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, 2022—March 31, 2023
Item 1: Reports to Shareholders
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 18 |
Liquidity Risk Management | 20 |
• | 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 March 31, 2023 | |||
Strategic Equity Fund | Beginning Account Value 9/30/2022 | Ending Account Value 3/31/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,150.20 | $0.91 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,024.08 | 0.86 |
Communication Services | 3.9% |
Consumer Discretionary | 12.2 |
Consumer Staples | 4.2 |
Energy | 4.4 |
Financials | 13.7 |
Health Care | 12.0 |
Industrials | 16.2 |
Information Technology | 14.8 |
Materials | 5.7 |
Real Estate | 7.4 |
Utilities | 5.5 |
Shares | Market Value• ($000) | ||
Common Stocks (99.5%) | |||
Communication Services (3.9%) | |||
* | Live Nation Entertainment Inc. | 619,886 | 43,392 |
Iridium Communications Inc. | 513,004 | 31,770 | |
* | Yelp Inc. Class A | 927,674 | 28,480 |
New York Times Co. Class A | 612,870 | 23,828 | |
* | Match Group Inc. | 524,408 | 20,132 |
News Corp. Class B | 722,116 | 12,586 | |
* | Pinterest Inc. Class A | 442,378 | 12,064 |
Madison Square Garden Sports Corp. | 61,686 | 12,019 | |
Omnicom Group Inc. | 104,477 | 9,856 | |
* | TripAdvisor Inc. | 470,103 | 9,336 |
Cable One Inc. | 13,200 | 9,266 | |
Cogent Communications Holdings Inc. | 138,803 | 8,845 | |
Interpublic Group of Cos. Inc. | 222,258 | 8,277 | |
Shutterstock Inc. | 95,151 | 6,908 | |
* | ZipRecruiter Inc. Class A | 264,455 | 4,215 |
* | PubMatic Inc. Class A | 295,486 | 4,084 |
*,1 | AMC Entertainment Holdings Inc. Class A | 780,214 | 3,909 |
* | Altice USA Inc. Class A | 1,094,730 | 3,744 |
News Corp. Class A | 213,779 | 3,692 | |
* | Playtika Holding Corp. | 293,491 | 3,305 |
Sinclair Broadcast Group Inc. Class A | 157,702 | 2,706 | |
Lumen Technologies Inc. | 804,011 | 2,131 | |
* | fuboTV Inc. | 1,714,800 | 2,075 |
Fox Corp. Class B | 53,838 | 1,686 | |
* | Cinemark Holdings Inc. | 105,415 | 1,559 |
Warner Music Group Corp. Class A | 46,066 | 1,537 | |
* | ZoomInfo Technologies Inc. Class A | 53,257 | 1,316 |
* | Liberty Media Corp.- Liberty SiriusXM Class C | 36,649 | 1,026 |
273,744 | |||
Consumer Discretionary (12.1%) | |||
Genuine Parts Co. | 337,116 | 56,403 | |
* | Ulta Beauty Inc. | 77,832 | 42,471 |
Boyd Gaming Corp. | 616,528 | 39,532 | |
* | AutoNation Inc. | 288,657 | 38,784 |
* | NVR Inc. | 6,100 | 33,990 |
* | Expedia Group Inc. | 342,568 | 33,239 |
Shares | Market Value• ($000) | ||
LKQ Corp. | 579,257 | 32,879 | |
Tapestry Inc. | 761,653 | 32,835 | |
* | Skyline Champion Corp. | 420,089 | 31,603 |
* | Capri Holdings Ltd. | 580,513 | 27,284 |
Travel & Leisure Co. | 628,742 | 24,647 | |
Toll Brothers Inc. | 408,774 | 24,539 | |
* | Tri Pointe Homes Inc. | 887,192 | 22,464 |
Buckle Inc. | 503,737 | 17,978 | |
Brunswick Corp. | 216,597 | 17,761 | |
Winnebago Industries Inc. | 287,149 | 16,568 | |
* | Cavco Industries Inc. | 52,018 | 16,528 |
* | SeaWorld Entertainment Inc. | 262,055 | 16,067 |
Harley-Davidson Inc. | 404,130 | 15,345 | |
Bath & Body Works Inc. | 391,982 | 14,339 | |
Wendy's Co. | 588,370 | 12,815 | |
Macy's Inc. | 680,819 | 11,907 | |
* | Hyatt Hotels Corp. Class A | 104,175 | 11,646 |
Murphy USA Inc. | 44,637 | 11,519 | |
Tractor Supply Co. | 45,976 | 10,806 | |
* | Taylor Morrison Home Corp. Class A | 274,196 | 10,491 |
* | Caesars Entertainment Inc. | 211,247 | 10,311 |
* | Stride Inc. | 262,431 | 10,300 |
PVH Corp. | 93,914 | 8,373 | |
Texas Roadhouse Inc. Class A | 74,409 | 8,041 | |
* | Shake Shack Inc. Class A | 142,818 | 7,925 |
Red Rock Resorts Inc. Class A | 174,483 | 7,777 | |
Signet Jewelers Ltd. | 98,283 | 7,644 | |
* | Under Armour Inc. Class C | 893,495 | 7,621 |
*,1 | Chewy Inc. Class A | 190,636 | 7,126 |
* | Goodyear Tire & Rubber Co. | 636,567 | 7,015 |
Meritage Homes Corp. | 58,954 | 6,883 | |
Academy Sports & Outdoors Inc. | 105,360 | 6,875 | |
Dine Brands Global Inc. | 98,320 | 6,650 | |
Marriott Vacations Worldwide Corp. | 47,296 | 6,378 | |
ADT Inc. | 857,702 | 6,201 | |
* | Chegg Inc. | 372,448 | 6,071 |
Steven Madden Ltd. | 167,382 | 6,026 | |
* | Etsy Inc. | 53,678 | 5,976 |
MGM Resorts International | 119,743 | 5,319 | |
* | Abercrombie & Fitch Co. Class A | 191,138 | 5,304 |
* | Grand Canyon Education Inc. | 44,337 | 5,050 |
Shares | Market Value• ($000) | ||
Patrick Industries Inc. | 72,229 | 4,970 | |
* | Hilton Grand Vacations Inc. | 103,910 | 4,617 |
Williams-Sonoma Inc. | 37,132 | 4,517 | |
* | WW International Inc. | 1,083,540 | 4,464 |
* | Everi Holdings Inc. | 259,747 | 4,455 |
* | American Axle & Manufacturing Holdings Inc. | 550,818 | 4,302 |
* | Penn Entertainment Inc. | 144,743 | 4,293 |
Columbia Sportswear Co. | 46,183 | 4,168 | |
Qurate Retail Inc. Series A | 3,889,336 | 3,842 | |
Service Corp. International | 54,234 | 3,730 | |
PulteGroup Inc. | 60,839 | 3,546 | |
*,1 | Stitch Fix Inc. Class A | 663,101 | 3,388 |
*,1 | Luminar Technologies Inc. Class A | 467,746 | 3,036 |
* | Deckers Outdoor Corp. | 6,343 | 2,851 |
Jack in the Box Inc. | 28,238 | 2,473 | |
* | Visteon Corp. | 15,643 | 2,453 |
* | Six Flags Entertainment Corp. | 88,971 | 2,376 |
Group 1 Automotive Inc. | 10,042 | 2,274 | |
* | Dave & Buster's Entertainment Inc. | 56,705 | 2,086 |
Hibbett Inc. | 32,602 | 1,923 | |
Century Communities Inc. | 29,065 | 1,858 | |
* | Fox Factory Holding Corp. | 14,826 | 1,799 |
* | MarineMax Inc. | 61,798 | 1,777 |
Aaron's Co. Inc. | 166,515 | 1,609 | |
* | XPEL Inc. | 23,631 | 1,606 |
Oxford Industries Inc. | 14,790 | 1,562 | |
* | Brinker International Inc. | 38,651 | 1,469 |
Vail Resorts Inc. | 6,009 | 1,404 | |
Wyndham Hotels & Resorts Inc. | 18,073 | 1,226 | |
857,380 | |||
Consumer Staples (4.2%) | |||
Cal-Maine Foods Inc. | 502,459 | 30,595 | |
Lamb Weston Holdings Inc. | 261,777 | 27,361 | |
Ingles Markets Inc. Class A | 233,625 | 20,723 | |
* | elf Beauty Inc. | 243,887 | 20,084 |
J M Smucker Co. | 123,000 | 19,357 | |
Flowers Foods Inc. | 547,163 | 14,998 | |
Coca-Cola Consolidated Inc. | 27,004 | 14,449 | |
Ingredion Inc. | 138,389 | 14,078 | |
Conagra Brands Inc. | 368,677 | 13,848 | |
* | Pilgrim's Pride Corp. | 575,645 | 13,343 |
* | Coty Inc. Class A | 1,072,093 | 12,929 |
* | Darling Ingredients Inc. | 220,890 | 12,900 |
Campbell Soup Co. | 204,239 | 11,229 | |
* | Herbalife Nutrition Ltd. | 650,804 | 10,478 |
Medifast Inc. | 90,978 | 9,432 | |
Church & Dwight Co. Inc. | 99,678 | 8,813 | |
* | Hostess Brands Inc. Class A | 325,526 | 8,099 |
* | Dollar Tree Inc. | 53,133 | 7,627 |
* | USANA Health Sciences Inc. | 72,128 | 4,537 |
Casey's General Stores Inc. | 20,391 | 4,414 | |
* | Sprouts Farmers Market Inc. | 89,223 | 3,125 |
Vector Group Ltd. | 247,366 | 2,971 | |
* | Performance Food Group Co. | 45,639 | 2,754 |
* | Hain Celestial Group Inc. | 153,304 | 2,629 |
* | Beauty Health Co. | 190,924 | 2,411 |
Shares | Market Value• ($000) | ||
Energizer Holdings Inc. | 53,990 | 1,873 | |
* | United Natural Foods Inc. | 42,074 | 1,109 |
296,166 | |||
Energy (4.4%) | |||
Halliburton Co. | 1,364,990 | 43,188 | |
APA Corp. | 666,673 | 24,040 | |
Plains GP Holdings LP Class A | 1,591,070 | 20,875 | |
Liberty Energy Inc. Class A | 1,573,332 | 20,154 | |
SM Energy Co. | 700,728 | 19,733 | |
Marathon Oil Corp. | 822,473 | 19,707 | |
PDC Energy Inc. | 286,585 | 18,393 | |
* | Southwestern Energy Co. | 2,608,008 | 13,040 |
* | Weatherford International plc | 219,186 | 13,009 |
* | Par Pacific Holdings Inc. | 406,363 | 11,866 |
Helmerich & Payne Inc. | 323,108 | 11,551 | |
* | Nabors Industries Ltd. (XNYS) | 94,656 | 11,540 |
Range Resources Corp. | 390,142 | 10,327 | |
Diamondback Energy Inc. | 70,760 | 9,565 | |
Ovintiv Inc. (XNYS) | 263,278 | 9,499 | |
Delek US Holdings Inc. | 364,222 | 8,359 | |
* | Talos Energy Inc. | 438,534 | 6,508 |
* | W&T Offshore Inc. | 1,116,613 | 5,672 |
* | Kosmos Energy Ltd. | 757,987 | 5,639 |
Murphy Oil Corp. | 136,424 | 5,045 | |
* | US Silica Holdings Inc. | 248,236 | 2,964 |
* | NexTier Oilfield Solutions Inc. | 367,976 | 2,925 |
Patterson-UTI Energy Inc. | 244,087 | 2,856 | |
* | Gulfport Energy Corp. | 32,692 | 2,615 |
* | Oceaneering International Inc. | 114,680 | 2,022 |
* | Denbury Inc. | 22,609 | 1,981 |
* | ProPetro Holding Corp. | 248,363 | 1,786 |
Equitrans Midstream Corp. | 261,770 | 1,513 | |
* | Callon Petroleum Co. | 35,711 | 1,194 |
307,566 | |||
Financials (13.7%) | |||
W R Berkley Corp. | 712,926 | 44,387 | |
Radian Group Inc. | 1,922,984 | 42,498 | |
LPL Financial Holdings Inc. | 196,265 | 39,724 | |
MGIC Investment Corp. | 2,888,468 | 38,763 | |
Equitable Holdings Inc. | 1,483,433 | 37,664 | |
Essent Group Ltd. | 785,379 | 31,454 | |
Hartford Financial Services Group Inc. | 450,494 | 31,395 | |
CNO Financial Group Inc. | 1,266,498 | 28,104 | |
Affiliated Managers Group Inc. | 178,125 | 25,369 | |
Stifel Financial Corp. | 425,657 | 25,152 | |
American Financial Group Inc. | 201,567 | 24,490 | |
Evercore Inc. Class A | 190,093 | 21,933 | |
Fidelity National Financial Inc. | 609,597 | 21,293 | |
Cboe Global Markets Inc. | 150,584 | 20,214 | |
Popular Inc. | 347,667 | 19,960 | |
FNB Corp. | 1,706,735 | 19,798 | |
Synovus Financial Corp. | 630,189 | 19,429 | |
SouthState Corp. | 269,992 | 19,240 | |
Comerica Inc. | 442,193 | 19,200 | |
Zions Bancorp NA | 636,841 | 19,061 | |
Loews Corp. | 328,295 | 19,048 | |
SLM Corp. | 1,478,870 | 18,323 | |
Primerica Inc. | 102,585 | 17,669 |
Shares | Market Value• ($000) | ||
Tradeweb Markets Inc. Class A | 222,884 | 17,612 | |
Carlyle Group Inc. | 566,903 | 17,608 | |
First BanCorp. (XNYS) | 1,409,763 | 16,099 | |
Regions Financial Corp. | 841,751 | 15,623 | |
Fifth Third Bancorp | 554,513 | 14,772 | |
Hancock Whitney Corp. | 402,753 | 14,660 | |
International Bancshares Corp. | 310,505 | 13,296 | |
Columbia Banking System Inc. | 607,341 | 13,009 | |
Old National Bancorp | 901,422 | 12,998 | |
Synchrony Financial | 445,334 | 12,950 | |
Everest Re Group Ltd. | 35,717 | 12,787 | |
Unum Group | 316,078 | 12,504 | |
* | Robinhood Markets Inc. Class A | 1,164,424 | 11,307 |
Wintrust Financial Corp. | 147,161 | 10,735 | |
Hanover Insurance Group Inc. | 74,595 | 9,585 | |
Virtu Financial Inc. Class A | 500,707 | 9,463 | |
* | LendingClub Corp. | 1,298,055 | 9,359 |
Axis Capital Holdings Ltd. | 164,442 | 8,965 | |
Lincoln National Corp. | 392,947 | 8,830 | |
Voya Financial Inc. | 118,640 | 8,478 | |
Western Alliance Bancorp | 221,663 | 7,878 | |
PacWest Bancorp | 754,214 | 7,338 | |
UMB Financial Corp. | 126,690 | 7,313 | |
Jackson Financial Inc. Class A | 186,735 | 6,986 | |
Webster Financial Corp. | 176,918 | 6,974 | |
Associated Banc-Corp. | 339,979 | 6,113 | |
* | Brighthouse Financial Inc. | 136,173 | 6,007 |
Reinsurance Group of America Inc. | 44,642 | 5,927 | |
Navient Corp. | 355,612 | 5,686 | |
Citizens Financial Group Inc. | 171,860 | 5,219 | |
American Equity Investment Life Holding Co. | 122,022 | 4,453 | |
Nasdaq Inc. | 80,352 | 4,393 | |
* | AvidXchange Holdings Inc. | 541,434 | 4,223 |
Brightsphere Investment Group Inc. | 173,942 | 4,102 | |
* | Cannae Holdings Inc. | 149,397 | 3,015 |
OFG Bancorp | 118,348 | 2,952 | |
* | Green Dot Corp. Class A | 159,930 | 2,748 |
East West Bancorp Inc. | 49,166 | 2,729 | |
* | Customers Bancorp Inc. | 98,880 | 1,831 |
Glacier Bancorp Inc. | 39,298 | 1,651 | |
Simmons First National Corp. Class A | 93,570 | 1,637 | |
* | Payoneer Global Inc. | 250,444 | 1,573 |
Fulton Financial Corp. | 107,959 | 1,492 | |
First Hawaiian Inc. | 69,187 | 1,427 | |
Bank OZK | 39,547 | 1,353 | |
S&T Bancorp Inc. | 41,921 | 1,318 | |
First Interstate BancSystem Inc. Class A | 42,553 | 1,271 | |
Assured Guaranty Ltd. | 23,873 | 1,200 | |
WSFS Financial Corp. | 27,289 | 1,026 | |
Eagle Bancorp Inc. | 28,582 | 957 | |
965,600 |
Shares | Market Value• ($000) | ||
Health Care (11.9%) | |||
AmerisourceBergen Corp. Class A | 302,801 | 48,481 | |
Chemed Corp. | 86,238 | 46,374 | |
* | Alkermes plc | 1,443,943 | 40,705 |
* | Tenet Healthcare Corp. | 567,077 | 33,696 |
Bruker Corp. | 408,280 | 32,189 | |
West Pharmaceutical Services Inc. | 78,077 | 27,051 | |
* | IQVIA Holdings Inc. | 135,568 | 26,963 |
* | Mettler-Toledo International Inc. | 17,308 | 26,485 |
* | Medpace Holdings Inc. | 136,773 | 25,720 |
* | Inspire Medical Systems Inc. | 105,074 | 24,595 |
* | Teladoc Health Inc. | 919,900 | 23,825 |
* | AMN Healthcare Services Inc. | 284,640 | 23,614 |
* | Lantheus Holdings Inc. | 264,064 | 21,801 |
* | Incyte Corp. | 282,190 | 20,394 |
* | ACADIA Pharmaceuticals Inc. | 1,002,558 | 18,868 |
* | Exact Sciences Corp. | 254,361 | 17,248 |
* | Merit Medical Systems Inc. | 207,716 | 15,361 |
Laboratory Corp. of America Holdings | 64,951 | 14,901 | |
* | Veradigm Inc. | 1,128,385 | 14,725 |
* | Intercept Pharmaceuticals Inc. | 1,077,887 | 14,476 |
* | Deciphera Pharmaceuticals Inc. | 853,101 | 13,180 |
* | PTC Therapeutics Inc. | 257,348 | 12,466 |
* | Veeva Systems Inc. Class A | 67,203 | 12,351 |
* | Integra LifeSciences Holdings Corp. | 214,105 | 12,292 |
