | 4.44 | 7.28 | 20,195 |
United States | 61.6% |
Japan | 5.1 |
United Kingdom | 5.1 |
Netherlands | 2.9 |
Germany | 2.5 |
China | 2.5 |
France | 2.2 |
Ireland | 2.2 |
India | 2.1 |
Switzerland | 1.9 |
Hong Kong | 1.7 |
Brazil | 1.6 |
Taiwan | 1.4 |
South Korea | 1.3 |
Australia | 1.2 |
Sweden | 1.0 |
Other | 3.7 |
Shares | Market Value• ($000) | ||
Common Stocks (96.9%) | |||
Australia (1.1%) | |||
BHP Group Ltd. (XLON) | 2,523,422 | 62,836 | |
Woodside Energy Group Ltd. (XLON) | 437,661 | 8,916 | |
71,752 | |||
Brazil (1.5%) | |||
Ambev SA | 13,825,610 | 39,829 | |
B3 SA - Brasil Bolsa Balcao | 14,023,100 | 33,925 | |
XP Inc. Class A | 1,211,323 | 23,027 | |
96,781 | |||
Canada (0.4%) | |||
* | Shopify Inc. Class A (XTSE) | 872,724 | 23,511 |
China (2.4%) | |||
* | Alibaba Group Holding Ltd. | 5,929,215 | 59,170 |
*,1 | Meituan Class B | 1,288,100 | 27,071 |
Ping An Insurance Group Co. of China Ltd. Class H | 5,006,000 | 24,974 | |
* | Li Auto Inc. Class A | 1,094,480 | 12,607 |
* | Li Auto Inc. ADR | 421,289 | 9,694 |
SG Micro Corp. Class A | 342,833 | 6,787 | |
* | XPeng Inc. Class A | 696,400 | 4,133 |
Will Semiconductor Co. Ltd. Shanghai Class A | 299,800 | 3,369 | |
Will Semiconductor Co. Ltd. Shanghai | 106,100 | 1,192 | |
148,997 | |||
Denmark (0.4%) | |||
* | Genmab A/S | 75,052 | 24,145 |
Finland (0.7%) | |||
Nokia OYJ | 10,803,758 | 46,381 | |
France (2.2%) | |||
Pernod Ricard SA | 365,362 | 67,027 | |
Cie Generale des Etablissements Michelin SCA | 2,005,623 | 44,937 | |
ArcelorMittal SA | 888,952 | 17,689 | |
* | Ubisoft Entertainment SA | 212,760 | 5,847 |
135,500 |
Shares | Market Value• ($000) | ||
Germany (2.4%) | |||
BASF SE | 1,288,021 | 49,432 | |
Volkswagen AG Preference Shares | 305,383 | 37,315 | |
Deutsche Boerse AG | 170,953 | 28,024 | |
Fresenius Medical Care AG & Co. KGaA | 814,993 | 22,961 | |
adidas AG | 133,933 | 15,397 | |
153,129 | |||
Hong Kong (1.7%) | |||
AIA Group Ltd. | 6,608,400 | 55,021 | |
Galaxy Entertainment Group Ltd. | 6,410,220 | 37,679 | |
* | Sands China Ltd. | 4,973,600 | 12,385 |
105,085 | |||
India (2.1%) | |||
1 | Reliance Industries Ltd. GDR | 1,557,284 | 90,357 |
Housing Development Finance Corp. Ltd. | 1,415,193 | 39,483 | |
129,840 | |||
Ireland (2.1%) | |||
CRH plc (XLON) | 1,704,801 | 54,684 | |
* | Ryanair Holdings plc ADR | 902,346 | 52,715 |
Smurfit Kappa Group plc (XDUB) | 880,075 | 25,170 | |
*,2 | Irish Bank Resolution Corp. | 122,273 | — |
132,569 | |||
Italy (0.4%) | |||
Enel SpA | 5,604,427 | 22,985 | |
* | Saipem SpA | 10,000 | 6 |
22,991 | |||
Japan (5.0%) | |||
Olympus Corp. | 3,440,200 | 66,181 | |
Komatsu Ltd. | 2,688,600 | 48,955 | |
Daiichi Sankyo Co. Ltd. | 1,125,200 | 31,450 | |
SMC Corp. | 71,400 | 29,058 | |
Sysmex Corp. | 465,000 | 24,848 | |
Keyence Corp. | 72,000 | 23,800 | |
Resona Holdings Inc. | 6,421,400 | 23,499 | |
Denso Corp. | 415,300 | 18,989 | |
CyberAgent Inc. | 2,124,200 | 17,886 | |
Shiseido Co. Ltd. | 432,500 | 15,158 | |
Hoshizaki Corp. | 303,200 | 8,456 | |
Honda Motor Co. Ltd. | 124,979 | 2,713 | |
310,993 |
Shares | Market Value• ($000) | ||
Netherlands (2.8%) | |||
Prosus NV | 1,787,645 | 93,005 | |
ING Groep NV | 4,143,549 | 35,504 | |
Randstad NV | 636,604 | 27,476 | |
*,1 | Adyen NV | 15,842 | 19,758 |
175,743 | |||
Norway (0.4%) | |||
Schibsted ASA Class A | 836,918 | 11,294 | |
* | Adevinta ASA | 1,797,541 | 10,709 |
Schibsted ASA Class B | 205,592 | 2,567 | |
24,570 | |||
Other (0.8%) | |||
3 | Vanguard Total World Stock ETF | 673,843 | 53,153 |
Russia (0.0%) | |||
*,2 | Sberbank of Russia PJSC | 3,912,108 | — |
2 | X5 Retail Group NV GDR (Registered) | 227,797 | — |
*,2 | Mail.Ru Group Ltd. GDR (Registered) (XLON) | 128,137 | — |
2 | Severstal PAO GDR (Registered) | 520,152 | — |
— | |||
Singapore (0.4%) | |||
* | Sea Ltd. ADR | 415,624 | 23,296 |
South Korea (1.3%) | |||
* | Coupang Inc. | 2,522,271 | 42,046 |
Shinhan Financial Group Co. Ltd. | 1,066,425 | 24,772 | |
POSCO Holdings Inc. | 96,031 | 14,008 | |
80,826 | |||
Sweden (0.9%) | |||
Atlas Copco AB Class B | 3,631,544 | 30,102 | |
Epiroc AB Class B | 1,697,715 | 21,408 | |
* | Spotify Technology SA | 76,830 | 6,630 |
58,140 | |||
Switzerland (1.9%) | |||
Roche Holding AG | 110,704 | 36,038 | |
UBS Group AG (Registered) | 2,316,183 | 33,603 | |
Cie Financiere Richemont SA Class A (Registered) | 333,954 | 31,524 | |
Credit Suisse Group AG (Registered) | 2,477,433 | 9,800 | |
*,1 | Wizz Air Holdings plc | 407,145 | 7,082 |
118,047 | |||
Taiwan (1.4%) | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,337,000 | 44,233 | |
Hon Hai Precision Industry Co. Ltd. | 13,321,745 | 42,658 | |
86,891 | |||
United Kingdom (4.9%) | |||
Shell plc | 2,071,925 | 51,680 | |
Rio Tinto plc | 935,265 | 50,603 | |
Prudential plc (XLON) | 5,018,077 | 49,115 | |
AstraZeneca plc ADR | 589,152 | 32,309 | |
HSBC Holdings plc | 5,167,507 | 26,757 | |
Standard Chartered plc | 3,371,947 | 21,090 | |
Tesco plc | 8,971,690 | 20,591 | |
NatWest Group plc | 8,018,998 | 19,973 | |
Barclays plc | 12,375,310 | 19,691 |
Shares | Market Value• ($000) | ||
* | Farfetch Ltd. Class A | 2,215,567 | 16,506 |
308,315 | |||
United States (59.7%) | |||
* | Amazon.com Inc. | 1,501,469 | 169,666 |
Elevance Health Inc. | 299,516 | 136,052 | |
Microsoft Corp. | 561,245 | 130,714 | |
Mastercard Inc. Class A | 376,502 | 107,055 | |
Martin Marietta Materials Inc. | 297,652 | 95,871 | |
Arthur J Gallagher & Co. | 511,932 | 87,653 | |
Moody's Corp. | 354,771 | 86,248 | |
UnitedHealth Group Inc. | 160,245 | 80,930 | |
* | Alphabet Inc. Class C | 840,820 | 80,845 |
General Electric Co. | 1,294,754 | 80,158 | |
Service Corp. International | 1,324,443 | 76,473 | |
Visa Inc. Class A | 424,250 | 75,368 | |
* | Meta Platforms Inc. Class A | 486,313 | 65,983 |
Eli Lilly & Co. | 188,557 | 60,970 | |
Lear Corp. | 505,171 | 60,464 | |
* | Illumina Inc. | 315,675 | 60,228 |
* | Chipotle Mexican Grill Inc. Class A | 39,995 | 60,103 |
* | Alnylam Pharmaceuticals Inc. | 298,870 | 59,822 |
Albemarle Corp. | 225,030 | 59,507 | |
Prologis Inc. | 554,951 | 56,383 | |
Royalty Pharma plc Class A | 1,362,983 | 54,765 | |
* | Tesla Inc. | 203,805 | 54,059 |
* | Alphabet Inc. Class A | 551,123 | 52,715 |
Edison International | 919,973 | 52,052 | |
Thermo Fisher Scientific Inc. | 98,415 | 49,915 | |
Cognizant Technology Solutions Corp. Class A | 861,750 | 49,499 | |
Charles Schwab Corp. | 654,802 | 47,061 | |
Wells Fargo & Co. | 1,134,982 | 45,649 | |
* | Trade Desk Inc. Class A | 714,462 | 42,689 |
Estee Lauder Cos. Inc. Class A | 196,476 | 42,419 | |
Westinghouse Air Brake Technologies Corp. | 504,118 | 41,010 | |
NRG Energy Inc. | 1,050,857 | 40,216 | |
Broadridge Financial Solutions Inc. | 270,382 | 39,022 | |
Walt Disney Co. | 412,570 | 38,918 | |
Citigroup Inc. | 933,692 | 38,907 | |
Equitable Holdings Inc. | 1,465,516 | 38,616 | |
* | MercadoLibre Inc. | 45,271 | 37,474 |
Ceridian HCM Holding Inc. | 667,663 | 37,309 | |
S&P Global Inc. | 121,409 | 37,072 | |
* | Booking Holdings Inc. | 22,359 | 36,741 |
Monster Beverage Corp. | 421,380 | 36,643 | |
* | Netflix Inc. | 153,936 | 36,243 |
American International Group Inc. | 749,648 | 35,593 | |
McKesson Corp. | 103,963 | 35,334 | |
* | Moderna Inc. | 289,035 | 34,178 |
Newell Brands Inc. | 2,406,073 | 33,420 | |
Teradyne Inc. | 437,949 | 32,912 | |
Aptiv plc | 413,917 | 32,372 | |
Uber Technologies Inc. | 1,212,280 | 32,125 | |
Capital One Financial Corp. | 338,491 | 31,199 |
Shares | Market Value• ($000) | ||
* | CBRE Group Inc. Class A | 452,042 | 30,517 |
SS&C Technologies Holdings Inc. | 638,768 | 30,501 | |
Intuitive Surgical Inc. | 157,683 | 29,556 | |
* | CoStar Group Inc. | 422,616 | 29,435 |
ICON plc | 159,788 | 29,366 | |
* | Markel Corp. | 26,886 | 29,150 |
Airbnb Inc. Class A | 275,562 | 28,945 | |
Analog Devices Inc. | 201,429 | 28,067 | |
Livent Corp. | 913,564 | 28,001 | |
NVIDIA Corp. | 224,851 | 27,295 | |
Dynatrace Inc. | 706,718 | 24,601 | |
*,4 | Chewy Inc. Class A | 738,044 | 22,673 |
Skyline Champion Corp. | 422,910 | 22,359 | |
* | SiteOne Landscape Supply Inc. | 200,477 | 20,878 |
* | Match Group Inc. | 431,497 | 20,604 |
* | ABIOMED Inc. | 82,912 | 20,368 |
* | Novocure Ltd. | 254,982 | 19,374 |
* | Datadog Inc. Class A | 214,964 | 19,084 |
* | Adobe Inc. | 68,455 | 18,839 |
Wingstop Inc. | 149,071 | 18,696 | |
* | Axon Enterprise Inc. | 155,440 | 17,992 |
First Solar Inc. | 131,255 | 17,361 | |
* | Snowflake Inc. Class A | 101,813 | 17,304 |
* | Cloudflare Inc. Class A | 303,056 | 16,762 |
Cognex Corp. | 403,114 | 16,709 | |
* | Block Inc. (XNYS) | 302,161 | 16,616 |
Hewlett Packard Enterprise Co. | 1,369,791 | 16,410 | |
MongoDB Inc. Class A | 79,945 | 15,874 | |
* | DoorDash Inc. Class A | 297,732 | 14,723 |