* | Shockwave Medical Inc. | 55,600 | 12,056 |
* | Haemonetics Corp. | 130,362 | 10,787 |
* | Nevro Corp. | 296,669 | 10,725 |
* | STAAR Surgical Co. | 164,025 | 10,489 |
* | Ultragenyx Pharmaceutical Inc. | 253,234 | 10,155 |
* | Exelixis Inc. | 494,737 | 9,603 |
*,1 | Novavax Inc. | 1,329,273 | 9,212 |
* | Ionis Pharmaceuticals Inc. | 257,725 | 9,211 |
* | ImmunoGen Inc. | 2,320,321 | 8,910 |
* | Bridgebio Pharma Inc. | 533,636 | 8,848 |
* | Evolent Health Inc. Class A | 265,676 | 8,621 |
Universal Health Services Inc. Class B | 62,728 | 7,973 | |
* | GoodRx Holdings Inc. Class A | 1,270,389 | 7,940 |
* | Jazz Pharmaceuticals plc | 51,237 | 7,497 |
* | Neurocrine Biosciences Inc. | 70,001 | 7,085 |
* | Avantor Inc. | 291,815 | 6,169 |
* | Agenus Inc. | 4,057,529 | 6,167 |
Cooper Cos. Inc. | 16,267 | 6,073 | |
* | Enanta Pharmaceuticals Inc. | 141,360 | 5,717 |
* | Axonics Inc. | 103,455 | 5,644 |
* | Health Catalyst Inc. | 437,940 | 5,111 |
* | Mirati Therapeutics Inc. | 133,847 | 4,976 |
* | Natera Inc. | 87,410 | 4,853 |
Cardinal Health Inc. | 60,586 | 4,574 | |
* | TG Therapeutics Inc. | 299,391 | 4,503 |
* | Pediatrix Medical Group Inc. | 281,121 | 4,192 |
* | Option Care Health Inc. | 118,595 | 3,768 |
Shares | Market Value• ($000) | ||
* | Charles River Laboratories International Inc. | 18,145 | 3,662 |
* | Myriad Genetics Inc. | 145,320 | 3,376 |
* | MacroGenics Inc. | 438,261 | 3,142 |
* | Fate Therapeutics Inc. | 527,058 | 3,004 |
* | iRhythm Technologies Inc. | 23,465 | 2,910 |
* | LivaNova plc | 66,502 | 2,898 |
* | Protagonist Therapeutics Inc. | 124,574 | 2,865 |
* | Travere Thrapeutics Inc. | 125,581 | 2,824 |
* | 2seventy bio Inc. | 271,346 | 2,768 |
* | BioCryst Pharmaceuticals Inc. | 308,846 | 2,576 |
* | Inovio Pharmaceuticals Inc. | 3,001,740 | 2,461 |
* | Editas Medicine Inc. Class A | 321,404 | 2,330 |
* | Arrowhead Pharmaceuticals Inc. | 89,007 | 2,261 |
* | Amedisys Inc. | 30,218 | 2,223 |
* | Emergent BioSolutions Inc. | 208,756 | 2,163 |
* | Prestige Consumer Healthcare Inc. | 30,585 | 1,916 |
* | Community Health Systems Inc. | 375,750 | 1,841 |
* | Twist Bioscience Corp. | 118,830 | 1,792 |
* | Rigel Pharmaceuticals Inc. | 1,318,144 | 1,740 |
* | 10X Genomics Inc. Class A | 30,788 | 1,718 |
* | Puma Biotechnology Inc. | 540,434 | 1,670 |
* | Silk Road Medical Inc. | 41,137 | 1,610 |
* | CorVel Corp. | 8,398 | 1,598 |
* | Veracyte Inc. | 71,405 | 1,592 |
* | Vir Biotechnology Inc. | 68,065 | 1,584 |
* | DaVita Inc. | 17,739 | 1,439 |
* | FibroGen Inc. | 76,732 | 1,432 |
*,1 | Tilray Brands Inc. | 532,420 | 1,347 |
* | Morphic Holding Inc. | 35,517 | 1,337 |
* | Joint Corp. | 66,951 | 1,127 |
* | Seres Therapeutics Inc. | 195,204 | 1,107 |
* | Nektar Therapeutics Class A | 1,517,103 | 1,066 |
* | iTeos Therapeutics Inc. | 76,718 | 1,044 |
* | Atea Pharmaceuticals Inc. | 278,408 | 933 |
*,1 | Heron Therapeutics Inc. | 609,042 | 920 |
* | Sangamo Therapeutics Inc. | 467,930 | 824 |
* | Syneos Health Inc. | 20,407 | 727 |
840,447 | |||
Industrials (16.1%) | |||
United Rentals Inc. | 152,200 | 60,235 | |
Owens Corning | 526,431 | 50,432 | |
* | Atkore Inc. | 336,067 | 47,211 |
WW Grainger Inc. | 68,430 | 47,135 | |
Allison Transmission Holdings Inc. | 1,000,705 | 45,272 | |
* | United Airlines Holdings Inc. | 1,022,107 | 45,228 |
Textron Inc. | 615,886 | 43,500 | |
AGCO Corp. | 276,509 | 37,384 | |
IDEX Corp. | 138,685 | 32,040 | |
* | American Airlines Group Inc. | 2,151,323 | 31,732 |
Robert Half International Inc. | 377,509 | 30,416 | |
Wabash National Corp. | 1,183,418 | 29,100 | |
* | CACI International Inc. Class A | 97,698 | 28,946 |
EMCOR Group Inc. | 175,440 | 28,525 | |
Terex Corp. | 586,907 | 28,395 |
Shares | Market Value• ($000) | ||
* | Clean Harbors Inc. | 197,842 | 28,204 |
ManpowerGroup Inc. | 337,189 | 27,828 | |
Ryder System Inc. | 304,523 | 27,176 | |
Rush Enterprises Inc. Class A | 473,491 | 25,853 | |
Triton International Ltd. | 403,275 | 25,495 | |
Acuity Brands Inc. | 138,773 | 25,358 | |
Tetra Tech Inc. | 154,686 | 22,725 | |
Korn Ferry | 424,134 | 21,945 | |
Applied Industrial Technologies Inc. | 146,818 | 20,867 | |
UFP Industries Inc. | 258,720 | 20,560 | |
CSG Systems International Inc. | 356,142 | 19,125 | |
Encore Wire Corp. | 87,539 | 16,224 | |
nVent Electric plc | 348,480 | 14,964 | |
Boise Cascade Co. | 218,906 | 13,846 | |
* | Builders FirstSource Inc. | 142,342 | 12,637 |
Valmont Industries Inc. | 36,644 | 11,700 | |
* | WillScot Mobile Mini Holdings Corp. | 236,856 | 11,104 |
GrafTech International Ltd. | 2,260,608 | 10,987 | |
* | Copart Inc. | 144,443 | 10,864 |
Dover Corp. | 68,806 | 10,454 | |
Watts Water Technologies Inc. Class A | 53,637 | 9,028 | |
Matson Inc. | 149,694 | 8,932 | |
Donaldson Co. Inc. | 125,464 | 8,198 | |
* | GMS Inc. | 140,848 | 8,154 |
AECOM | 94,074 | 7,932 | |
* | ASGN Inc. | 90,919 | 7,516 |
Esab Corp. | 124,131 | 7,332 | |
* | ExlService Holdings Inc. | 43,319 | 7,010 |
MDU Resources Group Inc. | 219,493 | 6,690 | |
* | TrueBlue Inc. | 360,610 | 6,419 |
Lincoln Electric Holdings Inc. | 36,550 | 6,181 | |
Brink's Co. | 83,670 | 5,589 | |
Howmet Aerospace Inc. | 129,815 | 5,500 | |
Primoris Services Corp. | 223,004 | 5,499 | |
Herc Holdings Inc. | 46,251 | 5,268 | |
Ennis Inc. | 238,646 | 5,033 | |
* | TriNet Group Inc. | 60,580 | 4,883 |
* | Avis Budget Group Inc. | 23,437 | 4,565 |
EnerSys | 49,744 | 4,322 | |
* | MYR Group Inc. | 33,729 | 4,250 |
Insperity Inc. | 29,357 | 3,568 | |
* | Hub Group Inc. Class A | 39,154 | 3,287 |
* | Kirby Corp. | 46,622 | 3,250 |
Curtiss-Wright Corp. | 18,132 | 3,196 | |
* | SkyWest Inc. | 138,356 | 3,067 |
Carlisle Cos. Inc. | 13,485 | 3,049 | |
Air Lease Corp. Class A | 75,470 | 2,971 | |
Huntington Ingalls Industries Inc. | 13,420 | 2,778 | |
Science Applications International Corp. | 25,462 | 2,736 | |
MSA Safety Inc. | 18,968 | 2,532 | |
WESCO International Inc. | 15,829 | 2,446 | |
Trinity Industries Inc. | 77,581 | 1,890 | |
Genco Shipping & Trading Ltd. | 117,466 | 1,839 | |
* | Upwork Inc. | 162,181 | 1,836 |
* | RXO Inc. | 86,488 | 1,699 |
* | Alaska Air Group Inc. | 40,151 | 1,685 |
* | Sunrun Inc. | 83,191 | 1,676 |
BWX Technologies Inc. | 25,058 | 1,580 |
Shares | Market Value• ($000) | ||
ArcBest Corp. | 15,111 | 1,397 | |
* | Masterbrand Inc. | 114,190 | 918 |
1,139,168 | |||
Information Technology (14.7%) | |||
CDW Corp. | 273,725 | 53,346 | |
* | Cirrus Logic Inc. | 434,110 | 47,483 |
* | Splunk Inc. | 476,095 | 45,648 |
* | Arrow Electronics Inc. | 362,130 | 45,219 |
Jabil Inc. | 488,663 | 43,080 | |
* | Manhattan Associates Inc. | 277,219 | 42,927 |
* | Nutanix Inc. Class A | 1,641,976 | 42,675 |
* | Flex Ltd. | 1,607,301 | 36,984 |
* | Cadence Design Systems Inc. | 147,319 | 30,950 |
* | DocuSign Inc. Class A | 513,182 | 29,918 |
Amkor Technology Inc. | 1,114,227 | 28,992 | |
* | Axcelis Technologies Inc. | 199,997 | 26,650 |
* | Gartner Inc. | 80,814 | 26,327 |
* | RingCentral Inc. Class A | 798,137 | 24,479 |
* | CommScope Holding Co. Inc. | 3,687,351 | 23,488 |
NetApp Inc. | 349,957 | 22,345 | |
Avnet Inc. | 422,945 | 19,117 | |
* | Dropbox Inc. Class A | 882,704 | 19,084 |
* | Kyndryl Holdings Inc. | 1,286,652 | 18,991 |
* | Everbridge Inc. | 522,139 | 18,103 |
* | Fortinet Inc. | 270,959 | 18,008 |
* | Extreme Networks Inc. | 864,611 | 16,531 |
* | MaxLinear Inc. | 432,184 | 15,217 |
* | Impinj Inc. | 110,506 | 14,976 |
* | Pure Storage Inc. Class A | 575,957 | 14,693 |
* | Teradata Corp. | 362,808 | 14,614 |
* | Yext Inc. | 1,408,005 | 13,531 |
* | Box Inc. Class A | 502,142 | 13,452 |
* | Rapid7 Inc. | 290,380 | 13,331 |
* | Elastic NV | 229,134 | 13,267 |
Xerox Holdings Corp. | 826,764 | 12,732 | |
* | Diodes Inc. | 132,824 | 12,321 |
* | Okta Inc. | 141,107 | 12,169 |
* | EPAM Systems Inc. | 40,237 | 12,031 |
* | New Relic Inc. | 158,402 | 11,926 |
* | CommVault Systems Inc. | 202,552 | 11,493 |
* | Lattice Semiconductor Corp. | 111,252 | 10,625 |
* | Super Micro Computer Inc. | 95,016 | 10,124 |
* | UiPath Inc. Class A | 565,016 | 9,922 |
* | Domo Inc. Class B | 663,679 | 9,418 |
* | SMART Global Holdings Inc. | 538,756 | 9,288 |
* | MongoDB Inc. Class A | 38,148 | 8,893 |
Pegasystems Inc. | 151,888 | 7,364 | |
* | Qorvo Inc. | 70,523 | 7,163 |
*,1 | 8x8 Inc. | 1,700,369 | 7,091 |
Hewlett Packard Enterprise Co. | 429,478 | 6,842 | |
* | ON Semiconductor Corp. | 81,586 | 6,716 |
* | Ultra Clean Holdings Inc. | 193,546 | 6,418 |
* | Ichor Holdings Ltd. | 161,689 | 5,294 |
* | Synaptics Inc. | 46,737 | 5,195 |
* | NCR Corp. | 204,803 | 4,831 |
* | Semtech Corp. | 169,959 | 4,103 |
* | GoDaddy Inc. Class A | 50,651 | 3,937 |
* | Fastly Inc. Class A | 220,183 | 3,910 |
Juniper Networks Inc. | 113,596 | 3,910 | |
* | Unisys Corp. | 1,001,495 | 3,886 |
* | Smartsheet Inc. Class A | 81,216 | 3,882 |
* | Twilio Inc. Class A | 57,215 | 3,812 |
Shares | Market Value• ($000) | ||
* | Cohu Inc. | 96,005 | 3,686 |
* | Fabrinet | 30,349 | 3,604 |
* | Western Digital Corp. | 79,862 | 3,008 |
* | Digital Turbine Inc. | 219,129 | 2,708 |
* | Sanmina Corp. | 42,278 | 2,579 |
* | Blackline Inc. | 33,422 | 2,244 |
* | LivePerson Inc. | 504,899 | 2,227 |
* | Zebra Technologies Corp. Class A | 6,805 | 2,164 |
* | Viavi Solutions Inc. | 195,472 | 2,117 |
* | Samsara Inc. Class A | 90,430 | 1,783 |
*,1 | Infinera Corp. | 227,603 | 1,766 |
* | Ciena Corp. | 30,665 | 1,610 |
* | Alpha & Omega Semiconductor Ltd. | 55,692 | 1,501 |
* | Trimble Inc. | 25,551 | 1,339 |
1,041,058 | |||
Materials (5.6%) | |||
Reliance Steel & Aluminum Co. | 228,340 | 58,624 | |
Packaging Corp. of America | 244,240 | 33,908 | |
Albemarle Corp. | 151,343 | 33,453 | |
CF Industries Holdings Inc. | 422,697 | 30,641 | |
Eagle Materials Inc. | 173,579 | 25,473 | |
Olin Corp. | 372,028 | 20,648 | |
* | O-I Glass Inc. | 892,726 | 20,274 |
Warrior Met Coal Inc. | 550,290 | 20,201 | |
Chemours Co. | 638,800 | 19,126 | |
Steel Dynamics Inc. | 119,569 | 13,518 | |
Graphic Packaging Holding Co. | 496,664 | 12,660 | |
Greif Inc. Class A | 190,188 | 12,052 | |
Mosaic Co. | 240,989 | 11,057 | |
Berry Global Group Inc. | 170,687 | 10,053 | |
Westrock Co. | 322,278 | 9,820 | |
Tronox Holdings plc Class A | 613,733 | 8,825 | |
Ashland Inc. | 78,819 | 8,095 | |
Sonoco Products Co. | 122,625 | 7,480 | |
Huntsman Corp. | 257,491 | 7,045 | |
Avery Dennison Corp. | 33,000 | 5,905 | |
* | Ingevity Corp. | 72,957 | 5,218 |
* | TimkenSteel Corp. | 282,836 | 5,187 |
Sylvamo Corp. | 75,099 | 3,474 | |
Avient Corp. | 78,038 | 3,212 | |
* | Arconic Corp. | 103,563 | 2,716 |
Sensient Technologies Corp. | 27,646 | 2,117 | |
Materion Corp. | 17,150 | 1,989 | |
* | LSB Industries Inc. | 161,138 | 1,665 |
Balchem Corp. | 11,168 | 1,413 | |
Schnitzer Steel Industries Inc. Class A | 35,635 | 1,108 | |
396,957 | |||
Real Estate (7.4%) | |||
Life Storage Inc. | 305,701 | 40,074 | |
Extra Space Storage Inc. | 240,689 | 39,216 | |
Brixmor Property Group Inc. | 1,674,709 | 36,040 | |
National Retail Properties Inc. | 743,958 | 32,846 | |
Mid-America Apartment Communities Inc. | 178,072 | 26,896 | |
Host Hotels & Resorts Inc. | 1,469,895 | 24,239 | |
Spirit Realty Capital Inc. | 573,749 | 22,858 | |
Gaming and Leisure Properties Inc. | 421,434 | 21,940 | |
Highwoods Properties Inc. | 914,951 | 21,218 |
Shares | Market Value• ($000) | ||
Apple Hospitality REIT Inc. | 1,283,976 | 19,927 | |
Sun Communities Inc. | 125,174 | 17,635 | |
Essential Properties Realty Trust Inc. | 686,895 | 17,069 | |
Invitation Homes Inc. | 504,290 | 15,749 | |
Outfront Media Inc. | 886,342 | 14,385 | |
DiamondRock Hospitality Co. | 1,648,243 | 13,400 | |
Xenia Hotels & Resorts Inc. | 913,408 | 11,957 | |
EPR Properties | 300,186 | 11,437 | |
National Storage Affiliates Trust | 256,377 | 10,711 | |
Camden Property Trust | 100,734 | 10,561 | |
Piedmont Office Realty Trust Inc. Class A | 1,186,316 | 8,660 | |
Park Hotels & Resorts Inc. | 698,416 | 8,632 | |
RLJ Lodging Trust | 775,238 | 8,218 | |
Sabra Health Care REIT Inc. | 711,832 | 8,186 | |
Kilroy Realty Corp. | 221,084 | 7,163 | |
Essex Property Trust Inc. | 32,744 | 6,848 | |
Ryman Hospitality Properties Inc. | 72,998 | 6,550 | |
SITE Centers Corp. | 484,076 | 5,945 | |
Brandywine Realty Trust | 1,240,687 | 5,868 | |
DigitalBridge Group Inc. | 405,052 | 4,857 | |
Universal Health Realty Income Trust | 94,854 | 4,563 | |
Tanger Factory Outlet Centers Inc. | 206,689 | 4,057 | |
Federal Realty Investment Trust | 38,352 | 3,790 | |
CubeSmart | 79,933 | 3,695 | |
Rayonier Inc. | 109,677 | 3,648 | |
Regency Centers Corp. | 55,982 | 3,425 | |
* | CBRE Group Inc. Class A | 43,535 | 3,170 |
Alexandria Real Estate Equities Inc. | 24,993 | 3,139 | |
First Industrial Realty Trust Inc. | 54,630 | 2,906 | |
* | Zillow Group Inc. Class C | 57,657 | 2,564 |
Broadstone Net Lease Inc. | 126,962 | 2,160 | |
LXP Industrial Trust | 182,381 | 1,880 | |
Paramount Group Inc. | 239,341 | 1,091 | |
519,173 | |||
Utilities (5.5%) | |||
Evergy Inc. | 799,909 | 48,891 | |
AES Corp. | 1,975,286 | 47,565 |
Shares | Market Value• ($000) | ||
NiSource Inc. | 1,701,017 | 47,560 | |
National Fuel Gas Co. | 707,761 | 40,866 | |
Edison International | 441,142 | 31,140 | |
Pinnacle West Capital Corp. | 392,912 | 31,134 | |
Vistra Corp. | 1,199,276 | 28,783 | |
DTE Energy Co. | 216,936 | 23,763 | |
PPL Corp. | 648,269 | 18,015 | |
Hawaiian Electric Industries Inc. | 425,238 | 16,329 | |
Alliant Energy Corp. | 236,773 | 12,644 | |
Portland General Electric Co. | 256,549 | 12,543 | |
Entergy Corp. | 106,619 | 11,487 | |
Otter Tail Corp. | 64,869 | 4,688 | |
FirstEnergy Corp. | 110,678 | 4,434 | |
* | PG&E Corp. | 146,291 | 2,366 |
Ameren Corp. | 24,190 | 2,090 | |
IDACORP Inc. | 18,316 | 1,984 | |
386,282 | |||
Total Common Stocks (Cost $6,414,660) | 7,023,541 | ||
Temporary Cash Investments (0.9%) | |||
Money Market Fund (0.9%) | |||
2,3 | Vanguard Market Liquidity Fund, 4.839% (Cost $63,699) | 637,101 | 63,704 |
Total Investments (100.4%) (Cost $6,478,359) | 7,087,245 | ||
Other Assets and Liabilities—Net (-0.4%) | (28,840) | ||
Net Assets (100%) | 7,058,405 | ||
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 $31,307,000. |
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 $33,398,000 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 | June 2023 | 266 | 24,120 | 457 |
E-mini S&P 500 Index | June 2023 | 52 | 10,758 | 594 |
1,051 |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $6,414,660) | 7,023,541 |
Affiliated Issuers (Cost $63,699) | 63,704 |
Total Investments in Securities | 7,087,245 |
Investment in Vanguard | 268 |
Cash Collateral Pledged—Futures Contracts | 2,213 |
Receivables for Investment Securities Sold | 8,321 |
Receivables for Accrued Income | 7,000 |
Receivables for Capital Shares Issued | 2,635 |
Variation Margin Receivable—Futures Contracts | 587 |
Total Assets | 7,108,269 |
Liabilities | |
Due to Custodian | 8,321 |
Payables for Investment Securities Purchased | 4,160 |
Collateral for Securities on Loan | 33,398 |
Payables for Capital Shares Redeemed | 3,479 |
Payables to Vanguard | 506 |
Total Liabilities | 49,864 |
Net Assets | 7,058,405 |
1 Includes $31,307,000 of securities on loan. | |
At March 31, 2023, net assets consisted of: | |
Paid-in Capital | 6,263,311 |
Total Distributable Earnings (Loss) | 795,094 |
Net Assets | 7,058,405 |
Net Assets | |
Applicable to 223,409,507 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 7,058,405 |
Net Asset Value Per Share | $31.59 |
Six Months Ended March 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends | 59,148 |
Interest1 | 593 |
Securities Lending—Net | 393 |
Total Income | 60,134 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 870 |
Management and Administrative | 4,901 |
Marketing and Distribution | 148 |
Custodian Fees | 20 |
Shareholders’ Reports | 59 |
Trustees’ Fees and Expenses | 2 |
Other Expenses | 6 |
Total Expenses | 6,006 |
Expenses Paid Indirectly | (2) |
Net Expenses | 6,004 |
Net Investment Income | 54,130 |
Realized Net Gain (Loss) | |
Investment Securities Sold1 | 181,210 |
Futures Contracts | (1,098) |
Realized Net Gain (Loss) | 180,112 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | 709,564 |
Futures Contracts | 4,439 |
Change in Unrealized Appreciation (Depreciation) | 714,003 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 948,245 |
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 $553,000, $9,000, less than $1,000, and ($1,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 54,130 | 105,327 | |
Realized Net Gain (Loss) | 180,112 | 740,962 | |
Change in Unrealized Appreciation (Depreciation) | 714,003 | (1,958,579) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 948,245 | (1,112,290) | |
Distributions | |||
Total Distributions | (734,585) | (1,479,168) | |
Capital Share Transactions | |||
Issued | 259,781 | 689,147 | |
Issued in Lieu of Cash Distributions | 682,719 | 1,370,549 | |
Redeemed | (433,748) | (997,958) | |
Net Increase (Decrease) from Capital Share Transactions | 508,752 | 1,061,738 | |
Total Increase (Decrease) | 722,412 | (1,529,720) | |
Net Assets | |||
Beginning of Period | 6,335,993 | 7,865,713 | |
End of Period | 7,058,405 | 6,335,993 |
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2023 | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $30.70 | $44.07 | $30.31 | $31.87 | $37.21 | $34.89 |
Investment Operations | ||||||
Net Investment Income1 | .251 | .517 | .465 | .459 | .449 | .392 |
Net Realized and Unrealized Gain (Loss) on Investments | 4.239 | (5.606) | 13.937 | (1.041) | (2.980) | 4.781 |
Total from Investment Operations | 4.490 | (5.089) | 14.402 | (.582) | (2.531) | 5.173 |
Distributions | ||||||
Dividends from Net Investment Income | (.457) | (.526) | (.479) | (.444) | (.395) | (.460) |
Distributions from Realized Capital Gains | (3.143) | (7.755) | (.163) | (.534) | (2.414) | (2.393) |
Total Distributions | (3.600) | (8.281) | (.642) | (.978) | (2.809) | (2.853) |
Net Asset Value, End of Period | $31.59 | $30.70 | $44.07 | $30.31 | $31.87 | $37.21 |
Total Return2 | 15.02% | -14.81% | 47.98% | -2.09% | -5.63% | 15.63% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $7,058 | $6,336 | $7,866 | $5,836 | $7,098 | $7,946 |
Ratio of Total Expenses to Average Net Assets | 0.17%3 | 0.17% | 0.17% | 0.17% | 0.17% | 0.17% |
Ratio of Net Investment Income to Average Net Assets | 1.52% | 1.39% | 1.15% | 1.53% | 1.42% | 1.10% |
Portfolio Turnover Rate | 26% | 62% | 59% | 61% | 60% | 82% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 0.17%. |
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. | 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 six months ended March 31, 2023, custodian fee offset arrangements reduced the fund’s expenses by $2,000 (an annual rate of less than 0.01% of average net assets). |
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. |
E. | As of March 31, 2023, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 6,482,688 |
Gross Unrealized Appreciation | 1,243,006 |
Gross Unrealized Depreciation | (637,398) |
Net Unrealized Appreciation (Depreciation) | 605,608 |
F. | During the six months ended March 31, 2023, the fund purchased $1,842,919,000 of investment securities and sold $2,009,444,000 of investment securities, other than temporary cash investments. |
G. | Capital shares issued and redeemed were: |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 7,961 | 17,927 | |
Issued in Lieu of Cash Distributions | 22,340 | 36,883 | |
Redeemed | (13,277) | (26,922) | |
Net Increase (Decrease) in Shares Outstanding | 17,024 | 27,888 |
H. | Management has determined that no events or transactions occurred subsequent to March 31, 2023, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 17 |
Liquidity Risk Management | 19 |
• | 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 March 31, 2023 | |||
Beginning Account Value 9/30/2022 | Ending Account Value 3/31/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Capital Opportunity Fund | |||
Investor Shares | $1,000.00 | $1,166.00 | $2.32 |
Admiral™ Shares | 1,000.00 | 1,166.30 | 1.94 |
Based on Hypothetical 5% Yearly Return | |||
Capital Opportunity Fund | |||
Investor Shares | $1,000.00 | $1,022.79 | $2.17 |
Admiral Shares | 1,000.00 | 1,023.14 | 1.82 |
Communication Services | 5.7% |
Consumer Discretionary | 10.4 |
Consumer Staples | 0.0 |
Energy | 3.5 |
Financials | 8.1 |
Health Care | 34.1 |
Industrials | 12.3 |
Information Technology | 25.4 |
Materials | 0.5 |
Shares | Market Value• ($000) | ||
Common Stocks (95.8%) | |||
Communication Services (5.4%) | |||
* | Alphabet Inc. Class A | 2,426,230 | 251,673 |
* | Baidu Inc. ADR | 1,617,300 | 244,083 |
* | Alphabet Inc. Class C | 2,123,780 | 220,873 |
* | Pinterest Inc. Class A | 2,880,350 | 78,547 |
* | Meta Platforms Inc. Class A | 285,400 | 60,488 |
Electronic Arts Inc. | 426,800 | 51,408 | |
* | Trade Desk Inc. Class A | 562,000 | 34,231 |
* | Live Nation Entertainment Inc. | 147,100 | 10,297 |
* | Roblox Corp. Class A | 205,300 | 9,234 |
* | Netflix Inc. | 24,010 | 8,295 |
* | Walt Disney Co. | 56,757 | 5,683 |
* | ZoomInfo Technologies Inc. Class A | 175,700 | 4,342 |
* | Snap Inc. Class A | 22,500 | 252 |
979,406 | |||
Consumer Discretionary (10.0%) | |||
* | Tesla Inc. | 1,493,390 | 309,819 |
* | Alibaba Group Holding Ltd. ADR | 2,451,700 | 250,515 |
TJX Cos. Inc. | 2,707,400 | 212,152 | |
Sony Group Corp. ADR | 1,482,925 | 134,427 | |
* | Entain plc | 7,991,662 | 124,111 |
* | CarMax Inc. | 1,716,597 | 110,343 |
* | Amazon.com Inc. | 900,500 | 93,013 |
* | Capri Holdings Ltd. | 1,735,637 | 81,575 |
*,1 | XPeng Inc. ADR | 6,965,719 | 77,389 |
* | Royal Caribbean Cruises Ltd. | 1,171,700 | 76,512 |
*,1 | Mobileye Global Inc. | 1,547,600 | 66,965 |
Ross Stores Inc. | 408,900 | 43,397 | |
* | Burlington Stores Inc. | 156,300 | 31,588 |
* | Flutter Entertainment plc (XDUB) | 170,598 | 30,783 |
eBay Inc. | 549,370 | 24,376 | |
Marriott International Inc. Class A | 140,500 | 23,329 | |
Restaurant Brands International Inc. | 276,600 | 18,571 | |
* | Ollie's Bargain Outlet Holdings Inc. | 310,890 | 18,013 |
* | Carnival Corp. | 1,577,945 | 16,016 |
* | Las Vegas Sands Corp. | 224,100 | 12,874 |
* | Ulta Beauty Inc. | 23,000 | 12,550 |
Hilton Worldwide Holdings Inc. | 76,333 | 10,753 |
Shares | Market Value• ($000) | ||
* | DoorDash Inc. Class A | 106,050 | 6,740 |
* | Norwegian Cruise Line Holdings Ltd. | 457,425 | 6,152 |
Newell Brands Inc. | 400,000 | 4,976 | |
* | Rivian Automotive Inc. Class A | 254,200 | 3,935 |
* | Deckers Outdoor Corp. | 2,900 | 1,304 |
* | Five Below Inc. | 2,300 | 474 |
1,802,652 | |||
Consumer Staples (0.0%) | |||
Dollar General Corp. | 32,350 | 6,808 | |
Energy (3.4%) | |||
Hess Corp. | 1,667,674 | 220,700 | |
Pioneer Natural Resources Co. | 1,021,223 | 208,575 | |
* | Transocean Ltd. (XNYS) | 11,836,496 | 75,280 |
EOG Resources Inc. | 404,921 | 46,416 | |
Coterra Energy Inc. | 1,113,350 | 27,322 | |
* | Southwestern Energy Co. | 3,200,000 | 16,000 |
* | TechnipFMC plc | 818,700 | 11,175 |
605,468 | |||
Financials (7.8%) | |||
Raymond James Financial Inc. | 2,946,590 | 274,828 | |
Northern Trust Corp. | 1,941,851 | 171,135 | |
MarketAxess Holdings Inc. | 390,930 | 152,967 | |
Visa Inc. Class A | 608,300 | 137,147 | |
Wells Fargo & Co. | 3,287,480 | 122,886 | |
Morgan Stanley | 892,954 | 78,401 | |
CME Group Inc. | 360,154 | 68,977 | |
Goldman Sachs Group Inc. | 198,550 | ��� 64,948 | |
Bank of America Corp. | 2,067,117 | 59,120 | |
* | WEX Inc. | 293,600 | 53,990 |
Tradeweb Markets Inc. Class A | 657,800 | 51,979 | |
Discover Financial Services | 452,970 | 44,772 | |
Progressive Corp. | 279,840 | 40,034 | |
* | PayPal Holdings Inc. | 395,160 | 30,009 |
LPL Financial Holdings Inc. | 98,000 | 19,835 | |
Mastercard Inc. Class A | 30,600 | 11,120 | |
Charles Schwab Corp. | 167,650 | 8,782 | |
JPMorgan Chase & Co. | 64,900 | 8,457 |
Shares | Market Value• ($000) | ||
Citigroup Inc. | 68,100 | 3,193 | |
1,402,580 | |||
Health Care (32.7%) | |||
Eli Lilly & Co. | 3,482,868 | 1,196,087 | |
* | Biogen Inc. | 2,180,247 | 606,174 |
* | BioMarin Pharmaceutical Inc. | 5,350,500 | 520,283 |
Amgen Inc. | 2,120,759 | 512,694 | |
* | Seagen Inc. | 2,164,024 | 438,150 |
Thermo Fisher Scientific Inc. | 478,330 | 275,695 | |
BioNTech SE ADR | 2,166,336 | 269,860 | |
* | Boston Scientific Corp. | 4,568,106 | 228,542 |
* | BeiGene Ltd. ADR | 1,029,931 | 221,981 |
Bristol-Myers Squibb Co. | 3,082,650 | 213,658 | |
Novartis AG ADR | 2,230,990 | 205,251 | |
AstraZeneca plc ADR | 2,244,260 | 155,774 | |
* | Edwards Lifesciences Corp. | 1,408,900 | 116,558 |
Roche Holding AG | 337,338 | 96,392 | |
*,2 | FibroGen Inc. | 5,160,071 | 96,287 |
Zimmer Biomet Holdings Inc. | 666,210 | 86,074 | |
* | Elanco Animal Health Inc. (XNYS) | 8,923,106 | 83,877 |
PerkinElmer Inc. | 617,880 | 82,339 | |
* | LivaNova plc | 1,756,220 | 76,536 |
* | QIAGEN NV | 1,520,507 | 69,837 |
* | Alkermes plc | 2,247,570 | 63,359 |
* | Illumina Inc. | 268,970 | 62,549 |
* | Charles River Laboratories International Inc. | 254,900 | 51,444 |
Abbott Laboratories | 360,200 | 36,474 | |
Agilent Technologies Inc. | 200,700 | 27,765 | |
* | Neurocrine Biosciences Inc. | 259,600 | 26,277 |
*,1 | Allogene Therapeutics Inc. | 3,377,879 | 16,687 |
Medtronic plc | 144,000 | 11,609 | |
Danaher Corp. | 34,195 | 8,619 | |
Alcon Inc. | 118,960 | 8,391 | |
3 | Siemens Healthineers AG | 133,680 | 7,707 |
* | Waters Corp. | 21,596 | 6,687 |
* | Omnicell Inc. | 95,960 | 5,630 |
* | Repligen Corp. | 24,608 | 4,143 |
* | Bridgebio Pharma Inc. | 215,900 | 3,580 |
* | IQVIA Holdings Inc. | 9,292 | 1,848 |
* | Guardant Health Inc. | 51,586 | 1,209 |
Humana Inc. | 1,875 | 910 | |
* | ImmunoGen Inc. | 89,900 | 345 |
* | Adaptive Biotechnologies Corp. | 28,100 | 248 |
* | Zimvie Inc. | 28,210 | 204 |
5,897,734 | |||
Industrials (11.8%) | |||
FedEx Corp. | 1,649,274 | 376,843 | |
AECOM | 4,030,776 | 339,875 | |
Jacobs Solutions Inc. | 2,223,989 | 261,341 | |
Southwest Airlines Co. | 7,705,679 | 250,743 | |
* | Airbus SE | 1,363,020 | 182,055 |
* | United Airlines Holdings Inc. | 3,617,083 | 160,056 |