Qualtrics International Inc. Class A | 1,334,561 | 13,586 | |
* | Roku Inc. | 233,812 | 13,187 |
Cargurus Inc. | 920,407 | 13,042 | |
* | Twilio Inc. Class A | 186,412 | 12,889 |
* | Shake Shack Inc. Class A | 279,580 | 12,575 |
Hannon Armstrong Sustainable Infrastructure Capital Inc. | 419,083 | 12,543 | |
* | Howard Hughes Corp. | 225,603 | 12,496 |
* | STAAR Surgical Co. | 176,616 | 12,460 |
Snap Inc. Class A | 1,124,080 | 11,038 | |
* | Certara Inc. | 828,891 | 11,008 |
Seagen Inc. | 71,952 | 9,845 | |
Roblox Corp. Class A | 253,364 | 9,081 | |
REVOLUTION Medicines Inc. | 427,111 | 8,423 |
Shares | Market Value• ($000) | ||
* | Chegg Inc. | 387,603 | 8,167 |
* | Oscar Health Inc. Class A | 1,555,217 | 7,761 |
* | IAC/InterActiveCorp. | 120,492 | 6,673 |
* | Exact Sciences Corp. | 175,814 | 5,712 |
RingCentral Inc. Class A | 141,536 | 5,656 | |
*,4 | Wayfair Inc. Class A | 148,992 | 4,850 |
3,745,672 | |||
Total Common Stocks (Cost $6,263,641) | 6,076,327 | ||
Market Value ($000) | |||
Temporary Cash Investments (3.0%) | |||
Money Market Fund (3.0%) | |||
5,6 | Vanguard Market Liquidity Fund, 2.828% (Cost $186,146) | 1,862,184 | 186,162 |
Total Investments (99.9%) (Cost $6,449,787) | 6,262,489 | ||
Other Assets and Liabilities—Net (0.1%) | 8,901 | ||
Net Assets (100%) | 6,271,390 | ||
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, 2022, the aggregate value was $144,268,000, representing 2.3% of net assets. |
2 | Security value determined using significant unobservable inputs. |
3 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
4 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $7,334,000. |
5 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
6 | Collateral of $7,855,000 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 2022 | 400 | 72,030 | (10,043) |
MSCI EAFE Index | December 2022 | 343 | 28,479 | (3,337) |
MSCI Emerging Markets Index | December 2022 | 299 | 13,029 | (1,571) |
(14,951) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $6,201,899) | 6,023,174 |
Affiliated Issuers (Cost $247,888) | 239,315 |
Total Investments in Securities | 6,262,489 |
Investment in Vanguard | 261 |
Cash Collateral Pledged—Futures Contracts | 5,993 |
Foreign Currency, at Value (Cost $3,370) | 3,332 |
Receivables for Investment Securities Sold | 4,795 |
Receivables for Accrued Income | 11,589 |
Receivables for Capital Shares Issued | 2,713 |
Total Assets | 6,291,172 |
Liabilities | |
Due to Custodian | 788 |
Payables for Investment Securities Purchased | 2,214 |
Collateral for Securities on Loan | 7,855 |
Payables to Investment Advisor | 2,813 |
Payables for Capital Shares Redeemed | 4,214 |
Payables to Vanguard | 662 |
Variation Margin Payable—Futures Contracts | 1,236 |
Total Liabilities | 19,782 |
Net Assets | 6,271,390 |
1 Includes $7,334 of securities on loan. | |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 6,176,952 |
Total Distributable Earnings (Loss) | 94,438 |
Net Assets | 6,271,390 |
Net Assets | |
Applicable to 231,672,263 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 6,271,390 |
Net Asset Value Per Share | $27.07 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 108,609 |
Dividends—Affiliated Issuers | 295 |
Non-Cash Dividends2 | 11,162 |
Interest—Unaffiliated Issuers | 49 |
Interest—Affiliated Issuers | 1,748 |
Securities Lending—Net | 401 |
Total Income | 122,264 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 18,670 |
Performance Adjustment | (2,910) |
The Vanguard Group—Note C | |
Management and Administrative | 16,876 |
Marketing and Distribution | 630 |
Custodian Fees | 342 |
Auditing Fees | 36 |
Shareholders’ Reports | 130 |
Trustees’ Fees and Expenses | 3 |
Other Expenses | 199 |
Total Expenses | 33,976 |
Net Investment Income | 88,288 |
Realized Net Gain (Loss) | |
Capital Gains Distributions Received – Affiliated Issuers | 9 |
Investment Securities Sold—Unaffiliated Issuers3 | 491,093 |
Investment Securities Sold—Affiliated Issuers | 1,209 |
Futures Contracts | (27,600) |
Forward Currency Contracts | (8) |
Foreign Currencies | (2,345) |
Realized Net Gain (Loss) | 462,358 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers4 | (3,012,752) |
Investment Securities—Affiliated Issuers | (8,621) |
Futures Contracts | (7,109) |
Foreign Currencies | (407) |
Change in Unrealized Appreciation (Depreciation) | (3,028,889) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (2,478,243) |
1 | Dividends are net of foreign withholding taxes of $6,026,000. |
2 | Dividends include foreign tax reclaims of $763,000 and are net of foreign withholding taxes of $5,728,000. |
3 | Realized gain (loss) is net of foreign capital gain taxes of $180,000. |
4 | 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, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 88,288 | 77,732 |
Realized Net Gain (Loss) | 462,358 | 723,408 |
Change in Unrealized Appreciation (Depreciation) | (3,028,889) | 1,110,891 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (2,478,243) | 1,912,031 |
Distributions | ||
Total Distributions | (944,789) | (221,418) |
Capital Share Transactions | ||
Issued | 1,050,800 | 1,446,524 |
Issued in Lieu of Cash Distributions | 823,880 | 201,858 |
Redeemed | (1,243,098) | (1,085,511) |
Net Increase (Decrease) from Capital Share Transactions | 631,582 | 562,871 |
Total Increase (Decrease) | (2,791,450) | 2,253,484 |
Net Assets | ||
Beginning of Period | 9,062,840 | 6,809,356 |
End of Period | 6,271,390 | 9,062,840 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $41.53 | $33.31 | $30.75 | $32.62 | $29.98 |
Investment Operations | |||||
Net Investment Income1 | .373 | .371 | .312 | .7002 | .426 |
Net Realized and Unrealized Gain (Loss) on Investments | (10.641) | 8.939 | 4.219 | (.354) | 2.618 |
Total from Investment Operations | (10.268) | 9.310 | 4.531 | .346 | 3.044 |
Distributions | |||||
Dividends from Net Investment Income | (.355) | (.254) | (.742) | (.416) | (.404) |
Distributions from Realized Capital Gains | (3.837) | (.836) | (1.229) | (1.800) | — |
Total Distributions | (4.192) | (1.090) | (1.971) | (2.216) | (.404) |
Net Asset Value, End of Period | $27.07 | $41.53 | $33.31 | $30.75 | $32.62 |
Total Return3 | -27.52% | 28.29% | 15.10% | 2.19% | 10.22% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $6,271 | $9,063 | $6,809 | $6,513 | $5,769 |
Ratio of Total Expenses to Average Net Assets4 | 0.41%5 | 0.45% | 0.45% | 0.48% | 0.48% |
Ratio of Net Investment Income to Average Net Assets | 1.07% | 0.93% | 1.02% | 2.35%2 | 1.34% |
Portfolio Turnover Rate | 84% | 28% | 22% | 49% | 40% |
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 $0.200 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 (0.04%), (0.00%), (0.00%), 0.02%, and 0.02%. |
5 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.41%. |
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, beginning August 2022, Pzena Investment Management, LLC, and Wellington Management Company LLP, 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 fee of Baillie Gifford Overseas Ltd. is subject to quarterly adjustments based on performance relative to the MSCI All Country World Index for the preceding three years. In accordance with the advisory contracts entered into with Pzena Investment Management, LLC, and Wellington Management Company LLP, beginning October 1, 2023, the investment advisory fees will be subject to quarterly adjustments based on performance relative to the MSCI All Country World Value Index and the MSCI All Country World Growth Index, respectively, since September 30, 2022. Until July 2022, a portion of the fund was managed by Marathon Asset Management Limited. The basic fee paid to Marathon Asset Management Limited was 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 | 3,865,964 | — | — | 3,865,964 |
Common Stocks—Other | 236,349 | 1,974,014 | — | 2,210,363 |
Temporary Cash Investments | 186,162 | — | — | 186,162 |
Total | 4,288,475 | 1,974,014 | — | 6,262,489 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 14,951 | — | — | 14,951 |
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, 2022, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows: |
Statement of Assets and Liabilities | Equity Contracts ($000) | Total ($000) |
Unrealized Depreciation—Futures Contracts1 | 14,951 | 14,951 |
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 | (27,600) | — | (27,600) |
Forward Currency Contracts | — | (8) | (8) |
Realized Net Gain (Loss) on Derivatives | (27,600) | (8) | (27,608) |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | (7,109) | — | (7,109) |