Shares | Market Value• ($000) | ||
* | Delta Air Lines Inc. | 2,779,410 | 97,057 |
* | American Airlines Group Inc. | 4,797,250 | 70,759 |
TransDigm Group Inc. | 86,419 | 63,695 | |
Curtiss-Wright Corp. | 302,700 | 53,354 | |
IDEX Corp. | 194,070 | 44,836 | |
Textron Inc. | 533,290 | 37,666 | |
Old Dominion Freight Line Inc. | 90,500 | 30,846 | |
* | Ryanair Holdings plc ADR | 249,500 | 23,525 |
GFL Environmental Inc. (XTSE) | 633,100 | 21,804 | |
* | Uber Technologies Inc. | 562,600 | 17,834 |
AMETEK Inc. | 120,000 | 17,439 | |
Caterpillar Inc. | 60,000 | 13,730 | |
Carrier Global Corp. | 268,900 | 12,302 | |
Union Pacific Corp. | 60,000 | 12,076 | |
* | JetBlue Airways Corp. | 1,638,000 | 11,925 |
Rockwell Automation Inc. | 38,820 | 11,392 | |
* | Lyft Inc. Class A | 1,168,585 | 10,833 |
* | Aurora Innovation Inc. | 7,030,000 | 9,772 |
* | TuSimple Holdings Inc. Class A | 12,000 | 18 |
2,131,776 | |||
Information Technology (24.3%) | |||
Microsoft Corp. | 1,380,300 | 397,940 | |
* | Flex Ltd. | 15,007,952 | 345,333 |
KLA Corp. | 786,090 | 313,784 | |
Micron Technology Inc. | 4,962,357 | 299,429 | |
Texas Instruments Inc. | 1,471,940 | 273,796 | |
* | Splunk Inc. | 2,704,200 | 259,279 |
ASML Holding NV GDR (Registered) | 343,567 | 233,869 | |
* | Adobe Inc. | 592,900 | 228,486 |
Intel Corp. | 5,681,930 | 185,629 | |
NetApp Inc. | 2,747,610 | 175,435 | |
* | Trimble Inc. | 3,128,371 | 163,989 |
* | Descartes Systems Group Inc. | 1,947,265 | 156,969 |
Jabil Inc. | 1,501,400 | 132,363 | |
Universal Display Corp. | 816,814 | 126,712 | |
NVIDIA Corp. | 439,890 | 122,188 | |
QUALCOMM Inc. | 859,370 | 109,638 | |
Corning Inc. | 3,032,324 | 106,980 | |
Entegris Inc. | 967,700 | 79,361 | |
Intuit Inc. | 164,250 | 73,228 | |
Oracle Corp. | 656,200 | 60,974 | |
* | Nutanix Inc. Class A | 2,043,619 | 53,114 |
Teradyne Inc. | 472,100 | 50,755 | |
* | FormFactor Inc. | 1,485,241 | 47,305 |
HP Inc. | 1,600,660 | 46,979 | |
* | Wolfspeed Inc. | 704,600 | 45,764 |
Hewlett Packard Enterprise Co. | 2,703,040 | 43,059 | |
* | Salesforce Inc. | 213,100 | 42,573 |
* | Autodesk Inc. | 157,600 | 32,806 |
* | BlackBerry Ltd. | 6,635,476 | 30,258 |
* | Zoom Video Communications Inc. Class A | 359,950 | 26,579 |
* | Keysight Technologies Inc. | 154,650 | 24,973 |
* | VMware Inc. Class A | 180,000 | 22,473 |
Analog Devices Inc. | 90,000 | 17,750 | |
* | MongoDB Inc. Class A | 58,050 | 13,533 |
Shares | Market Value• ($000) | ||
* | Unity Software Inc. | 393,884 | 12,778 |
* | Palo Alto Networks Inc. | 62,250 | 12,434 |
* | Crowdstrike Holdings Inc. Class A | 59,300 | 8,139 |
* | Western Digital Corp. | 153,280 | 5,774 |
* | Okta Inc. | 58,716 | 5,064 |
* | Gitlab Inc. Class A | 95,300 | 3,268 |
Marvell Technology Inc. | 35,900 | 1,554 | |
Applied Materials Inc. | 10,700 | 1,314 | |
Telefonaktiebolaget LM Ericsson ADR | 199,200 | 1,165 | |
* | HubSpot Inc. | 900 | 386 |
* | RingCentral Inc. Class A | 3,000 | 92 |
* | Arista Networks Inc. | 200 | 34 |
* | DocuSign Inc. Class A | 200 | 12 |
4,395,317 | |||
Materials (0.4%) | |||
* | Ivanhoe Mines Ltd. Class A | 7,095,800 | 64,106 |
Albemarle Corp. | 79,500 | 17,573 | |
81,679 | |||
Total Common Stocks (Cost $7,763,048) | 17,303,420 | ||
Temporary Cash Investments (5.0%) | |||
Money Market Fund (5.0%) | |||
4,5 | Vanguard Market Liquidity Fund, 4.839% (Cost $905,295) | 9,055,423 | 905,452 |
Total Investments (100.8%) (Cost $8,668,343) | 18,208,872 | ||
Other Assets and Liabilities—Net (-0.8%) | (151,254) | ||
Net Assets (100%) | 18,057,618 | ||
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 $147,586,000. |
2 | Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. |
3 | 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 March 31, 2023, the aggregate value was $7,707,000, representing 0.0% of net assets. |
4 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
5 | Collateral of $154,892,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $7,597,087) | 17,207,133 |
Affiliated Issuers (Cost $1,071,256) | 1,001,739 |
Total Investments in Securities | 18,208,872 |
Investment in Vanguard | 637 |
Receivables for Investment Securities Sold | 5,205 |
Receivables for Accrued Income | 15,702 |
Receivables for Capital Shares Issued | 6,402 |
Total Assets | 18,236,818 |
Liabilities | |
Due to Custodian | 4,439 |
Payables for Investment Securities Purchased | 3,153 |
Collateral for Securities on Loan | 154,892 |
Payables to Investment Advisor | 10,324 |
Payables for Capital Shares Redeemed | 5,367 |
Payables to Vanguard | 1,025 |
Total Liabilities | 179,200 |
Net Assets | 18,057,618 |
1 Includes $147,586,000 of securities on loan. | |
At March 31, 2023, net assets consisted of: | |
Paid-in Capital | 8,195,581 |
Total Distributable Earnings (Loss) | 9,862,037 |
Net Assets | 18,057,618 |
Investor Shares—Net Assets | |
Applicable to 18,131,356 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,228,332 |
Net Asset Value Per Share—Investor Shares | $67.75 |
Admiral Shares—Net Assets | |
Applicable to 107,643,136 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 16,829,286 |
Net Asset Value Per Share—Admiral Shares | $156.34 |
Six Months Ended March 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 101,065 |
Interest—Unaffiliated Issuers | — |
Interest—Affiliated Issuers | 14,676 |
Securities Lending���Net | 2,641 |
Total Income | 118,382 |
Expenses | |
Investment Advisory Fees—Note B | 20,281 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 1,147 |
Management and Administrative—Admiral Shares | 9,944 |
Marketing and Distribution—Investor Shares | 23 |
Marketing and Distribution—Admiral Shares | 241 |
Custodian Fees | 246 |
Shareholders’ Reports—Investor Shares | 15 |
Shareholders’ Reports—Admiral Shares | 47 |
Trustees’ Fees and Expenses | 4 |
Other Expenses | 6 |
Total Expenses | 31,954 |
Net Investment Income | 86,428 |
Realized Net Gain (Loss) | |
Capital Gains Distributions Received – Affiliated Issuers | 2 |
Investment Securities Sold—Unaffiliated Issuers | 330,988 |
Investment Securities Sold—Affiliated Issuers | 22 |
Foreign Currencies | (27) |
Realized Net Gain (Loss) | 330,985 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | 2,155,200 |
Investment Securities—Affiliated Issuers | 27,652 |
Foreign Currencies | 141 |
Change in Unrealized Appreciation (Depreciation) | 2,182,993 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,600,406 |
1 | Dividends are net of foreign withholding taxes of $2,066,000. |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 86,428 | 128,506 | |
Realized Net Gain (Loss) | 330,985 | 1,535,394 | |
Change in Unrealized Appreciation (Depreciation) | 2,182,993 | (5,703,778) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,600,406 | (4,039,878) | |
Distributions | |||
Investor Shares | (101,100) | (149,097) | |
Admiral Shares | (1,356,592) | (1,902,569) | |
Total Distributions | (1,457,692) | (2,051,666) | |
Capital Share Transactions | |||
Investor Shares | 33,992 | (33,541) | |
Admiral Shares | 1,071,102 | 1,122,357 | |
Net Increase (Decrease) from Capital Share Transactions | 1,105,094 | 1,088,816 | |
Total Increase (Decrease) | 2,247,808 | (5,002,728) | |
Net Assets | |||
Beginning of Period | 15,809,810 | 20,812,538 | |
End of Period | 18,057,618 | 15,809,810 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2023 | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $63.49 | $88.53 | $71.69 | $64.38 | $75.87 | $65.51 |
Investment Operations | ||||||
Net Investment Income1 | .312 | .470 | .276 | .454 | .549 | .428 |
Net Realized and Unrealized Gain (Loss) on Investments | 9.811 | (16.748) | 23.563 | 11.233 | (5.116) | 12.957 |
Total from Investment Operations | 10.123 | (16.278) | 23.839 | 11.687 | (4.567) | 13.385 |
Distributions | ||||||
Dividends from Net Investment Income | (.506) | (.295) | (.334) | (.501) | (.473) | (.449) |
Distributions from Realized Capital Gains | (5.357) | (8.467) | (6.665) | (3.876) | (6.450) | (2.576) |
Total Distributions | (5.863) | (8.762) | (6.999) | (4.377) | (6.923) | (3.025) |
Net Asset Value, End of Period | $67.75 | $63.49 | $88.53 | $71.69 | $64.38 | $75.87 |
Total Return2 | 16.60% | -20.45% | 34.75% | 18.52% | -5.01% | 21.03% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $1,228 | $1,114 | $1,585 | $1,518 | $1,684 | $2,065 |
Ratio of Total Expenses to Average Net Assets | 0.43% | 0.43%3 | 0.43% | 0.44% | 0.44% | 0.43% |
Ratio of Net Investment Income to Average Net Assets | 0.91% | 0.61% | 0.33% | 0.69% | 0.84% | 0.62% |
Portfolio Turnover Rate | 5% | 6% | 7% | 8% | 6% | 10% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 | Six Months Ended March 31, 2023 | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $146.60 | $204.49 | $165.62 | $148.73 | $175.34 | $151.28 |
Investment Operations | ||||||
Net Investment Income1 | .777 | 1.215 | .775 | 1.148 | 1.374 | 1.103 |
Net Realized and Unrealized Gain (Loss) on Investments | 22.626 | (38.672) | 54.409 | 25.968 | (11.834) | 29.937 |
Total from Investment Operations | 23.403 | (37.457) | 55.184 | 27.116 | (10.460) | 31.040 |
Distributions | ||||||
Dividends from Net Investment Income | (1.293) | (.873) | (.916) | (1.270) | (1.241) | (1.030) |
Distributions from Realized Capital Gains | (12.370) | (19.560) | (15.398) | (8.956) | (14.909) | (5.950) |
Total Distributions | (13.663) | (20.433) | (16.314) | (10.226) | (16.150) | (6.980) |
Net Asset Value, End of Period | $156.34 | $146.60 | $204.49 | $165.62 | $148.73 | $175.34 |
Total Return2 | 16.63% | -20.39% | 34.84% | 18.60% | -4.95% | 21.12% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $16,829 | $14,696 | $19,228 | $15,395 | $14,618 | $16,372 |
Ratio of Total Expenses to Average Net Assets | 0.36% | 0.36%3 | 0.36% | 0.37% | 0.37% | 0.36% |
Ratio of Net Investment Income to Average Net Assets | 0.98% | 0.68% | 0.40% | 0.76% | 0.91% | 0.69% |
Portfolio Turnover Rate | 5% | 6% | 7% | 8% | 6% | 10% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 six months ended March 31, 2023, the investment advisory fee represented an effective annual basic rate of 0.23% of the fund’s average net assets. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
D. | Various inputs may be used to determine the value of the fund’s investments. 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 | 16,862,372 | 441,048 | — | 17,303,420 |
Temporary Cash Investments | 905,452 | — | — | 905,452 |
Total | 17,767,824 | 441,048 | — | 18,208,872 |
E. | As of March 31, 2023, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 8,681,764 |
Gross Unrealized Appreciation | 10,389,641 |
Gross Unrealized Depreciation | (862,533) |
Net Unrealized Appreciation (Depreciation) | 9,527,108 |
F. | During the six months ended March 31, 2023, the fund purchased $756,211,000 of investment securities and sold $870,428,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 53,056 | 780 | 106,036 | 1,323 | |
Issued in Lieu of Cash Distributions | 90,111 | 1,424 | 133,246 | 1,662 | |
Redeemed | (109,175) | (1,612) | (272,823) | (3,348) | |
Net Increase (Decrease)—Investor Shares | 33,992 | 592 | (33,541) | (363) | |
Admiral Shares | |||||
Issued | 672,177 | 4,336 | 993,989 | 5,809 | |
Issued in Lieu of Cash Distributions | 1,175,772 | 8,055 | 1,647,533 | 8,903 | |
Redeemed | (776,847) | (4,992) | (1,519,165) | (8,496) | |
Net Increase (Decrease)—Admiral Shares | 1,071,102 | 7,399 | 1,122,357 | 6,216 |
H. | Certain of the fund’s investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company or the issuer is another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows: |
Current Period Transactions | ||||||||
Sep. 30, 2022 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) | Mar. 31, 2023 Market Value ($000) | |
FibroGen Inc. | NA1 | 10,771 | — | — | 27,479 | — | — | 96,287 |
Vanguard Market Liquidity Fund | 1,004,465 | NA2 | NA2 | 22 | 173 | 14,676 | 2 | 905,452 |
Total | 1,004,465 | 10,771 | — | 22 | 27,652 | 14,676 | 2 | 1,001,739 |
1 | Not applicable—at September 30, 2022, the issuer was not an affiliated company of the fund. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
I. | Management has determined that no events or transactions occurred subsequent to March 31, 2023, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 18 |
Liquidity Risk Management | 20 |
• | 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 March 31, 2023 | |||
Global Equity Fund | Beginning Account Value 9/30/2022 | Ending Account Value 3/31/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,201.70 | $2.31 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.84 | 2.12 |
United States | 57.2% |
Japan | 5.1 |
United Kingdom | 5.1 |
France | 4.0 |
Netherlands | 3.4 |
China | 3.4 |
Ireland | 3.2 |
Germany | 2.9 |
Switzerland | 2.0 |
India | 1.8 |
Hong Kong | 1.6 |
Taiwan | 1.4 |
Australia | 1.2 |
Brazil | 1.1 |
Sweden | 1.1 |
South Korea | 1.0 |
Other | 4.5 |
Shares | Market Value• ($000) | ||
Common Stocks (96.8%) | |||
Australia (1.2%) | |||
BHP Group Ltd. (XLON) | 2,333,545 | 74,127 | |
Woodside Energy Group Ltd. (XLON) | 437,661 | 9,797 | |
83,924 | |||
Brazil (1.1%) | |||
Ambev SA | 13,825,610 | 39,089 | |
B3 SA - Brasil Bolsa Balcao | 12,777,500 | 26,092 | |
* | XP Inc. Class A | 1,196,948 | 14,208 |
79,389 | |||
Canada (0.7%) | |||
* | Shopify Inc. Class A (XTSE) | 1,075,376 | 51,554 |
China (3.3%) | |||
* | Alibaba Group Holding Ltd. | 6,221,715 | 78,801 |
* | Ping An Insurance Group Co. of China Ltd. Class H | 5,727,500 | 37,053 |
* | ANTA Sports Products Ltd. | 2,199,600 | 31,936 |
* | Li Auto Inc. Class A | 1,817,158 | 22,726 |
* | Glodon Co. Ltd. Class A (XSHE) | 1,352,900 | 14,629 |
*,1 | Meituan Class B | 715,700 | 12,984 |
*,1 | China Tourism Group Duty Free Corp. Ltd. Class H | 501,200 | 12,370 |
Will Semiconductor Co. Ltd. Shanghai | 615,200 | 8,180 | |
* | SG Micro Corp. Class A (XSHE) | 342,833 | 7,757 |
* | Will Semiconductor Co. Ltd. Shanghai Class A | 299,800 | 3,986 |
SG Micro Corp. Class A | 133,421 | 3,019 | |
233,441 | |||
Denmark (0.4%) | |||
* | Genmab A/S | 70,490 | 26,646 |
Finland (0.7%) | |||
Nokia OYJ | 10,803,758 | 53,034 | |
France (3.9%) | |||
Pernod Ricard SA | 336,917 | 76,288 | |
Cie Generale des Etablissements Michelin SCA | 2,224,750 | 68,007 |
Shares | Market Value• ($000) | ||
* | ArcelorMittal SA | 1,380,084 | 41,811 |
Sanofi | 298,804 | 32,414 | |
* | Accor SA | 951,000 | 30,918 |
1 | Amundi SA | 459,548 | 28,956 |
278,394 | |||
Germany (2.8%) | |||
BASF SE | 1,137,093 | 59,696 | |
Fresenius Medical Care AG & Co. KGaA | 1,163,847 | 49,399 | |
Volkswagen AG Preference Shares | 305,383 | 41,676 | |
Deutsche Boerse AG | 159,433 | 31,043 | |
adidas AG | 122,653 | 21,743 | |
203,557 | |||
Hong Kong (1.5%) | |||
* | AIA Group Ltd. | 6,114,200 | 64,122 |
* | Galaxy Entertainment Group Ltd. | 4,561,220 | 30,510 |
* | Sands China Ltd. | 4,634,400 | 16,100 |
110,732 | |||
India (1.7%) | |||
1 | Reliance Industries Ltd. GDR | 1,441,078 | 81,304 |
Housing Development Finance Corp. Ltd. | 1,311,335 | 42,052 | |
123,356 | |||
Ireland (3.1%) | |||
* | CRH plc (SGMX) | 1,581,427 | 79,885 |
* | Ryanair Holdings plc ADR | 809,475 | 76,325 |
* | ICON plc | 159,788 | 34,129 |
* | Smurfit Kappa Group plc (XDUB) | 880,075 | 31,920 |
*,2 | Irish Bank Resolution Corp. | 122,273 | — |
222,259 | |||
Italy (0.5%) | |||
* | Enel SpA | 5,877,029 | 35,844 |
* | Saipem SpA | 10,000 | 15 |
35,859 | |||
Japan (4.9%) | |||
Olympus Corp. | 3,163,800 | 55,565 | |
Komatsu Ltd. | 2,062,600 | 51,204 | |
Shiseido Co. Ltd. | 841,400 | 39,448 | |
Keyence Corp. | 72,000 | 35,288 | |
Resona Holdings Inc. | 7,154,100 | 34,512 | |
SMC Corp. | 64,200 | 34,034 | |
Daiichi Sankyo Co. Ltd. | 764,300 | 27,880 |
Shares | Market Value• ($000) | ||
Sysmex Corp. | 419,300 | 27,519 | |
Denso Corp. | 390,400 | 22,037 | |
CyberAgent Inc. | 1,960,900 | 16,614 | |
Hoshizaki Corp. | 303,200 | 11,202 | |
355,303 | |||
Netherlands (3.3%) | |||
* | Prosus NV | 1,515,167 | 118,644 |
3 | Randstad NV | 767,112 | 45,540 |
* | ING Groep NV | 3,141,735 | 37,309 |
*,1 | Adyen NV | 14,745 | 23,495 |
ASM International NV | 29,449 | 11,953 | |
236,941 | |||
Norway (0.4%) | |||
* | Schibsted ASA Class A | 836,918 | 14,206 |
* | Adevinta ASA | 1,575,682 | 11,186 |
* | Schibsted ASA Class B | 205,592 | 3,305 |
28,697 | |||
Other (1.1%) | |||
4 | Vanguard Total World Stock ETF | 882,043 | 81,227 |
Russia (0.0%) | |||
*,2 | Sberbank of Russia PJSC | 3,912,108 | — |
*,2 | X5 Retail Group NV GDR (Registered) | 227,797 | — |
*,2 | VK Co. Ltd. GDR | 128,137 | — |
*,2 | Severstal PAO GDR (Registered) | 520,152 | — |
— | |||
Singapore (0.5%) | |||
* | Sea Ltd. ADR | 393,485 | 34,056 |
South Korea (1.0%) | |||
* | Coupang Inc. Class A | 2,687,940 | 43,007 |
Shinhan Financial Group Co. Ltd. | 1,066,425 | 28,970 | |
71,977 | |||
Sweden (1.1%) | |||
Atlas Copco AB Class B | 3,418,081 | 39,317 | |
Epiroc AB Class B | 1,616,469 | 27,562 | |
* | Spotify Technology SA | 76,830 | 10,266 |
77,145 | |||
Switzerland (1.9%) | |||
Cie Financiere Richemont SA Class A (Registered) | 308,338 | 49,444 | |
UBS Group AG (Registered) | 2,002,229 | 42,369 | |
Roche Holding AG | 110,704 | 31,633 | |
*,1 | Wizz Air Holdings plc | 407,145 | 14,951 |
138,397 | |||
Taiwan (1.4%) | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,104,000 | 54,397 | |
* | Hon Hai Precision Industry Co. Ltd. | 13,321,745 | 45,600 |
99,997 | |||
United Kingdom (4.9%) | |||
Shell plc | 2,071,925 | 59,363 | |
* | Rio Tinto plc | 860,503 | 58,409 |
* | Prudential plc (XLON) | 3,370,657 | 46,150 |
AstraZeneca plc ADR | 589,152 | 40,893 | |
* | HSBC Holdings plc | 4,946,844 | 33,621 |
Tesco plc | 8,971,690 | 29,413 | |
* | Barclays plc | 15,265,434 | 27,476 |
Shares | Market Value• ($000) | ||
NatWest Group plc | 7,410,535 | 24,181 | |
* | Standard Chartered plc | 3,132,224 | 23,739 |
*,3 | Farfetch Ltd. Class A | 2,215,567 | 10,879 |
354,124 | |||
United States (55.4%) | |||
Microsoft Corp. | 596,367 | 171,933 | |
* | Amazon.com Inc. | 1,619,023 | 167,229 |
Mastercard Inc. Class A | 361,007 | 131,194 | |
Elevance Health Inc. | 256,740 | 118,052 | |
Moody's Corp. | 327,816 | 100,318 | |
Martin Marietta Materials Inc. | 275,069 | 97,666 | |
Visa Inc. Class A | 423,406 | 95,461 | |
Service Corp. International | 1,217,649 | 83,750 | |
General Electric Co. | 832,330 | 79,571 | |
* | Alphabet Inc. Class C | 680,806 | 70,804 |
* | Alphabet Inc. Class A | 668,887 | 69,384 |
Eli Lilly & Co. | 201,710 | 69,271 | |
Prologis Inc. | 554,951 | 69,241 | |
* | Chipotle Mexican Grill Inc. Class A | 39,838 | 68,055 |
Edison International | 919,973 | 64,941 | |
Lear Corp. | 464,132 | 64,742 | |
Arthur J Gallagher & Co. | 336,000 | 64,280 | |
* | Illumina Inc. | 273,187 | 63,530 |
Cognizant Technology Solutions Corp. Class A | 991,387 | 60,405 | |
* | MercadoLibre Inc. | 42,687 | 56,264 |
Royalty Pharma plc Class A | 1,512,651 | 54,501 | |
Thermo Fisher Scientific Inc. | 91,339 | 52,645 | |
* | Meta Platforms Inc. Class A | 238,787 | 50,608 |
* | Netflix Inc. | 140,390 | 48,502 |
* | Alnylam Pharmaceuticals Inc. | 234,478 | 46,971 |
* | Aptiv plc | 413,917 | 46,437 |
Analog Devices Inc. | 231,791 | 45,714 | |
NVIDIA Corp. | 164,520 | 45,699 | |
* | Monster Beverage Corp. | 842,760 | 45,517 |
Estee Lauder Cos. Inc. Class A | 182,241 | 44,915 | |
Citigroup Inc. | 933,692 | 43,781 | |
Teradyne Inc. | 402,945 | 43,321 | |
Capital One Financial Corp. | 447,361 | 43,018 | |
UnitedHealth Group Inc. | 90,287 | 42,669 | |
SS&C Technologies Holdings Inc. | 738,060 | 41,678 | |
* | Walt Disney Co. | 412,570 | 41,311 |
* | Moderna Inc. | 267,276 | 41,048 |
Albemarle Corp. | 183,241 | 40,504 | |
* | Tesla Inc. | 193,104 | 40,061 |
* | Trade Desk Inc. Class A | 653,839 | 39,825 |
Westinghouse Air Brake Technologies Corp. | 385,354 | 38,944 | |
* | Booking Holdings Inc. | 14,545 | 38,579 |
Wells Fargo & Co. | 1,030,355 | 38,515 | |
Dow Inc. | 700,869 | 38,422 | |
S&P Global Inc. | 110,627 | 38,141 | |
* | Airbnb Inc. Class A | 303,308 | 37,731 |
Broadridge Financial Solutions Inc. | 250,096 | 36,657 | |
Equitable Holdings Inc. | 1,373,829 | 34,881 | |
* | Dynatrace Inc. | 800,167 | 33,847 |
Shares | Market Value• ($000) | ||
Charles Schwab Corp. | 609,160 | 31,908 | |
* | Skyline Champion Corp. | 419,602 | 31,567 |
* | Axon Enterprise Inc. | 139,380 | 31,340 |
* | Markel Corp. | 24,478 | 31,268 |
* | Ceridian HCM Holding Inc. | 426,801 | 31,250 |
* | CBRE Group Inc. Class A | 427,899 | 31,155 |
Newell Brands Inc. | 2,406,073 | 29,932 | |
* | Uber Technologies Inc. | 909,305 | 28,825 |
American International Group Inc. | 561,129 | 28,258 | |
Eaton Corp. plc | 161,782 | 27,720 | |
* | CoStar Group Inc. | 397,456 | 27,365 |
Wingstop Inc. | 147,341 | 27,049 | |
* | Snap Inc. Class A | 2,312,315 | 25,921 |
*,3 | Chewy Inc. Class A | 690,918 | 25,826 |
* | SiteOne Landscape Supply Inc. | 187,028 | 25,599 |
* | Adobe Inc. | 64,333 | 24,792 |
* | First Solar Inc. | 111,040 | 24,151 |
* | Cargurus Inc. | 1,255,301 | 23,449 |
* | MongoDB Inc. Class A | 89,801 | 20,934 |
* | Block Inc. (XNYS) | 302,161 | 20,743 |
* | Floor & Decor Holdings Inc. Class A | 207,991 | 20,429 |
Cognex Corp. | 399,383 | 19,789 | |
* | Cloudflare Inc. Class A | 303,056 | 18,686 |
Pool Corp. | 54,099 | 18,526 | |
* | Intuitive Surgical Inc. | 72,177 | 18,439 |
* | Advanced Micro Devices Inc. | 187,483 | 18,375 |
* | Certara Inc. | 753,028 | 18,155 |
* | Howard Hughes Corp. | 225,603 | 18,048 |
* | DoorDash Inc. Class A | 274,795 | 17,466 |
Entegris Inc. | 210,244 | 17,242 | |
* | Match Group Inc. | 427,610 | 16,416 |
* | SolarEdge Technologies Inc. | 53,676 | 16,315 |
McKesson Corp. | 45,285 | 16,124 | |
Advanced Drainage Systems Inc. | 187,279 | 15,771 | |
* | Snowflake Inc. Class A | 101,813 | 15,709 |
* | Datadog Inc. Class A | 214,964 | 15,619 |
* | Shake Shack Inc. Class A | 276,265 | 15,330 |
Hannon Armstrong Sustainable Infrastructure Capital Inc. | 524,689 | 15,006 | |
Hewlett Packard Enterprise Co. | 916,385 | 14,598 |
Shares | Market Value• ($000) | ||
* | Novocure Ltd. | 239,370 | 14,396 |
* | Livent Corp. | 615,190 | 13,362 |
* | Exact Sciences Corp. | 175,814 | 11,922 |
* | Roku Inc. | 178,737 | 11,764 |
* | STAAR Surgical Co. | 176,616 | 11,295 |
* | Roblox Corp. Class A | 250,240 | 11,256 |
* | REVOLUTION Medicines Inc. | 503,051 | 10,896 |
* | GE Healthcare Inc. | 121,642 | 9,978 |
*,3 | Stem Inc. | 1,067,258 | 6,051 |
*,3 | Wayfair Inc. Class A | 148,992 | 5,116 |
*,2 | ABIOMED Inc. CVR | 82,912 | 85 |
3,981,749 | |||
Total Common Stocks (Cost $5,837,057) | 6,961,758 | ||
Temporary Cash Investments (4.1%) | |||
Money Market Fund (4.1%) | |||
5,6 | Vanguard Market Liquidity Fund, 4.839% (Cost $296,054) | 2,960,955 | 296,066 |
Total Investments (100.9%) (Cost $6,133,111) | 7,257,824 | ||
Other Assets and Liabilities—Net (-0.9%) | (62,883) | ||
Net Assets (100%) | 7,194,941 | ||
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 March 31, 2023, the aggregate value was $174,060,000, representing 2.4% of net assets. |
2 | Security value determined using significant unobservable inputs. |
3 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $74,116,000. |
4 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
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 $77,385,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
CVR—Contingent Value Rights. | |
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 | June 2023 | 376 | 77,790 | 4,562 |
MSCI EAFE Index | June 2023 | 323 | 33,858 | 1,279 |
MSCI Emerging Markets Index | June 2023 | 291 | 14,485 | 504 |
6,345 |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $5,760,281) | 6,880,531 |
Affiliated Issuers (Cost $372,830) | 377,293 |
Total Investments in Securities | 7,257,824 |
Investment in Vanguard | 255 |
Cash | 10,399 |
Cash Collateral Pledged—Futures Contracts | 6,003 |
Foreign Currency, at Value (Cost $1,707) | 1,690 |
Receivables for Investment Securities Sold | 3,994 |
Receivables for Accrued Income | 17,443 |
Receivables for Capital Shares Issued | 1,743 |
Variation Margin Receivable—Futures Contracts | 1,240 |
Total Assets | 7,300,591 |
Liabilities | |
Payables for Investment Securities Purchased | 18,819 |
Collateral for Securities on Loan | 77,385 |
Payables to Investment Advisor | 3,512 |
Payables for Capital Shares Redeemed | 4,538 |
Payables to Vanguard | 734 |
Deferred Foreign Capital Gains Taxes | 662 |
Total Liabilities | 105,650 |
Net Assets | 7,194,941 |
1 Includes $74,116,000 of securities on loan. | |
At March 31, 2023, net assets consisted of: | |
Paid-in Capital | 6,546,195 |
Total Distributable Earnings (Loss) | 648,746 |
Net Assets | 7,194,941 |
Net Assets | |
Applicable to 246,147,630 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 7,194,941 |
Net Asset Value Per Share | $29.23 |
Six Months Ended March 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 45,998 |
Dividends—Affiliated Issuers | 528 |
Interest—Unaffiliated Issuers | 131 |
Interest—Affiliated Issuers | 4,110 |
Securities Lending—Net | 37 |
Total Income | 50,804 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 7,995 |
Performance Adjustment | (1,120) |
The Vanguard Group—Note C | |
Management and Administrative | 7,223 |
Marketing and Distribution | 174 |
Custodian Fees | 104 |
Shareholders’ Reports | 67 |
Trustees’ Fees and Expenses | 2 |
Other Expenses | 18 |
Total Expenses | 14,463 |
Expenses Paid Indirectly | (2) |
Net Expenses | 14,461 |
Net Investment Income | 36,343 |
Realized Net Gain (Loss) | |
Capital Gains Distributions Received – Affiliated Issuers | 1 |
Investment Securities Sold—Unaffiliated Issuers | (123,528) |
Investment Securities Sold—Affiliated Issuers | (1,005) |
Futures Contracts | (1,121) |
Foreign Currencies | 215 |
Realized Net Gain (Loss) | (125,438) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers2 | 1,298,313 |
Investment Securities—Affiliated Issuers | 13,036 |
Futures Contracts | 21,296 |
Foreign Currencies | 512 |
Change in Unrealized Appreciation (Depreciation) | 1,333,157 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,244,062 |
1 | Dividends are net of foreign withholding taxes of $3,374,000. |