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 applicable foreign currency transactions, passive foreign investment companies, distributions in connection with fund share redemptions, and tax expense on capital gains were reclassified between the following accounts: |
Amount ($000) | |
Paid-in Capital | 40,135 |
Total Distributable Earnings (Loss) | (40,135) |
Amount ($000) | |
Undistributed Ordinary Income | 80,203 |
Undistributed Long-Term Gains | 589,442 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (339,117) |
Net Unrealized Gains (Losses) | (236,891) |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 167,203 | 86,958 |
Long-Term Capital Gains | 777,586 | 134,460 |
Total | 944,789 | 221,418 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 6,498,938 |
Gross Unrealized Appreciation | 2,129,101 |
Gross Unrealized Depreciation | (2,365,550) |
Net Unrealized Appreciation (Depreciation) | (236,449) |
G. | During the year ended September 30, 2022, the fund purchased $6,602,685,000 of investment securities and sold $6,722,001,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Year Ended September 30, | ||
2022 Shares (000) | 2021 Shares (000) | |
Issued | 28,008 | 35,863 |
Issued in Lieu of Cash Distributions | 21,993 | 5,367 |
Redeemed | (36,575) | (27,438) |
Net Increase (Decrease) in Shares Outstanding | 13,426 | 13,792 |
I. | Transactions during the period in investments where the issuer is another member of The Vanguard Group were as follows: |
Current Period Transactions | ||||||||
Sep. 30, 2021 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, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 469,326 | NA1 | NA1 | (39) | (32) | 1,748 | 9 | 186,162 |
Vanguard Total World Stock ETF | — | 237,407 | 176,913 | 1,248 | (8,589) | 295 | — | 53,153 |
Total | 469,326 | 237,407 | 176,913 | 1,209 | (8,621) | 2,043 | 9 | 239,315 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
J. | Management has determined that no events or transactions occurred subsequent to September 30, 2022, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
November 18, 2022
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
Chris D. Mclsaac | Lauren Valente |
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 –16.24% for the 12 months ended September 30, 2022. The fund outperformed its benchmark index, which returned –21.02%. |
• | The 12 months were a challenging period for stocks. Inflation soared to multidecade highs, fueled in part by higher energy and food prices after Russia’s invasion of Ukraine. Then, price increases broadened to other categories of goods and services, adding to concerns that inflation would remain stubbornly high. That prompted aggressive tightening by the Federal Reserve to bring inflation back in check and increased fears of a recession. |
• | Large-capitalization stocks held up better than mid- and small-caps, and value stocks returned more than growth stocks. |
• | Information technology, industrials, consumer discretionary, energy, and health care were the top sector contributors to performance. Utilities and financials detracted. |
• | For the 10 years ended September 30, 2022, the fund posted an average annual return of 9.71%. That was higher than the benchmark’s return of 9.52%. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | -17.22% | 7.95% | 9.00% |
Russell 2000 Index (Small-caps) | -23.50 | 4.29 | 3.55 |
Russell 3000 Index (Broad U.S. market) | -17.63 | 7.70 | 8.62 |
FTSE All-World ex US Index (International) | -24.76 | -0.95 | -0.38 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | -14.61% | -3.22% | -0.23% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | -11.50 | -1.85 | 0.59 |
FTSE Three-Month U.S. Treasury Bill Index | 0.63 | 0.57 | 1.12 |
CPI | |||
Consumer Price Index | 8.20% | 4.95% | 3.76% |
• | 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, 2022 | |||
Strategic Small-Cap Equity Fund | Beginning Account Value 3/31/2022 | Ending Account Value 9/30/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $813.70 | $1.18 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.77 | 1.32 |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Strategic Small-Cap Equity Fund | -16.24% | 4.54% | 9.71% | $25,252 | |
MSCI US Small Cap 1750 Index | -21.02 | 5.06 | 9.52 | 24,835 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | -18.05 | 8.48 | 11.28 | 29,120 |
Communication Services | 2.7% |
Consumer Discretionary | 11.7 |
Consumer Staples | 3.9 |
Energy | 5.3 |
Financials | 17.2 |
Health Care | 14.9 |
Industrials | 16.9 |
Information Technology | 12.5 |
Materials | 5.0 |
Real Estate | 6.8 |
Utilities | 3.1 |
Shares | Market Value• ($000) | ||
Common Stocks (99.6%) | |||
Communication Services (2.6%) | |||
* | Yelp Inc. Class A | 223,289 | 7,572 |
* | Iridium Communications Inc. | 111,059 | 4,928 |
* | Consolidated Communications Holdings Inc. | 656,508 | 2,731 |
Nexstar Media Group Inc. Class A | 16,176 | 2,699 | |
* | Clear Channel Outdoor Holdings Inc. | 1,876,856 | 2,571 |
Cogent Communications Holdings Inc. | 36,410 | 1,899 | |
New York Times Co. Class A | 56,494 | 1,624 | |
* | Altice USA Inc. Class A | 267,927 | 1,562 |
* | WideOpenWest Inc. | 116,295 | 1,427 |
* | PubMatic Inc. Class A | 63,612 | 1,058 |
TripAdvisor Inc. | 41,974 | 927 | |
ZipRecruiter Inc. Class A | 56,171 | 927 | |
* | Endeavor Group Holdings Inc. Class A | 41,116 | 833 |
Madison Square Garden Sports Corp. | 4,701 | 642 | |
Sinclair Broadcast Group Inc. Class A | 11,864 | 215 | |
31,615 | |||
Consumer Discretionary (11.6%) | |||
Boyd Gaming Corp. | 146,862 | 6,998 | |
* | Skyline Champion Corp. | 119,760 | 6,332 |
Buckle Inc. | 188,455 | 5,966 | |
* | Tri Pointe Homes Inc. | 384,528 | 5,810 |
* | AutoNation Inc. | 53,403 | 5,440 |
* | Perdoceo Education Corp. | 486,667 | 5,013 |
Oxford Industries Inc. | 52,180 | 4,685 | |
* | Capri Holdings Ltd. | 115,608 | 4,444 |
Brunswick Corp. | 67,140 | 4,394 | |
Texas Roadhouse Inc. Class A | 45,150 | 3,940 | |
* | American Axle & Manufacturing Holdings Inc. | 564,702 | 3,857 |
Patrick Industries Inc. | 85,238 | 3,737 | |
Signet Jewelers Ltd. | 64,101 | 3,666 | |
Harley-Davidson Inc. | 99,418 | 3,468 | |
* | Cavco Industries Inc. | 16,351 | 3,364 |
Taylor Morrison Home Corp. Class A | 136,916 | 3,193 |
Shares | Market Value• ($000) | ||
Marriott Vacations Worldwide Corp. | 25,340 | 3,088 | |
Movado Group Inc. | 100,530 | 2,833 | |
Toll Brothers Inc. | 66,944 | 2,812 | |
* | SeaWorld Entertainment Inc. | 57,673 | 2,625 |
Travel + Leisure Co. | 71,903 | 2,453 | |
* | Playa Hotels & Resorts NV | 400,218 | 2,329 |
* | Stride Inc. | 53,432 | 2,246 |
Group 1 Automotive Inc. | 15,609 | 2,230 | |
Murphy USA Inc. | 7,887 | 2,168 | |
Carriage Services Inc. Class A | 64,776 | 2,083 | |
Macy's Inc. | 131,569 | 2,062 | |
Ruth's Hospitality Group Inc. | 114,107 | 1,924 | |
Academy Sports & Outdoors Inc. | 45,347 | 1,913 | |
* | WW International Inc. | 470,554 | 1,849 |
Caleres Inc. | 73,239 | 1,774 | |
* | Six Flags Entertainment Corp. | 90,102 | 1,595 |
Hibbett Inc. | 31,943 | 1,591 | |
* | Everi Holdings Inc. | 95,563 | 1,550 |
Churchill Downs Inc. | 8,390 | 1,545 | |
H&R Block Inc. | 35,130 | 1,494 | |
Winnebago Industries Inc. | 25,662 | 1,365 | |
* | MarineMax Inc. | 45,051 | 1,342 |
Shutterstock Inc. | 26,594 | 1,334 | |
* | Master Craft Boat Holdings Inc. | 66,848 | 1,260 |
* | RealReal Inc. | 729,438 | 1,094 |
* | 2U Inc. | 172,983 | 1,081 |
* | Dorman Products Inc. | 13,135 | 1,079 |
* | Modine Manufacturing Co. | 69,882 | 904 |
* | Liquidity Services Inc. | 45,586 | 741 |
* | Scientific Games Corp. Class A | 15,700 | 673 |
* | Vivint Smart Home Inc. | 102,231 | ��� 673 |
Chegg Inc. | 31,396 | 662 | |
Thor Industries Inc. | 9,345 | 654 | |
Aaron's Co. Inc. | 64,553 | 627 | |
* | Goodyear Tire & Rubber Co. | 60,678 | 612 |
Steven Madden Ltd. | 22,309 | 595 | |
* | Beazer Homes USA Inc. | 57,920 | 560 |
PVH Corp. | 12,471 | 559 | |
* | Duluth Holdings Inc. Class B | 77,588 | 546 |
* | Meritage Homes Corp. | 7,385 | 519 |
Shares | Market Value• ($000) | ||
Shoe Carnival Inc. | 22,633 | 485 | |
* | ODP Corp. | 13,758 | 484 |
* | Malibu Boats Inc. Class A | 9,724 | 467 |
Wendy's Co. | 23,264 | 435 | |
* | Golden Entertainment Inc. | 11,931 | 416 |
* | Quotient Technology Inc. | 156,903 | 362 |
Stitch Fix Inc. Class A | 86,607 | 342 | |
* | Deckers Outdoor Corp. | 939 | 294 |
* | Asbury Automotive Group Inc. | 1,930 | 292 |
Standard Motor Products Inc. | 8,768 | 285 | |
* | Sportsman's Warehouse Holdings Inc. | 32,571 | 270 |
* | Genesco Inc. | 6,658 | 262 |
* | Chuy's Holdings Inc. | 10,834 | 251 |
* | M/I Homes Inc. | 6,755 | 245 |
Williams-Sonoma Inc. | 1,852 | 218 | |
* | Fox Factory Holding Corp. | 2,581 | 204 |
138,663 | |||
Consumer Staples (3.9%) | |||
Ingles Markets Inc. Class A | 89,567 | 7,095 | |