2 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $662,000. |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 36,343 | 88,288 | |
Realized Net Gain (Loss) | (125,438) | 462,358 | |
Change in Unrealized Appreciation (Depreciation) | 1,333,157 | (3,028,889) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,244,062 | (2,478,243) | |
Distributions | |||
Total Distributions | (689,754) | (944,789) | |
Capital Share Transactions | |||
Issued | 342,828 | 1,050,800 | |
Issued in Lieu of Cash Distributions | 603,991 | 823,880 | |
Redeemed | (577,576) | (1,243,098) | |
Net Increase (Decrease) from Capital Share Transactions | 369,243 | 631,582 | |
Total Increase (Decrease) | 923,551 | (2,791,450) | |
Net Assets | |||
Beginning of Period | 6,271,390 | 9,062,840 | |
End of Period | 7,194,941 | 6,271,390 |
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2023 | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $27.07 | $41.53 | $33.31 | $30.75 | $32.62 | $29.98 |
Investment Operations | ||||||
Net Investment Income1 | .151 | .373 | .371 | .312 | .7002 | .426 |
Net Realized and Unrealized Gain (Loss) on Investments | 5.036 | (10.641) | 8.939 | 4.219 | (.354) | 2.618 |
Total from Investment Operations | 5.187 | (10.268) | 9.310 | 4.531 | .346 | 3.044 |
Distributions | ||||||
Dividends from Net Investment Income | (.442) | (.355) | (.254) | (.742) | (.416) | (.404) |
Distributions from Realized Capital Gains | (2.585) | (3.837) | (.836) | (1.229) | (1.800) | — |
Total Distributions | (3.027) | (4.192) | (1.090) | (1.971) | (2.216) | (.404) |
Net Asset Value, End of Period | $29.23 | $27.07 | $41.53 | $33.31 | $30.75 | $32.62 |
Total Return3 | 20.17% | -27.52% | 28.29% | 15.10% | 2.19% | 10.22% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $7,195 | $6,271 | $9,063 | $6,809 | $6,513 | $5,769 |
Ratio of Total Expenses to Average Net Assets4 | 0.42%5 | 0.41%5 | 0.45% | 0.45% | 0.48% | 0.48% |
Ratio of Net Investment Income to Average Net Assets | 1.07% | 1.07% | 0.93% | 1.02% | 2.35%2 | 1.34% |
Portfolio Turnover Rate | 12% | 84% | 28% | 22% | 49% | 40% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 (0.03%), (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 0.42% and 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., Wellington Management Company LLP, and Pzena Investment Management, LLC, 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 |
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, distribution, and cash management 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 has asked its investment advisors to direct certain security trades, subject to obtaining the best price and execution, to brokers who have agreed to rebate to the fund part of the commissions generated. Such rebates are used solely to reduce the fund’s management and administrative expenses. For the six months ended March 31, 2023, these 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 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 | 4,112,607 | — | 85 | 4,112,692 |
Common Stocks—Other | 330,782 | 2,518,284 | — | 2,849,066 |
Temporary Cash Investments | 296,066 | — | — | 296,066 |
Total | 4,739,455 | 2,518,284 | 85 | 7,257,824 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 6,345 | — | — | 6,345 |
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. |
F. | As of March 31, 2023, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 6,178,661 |
Gross Unrealized Appreciation | 1,536,434 |
Gross Unrealized Depreciation | (450,926) |
Net Unrealized Appreciation (Depreciation) | 1,085,508 |
G. | During the six months ended March 31, 2023, the fund purchased $779,619,000 of investment securities and sold $1,080,273,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 12,050 | 28,008 | |
Issued in Lieu of Cash Distributions | 22,537 | 21,993 | |
Redeemed | (20,111) | (36,575) | |
Net Increase (Decrease) in Shares Outstanding | 14,476 | 13,426 |
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, 2022 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) | Mar. 31, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 186,162 | NA1 | NA1 | 46 | (4) | 4,110 | 1 | 296,066 |
Vanguard Total World Stock ETF | 53,153 | 152,899 | 136,814 | (1,051) | 13,040 | 528 | — | 81,227 |
Total | 239,315 | 152,899 | 136,814 | (1,005) | 13,036 | 4,638 | 1 | 377,293 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
J. | Management has determined that no events or transactions occurred subsequent to March 31, 2023, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 19 |
Liquidity Risk Management | 21 |
• | 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 March 31, 2023 | |||
Strategic Small-Cap Equity Fund | Beginning Account Value 9/30/2022 | Ending Account Value 3/31/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,153.80 | $1.40 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.64 | 1.31 |
Communication Services | 2.7% |
Consumer Discretionary | 13.0 |
Consumer Staples | 4.0 |
Energy | 5.3 |
Financials | 15.5 |
Health Care | 13.3 |
Industrials | 18.5 |
Information Technology | 13.1 |
Materials | 5.7 |
Real Estate | 6.0 |
Utilities | 2.9 |
Shares | Market Value• ($000) | ||
Common Stocks (99.5%) | |||
Communication Services (2.7%) | |||
Iridium Communications Inc. | 111,059 | 6,878 | |
* | Yelp Inc. Class A | 223,289 | 6,855 |
Madison Square Garden Sports Corp. | 14,737 | 2,872 | |
* | Clear Channel Outdoor Holdings Inc. | 2,209,447 | 2,651 |
New York Times Co. Class A | 56,494 | 2,196 | |
* | TripAdvisor Inc. | 105,593 | 2,097 |
* | Consolidated Communications Holdings Inc. | 656,508 | 1,694 |
Cogent Communications Holdings Inc. | 23,051 | 1,469 | |
* | Bandwidth Inc. Class A | 89,718 | 1,364 |
* | fuboTV Inc. | 1,075,644 | 1,302 |
* | WideOpenWest Inc. | 116,295 | 1,236 |
* | Cinemark Holdings Inc. | 63,262 | 936 |
* | ZipRecruiter Inc. Class A | 56,171 | 895 |
* | Altice USA Inc. Class A | 218,523 | 747 |
* | Endeavor Group Holdings Inc. Class A | 22,505 | 539 |
Nexstar Media Group Inc. Class A | 2,620 | 452 | |
* | TechTarget Inc. | 10,148 | 367 |
* | Playtika Holding Corp. | 32,235 | 363 |
* | Quotient Technology Inc. | 91,924 | 302 |
* | Cargurus Inc. | 15,122 | 282 |
* | Bumble Inc. Class A | 12,192 | 238 |
* | iHeartMedia Inc. Class A | 44,443 | 173 |
35,908 | |||
Consumer Discretionary (12.9%) | |||
Boyd Gaming Corp. | 146,862 | 9,417 | |
Murphy USA Inc. | 35,747 | 9,225 | |
* | Tri Pointe Homes Inc. | 316,350 | 8,010 |
* | Capri Holdings Ltd. | 162,775 | 7,650 |
* | AutoNation Inc. | 53,403 | 7,175 |
* | Skyline Champion Corp. | 86,522 | 6,509 |
Buckle Inc. | 180,880 | 6,456 | |
* | Perdoceo Education Corp. | 440,828 | 5,920 |
Brunswick Corp. | 67,140 | 5,505 | |
* | Cavco Industries Inc. | 17,057 | 5,420 |
* | Taylor Morrison Home Corp. Class A | 136,916 | 5,238 |
Oxford Industries Inc. | 46,649 | 4,926 |
Shares | Market Value• ($000) | ||
Texas Roadhouse Inc. Class A | 42,690 | 4,613 | |
PVH Corp. | 50,970 | 4,544 | |
* | Playa Hotels & Resorts NV | 464,242 | 4,457 |
Toll Brothers Inc. | 66,944 | 4,019 | |
Harley-Davidson Inc. | 102,515 | 3,893 | |
Patrick Industries Inc. | 51,527 | 3,546 | |
Travel & Leisure Co. | 82,445 | 3,232 | |
Macy's Inc. | 174,677 | 3,055 | |
Academy Sports & Outdoors Inc. | 45,347 | 2,959 | |
* | Malibu Boats Inc. Class A | 51,532 | 2,909 |
Movado Group Inc. | 100,530 | 2,892 | |
* | Stride Inc. | 73,006 | 2,866 |
* | American Axle & Manufacturing Holdings Inc. | 359,954 | 2,811 |
* | SeaWorld Entertainment Inc. | 41,497 | 2,544 |
*,1 | Stitch Fix Inc. Class A | 454,563 | 2,323 |
Marriott Vacations Worldwide Corp. | 16,616 | 2,241 | |
* | Shake Shack Inc. Class A | 37,433 | 2,077 |
* | Master Craft Boat Holdings Inc. | 66,848 | 2,034 |
Ruth's Hospitality Group Inc. | 114,107 | 1,874 | |
* | Chegg Inc. | 104,252 | 1,699 |
* | Everi Holdings Inc. | 95,563 | 1,639 |
* | WW International Inc. | 396,262 | 1,633 |
* | Modine Manufacturing Co. | 69,882 | 1,611 |
Signet Jewelers Ltd. | 20,699 | 1,610 | |
* | Visteon Corp. | 10,115 | 1,586 |
Hibbett Inc. | 26,681 | 1,574 | |
Winnebago Industries Inc. | 25,662 | 1,481 | |
Dick's Sporting Goods Inc. | 9,956 | 1,413 | |
Carriage Services Inc. Class A | 46,235 | 1,411 | |
* | 2U Inc. | 194,957 | 1,335 |
Dine Brands Global Inc. | 17,373 | 1,175 | |
* | Qurate Retail Inc. Series A | 1,069,488 | 1,056 |
* | Hilton Grand Vacations Inc. | 21,338 | 948 |
Group 1 Automotive Inc. | 3,922 | 888 | |
Steven Madden Ltd. | 22,309 | 803 | |
* | Abercrombie & Fitch Co. Class A | 27,621 | 766 |
*,1 | Luminar Technologies Inc. Class A | 113,520 | 737 |
ADT Inc. | 99,411 | 719 |
Shares | Market Value• ($000) | ||
* | Goodyear Tire & Rubber Co. | 60,678 | 669 |
Wingstop Inc. | 3,520 | 646 | |
* | ODP Corp. | 13,758 | 619 |
* | Grand Canyon Education Inc. | 5,173 | 589 |
Monarch Casino & Resort Inc. | 7,870 | 584 | |
Standard Motor Products Inc. | 14,050 | 519 | |
* | Coursera Inc. | 44,529 | 513 |
Wendy's Co. | 23,264 | 507 | |
* | Sportsman's Warehouse Holdings Inc. | 54,548 | 463 |
Aaron's Co. Inc. | 44,441 | 429 | |
* | M/I Homes Inc. | 6,755 | 426 |
* | ContextLogic Inc. Class A | 935,919 | 417 |
* | Chuy's Holdings Inc. | 10,834 | 388 |
* | BJ's Restaurants Inc. | 13,091 | 381 |
Jack in the Box Inc. | 3,613 | 316 | |
* | Beazer Homes USA Inc. | 16,024 | 254 |
Williams-Sonoma Inc. | 1,852 | 225 | |
172,369 | |||
Consumer Staples (4.0%) | |||
Ingles Markets Inc. Class A | 85,639 | 7,596 | |
Cal-Maine Foods Inc. | 119,229 | 7,260 | |
* | elf Beauty Inc. | 74,147 | 6,106 |
Coca-Cola Consolidated Inc. | 10,710 | 5,731 | |
* | Post Holdings Inc. | 41,709 | 3,748 |
* | Coty Inc. Class A | 290,163 | 3,499 |
John B Sanfilippo & Son Inc. | 35,131 | 3,405 | |
* | Hostess Brands Inc. Class A | 135,102 | 3,361 |
Medifast Inc. | 16,604 | 1,721 | |
* | USANA Health Sciences Inc. | 20,241 | 1,273 |
Fresh Del Monte Produce Inc. | 41,040 | 1,236 | |
Vector Group Ltd. | 101,199 | 1,215 | |
Turning Point Brands Inc. | 53,320 | 1,120 | |
Inter Parfums Inc. | 7,228 | 1,028 | |
Flowers Foods Inc. | 30,387 | 833 | |
PriceSmart Inc. | 10,430 | 746 | |
* | Beauty Health Co. | 58,987 | 745 |
Andersons Inc. | 14,176 | 586 | |
* | Performance Food Group Co. | 8,833 | 533 |
* | Hain Celestial Group Inc. | 28,700 | 492 |
* | Herbalife Nutrition Ltd. | 21,086 | 340 |
* | Vital Farms Inc. | 19,971 | 306 |
52,880 | |||
Energy (5.2%) | |||
Helmerich & Payne Inc. | 211,347 | 7,556 | |
* | Par Pacific Holdings Inc. | 238,405 | 6,961 |
SM Energy Co. | 178,518 | 5,027 | |
* | Weatherford International plc | 78,382 | 4,652 |
PDC Energy Inc. | 71,888 | 4,614 | |
Liberty Energy Inc. Class A | 346,057 | 4,433 | |
* | Nabors Industries Ltd. (XNYS) | 32,029 | 3,905 |
Range Resources Corp. | 142,207 | 3,764 | |
APA Corp. | 101,104 | 3,646 | |
* | Southwestern Energy Co. | 695,546 | 3,478 |
Delek US Holdings Inc. | 123,182 | 2,827 |
Shares | Market Value• ($000) | ||
Marathon Oil Corp. | 96,753 | 2,318 | |
* | US Silica Holdings Inc. | 193,243 | 2,307 |
PBF Energy Inc. Class A | 41,031 | 1,779 | |
Murphy Oil Corp. | 43,277 | 1,600 | |
Patterson-UTI Energy Inc. | 125,041 | 1,463 | |
* | Denbury Inc. | 15,706 | 1,376 |
* | NexTier Oilfield Solutions Inc. | 160,277 | 1,274 |
* | W&T Offshore Inc. | 243,413 | 1,237 |
* | ProPetro Holding Corp. | 169,160 | 1,216 |
* | Plains GP Holdings LP Class A | 91,974 | 1,207 |
Viper Energy Partners LP | 42,034 | 1,177 | |
1 | Vitesse Energy Inc. | 38,721 | 737 |
* | Callon Petroleum Co. | 17,078 | 571 |
Berry Corp. | 55,270 | 434 | |
* | Oceaneering International Inc. | 18,748 | 331 |
CONSOL Energy Inc. | 5,118 | 298 | |
70,188 | |||
Financials (15.4%) | |||
Affiliated Managers Group Inc. | 63,101 | 8,987 | |
MGIC Investment Corp. | 666,073 | 8,939 | |
Essent Group Ltd. | 220,503 | 8,831 | |
CNO Financial Group Inc. | 371,282 | 8,239 | |
Radian Group Inc. | 371,296 | 8,206 | |
Stifel Financial Corp. | 137,619 | 8,132 | |
SouthState Corp. | 106,454 | 7,586 | |
Unum Group | 184,753 | 7,309 | |
OFG Bancorp | 289,997 | 7,232 | |
Synovus Financial Corp. | 211,708 | 6,527 | |
FNB Corp. | 556,156 | 6,451 | |
Hancock Whitney Corp. | 166,523 | 6,061 | |
Popular Inc. | 101,834 | 5,846 | |
Axis Capital Holdings Ltd. | 98,164 | 5,352 | |
SLM Corp. | 399,354 | 4,948 | |
International Bancshares Corp. | 112,949 | 4,836 | |
* | Cannae Holdings Inc. | 232,169 | 4,685 |
Pathward Financial Inc. | 106,422 | 4,415 | |
* | Enstar Group Ltd. | 18,520 | 4,293 |
Columbia Banking System Inc. | 177,442 | 3,801 | |
BGC Partners Inc. Class A | 698,401 | 3,653 | |
Navient Corp. | 222,054 | 3,551 | |
* | Genworth Financial Inc. Class A | 631,490 | 3,170 |
American Equity Investment Life Holding Co. | 85,971 | 3,137 | |
Banner Corp. | 57,194 | 3,110 | |
Evercore Inc. Class A | 25,196 | 2,907 | |
First Financial Bancorp | 131,881 | 2,871 | |
Stewart Information Services Corp. | 66,691 | 2,691 | |
Jackson Financial Inc. Class A | 67,397 | 2,521 | |
Hope Bancorp Inc. | 255,654 | 2,510 | |
Towne Bank | 90,931 | 2,423 | |
Westamerica BanCorp. | 52,734 | 2,336 | |
Central Pacific Financial Corp. | 130,084 | 2,328 | |
UMB Financial Corp. | 37,882 | 2,187 | |
* | NMI Holdings Inc. Class A | 97,402 | 2,175 |
Brightsphere Investment Group Inc. | 88,208 | 2,080 |
Shares | Market Value• ($000) | ||
* | StoneX Group Inc. | 19,711 | 2,041 |
S&T Bancorp Inc. | 62,022 | 1,951 | |
Atlantic Union Bankshares Corp. | 50,423 | 1,767 | |
First Financial Corp. | 46,287 | 1,735 | |
* | Palomar Holdings Inc. | 30,035 | 1,658 |
* | International Money Express Inc. | 62,149 | 1,602 |
Nelnet Inc. Class A | 16,663 | 1,531 | |
Wintrust Financial Corp. | 20,115 | 1,467 | |
Victory Capital Holdings Inc. Class A | 46,124 | 1,350 | |
* | Oscar Health Inc. Class A | 202,563 | 1,325 |
* | LendingClub Corp. | 180,429 | 1,301 |
Fulton Financial Corp. | 86,129 | 1,190 | |
BOK Financial Corp. | 11,703 | 988 | |
Byline Bancorp Inc. | 45,507 | 984 | |
* | MBIA Inc. | 90,448 | 838 |
* | Green Dot Corp. Class A | 46,317 | 796 |
Hanmi Financial Corp. | 36,543 | 679 | |
Horizon Bancorp Inc. | 59,883 | 662 | |
Northfield Bancorp Inc. | 54,856 | 646 | |
* | AvidXchange Holdings Inc. | 82,515 | 644 |
Virtus Investment Partners Inc. | 3,380 | 643 | |
Veritex Holdings Inc. | 33,561 | 613 | |
James River Group Holdings Ltd. | 29,311 | 605 | |
TPG Inc. | 18,447 | 541 | |
Heartland Financial USA Inc. | 14,039 | 539 | |
ProAssurance Corp. | 24,985 | 462 | |
First Bancorp (XNGS) | 12,650 | 449 | |
A-Mark Precious Metals Inc. | 10,136 | 351 | |
* | Avantax Inc. | 13,312 | 350 |
WSFS Financial Corp. | 8,488 | 319 | |
Amalgamated Financial Corp. | 17,780 | 314 | |
First BanCorp. (XNYS) | 25,359 | 290 | |
First Busey Corp. | 13,498 | 275 | |
Perella Weinberg Partners Class A | 29,570 | 269 | |
TrustCo Bank Corp. NY | 7,877 | 252 | |
Heritage Commerce Corp. | 23,119 | 193 | |
205,946 | |||
Health Care (13.2%) | |||
* | Tenet Healthcare Corp. | 151,132 | 8,980 |
* | Alkermes plc | 281,972 | 7,949 |
Bruker Corp. | 96,426 | 7,602 | |
* | CorVel Corp. | 39,467 | 7,510 |
* | Inspire Medical Systems Inc. | 29,018 | 6,792 |
* | Merit Medical Systems Inc. | 91,837 | 6,791 |
* | Medpace Holdings Inc. | 34,571 | 6,501 |
* | Protagonist Therapeutics Inc. | 265,994 | 6,118 |
* | Ionis Pharmaceuticals Inc. | 162,411 | 5,805 |
* | AMN Healthcare Services Inc. | 68,344 | 5,670 |
* | Veradigm Inc. | 368,620 | 4,811 |
* | Lantheus Holdings Inc. | 57,907 | 4,781 |
* | Nevro Corp. | 124,159 | 4,488 |
* | Bridgebio Pharma Inc. | 237,168 | 3,932 |
* | Health Catalyst Inc. | 312,405 | 3,646 |
* | Fate Therapeutics Inc. | 602,314 | 3,433 |
* | Exelixis Inc. | 162,188 | 3,148 |
Shares | Market Value• ($000) | ||
* | Intercept Pharmaceuticals Inc. | 221,524 | 2,975 |
* | ACADIA Pharmaceuticals Inc. | 153,181 | 2,883 |
* | MacroGenics Inc. | 401,077 | 2,876 |
* | PTC Therapeutics Inc. | 53,771 | 2,605 |
* | Avanos Medical Inc. | 80,951 | 2,408 |
* | GoodRx Holdings Inc. Class A | 381,274 | 2,383 |
* | Natera Inc. | 42,352 | 2,351 |
* | Sangamo Therapeutics Inc. | 1,230,429 | ��2,166 |
* | 2seventy bio Inc. | 205,184 | 2,093 |
* | HealthStream Inc. | 74,673 | 2,024 |
* | NextGen Healthcare Inc. | 114,708 | 1,997 |
* | Coherus Biosciences Inc. | 286,988 | 1,963 |
* | Haemonetics Corp. | 22,530 | 1,864 |
* | STAAR Surgical Co. | 28,063 | 1,795 |
* | Axonics Inc. | 32,772 | 1,788 |
* | Deciphera Pharmaceuticals Inc. | 113,927 | 1,760 |
* | Integra LifeSciences Holdings Corp. | 30,168 | 1,732 |
* | Atara Biotherapeutics Inc. | 551,449 | 1,599 |
* | FibroGen Inc. | 84,371 | 1,574 |
* | ViewRay Inc. | 399,166 | 1,381 |
* | Arcturus Therapeutics Holdings Inc. | 55,735 | 1,336 |
* | Pediatrix Medical Group Inc. | 83,133 | 1,240 |
* | NGM Biopharmaceuticals Inc. | 302,301 | 1,233 |
* | Option Care Health Inc. | 38,306 | 1,217 |
* | Cerus Corp. | 391,289 | 1,162 |
* | Ultragenyx Pharmaceutical Inc. | 28,831 | 1,156 |
* | PetIQ Inc. Class A | 99,655 | 1,140 |
* | Mirati Therapeutics Inc. | 29,201 | 1,086 |
* | Zimvie Inc. | 147,268 | 1,065 |
* | TG Therapeutics Inc. | 69,491 | 1,045 |
* | Agenus Inc. | 665,072 | 1,011 |
* | BioCryst Pharmaceuticals Inc. | 116,877 | 975 |
*,1 | Inovio Pharmaceuticals Inc. | 1,109,220 | 910 |
* | Morphic Holding Inc. | 22,879 | 861 |
* | CytomX Therapeutics Inc. | 555,119 | 838 |
* | Inogen Inc. | 66,860 | 834 |
* | Rigel Pharmaceuticals Inc. | 580,493 | 766 |
* | Apellis Pharmaceuticals Inc. | 11,296 | 745 |
*,1 | Novavax Inc. | 102,486 | 710 |
* | Puma Biotechnology Inc. | 227,827 | 704 |
*,1 | Heron Therapeutics Inc. | 430,283 | 650 |
* | Twist Bioscience Corp. | 42,378 | 639 |
* | Voyager Therapeutics Inc. | 79,308 | 612 |
*,1 | Gossamer Bio Inc. | 482,270 | 608 |
* | Y-mAbs Therapeutics Inc. | 120,515 | 604 |
* | Community Health Systems Inc. | 118,518 | 581 |
* | Arrowhead Pharmaceuticals Inc. | 22,844 | 580 |
* | Scilex Holding Co. | 74,374 | 549 |
* | Computer Programs and Systems Inc. | 18,021 | 544 |
* | Nektar Therapeutics Class A | 763,309 | 537 |
* | AngioDynamics Inc. | 51,850 | 536 |
Ensign Group Inc. | 5,410 | 517 | |
* | ImmunoGen Inc. | 132,618 | 509 |
Shares | Market Value• ($000) | ||
* | Codexis Inc. | 121,799 | 504 |
* | Pennant Group Inc. | 34,052 | 486 |
* | OraSure Technologies Inc. | 76,225 | 461 |
* | Vir Biotechnology Inc. | 19,668 | 458 |
Chemed Corp. | 850 | 457 | |
* | iRhythm Technologies Inc. | 3,429 | 425 |
*,1 | Invitae Corp. | 311,992 | 421 |
* | NanoString Technologies Inc. | 39,238 | 388 |
* | Precision BioSciences Inc. | 500,660 | 377 |
* | Joint Corp. | 22,122 | 372 |
* | MiMedx Group Inc. | 107,570 | 367 |
Atrion Corp. | 570 | 358 | |
* | Accolade Inc. | 24,927 | 358 |
* | Editas Medicine Inc. Class A | 43,327 | 314 |
* | Vanda Pharmaceuticals Inc. | 44,969 | 305 |
* | NeoGenomics Inc. | 17,458 | 304 |
* | Karuna Therapeutics Inc. | 1,625 | 295 |
* | Rapt Therapeutics Inc. | 15,706 | 288 |
* | Seres Therapeutics Inc. | 50,584 | 287 |
* | Nurix Therapeutics Inc. | 31,808 | 282 |
* | Kiniksa Pharmaceuticals Ltd. Class A | 22,257 | 240 |
* | Atea Pharmaceuticals Inc. | 64,273 | 215 |
* | CareDx Inc. | 22,031 | 201 |
* | GlycoMimetics Inc. | 146,428 | 185 |
* | Assembly Biosciences Inc. | 212,676 | 179 |
176,201 | |||
Industrials (18.4%) | |||
EMCOR Group Inc. | 70,408 | 11,448 | |
nVent Electric plc | 247,073 | 10,609 | |
* | Clean Harbors Inc. | 70,082 | 9,991 |
Allison Transmission Holdings Inc. | 214,883 | 9,721 | |
Applied Industrial Technologies Inc. | 54,535 | 7,751 | |
* | GMS Inc. | 133,775 | 7,744 |
Acuity Brands Inc. | 40,850 | 7,465 | |
* | Atkore Inc. | 50,422 | 7,083 |
Terex Corp. | 145,933 | 7,060 | |
Kforce Inc. | 110,758 | 7,004 | |
Ryder System Inc. | 75,668 | 6,753 | |
Watts Water Technologies Inc. Class A | 36,886 | 6,209 | |
Valmont Industries Inc. | 19,427 | 6,203 | |
* | Titan Machinery Inc. | 187,590 | 5,712 |
* | ExlService Holdings Inc. | 35,137 | 5,686 |
ManpowerGroup Inc. | 64,367 | 5,312 | |
H&E Equipment Services Inc. | 116,095 | 5,135 | |
Tetra Tech Inc. | 33,288 | 4,890 | |
Ennis Inc. | 230,340 | 4,858 | |
UFP Industries Inc. | 56,425 | 4,484 | |
Heidrick & Struggles International Inc. | 140,442 | 4,264 | |
* | Hub Group Inc. Class A | 49,528 | 4,157 |
* | NOW Inc. | 352,737 | 3,933 |
Triton International Ltd. | 58,529 | 3,700 | |
* | MRC Global Inc. | 362,271 | 3,521 |
Encore Wire Corp. | 18,623 | 3,451 | |
Moog Inc. Class A | 33,014 | 3,326 | |
Korn Ferry | 57,981 | 3,000 | |
AGCO Corp. | 21,834 | 2,952 | |
* | Kirby Corp. | 42,232 | 2,944 |
Insperity Inc. | 22,132 | 2,690 | |
* | JetBlue Airways Corp. | 356,601 | 2,596 |
Shares | Market Value• ($000) | ||
Wabash National Corp. | 104,671 | 2,574 | |
* | Heritage-Crystal Clean Inc. | 69,702 | 2,482 |
Herc Holdings Inc. | 21,315 | 2,428 | |
Resources Connection Inc. | 136,015 | 2,320 | |
Apogee Enterprises Inc. | 52,386 | 2,266 | |
* | Thermon Group Holdings Inc. | 90,032 | 2,244 |
GrafTech International Ltd. | 461,336 | 2,242 | |
* | Triumph Group Inc. | 192,244 | 2,228 |
Esab Corp. | 36,297 | 2,144 | |
* | TrueBlue Inc. | 116,100 | 2,067 |
Enerpac Tool Group Corp. Class A | 81,018 | 2,066 | |
* | Sunrun Inc. | 95,044 | 1,915 |
CSG Systems International Inc. | 34,213 | 1,837 | |
Marten Transport Ltd. | 85,052 | 1,782 | |
* | RXO Inc. | 86,488 | 1,699 |
* | Forrester Research Inc. | 52,270 | 1,691 |
* | SkyWest Inc. | 72,642 | 1,611 |
AECOM | 18,816 | 1,587 | |
EnerSys | 18,239 | 1,585 | |
* | Masonite International Corp. | 17,107 | 1,553 |
* | Sterling Infrastructure Inc. | 40,643 | 1,540 |
Air Lease Corp. Class A | 35,742 | 1,407 | |
BWX Technologies Inc. | 22,020 | 1,388 | |
Matson Inc. | 22,760 | 1,358 | |
* | SP Plus Corp. | 39,066 | 1,340 |
Rush Enterprises Inc. Class A | 23,316 | 1,273 | |
Veritiv Corp. | 9,018 | 1,219 | |
Standex International Corp. | 9,654 | 1,182 | |
Brink's Co. | 16,256 | 1,086 | |
* | Masterbrand Inc. | 131,515 | 1,057 |
Primoris Services Corp. | 39,558 | 976 | |
Spirit AeroSystems Holdings Inc. Class A | 23,577 | 814 | |
* | American Woodmark Corp. | 14,459 | 753 |
* | DXP Enterprises Inc. | 27,688 | 745 |
* | Manitowoc Co. Inc. | 43,443 | 742 |
* | Liquidity Services Inc. | 51,459 | 678 |
Genco Shipping & Trading Ltd. | 40,062 | 627 | |
* | AAR Corp. | 11,411 | 622 |
* | Daseke Inc. | 78,892 | 610 |
John Bean Technologies Corp. | 5,142 | 562 | |
* | TuSimple Holdings Inc. Class A | 322,687 | 474 |
Trinity Industries Inc. | 18,754 | 457 | |
* | Hireright Holdings Corp. | 42,602 | 452 |
WESCO International Inc. | 2,643 | 408 | |
Insteel Industries Inc. | 13,362 | 372 | |
Columbus McKinnon Corp. | 9,876 | 367 | |
Boise Cascade Co. | 5,560 | 352 | |
* | CIRCOR International Inc. | 10,995 | 342 |
Interface Inc. Class A | 41,285 | 335 | |
Barrett Business Services Inc. | 3,602 | 319 | |
Douglas Dynamics Inc. | 8,868 | 283 | |
* | Harsco Corp. | 39,107 | 267 |
* | Conduent Inc. | 60,937 | 209 |
246,589 | |||
Information Technology (13.1%) | |||
* | Cirrus Logic Inc. | 94,659 | 10,354 |
* | Nutanix Inc. Class A | 319,566 | 8,305 |
Shares | Market Value• ($000) | ||
* | Axcelis Technologies Inc. | 60,211 | 8,023 |
* | Yext Inc. | 746,162 | 7,171 |
* | Impinj Inc. | 49,268 | 6,677 |
* | Domo Inc. Class B | 451,192 | 6,402 |
* | Extreme Networks Inc. | 328,308 | 6,277 |
* | Rapid7 Inc. | 115,037 | 5,281 |
* | Kyndryl Holdings Inc. | 347,333 | 5,127 |
* | CommVault Systems Inc. | 89,438 | 5,075 |
* | Pure Storage Inc. Class A | 197,436 | 5,037 |
Jabil Inc. | 54,831 | 4,834 | |
* | Manhattan Associates Inc. | 30,660 | 4,748 |
* | Super Micro Computer Inc. | 42,738 | 4,554 |
* | CommScope Holding Co. Inc. | 704,519 | 4,488 |
* | Sanmina Corp. | 69,002 | 4,208 |
* | Diodes Inc. | 42,451 | 3,938 |
* | Everbridge Inc. | 112,650 | 3,906 |
* | RingCentral Inc. Class A | 125,512 | 3,849 |
* | Arlo Technologies Inc. | 595,425 | 3,608 |
* | Fabrinet | 30,138 | 3,579 |
*,1 | Infinera Corp. | 361,706 | 2,807 |
* | Zuora Inc. Class A | 270,721 | 2,675 |
* | Blackline Inc. | 38,246 | 2,568 |
* | MaxLinear Inc. | 70,664 | 2,488 |
* | New Relic Inc. | 32,026 | 2,411 |
Amkor Technology Inc. | 91,380 | 2,378 | |
* | Teradata Corp. | 58,901 | 2,373 |
Benchmark Electronics Inc. | 90,282 | 2,139 | |
* | Lattice Semiconductor Corp. | 22,283 | 2,128 |
* | SMART Global Holdings Inc. | 123,033 | 2,121 |
* | Box Inc. Class A | 74,028 | 1,983 |
* | Smartsheet Inc. Class A | 39,218 | 1,875 |
* | BigCommerce Holdings Inc. Series 1 | 199,126 | 1,780 |
* | ePlus Inc. | 36,091 | 1,770 |
* | 8x8 Inc. | 423,333 | 1,765 |
* | Itron Inc. | 30,331 | 1,682 |
* | ScanSource Inc. | 55,008 | 1,674 |
Xerox Holdings Corp. | 99,378 | 1,530 | |
* | Viavi Solutions Inc. | 124,349 | 1,347 |
* | FormFactor Inc. | 41,995 | 1,338 |
Pegasystems Inc. | 27,442 | 1,330 | |
* | Tenable Holdings Inc. | 27,554 | 1,309 |
* | Sprinklr Inc. Class A | 92,047 | 1,193 |
* | ACM Research Inc. Class A | 100,673 | 1,178 |
National Instruments Corp. | 19,376 | 1,015 | |
Vishay Intertechnology Inc. | 42,761 | 967 | |
Avnet Inc. | 20,533 | 928 | |
* | TTM Technologies Inc. | 58,649 | 791 |
* | Upland Software Inc. | 182,511 | 785 |
* | Magnachip Semiconductor Corp. | 73,814 | 685 |
* | Aeva Technologies Inc. | 564,552 | 672 |
* | SecureWorks Corp. Class A | 76,277 | 654 |
* | PROS Holdings Inc. | 23,377 | 640 |
* | OneSpan Inc. | 33,591 | 588 |
A10 Networks Inc. | 35,998 | 558 | |
*,1 | MicroStrategy Inc. Class A | 1,871 | 547 |
* | Digital Turbine Inc. | 43,697 | 540 |
* | Unisys Corp. | 120,547 | 468 |
* | Samsara Inc. Class A | 23,429 | 462 |
* | Brightcove Inc. | 86,508 | 385 |
* | CS Disco Inc. | 53,053 | 352 |
* | LiveRamp Holdings Inc. | 14,827 | 325 |
* | NCR Corp. | 12,410 | 293 |
Shares | Market Value• ($000) | ||
* | LivePerson Inc. | 65,391 | 288 |
PC Connection Inc. | 6,356 | 286 | |
* | ON24 Inc. | 32,548 | 285 |
* | ACI Worldwide Inc. | 10,192 | 275 |
* | Ribbon Communications Inc. | 71,681 | 245 |
* | Semtech Corp. | 8,611 | 208 |
174,525 | |||
Materials (5.7%) | |||
Eagle Materials Inc. | 66,470 | 9,754 | |
Olin Corp. | 142,021 | 7,882 | |
SunCoke Energy Inc. | 811,537 | 7,288 | |
Warrior Met Coal Inc. | 165,842 | 6,088 | |
AdvanSix Inc. | 157,623 | 6,032 | |