* | Darling Ingredients Inc. | 88,004 | 5,821 |
* | Pilgrim's Pride Corp. | 212,760 | 4,898 |
Coca-Cola Consolidated Inc. | 10,710 | 4,410 | |
John B Sanfilippo & Son Inc. | 46,981 | 3,558 | |
Cal-Maine Foods Inc. | 59,335 | 3,298 | |
* | BJ's Wholesale Club Holdings Inc. | 44,601 | 3,247 |
* | Herbalife Nutrition Ltd. | 150,087 | 2,985 |
elf Beauty Inc. | 72,150 | 2,714 | |
* | Coty Inc. Class A | 290,163 | 1,834 |
* | Central Garden & Pet Co. Class A | 38,177 | 1,304 |
Vector Group Ltd. | 136,709 | 1,204 | |
* | USANA Health Sciences Inc. | 20,241 | 1,135 |
Medifast Inc. | 8,164 | 885 | |
* | United Natural Foods Inc. | 18,628 | 640 |
Flowers Foods Inc. | 25,657 | 634 | |
Energizer Holdings Inc. | 17,593 | 442 | |
Turning Point Brands Inc. | 20,647 | 438 | |
46,542 | |||
Energy (5.3%) | |||
SM Energy Co. | 178,518 | 6,714 | |
APA Corp. | 175,352 | 5,995 | |
* | Talos Energy Inc. | 262,368 | 4,368 |
* | PBF Energy Inc. Class A | 122,822 | 4,318 |
* | Southwestern Energy Co. | 695,546 | 4,257 |
* | Delek US Holdings Inc. | 123,182 | 3,343 |
* | W&T Offshore Inc. | 518,708 | 3,040 |
* | Liberty Energy Inc. Class A | 210,746 | 2,672 |
* | Nabors Industries Ltd. (XNYS) | 24,872 | 2,523 |
* | US Silica Holdings Inc. | 226,749 | 2,483 |
* | Antero Resources Corp. | 77,593 | 2,369 |
Marathon Oil Corp. | 96,753 | 2,185 | |
* | Denbury Inc. | 23,905 | 2,062 |
Plains GP Holdings LP Class A | 145,723 | 1,590 | |
* | Range Resources Corp. | 60,888 | 1,538 |
Murphy Oil Corp. | 43,277 | 1,522 | |
* | Par Pacific Holdings Inc. | 83,554 | 1,371 |
* | ProPetro Holding Corp. | 169,160 | 1,362 |
CVR Energy Inc. | 42,084 | 1,220 |
Shares | Market Value• ($000) | ||
Viper Energy Partners LP | 42,034 | 1,205 | |
* | NexTier Oilfield Solutions Inc. | 160,277 | 1,186 |
Weatherford International plc | 36,287 | 1,172 | |
* | Kosmos Energy Ltd. | 216,851 | 1,121 |
* | Comstock Resources Inc. | 63,280 | 1,094 |
* | Callon Petroleum Co. | 17,078 | 598 |
PDC Energy Inc. | 9,887 | 571 | |
* | Gulfport Energy Corp. | 4,996 | 441 |
Targa Resources Corp. | 5,504 | 332 | |
* | REX American Resources Corp. | 10,654 | 298 |
Permian resources Corp. | 34,113 | 232 | |
63,182 | |||
Financials (17.1%) | |||
Hancock Whitney Corp. | 187,441 | 8,587 | |
MGIC Investment Corp. | 666,073 | 8,539 | |
International Bancshares Corp. | 187,620 | 7,974 | |
Synovus Financial Corp. | 211,708 | 7,941 | |
Radian Group Inc. | 395,906 | 7,637 | |
Axis Capital Holdings Ltd. | 153,441 | 7,542 | |
Essent Group Ltd. | 210,344 | 7,335 | |
Affiliated Managers Group Inc. | 65,244 | 7,298 | |
OFG Bancorp | 289,997 | 7,288 | |
Stifel Financial Corp. | 137,619 | 7,144 | |
SouthState Corp. | 88,805 | 7,026 | |
CNO Financial Group Inc. | 389,480 | 6,999 | |
Stewart Information Services Corp. | 138,541 | 6,046 | |
* | Unum Group | 153,016 | 5,937 |
FNB Corp. | 508,148 | 5,895 | |
SLM Corp. | 402,801 | 5,635 | |
* | LendingClub Corp. | 495,042 | 5,470 |
Hope Bancorp Inc. | 409,990 | 5,182 | |
PacWest Bancorp | 226,699 | 5,123 | |
Evercore Inc. Class A | 61,955 | 5,096 | |
Popular Inc. | 69,229 | 4,989 | |
* | Enstar Group Ltd. | 22,008 | 3,732 |
Pacific Premier Bancorp Inc. | 116,946 | 3,621 | |
Navient Corp. | 234,963 | 3,452 | |
Virtu Financial Inc. Class A | 162,146 | 3,368 | |
Banner Corp. | 54,951 | 3,246 | |
UMB Financial Corp. | 34,175 | 2,881 | |
Central Pacific Financial Corp. | 130,084 | 2,691 | |
* | Genworth Financial Inc. Class A | 754,431 | 2,640 |
Towne Bank | 95,111 | 2,552 | |
Western Alliance Bancorp | 38,660 | 2,541 | |
BGC Partners Inc. Class A | 671,826 | 2,110 | |
OneMain Holdings Inc. | 71,036 | 2,097 | |
First Financial Corp. | 43,079 | 1,947 | |
First BanCorp. (XNYS) | 141,698 | 1,938 | |
First Financial Bancorp | 83,775 | 1,766 | |
Atlantic Union Bankshares Corp. | 50,423 | 1,532 | |
Nelnet Inc. Class A | 18,869 | 1,494 | |
S&T Bancorp Inc. | 47,642 | 1,396 | |
ProAssurance Corp. | 71,448 | 1,394 | |
Kinsale Capital Group Inc. | 5,253 | 1,342 | |
Brightsphere Investment Group Inc. | 88,208 | 1,315 | |
Byline Bancorp Inc. | 57,998 | 1,174 |
Shares | Market Value• ($000) | ||
Hanmi Financial Corp. | 41,735 | 988 | |
First Bancorp (XNGS) | 24,509 | 897 | |
Green Dot Corp. Class A | 46,317 | 879 | |
* | Focus Financial Partners Inc. Class A | 24,286 | 765 |
* | Silvergate Capital Corp. Class A | 10,042 | 757 |
Heartland Financial USA Inc. | 16,785 | 728 | |
* | Palomar Holdings Inc. | 8,531 | 714 |
Horizon Bancorp Inc. | 37,894 | 681 | |
Columbia Banking System Inc. | 23,188 | 670 | |
* | NMI Holdings Inc. Class A | 32,757 | 667 |
Northfield Bancorp Inc. | 42,615 | 610 | |
* | Brighthouse Financial Inc. | 13,412 | 582 |
Virtus Investment Partners Inc. | 3,380 | 539 | |
Associated Banc-Corp. | 25,974 | 522 | |
Westamerica BanCorp. | 8,825 | 461 | |
Provident Financial Services Inc. | 23,598 | 460 | |
Origin Bancorp Inc. | 10,913 | 420 | |
* | Blucora Inc. | 19,939 | 386 |
Compass Diversified Holdings | 21,387 | 386 | |
Veritex Holdings Inc. | 9,631 | 256 | |
United Fire Group Inc. | 8,788 | 252 | |
Sculptor Capital Management Inc. Class A | 23,774 | 210 | |
Brookline Bancorp Inc. | 17,711 | 206 | |
203,948 | |||
Health Care (14.9%) | |||
* | AMN Healthcare Services Inc. | 79,970 | 8,474 |
* | Medpace Holdings Inc. | 47,481 | 7,463 |
* | Ionis Pharmaceuticals Inc. | 167,433 | 7,406 |
* | Shockwave Medical Inc. | 23,785 | 6,614 |
* | Alkermes plc | 281,972 | 6,296 |
Bruker Corp. | 110,512 | 5,864 | |
* | Sarepta Therapeutics Inc. | 51,403 | 5,682 |
* | CorVel Corp. | 39,467 | 5,463 |
* | Deciphera Pharmaceuticals Inc. | 282,164 | 5,220 |
* | Merit Medical Systems Inc. | 91,837 | 5,190 |
* | Tenet Healthcare Corp. | 99,617 | 5,138 |
* | Allscripts Healthcare Solutions Inc. | 336,133 | 5,119 |
* | NextGen Healthcare Inc. | 259,221 | 4,588 |
* | STAAR Surgical Co. | 64,680 | 4,563 |
* | FibroGen Inc. | 315,085 | 4,099 |
* | Sangamo Therapeutics Inc. | 766,975 | 3,758 |
* | Integra LifeSciences Holdings Corp. | 82,043 | 3,475 |
* | Agenus Inc. | 1,567,440 | 3,213 |
Evolent Health Inc. Class A | 86,656 | 3,114 | |
* | Atara Biotherapeutics Inc. | 805,065 | 3,043 |
* | Veeva Systems Inc. Class A | 18,165 | 2,995 |
* | PTC Therapeutics Inc. | 53,771 | 2,699 |
* | Lantheus Holdings Inc. | 37,165 | 2,614 |
* | NuVasive Inc. | 59,496 | 2,606 |
* | Health Catalyst Inc. | 254,711 | 2,471 |
* | Nevro Corp. | 51,309 | 2,391 |
* | Charles River Laboratories International Inc. | 11,019 | 2,169 |
Shares | Market Value• ($000) | ||
* | ACADIA Pharmaceuticals Inc. | 131,484 | 2,151 |
Mirati Therapeutics Inc. | 29,201 | 2,039 | |
* | Seres Therapeutics Inc. | 317,071 | 2,036 |
* | Inspire Medical Systems Inc. | 10,934 | 1,939 |
* | Avanos Medical Inc. | 88,010 | 1,917 |
* | Intercept Pharmaceuticals Inc. | 135,986 | 1,897 |
* | Protagonist Therapeutics Inc. | 221,288 | 1,865 |
* | 2seventy bio Inc. | 127,718 | 1,858 |
* | TG Therapeutics Inc. | 290,197 | 1,718 |
Haemonetics Corp. | 22,530 | 1,668 | |
* | Glaukos Corp. | 30,767 | 1,638 |
* | Apellis Pharmaceuticals Inc. | 23,158 | 1,582 |
* | Option Care Health Inc. | 47,267 | 1,487 |
* | ViewRay Inc. | 399,166 | 1,453 |
* | Zymeworks Inc. | 235,498 | 1,448 |
* | Pediatrix Medical Group Inc. | 83,133 | 1,373 |
* | Inogen Inc. | 56,304 | 1,367 |
* | Nektar Therapeutics Class A | 420,714 | 1,346 |
* | Coherus Biosciences Inc. | 132,580 | 1,274 |
* | ImmunoGen Inc. | 251,406 | 1,202 |
* | Cerus Corp. | 299,727 | 1,079 |
Natera Inc. | 24,465 | 1,072 | |
Rigel Pharmaceuticals Inc. | 859,824 | 1,015 | |
* | MacroGenics Inc. | 277,893 | 961 |
* | Embecta Corp. | 32,147 | 925 |
Cytokinetics Inc. | 18,764 | 909 | |
* | Zimvie Inc. | 84,064 | 830 |
* | CytomX Therapeutics Inc. | 555,119 | 805 |
* | Arrowhead Pharmaceuticals Inc. | 22,844 | 755 |
* | Myovant Sciences Ltd. | 39,950 | 717 |
* | Novavax Inc. | 38,943 | 709 |
* | Arcturus Therapeutics Holdings Inc. | 47,122 | 698 |
* | AngioDynamics Inc. | 32,761 | 670 |
* | Computer Programs and Systems Inc. | 23,856 | 665 |
* | Precision BioSciences Inc. | 500,660 | 651 |
* | HealthStream Inc. | 29,198 | 621 |
* | Atea Pharmaceuticals Inc. | 98,040 | 558 |
* | Enhabit Inc. | 39,529 | 555 |
* | Puma Biotechnology Inc. | 227,827 | 540 |
* | Editas Medicine Inc. Class A | 43,327 | 530 |
US Physical Therapy Inc. | 6,667 | 507 | |
* | Voyager Therapeutics Inc. | 79,308 | 469 |
GoodRx Holdings Inc. Class A | 97,555 | 456 | |
* | MiMedx Group Inc. | 157,072 | 451 |
Ensign Group Inc. | 5,410 | 430 | |
*,1 | Clovis Oncology Inc. | 347,610 | 414 |
* | Morphic Holding Inc. | 14,364 | 406 |
* | Alignment Healthcare Inc. | 31,934 | 378 |
Chemed Corp. | 850 | 371 | |
* | Assembly Biosciences Inc. | 212,676 | 349 |
* | Joint Corp. | 22,122 | 348 |
* | Addus HomeCare Corp. | 3,517 | 335 |
Heron Therapeutics Inc. | 70,249 | 296 | |
* | Tandem Diabetes Care Inc. | 6,135 | 294 |
* | Cross Country Healthcare Inc. | 9,862 | 280 |
Shares | Market Value• ($000) | ||
* | Orthofix Medical Inc. | 13,284 | 254 |
* | Odonate Therapeutics Inc. | 161,720 | 243 |
* | Minerva Neurosciences Inc. | 25,660 | 237 |
* | Alector Inc. | 23,850 | 226 |
* | WaVe Life Sciences Ltd. | 48,932 | 177 |
* | Pennant Group Inc. | 16,426 | 171 |
* | Akebia Therapeutics Inc. | 331,679 | 105 |
* | GlycoMimetics Inc. | 177,063 | 98 |
* | Molecular Templates Inc. | 104,179 | 78 |
* | Aligos Therapeutics Inc. | 69,638 | 77 |
* | Spectrum Pharmaceuticals Inc. | 134,742 | 58 |
* | Acorda Therapeutics Inc. | 38,060 | 11 |
177,769 | |||
Industrials (16.9%) | |||
* | Clean Harbors Inc. | 85,821 | 9,439 |
EMCOR Group Inc. | 79,351 | 9,164 | |
Allison Transmission Holdings Inc. | 235,178 | 7,940 | |
nVent Electric plc | 247,073 | 7,810 | |
* | Univar Solutions Inc. | 323,609 | 7,359 |
UFP Industries Inc. | 96,509 | 6,964 | |
* | Titan Machinery Inc. | 232,456 | 6,569 |
Kforce Inc. | 110,758 | 6,496 | |
Rush Enterprises Inc. Class A | 135,124 | 5,927 | |
Korn Ferry | 125,825 | 5,908 | |
Ryder System Inc. | 75,668 | 5,712 | |
ManpowerGroup Inc. | 84,498 | 5,466 | |
* | Atkore Inc. | 70,234 | 5,465 |
Acuity Brands Inc. | 33,545 | 5,282 | |
Applied Industrial Technologies Inc. | 51,178 | 5,260 | |
* | GMS Inc. | 122,203 | 4,889 |
Ennis Inc. | 238,271 | 4,796 | |
Triton International Ltd. | 85,737 | 4,692 | |
Terex Corp. | 145,933 | 4,340 | |
Mueller Industries Inc. | 67,983 | 4,041 | |
AGCO Corp. | 36,960 | 3,554 | |
* | NOW Inc. | 352,737 | 3,545 |
Heidrick & Struggles International Inc. | 135,757 | 3,528 | |
* | Hub Group Inc. Class A | 49,528 | 3,416 |
Watts Water Technologies Inc. Class A | 25,140 | 3,161 | |
Boise Cascade Co. | 49,079 | 2,918 | |
Matson Inc. | 46,696 | 2,873 | |
Encore Wire Corp. | 24,764 | 2,861 | |
Valmont Industries Inc. | 9,772 | 2,625 | |
Advanced Drainage Systems Inc. | 20,501 | 2,550 | |
GrafTech International Ltd. | 553,721 | 2,387 | |
Spirit AeroSystems Holdings Inc. Class A | 105,687 | 2,317 | |
* | MRC Global Inc. | 293,108 | 2,107 |
H&E Equipment Services Inc. | 72,075 | 2,043 | |
* | TrueBlue Inc. | 103,941 | 1,983 |
Resources Connection Inc. | 108,699 | 1,964 | |
WillScot Mobile Mini Holdings Corp. | 41,442 | 1,671 | |
* | Sunrun Inc. | 60,453 | 1,668 |
Marten Transport Ltd. | 85,052 | 1,630 | |
Insteel Industries Inc. | 61,013 | 1,619 | |
AZZ Inc. | 40,143 | 1,466 | |
* | Forrester Research Inc. | 40,415 | 1,455 |
Shares | Market Value• ($000) | ||
* | Saia Inc. | 7,165 | 1,361 |
* | SkyWest Inc. | 79,606 | 1,294 |
AECOM | 18,816 | 1,286 | |
Genco Shipping & Trading Ltd. | 100,380 | 1,258 | |
Apogee Enterprises Inc. | 32,175 | 1,230 | |
* | Masonite International Corp. | 17,107 | 1,220 |
* | Heritage-Crystal Clean Inc. | 40,527 | 1,198 |
Air Lease Corp. Class A | 35,742 | 1,108 | |
Esab Corp. | 32,070 | 1,070 | |
Primoris Services Corp. | 63,139 | 1,026 | |
* | Veritiv Corp. | 9,018 | 882 |
* | Sterling Infrastructure Inc. | 40,643 | 873 |
Standex International Corp. | 9,654 | 788 | |
Moog Inc. Class A | 11,149 | 784 | |
*,1 | ESS Tech Inc. | 179,310 | 733 |
* | DXP Enterprises Inc. | 27,688 | 656 |
* | Hireright Holdings Corp. | 42,602 | 650 |
* | Triumph Group Inc. | 74,087 | 636 |
Argan Inc. | 17,378 | 559 | |
* | Daseke Inc. | 100,188 | 542 |
* | SP Plus Corp. | 15,848 | 496 |
* | First Advantage Corp. | 38,071 | 489 |
*,1 | Heliogen Inc. | 240,162 | 447 |
ArcBest Corp. | 5,524 | 402 | |
Trinity Industries Inc. | 18,754 | 400 | |
Interface Inc. Class A | 41,285 | 371 | |
Wabash National Corp. | 23,145 | 360 | |
* | Enovix Corp. | 19,552 | 359 |
*,1 | Astra Space Inc. | 547,034 | 334 |
Tetra Tech Inc. | 2,176 | 280 | |
* | Thermon Group Holdings Inc. | 17,296 | 267 |
Global Industrial Co. | 9,583 | 257 | |
Douglas Dynamics Inc. | 8,868 | 249 | |
* | ASGN Inc. | 2,760 | 249 |
Kelly Services Inc. Class A | 17,739 | 241 | |
Quanex Building Products Corp. | 12,879 | 234 | |
* | Quad/Graphics Inc. | 25,111 | 64 |
201,513 | |||
Information Technology (12.5%) | |||
* | Manhattan Associates Inc. | 78,836 | 10,487 |
Jabil Inc. | 174,526 | 10,072 | |
* | Nutanix Inc. Class A | 435,927 | 9,080 |
* | Cirrus Logic Inc. | 107,532 | 7,398 |
* | CommScope Holding Co. Inc. | 735,491 | 6,774 |
* | Extreme Networks Inc. | 434,179 | 5,675 |
* | Box Inc. Class A | 215,206 | 5,249 |
* | ExlService Holdings Inc. | 35,137 | 5,178 |
* | Pure Storage Inc. Class A | 181,966 | 4,980 |
* | Domo Inc. Class B | 268,370 | 4,828 |
* | CommVault Systems Inc. | 89,438 | 4,744 |
* | Super Micro Computer Inc. | 79,643 | 4,386 |
* | Diodes Inc. | 65,205 | 4,232 |
* | MaxLinear Inc. | 127,132 | 4,147 |
* | Everbridge Inc. | 112,650 | 3,479 |
* | 8x8 Inc. | 1,004,661 | 3,466 |
* | Kyndryl Holdings Inc. | 407,843 | 3,373 |
* | Axcelis Technologies Inc. | 54,831 | 3,321 |
* | Sanmina Corp. | 69,002 | 3,180 |
* | Fabrinet | 32,738 | 3,125 |
* | International Money Express Inc. | 134,531 | 3,066 |
* | Yext Inc. | 626,722 | 2,795 |
Shares | Market Value• ($000) | ||
* | Agilysys Inc. | 42,570 | 2,356 |
Amkor Technology Inc. | 134,290 | 2,290 | |
Concentrix Corp. | 20,118 | 2,246 | |
Avnet Inc. | 56,636 | 2,046 | |
* | Teradata Corp. | 58,901 | 1,829 |
* | Arlo Technologies Inc. | 352,378 | 1,635 |
CSG Systems International Inc. | 30,619 | 1,619 | |
* | Sumo Logic Inc. | 203,902 | 1,529 |
* | ScanSource Inc. | 55,008 | 1,453 |
* | Upland Software Inc. | 153,335 | 1,247 |
* | ePlus Inc. | 28,579 | 1,187 |
* | Lattice Semiconductor Corp. | 22,283 | 1,096 |
* | KnowBe4 Inc. Class A | 51,190 | 1,065 |
* | SMART Global Holdings Inc. | 65,937 | 1,046 |
* | Tenable Holdings Inc. | 27,554 | 959 |
* | Magnachip Semiconductor Corp. | 90,835 | 930 |
* | Benefitfocus Inc. | 145,175 | 922 |
* | AvidXchange Holdings Inc. | 109,297 | 920 |
A10 Networks Inc. | 60,407 | 802 | |
* | TTM Technologies Inc. | 58,649 | 773 |
Vishay Intertechnology Inc. | 42,761 | 761 | |
* | Aeva Technologies Inc. | 383,803 | 718 |
* | LivePerson Inc. | 65,391 | 616 |
* | SecureWorks Corp. Class A | 76,277 | 614 |
* | Brightcove Inc. | 86,508 | 545 |
* | Payoneer Global Inc. | 62,245 | 377 |
Benchmark Electronics Inc. | 14,821 | 367 | |
* | Unisys Corp. | 48,162 | 364 |
Hackett Group Inc. | 19,696 | 349 | |
Impinj Inc. | 4,292 | 343 | |
NCR Corp. | 18,008 | 342 | |
* | Conduent Inc. | 101,644 | 339 |
* | Embark Technology Inc. | 44,893 | 334 |
PC Connection Inc. | 6,356 | 287 | |
* | Semtech Corp. | 8,611 | 253 |
New Relic Inc. | 4,338 | 249 | |
CTS Corp. | 5,827 | 243 | |
* | Squarespace Inc. Class A | 11,304 | 241 |
TTEC Holdings Inc. | 5,210 | 231 | |
* | Synaptics Inc. | 2,173 | 215 |
* | ACI Worldwide Inc. | 10,192 | 213 |
* | OneSpan Inc. | 22,612 | 195 |
149,181 | |||
Materials (5.0%) | |||
Olin Corp. | 142,021 | 6,090 | |
Chemours Co. | 231,606 | 5,709 | |
AdvanSix Inc. | 167,321 | 5,371 | |
Eagle Materials Inc. | 42,707 | 4,577 | |
SunCoke Energy Inc. | 746,608 | 4,338 | |
Tronox Holdings plc Class A | 343,491 | 4,208 | |
Warrior Met Coal Inc. | 135,831 | 3,863 | |
Mercer International Inc. | 262,118 | 3,224 | |
Schnitzer Steel Industries Inc. Class A | 101,561 | 2,890 | |
* | O-I Glass Inc. | 196,775 | 2,548 |
Balchem Corp. | 18,709 | 2,275 | |
Alcoa Corp. | 49,983 | 1,682 | |
Innospec Inc. | 18,466 | 1,582 | |
* | Ecovyst Inc. | 153,613 | 1,296 |
Sylvamo Corp. | 37,901 | 1,285 | |
Huntsman Corp. | 49,907 | 1,225 | |
United States Steel Corp. | 60,026 | 1,088 | |
Greif Inc. Class A | 15,302 | 912 |
Shares | Market Value• ($000) | ||
Arconic Corp. | 51,364 | 875 | |
Ryerson Holding Corp. | 31,199 | 803 | |
Louisiana-Pacific Corp. | 13,906 | 712 | |
* | TimkenSteel Corp. | 41,194 | 618 |
Kronos Worldwide Inc. | 50,798 | 474 | |
* | LSB Industries Inc. | 29,074 | 414 |
Hawkins Inc. | 9,500 | 370 | |
Ingevity Corp. | 5,584 | 339 | |
Koppers Holdings Inc. | 14,707 | 306 | |
Sensient Technologies Corp. | 3,444 | 239 | |
59,313 | |||
Real Estate (6.7%) | |||
Outfront Media Inc. | 421,548 | 6,403 | |
Highwoods Properties Inc. | 229,436 | 6,186 | |
Life Storage Inc. | 49,393 | 5,471 | |
Brixmor Property Group Inc. | 273,755 | 5,056 | |
* | DiamondRock Hospitality Co. | 647,638 | 4,864 |
Essential Properties Realty Trust Inc. | 241,617 | 4,699 | |
Piedmont Office Realty Trust Inc. Class A | 415,325 | 4,386 | |
National Storage Affiliates Trust | 90,575 | 3,766 | |
SITE Centers Corp. | 334,124 | 3,578 | |
American Assets Trust Inc. | 132,311 | 3,403 | |
EPR Properties | 83,785 | 3,005 | |
Getty Realty Corp. | 110,994 | 2,985 | |
Apple Hospitality REIT Inc. | 206,021 | 2,897 | |
Universal Health Realty Income Trust | 63,853 | 2,759 | |
Necessity Retail REIT Inc. | 433,883 | 2,551 | |
Rayonier Inc. | 84,291 | 2,526 | |
* | Summit Hotel Properties Inc. | 287,262 | 1,930 |
* | Xenia Hotels & Resorts Inc. | 123,463 | 1,703 |
Park Hotels & Resorts Inc. | 146,045 | 1,644 | |
Paramount Group Inc. | 234,552 | 1,461 | |
Office Properties Income Trust | 98,610 | 1,385 | |
RLJ Lodging Trust | 124,781 | 1,263 | |
Brandywine Realty Trust | 160,660 | 1,084 | |
RPT Realty | 138,584 | 1,048 | |
EastGroup Properties Inc. | 6,672 | 963 | |
One Liberty Properties Inc. | 37,488 | 788 | |
Armada Hoffler Properties Inc. | 51,813 | 538 | |
NexPoint Residential Trust Inc. | 10,877 | 503 | |
Gladstone Commercial Corp. | 31,344 | 486 | |
Alexander's Inc. | 1,669 | 349 | |
Urstadt Biddle Properties Inc. Class A | 19,617 | 304 | |
* | Chatham Lodging Trust | 26,089 | 258 |
Service Properties Trust | 42,471 | 220 | |
80,462 | |||
Utilities (3.1%) | |||
National Fuel Gas Co. | 144,374 | 8,886 | |
Otter Tail Corp. | 120,571 | 7,417 | |
Portland General Electric Co. | 153,489 | 6,671 | |
Hawaiian Electric Industries Inc. | 172,477 | 5,978 | |
Black Hills Corp. | 44,555 | 3,018 |
Shares | Market Value• ($000) | ||
Unitil Corp. | 51,560 | 2,395 | |
Chesapeake Utilities Corp. | 13,755 | 1,587 | |
ALLETE Inc. | 9,503 | 476 | |
36,428 | |||
Total Common Stocks (Cost $1,286,237) | 1,188,616 | ||
Temporary Cash Investments (0.6%) | |||
Money Market Fund (0.6%) | |||
2,3 | Vanguard Market Liquidity Fund, 2.828% (Cost $7,367) | 73,701 | 7,368 |
Total Investments (100.2%) (Cost $1,293,604) | 1,195,984 | ||
Other Assets and Liabilities—Net (-0.2%) | (1,922) | ||
Net Assets (100%) | 1,194,062 | ||
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 $642,000. |
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 $982,000 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 2022 | 89 | 7,431 | (623) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $1,286,237) | 1,188,616 |
Affiliated Issuers (Cost $7,367) | 7,368 |
Total Investments in Securities | 1,195,984 |
Investment in Vanguard | 50 |
Cash Collateral Pledged—Futures Contracts | 493 |
Receivables for Investment Securities Sold | 33 |
Receivables for Accrued Income | 834 |
Receivables for Capital Shares Issued | 421 |
Total Assets | 1,197,815 |
Liabilities | |
Due to Custodian | 20 |
Payables for Investment Securities Purchased | 11 |
Collateral for Securities on Loan | 982 |
Payables for Capital Shares Redeemed | 2,552 |
Payables to Vanguard | 133 |
Variation Margin Payable—Futures Contracts | 55 |
Total Liabilities | 3,753 |
Net Assets | 1,194,062 |
1 Includes $642 of securities on loan. | |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 1,224,909 |
Total Distributable Earnings (Loss) | (30,847) |
Net Assets | 1,194,062 |
Net Assets | |
Applicable to 39,231,972 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,194,062 |
Net Asset Value Per Share | $30.44 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 21,887 |
Interest2 | 52 |
Securities Lending—Net | 90 |
Total Income | 22,029 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 512 |
Management and Administrative | 3,088 |
Marketing and Distribution | 124 |
Custodian Fees | 16 |
Auditing Fees | 29 |
Shareholders’ Reports | 53 |
Trustees’ Fees and Expenses | 1 |
Other Expenses | 14 |
Total Expenses | 3,837 |
Net Investment Income | 18,192 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 103,689 |
Futures Contracts | (1,813) |
Realized Net Gain (Loss) | 101,876 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | (350,533) |
Futures Contracts | (500) |
Change in Unrealized Appreciation (Depreciation) | (351,033) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (230,965) |
1 | Dividends are net of foreign withholding taxes of $48,000. |
2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $49,000, $1,000, less than $1,000, and ($1,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 18,192 | 15,711 |
Realized Net Gain (Loss) | 101,876 | 313,510 |
Change in Unrealized Appreciation (Depreciation) | (351,033) | 228,291 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (230,965) | 557,512 |
Distributions | ||
Total Distributions | (277,283) | (15,307) |
Capital Share Transactions | ||
Issued | 355,042 | 616,207 |
Issued in Lieu of Cash Distributions | 246,930 | 13,795 |
Redeemed | (519,024) | (581,418) |
Net Increase (Decrease) from Capital Share Transactions | 82,948 | 48,584 |
Total Increase (Decrease) | (425,300) | 590,789 |
Net Assets | ||
Beginning of Period | 1,619,362 | 1,028,573 |
End of Period | 1,194,062 | 1,619,362 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $43.90 | $28.48 | $31.41 | $40.21 | $36.99 |
Investment Operations | |||||
Net Investment Income1 | .462 | .435 | .392 | .393 | .373 |
Net Realized and Unrealized Gain (Loss) on Investments | (6.143) | 15.424 | (1.955) | (5.888) | 5.294 |
Total from Investment Operations | (5.681) | 15.859 | (1.563) | (5.495) | 5.667 |
Distributions | |||||
Dividends from Net Investment Income | (.507) | (.439) | (.393) | (.378) | (.394) |
Distributions from Realized Capital Gains | (7.272) | — | (.974) | (2.927) | (2.053) |
Total Distributions | (7.779) | (.439) | (1.367) | (3.305) | (2.447) |
Net Asset Value, End of Period | $30.44 | $43.90 | $28.48 | $31.41 | $40.21 |
Total Return2 | -16.24% | 56.05% | -5.55% | -12.91% | 16.13% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $1,194 | $1,619 | $1,029 | $1,395 | $1,917 |
Ratio of Total Expenses to Average Net Assets | 0.26% | 0.26% | 0.26% | 0.26% | 0.29% |
Ratio of Net Investment Income to Average Net Assets | 1.24% | 1.08% | 1.35% | 1.22% | 0.99% |
Portfolio Turnover Rate | 72% | 76% | 66% | 67% | 88% |
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 | 17,284 |
Total Distributable Earnings (Loss) | (17,284) |
Amount ($000) | |
Undistributed Ordinary Income | 9,303 |
Undistributed Long-Term Gains | 76,418 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (18,724) |
Net Unrealized Gains (Losses) | (97,844) |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 64,350 | 15,307 |
Long-Term Capital Gains | 212,933 | — |
Total | 277,283 | 15,307 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 1,293,829 |
Gross Unrealized Appreciation | 135,372 |
Gross Unrealized Depreciation | (233,216) |
Net Unrealized Appreciation (Depreciation) | (97,844) |
E. | During the year ended September 30, 2022, the fund purchased $1,040,203,000 of investment securities and sold $1,211,790,000 of investment securities, other than temporary cash investments. |
F. | Capital shares issued and redeemed were: |
Year Ended September 30, | ||
2022 Shares (000) | 2021 Shares (000) | |
Issued | 9,044 | 14,866 |
Issued in Lieu of Cash Distributions | 6,602 | 389 |
Redeemed | (13,298) | (14,491) |
Net Increase (Decrease) in Shares Outstanding | 2,348 | 764 |
G. | Management has determined that no events or transactions occurred subsequent to September 30, 2022, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
November 17, 2022
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
Chris D. Mclsaac | Lauren Valente |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
1 | |
2 | |
5 | |
7 | |
9 |
• | The 12 months ended September 30, 2022, were a challenging time for financial markets. Vanguard International Core Stock Fund returned –20.00% for Investor Shares and –19.95% for Admiral Shares, outperforming the –25.17% return of its benchmark index. |
• | Early on, pent-up demand helped spur global growth and push unemployment rates down. The economic backdrop deteriorated, however, as inflation soared to multidecade highs, fueled in part by higher energy and food prices in the wake of Russia’s February invasion of Ukraine. Price increases then broadened to other categories of goods and services, boosting concerns that inflation would remain stubbornly high. That in turn prompted aggressive tightening by many central banks to bring inflation back in check and increased fears of a recession. |
• | A strengthening U.S. dollar relative to other currencies was a headwind for U.S.-based investors, lowering returns from overseas investments. The dollar rose by roughly 30% relative to the Japanese yen, almost 21% against the British pound, and more than 18% against the euro. Japan and the United Kingdom were two of the fund's largest country weightings. |
• | Across nearly all regions and sectors, the fund’s holdings generally held up better than those in the benchmark. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | -17.22% | 7.95% | 9.00% |
Russell 2000 Index (Small-caps) | -23.50 | 4.29 | 3.55 |
Russell 3000 Index (Broad U.S. market) | -17.63 | 7.70 | 8.62 |
FTSE All-World ex US Index (International) | -24.76 | -0.95 | -0.38 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | -14.61% | -3.22% | -0.23% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | -11.50 | -1.85 | 0.59 |
FTSE Three-Month U.S. Treasury Bill Index | 0.63 | 0.57 | 1.12 |
CPI | |||
Consumer Price Index | 8.20% | 4.95% | 3.76% |
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, 2022 | |||
Beginning Account Value 3/31/2022 | Ending Account Value 9/30/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
International Core Stock Fund | |||
Investor Shares | $1,000.00 | $ 802.30 | $2.17 |
Admiral™ Shares | 1,000.00 | 802.80 | 1.72 |
Based on Hypothetical 5% Yearly Return | |||
International Core Stock Fund | |||
Investor Shares | $1,000.00 | $1,022.66 | $2.43 |
Admiral Shares | 1,000.00 | 1,023.16 | 1.93 |
Average Annual Total Returns Periods Ended September 30, 2022 | ||||
One Year | Since Inception (10/16/2019) | Final Value of a $10,000 Investment | ||
International Core Stock Fund Investor Shares | -20.00% | 0.65% | $10,193 | |
MSCI All Country World Index ex USA | -25.17 | -2.05 | 9,407 |
One Year | Since Inception (10/16/2019) | Final Value of a $50,000 Investment | ||
International Core Stock Fund Admiral Shares | -19.95% | 0.74% | $51,095 | |
MSCI All Country World Index ex USA | -25.17 | -2.05 | 47,037 |
Japan | 12.2% |
China | 11.6 |
United Kingdom | 9.1 |
France | 8.0 |
Switzerland | 6.2 |
Canada | 5.8 |
Australia | 4.6 |
Germany | 3.8 |
South Korea | 3.6 |
Taiwan | 3.4 |
Brazil | 3.2 |
India | 3.2 |
Thailand | 2.3 |
Norway | 1.9 |
Sweden | 1.9 |
Singapore | 1.9 |
Netherlands | 1.8 |
Austria | 1.7 |
Mexico | 1.4 |
Denmark | 1.3 |
Finland | 1.2 |
Spain | 1.2 |
Italy | 1.0 |
Other | 7.7 |
Shares | Market Value• ($000) | |||||
Common Stocks (98.3%) | ||||||
Australia (4.5%) | ||||||
BHP Group Ltd. | 379,530 | 9,451 | ||||
Australia & New Zealand Banking Group Ltd. | 561,825 | 8,224 | ||||
Woodside Energy Group Ltd. | 257,168 | 5,254 | ||||
Goodman Group | 406,432 | 4,108 | ||||
Brambles Ltd. | 542,213 | 3,967 | ||||
31,004 | ||||||
Austria (1.6%) | ||||||
*,1 | BAWAG Group AG | 143,608 | 6,173 | |||
Erste Group Bank AG | 228,522 | 5,010 | ||||
11,183 | ||||||
Brazil (3.1%) | ||||||
* | Itau Unibanco Holding SA Preference Shares | 1,390,100 | 7,231 | |||
Telefonica Brasil SA | 789,600 | 5,926 | ||||
Banco do Brasil SA | 680,000 | 4,856 | ||||
Localiza Rent a Car SA | 295,100 | 3,342 | ||||
* | Localiza Rent a Car SA Rights Exp. 10/31/22 | 905 | 2 | |||
21,357 | ||||||
Canada (5.7%) | ||||||
Barrick Gold Corp. | 610,100 | 9,456 | ||||
Brookfield Asset Management Inc. Class A | 223,516 | 9,144 | ||||
Intact Financial Corp. | 60,247 | 8,526 | ||||
Cenovus Energy Inc. | 426,662 | 6,554 | ||||
RioCan REIT | 385,582 | 5,198 | ||||
38,878 | ||||||
China (11.4%) | ||||||
* | Trip.com Group Ltd. | 319,050 | 8,621 | |||
JD.com Inc. Class A | 316,300 | 7,980 | ||||
Tsingtao Brewery Co. Ltd. Class A | 529,557 | 7,891 | ||||
NetEase Inc. | 472,400 | 7,128 | ||||
* | Baidu Inc. Class A | 481,150 | 7,083 | |||
Yum China Holdings Inc. | 145,450 | 6,904 |
Shares | Market Value• ($000) | |||||
China Tourism Group Duty Free Corp. Ltd. Class A | 247,828 | 6,848 | ||||
China Longyuan Power Group Corp. Ltd. Class H | 5,436,000 | 6,793 | ||||
China Oilfield Services Ltd. Class H | 6,700,000 | 6,635 | ||||
YTO Express Group Co. Ltd. Class A | 2,267,800 | 6,615 | ||||
China Resources Beer Holdings Co. Ltd. | 816,000 | 5,660 | ||||
78,158 | ||||||
Denmark (1.3%) | ||||||
* | Genmab A/S | 26,924 | 8,661 | |||
Finland (1.2%) | ||||||
Nokia OYJ | 1,935,373 | 8,309 | ||||
France (7.9%) | ||||||
AXA SA | 472,184 | 10,309 | ||||
Engie SA | 832,368 | 9,581 | ||||
Pernod Ricard SA | 44,231 | 8,115 | ||||
Vinci SA | 97,750 | 7,904 | ||||
Airbus SE | 77,553 | 6,685 | ||||
Bureau Veritas SA | 251,779 | 5,634 | ||||
* | Renault SA | 207,757 | 5,621 | |||
Credit Agricole SA | 3,729 | 30 | ||||
53,879 | ||||||
Germany (3.8%) | ||||||
* | Commerzbank AG | 1,042,428 | 7,421 | |||
Siemens AG (Registered) | 71,844 | 7,022 | ||||
Brenntag SE | 104,401 | 6,311 | ||||
Wacker Chemie AG | 48,629 | 5,000 | ||||
25,754 | ||||||
Greece (0.7%) | ||||||
Hellenic Telecommunications Organization SA | 325,004 | 4,719 | ||||
Hong Kong (0.9%) | ||||||
CK Asset Holdings Ltd. | 1,029,000 | 6,177 |
Shares | Market Value• ($000) | |||||
India (3.1%) | ||||||
Axis Bank Ltd. | 934,103 | 8,352 | ||||
Larsen & Toubro Ltd. | 310,532 | 7,011 | ||||
Mahindra & Mahindra Ltd. | 379,529 | 5,872 | ||||
21,235 | ||||||
Indonesia (0.6%) | ||||||
Telkom Indonesia Persero Tbk. PT | 14,526,700 | 4,234 | ||||
Ireland (0.8%) | ||||||
Smurfit Kappa Group plc | 197,046 | 5,635 | ||||
Italy (1.0%) | ||||||
CNH Industrial NV | 617,228 | 6,908 | ||||
Japan (12.1%) | ||||||
Mitsui Fudosan Co. Ltd. | 504,900 | 9,618 | ||||
Mitsubishi UFJ Financial Group Inc. | 1,944,700 | 8,810 | ||||
Tokio Marine Holdings Inc. | 469,200 | 8,339 | ||||
T&D Holdings Inc. | 851,674 | 8,095 | ||||
Fujitsu Ltd. | 65,500 | 7,182 | ||||
Daiichi Sankyo Co. Ltd. | 240,900 | 6,733 | ||||
Bandai Namco Holdings Inc. | 102,700 | 6,693 | ||||
Subaru Corp. | 396,200 | 5,988 | ||||
ITOCHU Corp. | 229,900 | 5,549 | ||||
Ono Pharmaceutical Co. Ltd. | 232,100 | 5,422 | ||||
Yamaha Motor Co. Ltd. | 287,000 | 5,377 | ||||
Nippon Telegraph & Telephone Corp. | 170,900 | 4,610 | ||||
82,416 | ||||||
Mexico (1.4%) | ||||||
Wal-Mart de Mexico SAB de CV | 2,670,000 | 9,390 | ||||
Netherlands (1.8%) | ||||||
* | AerCap Holdings NV | 150,130 | 6,355 | |||
Coca-Cola Europacific Partners plc | 141,716 | 6,040 | ||||
12,395 | ||||||
Norway (1.9%) | ||||||
Equinor ASA | 198,730 | 6,554 | ||||
Norsk Hydro ASA | 1,189,389 | 6,382 | ||||
12,936 | ||||||
Other (3.4%) | ||||||
2 | Vanguard FTSE Developed Markets ETF | 646,332 | 23,501 | |||
Philippines (0.7%) | ||||||
BDO Unibank Inc. | 2,662,120 | 5,044 | ||||
Portugal (0.4%) | ||||||
Jeronimo Martins SGPS SA | 154,210 | 2,872 |
Shares | Market Value• ($000) | |||||
Russia (0.0%) | ||||||
3 | Magnit PJSC | 31,141 | — | |||
Singapore (1.8%) | ||||||
DBS Group Holdings Ltd. | 423,600 | 9,799 | ||||
CapitaLand Integrated Commercial Trust | 1,976,700 | 2,630 | ||||
12,429 | ||||||
South Korea (3.5%) | ||||||
Samsung Electronics Co. Ltd. | 376,094 | 13,810 | ||||
SK Telecom Co. Ltd. | 167,283 | 5,906 | ||||
SK Hynix Inc. | 76,785 | 4,392 | ||||
24,108 | ||||||
Spain (1.2%) | ||||||
Repsol SA | 698,249 | 8,023 | ||||
Sweden (1.8%) | ||||||
Volvo AB Class B | 538,759 | 7,624 | ||||
Alfa Laval AB | 198,262 | 4,916 | ||||
12,540 | ||||||
Switzerland (6.1%) | ||||||
Roche Holding AG | 43,218 | 14,069 | ||||
Novartis AG (Registered) | 183,261 | 13,971 | ||||
Nestle SA (Registered) | 125,066 | 13,527 | ||||
41,567 | ||||||
Taiwan (3.4%) | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,042,000 | 13,812 | ||||
Hon Hai Precision Industry Co. Ltd. | 2,875,309 | 9,207 | ||||
23,019 | ||||||
Thailand (2.2%) | ||||||
Kasikornbank PCL (Foreign) | 1,639,800 | 6,231 | ||||
Bangkok Dusit Medical Services PCL (Foreign) | 7,739,000 | 6,033 | ||||
Thai Beverage PCL | 7,336,500 | 3,054 | ||||
15,318 | ||||||
United Kingdom (9.0%) | ||||||
Shell plc | 607,622 | 15,074 | ||||
BAE Systems plc | 1,132,466 | 9,950 | ||||
Anglo American plc | 320,042 | 9,610 | ||||
Compass Group plc | 465,816 | 9,276 | ||||
Standard Chartered plc | 1,391,783 | 8,705 | ||||
WPP plc | 703,591 | 5,808 | ||||
BT Group plc | 2,310,117 | 3,105 | ||||
61,528 | ||||||
Total Common Stocks (Cost $781,517) | 673,177 |
Shares | Market Value• ($000) | |||||
Temporary Cash Investments (1.3%) | ||||||
Money Market Fund (1.3%) | ||||||
4 | Vanguard Market Liquidity Fund, 2.828% (Cost $8,783) | 87,862 | 8,783 | |||
Total Investments (99.6%) (Cost $790,300) | 681,960 | |||||
Other Assets and Liabilities—Net (0.4%) | 2,487 | |||||
Net Assets (100%) | 684,447 |
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, 2022, the aggregate value was $6,173,000, representing 0.9% of net assets. |
2 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
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. |
REIT—Real Estate Investment Trust. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $755,128) | 649,676 |
Affiliated Issuers (Cost $35,172) | 32,284 |
Total Investments in Securities | 681,960 |
Investment in Vanguard | 27 |
Cash | 119 |
Foreign Currency, at Value (Cost $6,100) | 6,091 |
Receivables for Investment Securities Sold | 1,707 |
Receivables for Accrued Income | 2,480 |
Receivables for Capital Shares Issued | 3,578 |
Total Assets | 695,962 |
Liabilities | |
Payables for Investment Securities Purchased | 10,464 |
Payables for Capital Shares Redeemed | 429 |
Payables to Investment Advisor | 367 |
Payables to Vanguard | 65 |
Deferred Foreign Capital Gains Taxes | 190 |
Total Liabilities | 11,515 |
Net Assets | 684,447 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 809,893 |
Total Distributable Earnings (Loss) | (125,446) |
Net Assets | 684,447 |
Investor Shares—Net Assets | |
Applicable to 6,229,703 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 59,654 |
Net Asset Value Per Share—Investor Shares | $9.58 |
Admiral Shares—Net Assets | |
Applicable to 32,593,063 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 624,793 |
Net Asset Value Per Share—Admiral Shares | $19.17 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 18,900 |
Dividends—Affiliated Issuers | 478 |
Non-Cash Dividends | 1,064 |
Interest—Unaffiliated Issuers | — |
Interest—Affiliated Issuers | 76 |
Securities Lending—Net | 84 |
Total Income | 20,602 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 1,123 |
Performance Adjustment | 156 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 157 |
Management and Administrative—Admiral Shares | 787 |
Marketing and Distribution—Investor Shares | 8 |
Marketing and Distribution—Admiral Shares | 31 |
Custodian Fees | 63 |
Auditing Fees | 39 |
Shareholders’ Reports—Investor Shares | 18 |
Shareholders’ Reports—Admiral Shares | 10 |
Trustees’ Fees and Expenses | — |
Other Expenses | 33 |
Total Expenses | 2,425 |
Expenses Paid Indirectly | (1) |
Net Expenses | 2,424 |
Net Investment Income | 18,178 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received—Affiliated Issuers | — |
Investment Securities Sold—Unaffiliated Issuers2 | (24,916) |
Investment Securities Sold—Affiliated Issuers | (2,787) |
Foreign Currencies | (550) |
Realized Net Gain (Loss) | (28,253) |
Statement of Operations (continued) | |
Year Ended September 30, 2022 | |
($000) | |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers3 | (138,402) |
Investment Securities—Affiliated Issuers | (3,750) |
Foreign Currencies | (7) |
Change in Unrealized Appreciation (Depreciation) | (142,159) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (152,234) |
1 | Dividends are net of foreign withholding taxes of $2,162,000. |
2 | Realized Gain (Loss) is net of foreign capital gains taxes of $200,000. |
3 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $26,000. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 18,178 | 10,541 |
Realized Net Gain (Loss) | (28,253) | 16,533 |
Change in Unrealized Appreciation (Depreciation) | (142,159) | 33,825 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (152,234) | 60,899 |
Distributions | ||
Investor Shares | (3,031) | (814) |
Admiral Shares | (20,529) | (3,445) |
Total Distributions | (23,560) | (4,259) |
Capital Share Transactions | ||
Investor Shares | 8,218 | 20,492 |
Admiral Shares | 315,299 | 271,650 |
Net Increase (Decrease) from Capital Share Transactions | 323,517 | 292,142 |
Total Increase (Decrease) | 147,723 | 348,782 |
Net Assets | ||
Beginning of Period | 536,724 | 187,942 |
End of Period | 684,447 | 536,724 |
Investor Shares | |||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | October 1, 20191 to September 30, 2020 | |
2022 | 2021 | ||
Net Asset Value, Beginning of Period | $12.50 | $9.91 | $10.00 |
Investment Operations | |||
Net Investment Income2 | .329 | .307 | .190 |
Net Realized and Unrealized Gain (Loss) on Investments | (2.723) | 2.490 | (.269) |
Total from Investment Operations | (2.394) | 2.797 | (.079) |
Distributions | |||
Dividends from Net Investment Income | (.336) | (.207) | (.011) |
Distributions from Realized Capital Gains | (.190) | — | — |
Total Distributions | (.526) | (.207) | (.011) |
Net Asset Value, End of Period | $9.58 | $12.50 | $9.91 |
Total Return3 | -20.00% | 28.44% | -0.79% |
Ratios/Supplemental Data | |||
Net Assets, End of Period (Millions) | $60 | $70 | $39 |
Ratio of Total Expenses to Average Net Assets4 | 0.48% 5 | 0.45% | 0.46% 5,6 |
Ratio of Net Investment Income to Average Net Assets | 2.84% | 2.53% | 2.04% 6 |
Portfolio Turnover Rate | 63% | 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 0.03% and 0.00%. Performance-based investment advisory fees did not apply before fiscal year 2021. |
5 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.48% and 0.45%, respectively. |
6 | Annualized. |
Admiral Shares | |||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | October 1, 20191 to September 30, 2020 | |
2022 | 2021 | ||
Net Asset Value, Beginning of Period | $25.02 | $19.85 | $20.00 |
Investment Operations | |||
Net Investment Income2 | .671 | .684 | .401 |
Net Realized and Unrealized Gain (Loss) on Investments | (5.446) | 4.921 | (.527) |
Total from Investment Operations | (4.775) | 5.605 | (.126) |
Distributions | |||
Dividends from Net Investment Income | (.695) | (.435) | (.024) |
Distributions from Realized Capital Gains | (.380) | — | — |
Total Distributions | (1.075) | (.435) | (.024) |
Net Asset Value, End of Period | $19.17 | $25.02 | $19.85 |
Total Return3 | -19.95% | 28.47% | -0.64% |
Ratios/Supplemental Data | |||
Net Assets, End of Period (Millions) | $625 | $466 | $149 |
Ratio of Total Expenses to Average Net Assets4 | 0.38% 5 | 0.35% | 0.36% 5,6 |
Ratio of Net Investment Income to Average Net Assets | 2.93% | 2.78% | 2.15% 6 |
Portfolio Turnover Rate | 63% | 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 0.03% and 0.00%. Performance-based investment advisory fees did not apply before fiscal year 2021. |
5 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.38% and 0.35%, respectively. |
6 | Annualized. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 69,623 | 2 | — | 69,625 |
Common Stocks—Other | 35,895 | 567,657 | — | 603,552 |
Temporary Cash Investments | 8,783 | — | — | 8,783 |
Total | 114,301 | 567,659 | — | 681,960 |
Amount ($000) | |
Undistributed Ordinary Income | 15,297 |
Undistributed Long-Term Gains | — |
Capital Loss Carryforwards | (28,351) |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | (112,511) |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 15,224 | 4,259 |
Long-Term Capital Gains | 8,336 | — |
Total | 23,560 | 4,259 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 794,262 |
Gross Unrealized Appreciation | 18,024 |
Gross Unrealized Depreciation | (130,326) |
Net Unrealized Appreciation (Depreciation) | (112,302) |
Year Ended September 30, | |||||
2022 | 2021 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 41,467 | 3,472 | 54,340 | 4,457 | |
Issued in Lieu of Cash Distributions | 2,587 | 216 | 679 | 60 | |
Redeemed | (35,836) | (3,086) | (34,527) | (2,855) | |
Net Increase (Decrease)—Investor Shares | 8,218 | 602 | 20,492 | 1,662 |
Year Ended September 30, | |||||
2022 | 2021 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Admiral Shares | |||||
Issued | 460,904 | 20,399 | 370,262 | 15,194 | |
Issued in Lieu of Cash Distributions | 17,527 | 730 | 2,621 | 116 | |
Redeemed | (163,132) | (7,175) | (101,233) | (4,160) | |
Net Increase (Decrease)—Admiral Shares | 315,299 | 13,954 | 271,650 | 11,150 |
Current Period Transactions | ||||||||
Sep. 30, 2021 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, 2022 Market Value ($000) | |
Vanguard FTSE Developed Markets ETF | 5,704 | 95,664 | 71,334 | (2,783) | (3,750) | 478 | — | 23,501 |
Vanguard Market Liquidity Fund | 5,419 | NA 1 | NA 1 | (4) | — | 76 | — | 8,783 |
Total | 11,123 | 95,664 | 71,334 | (2,787) | (3,750) | 554 | — | 32,284 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
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November 18, 2022
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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, 2022: $160,000
Fiscal Year Ended September 30, 2021: $176,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended September 30, 2022: $10,494,508
Fiscal Year Ended September 30, 2021: $11,244,694
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, 2022: $2,757,764
Fiscal Year Ended September 30, 2021: $2,955,181
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, 2022: $5,202,689
Fiscal Year Ended September 30, 2021: $2,047,574
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, 2022: $298,000
Fiscal Year Ended September 30, 2021: $280,000
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, 2022: $5,500,689
Fiscal Year Ended September 30, 2021: $2,327,574
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. There were no 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 21, 2022
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 21, 2022
VANGUARD HORIZON FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: November 21, 2022
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on October 11, 2022 (see File Number 333-11763), Incorporated by Reference.