* | Ecovyst Inc. | 415,323 | 4,589 |
Chemours Co. | 141,185 | 4,227 | |
* | O-I Glass Inc. | 181,817 | 4,129 |
Tronox Holdings plc Class A | 212,126 | 3,050 | |
Innospec Inc. | 27,599 | 2,834 | |
Ashland Inc. | 26,927 | 2,766 | |
* | Ingevity Corp. | 31,568 | 2,258 |
Mercer International Inc. | 189,007 | 1,848 | |
Sylvamo Corp. | 32,388 | 1,498 | |
Graphic Packaging Holding Co. | 55,690 | 1,420 | |
United States Steel Corp. | 53,216 | 1,389 | |
* | Arconic Corp. | 51,364 | 1,347 |
* | LSB Industries Inc. | 123,826 | 1,279 |
Ryerson Holding Corp. | 31,199 | 1,135 | |
Greif Inc. Class A | 15,302 | 970 | |
Schnitzer Steel Industries Inc. Class A | 31,179 | 970 | |
Alpha Metallurgical Resources Inc. | 5,405 | 843 | |
Koppers Holdings Inc. | 22,274 | 779 | |
Myers Industries Inc. | 24,452 | 524 | |
Huntsman Corp. | 17,697 | 484 | |
Hawkins Inc. | 9,500 | 416 | |
75,799 | |||
Real Estate (6.0%) | |||
Essential Properties Realty Trust Inc. | 285,713 | 7,100 | |
DiamondRock Hospitality Co. | 847,934 | 6,894 | |
Apple Hospitality REIT Inc. | 408,693 | 6,343 | |
Park Hotels & Resorts Inc. | 466,188 | 5,762 | |
Brixmor Property Group Inc. | 263,592 | 5,672 | |
Highwoods Properties Inc. | 152,587 | 3,538 | |
Outfront Media Inc. | 212,195 | 3,444 | |
American Assets Trust Inc. | 184,841 | 3,436 | |
National Storage Affiliates Trust | 79,220 | 3,310 | |
Universal Health Realty Income Trust | 68,614 | 3,301 | |
EPR Properties | 83,785 | 3,192 | |
Piedmont Office Realty Trust Inc. Class A | 415,325 | 3,032 | |
RLJ Lodging Trust | 282,663 | 2,996 | |
Brandywine Realty Trust | 629,182 | 2,976 | |
Rayonier Inc. | 74,873 | 2,490 | |
Xenia Hotels & Resorts Inc. | 165,533 | 2,167 | |
Tanger Factory Outlet Centers Inc. | 87,994 | 1,727 | |
SITE Centers Corp. | 110,912 | 1,362 | |
Global Medical REIT Inc. | 126,336 | 1,151 | |
Chatham Lodging Trust | 106,553 | 1,118 |
Shares | Market Value• ($000) | ||
Getty Realty Corp. | 27,764 | 1,000 | |
Armada Hoffler Properties Inc. | 82,620 | 976 | |
RPT Realty | 97,149 | 924 | |
Community Healthcare Trust Inc. | 24,838 | 909 | |
NexPoint Residential Trust Inc. | 20,718 | 905 | |
One Liberty Properties Inc. | 37,488 | 860 | |
Ryman Hospitality Properties Inc. | 7,819 | 702 | |
Summit Hotel Properties Inc. | 83,664 | 586 | |
Gladstone Commercial Corp. | 37,771 | 477 | |
Life Storage Inc. | 3,460 | 453 | |
Paramount Group Inc. | 77,806 | 355 | |
Urstadt Biddle Properties Inc. Class A | 19,617 | 345 | |
Alexander's Inc. | 1,669 | 323 | |
79,826 | |||
Utilities (2.9%) | |||
Otter Tail Corp. | 134,055 | 9,688 | |
National Fuel Gas Co. | 161,598 | 9,331 | |
Hawaiian Electric Industries Inc. | 172,477 | 6,623 | |
Portland General Electric Co. | 83,396 | 4,077 | |
Unitil Corp. | 61,728 | 3,521 | |
Black Hills Corp. | 44,555 | 2,811 |
Shares | Market Value• ($000) | ||
MGE Energy Inc. | 22,646 | 1,759 | |
Chesapeake Utilities Corp. | 11,110 | 1,422 | |
39,232 | |||
Total Common Stocks (Cost $1,255,984) | 1,329,463 | ||
Temporary Cash Investments (1.0%) | |||
Money Market Fund (1.0%) | |||
2,3 | Vanguard Market Liquidity Fund, 4.839% (Cost $12,995) | 129,968 | 12,995 |
Total Investments (100.5%) (Cost $1,268,979) | 1,342,458 | ||
Other Assets and Liabilities—Net (-0.5%) | (6,056) | ||
Net Assets (100%) | 1,336,402 | ||
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 $6,336,000. |
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 $7,048,000 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 | June 2023 | 80 | 7,254 | 184 |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $1,255,984) | 1,329,463 |
Affiliated Issuers (Cost $12,995) | 12,995 |
Total Investments in Securities | 1,342,458 |
Investment in Vanguard | 51 |
Cash Collateral Pledged—Futures Contracts | 503 |
Receivables for Investment Securities Sold | 264 |
Receivables for Accrued Income | 1,076 |
Receivables for Capital Shares Issued | 729 |
Variation Margin Receivable—Futures Contracts | 134 |
Total Assets | 1,345,215 |
Liabilities | |
Due to Custodian | 264 |
Payables for Investment Securities Purchased | 27 |
Collateral for Securities on Loan | 7,048 |
Payables for Capital Shares Redeemed | 1,327 |
Payables to Vanguard | 147 |
Total Liabilities | 8,813 |
Net Assets | 1,336,402 |
1 Includes $6,336,000 of securities on loan. | |
At March 31, 2023, net assets consisted of: | |
Paid-in Capital | 1,275,757 |
Total Distributable Earnings (Loss) | 60,645 |
Net Assets | 1,336,402 |
Net Assets | |
Applicable to 40,891,418 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,336,402 |
Net Asset Value Per Share | $32.68 |
Six Months Ended March 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 9,420 |
Interest2 | 144 |
Securities Lending—Net | 40 |
Total Income | 9,604 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 166 |
Management and Administrative | 1,499 |
Marketing and Distribution | 37 |
Custodian Fees | 7 |
Shareholders’ Reports | 34 |
Trustees’ Fees and Expenses | — |
Other Expenses | 6 |
Total Expenses | 1,749 |
Expenses Paid Indirectly | (3) |
Net Expenses | 1,746 |
Net Investment Income | 7,858 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 2,362 |
Futures Contracts | (192) |
Realized Net Gain (Loss) | 2,170 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 171,099 |
Futures Contracts | 807 |
Change in Unrealized Appreciation (Depreciation) | 171,906 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 181,934 |
1 | Dividends are net of foreign withholding taxes of $26,000. |
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 $135,000, $1,000, less than $1,000, and ($1,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 7,858 | 18,192 | |
Realized Net Gain (Loss) | 2,170 | 101,876 | |
Change in Unrealized Appreciation (Depreciation) | 171,906 | (351,033) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 181,934 | (230,965) | |
Distributions | |||
Total Distributions | (90,442) | (277,283) | |
Capital Share Transactions | |||
Issued | 125,811 | 355,042 | |
Issued in Lieu of Cash Distributions | 79,897 | 246,930 | |
Redeemed | (154,860) | (519,024) | |
Net Increase (Decrease) from Capital Share Transactions | 50,848 | 82,948 | |
Total Increase (Decrease) | 142,340 | (425,300) | |
Net Assets | |||
Beginning of Period | 1,194,062 | 1,619,362 | |
End of Period | 1,336,402 | 1,194,062 |
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2023 | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $30.44 | $43.90 | $28.48 | $31.41 | $40.21 | $36.99 |
Investment Operations | ||||||
Net Investment Income1 | .195 | .462 | .435 | .392 | .393 | .373 |
Net Realized and Unrealized Gain (Loss) on Investments | 4.397 | (6.143) | 15.424 | (1.955) | (5.888) | 5.294 |
Total from Investment Operations | 4.592 | (5.681) | 15.859 | (1.563) | (5.495) | 5.667 |
Distributions | ||||||
Dividends from Net Investment Income | (.366) | (.507) | (.439) | (.393) | (.378) | (.394) |
Distributions from Realized Capital Gains | (1.986) | (7.272) | — | (.974) | (2.927) | (2.053) |
Total Distributions | (2.352) | (7.779) | (.439) | (1.367) | (3.305) | (2.447) |
Net Asset Value, End of Period | $32.68 | $30.44 | $43.90 | $28.48 | $31.41 | $40.21 |
Total Return2 | 15.38% | -16.24% | 56.05% | -5.55% | -12.91% | 16.13% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $1,336 | $1,194 | $1,619 | $1,029 | $1,395 | $1,917 |
Ratio of Total Expenses to Average Net Assets | 0.26%3 | 0.26% | 0.26% | 0.26% | 0.26% | 0.29% |
Ratio of Net Investment Income to Average Net Assets | 1.22% | 1.24% | 1.08% | 1.35% | 1.22% | 0.99% |
Portfolio Turnover Rate | 29% | 72% | 76% | 66% | 67% | 88% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 0.26%. |
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. | 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 six months ended March 31, 2023, custodian fee offset arrangements reduced the fund’s expenses by $3,000 (an annual rate of less than 0.01% of average net assets). |
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 | 1,328,914 | 549 | — | 1,329,463 |
Temporary Cash Investments | 12,995 | — | — | 12,995 |
Total | 1,341,909 | 549 | — | 1,342,458 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 184 | — | — | 184 |
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. | As of March 31, 2023, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 1,269,522 |
Gross Unrealized Appreciation | 212,469 |
Gross Unrealized Depreciation | (139,349) |
Net Unrealized Appreciation (Depreciation) | 73,120 |
F. | During the six months ended March 31, 2023, the fund purchased $393,423,000 of investment securities and sold $424,287,000 of investment securities, other than temporary cash investments. |
G. | Capital shares issued and redeemed were: |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 3,756 | 9,044 | |
Issued in Lieu of Cash Distributions | 2,537 | 6,602 | |
Redeemed | (4,634) | (13,298) | |
Net Increase (Decrease) in Shares Outstanding | 1,659 | 2,348 |
H. | Management has determined that no events or transactions occurred subsequent to March 31, 2023, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
• | 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 March 31, 2023 | |||
Beginning Account Value 9/30/2022 | Ending Account Value 3/31/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
International Core Stock Fund | |||
Investor Shares | $1,000.00 | $1,206.50 | $2.64 |
Admiral™ Shares | 1,000.00 | 1,207.70 | 2.09 |
Based on Hypothetical 5% Yearly Return | |||
International Core Stock Fund | |||
Investor Shares | $1,000.00 | $1,022.54 | $2.42 |
Admiral Shares | 1,000.00 | 1,023.04 | 1.92 |
United Kingdom | 13.1% |
Japan | 12.8 |
China | 11.5 |
France | 8.9 |
Germany | 4.7 |
Netherlands | 4.5 |
Canada | 4.4 |
Taiwan | 4.0 |
Switzerland | 3.8 |
India | 3.4 |
Italy | 3.1 |
Australia | 3.1 |
South Korea | 3.0 |
Hong Kong | 2.2 |
Brazil | 1.7 |
Thailand | 1.7 |
Sweden | 1.5 |
Singapore | 1.4 |
Mexico | 1.3 |
Denmark | 1.2 |
Finland | 1.1 |
Spain | 1.0 |
Other | 6.6 |
Shares | Market Value• ($000) | |||||
Common Stocks (98.4%) | ||||||
Australia (3.0%) | ||||||
BHP Group Ltd. | 480,302 | 15,257 | ||||
ANZ Group Holdings Ltd. | 626,688 | 9,657 | ||||
Woodside Energy Group Ltd. | 325,451 | 7,271 | ||||
32,185 | ||||||
Austria (0.8%) | ||||||
*,1 | BAWAG Group AG | 184,217 | 8,947 | |||
Brazil (1.7%) | ||||||
Telefonica Brasil SA | 999,300 | 7,622 | ||||
* | MercadoLibre Inc. | 4,365 | 5,753 | |||
BB Seguridade Participacoes SA | 783,400 | 5,025 | ||||
18,400 | ||||||
Canada (4.3%) | ||||||
Barrick Gold Corp. | 772,096 | 14,333 | ||||
Intact Financial Corp. | 76,246 | 10,912 | ||||
Cenovus Energy Inc. | 539,950 | 9,421 | ||||
Nutrien Ltd. | 109,287 | 8,071 | ||||
Enerplus Corp. | 240,753 | 3,470 | ||||
46,207 | ||||||
China (11.3%) | ||||||
Tencent Holdings Ltd. | 551,700 | 26,961 | ||||
* | Alibaba Group Holding Ltd. | 1,370,900 | 17,363 | |||
* | Trip.com Group Ltd. | 325,600 | 12,266 | |||
Tsingtao Brewery Co. Ltd. Class A | 669,957 | 11,757 | ||||
NetEase Inc. | 597,800 | 10,553 | ||||
China Pacific Insurance Group Co. Ltd. Class H | 3,921,000 | 10,395 | ||||
China Tourism Group Duty Free Corp. Ltd. Class A | 313,728 | 8,378 | ||||
ENN Energy Holdings Ltd. | 578,400 | 7,920 | ||||
China Longyuan Power Group Corp. Ltd. Class H | 6,881,000 | 7,850 |
Shares | Market Value• ($000) | |||||
YTO Express Group Co. Ltd. Class A | 2,869,768 | 7,643 | ||||
*,1 | Meituan Class B | 43,700 | 793 | |||
121,879 | ||||||
Denmark (1.2%) | ||||||
* | Genmab A/S | 34,072 | 12,879 | |||
Finland (1.1%) | ||||||
Nokia OYJ | 2,449,255 | 12,023 | ||||
France (8.8%) | ||||||
Engie SA | 1,190,088 | 18,833 | ||||
Vinci SA | 123,704 | 14,182 | ||||
* | Renault SA | 322,442 | 13,141 | |||
Airbus SE | 98,145 | 13,109 | ||||
AXA SA | 423,117 | 12,913 | ||||
Pernod Ricard SA | 55,975 | 12,674 | ||||
Bureau Veritas SA | 318,630 | 9,155 | ||||
Credit Agricole SA | 3,729 | 42 | ||||
94,049 | ||||||
Germany (4.6%) | ||||||
Siemens AG (Registered) | 109,399 | 17,723 | ||||
Wacker Chemie AG | 73,005 | 11,864 | ||||
* | Commerzbank AG | 1,037,165 | 10,920 | |||
RWE AG | 218,680 | 9,409 | ||||
49,916 | ||||||
Hong Kong (2.2%) | ||||||
AIA Group Ltd. | 1,492,400 | 15,651 | ||||
CK Asset Holdings Ltd. | 1,302,500 | 7,897 | ||||
23,548 | ||||||
India (3.4%) | ||||||
Axis Bank Ltd. | 1,305,344 | 13,676 | ||||
Larsen & Toubro Ltd. | 392,983 | 10,373 | ||||
Mahindra & Mahindra Ltd. | 480,301 | 6,787 | ||||
Bajaj Auto Ltd. | 114,697 | 5,426 | ||||
36,262 | ||||||
Indonesia (0.7%) | ||||||
Bank Negara Indonesia Persero Tbk. PT | 11,441,640 | 7,160 |
Shares | Market Value• ($000) | |||||
Ireland (0.8%) | ||||||
Smurfit Kappa Group plc | 249,365 | 9,045 | ||||
Italy (3.1%) | ||||||
CNH Industrial NV | 921,727 | 14,104 | ||||
UniCredit SpA | 624,546 | 11,771 | ||||
FinecoBank Banca Fineco SpA | 459,031 | 7,033 | ||||
32,908 | ||||||
Japan (12.5%) | ||||||
Mitsubishi UFJ Financial Group Inc. | 2,845,800 | 18,238 | ||||
Sony Group Corp. | 149,600 | 13,626 | ||||
Nippon Telegraph & Telephone Corp. | 451,600 | 13,495 | ||||
ITOCHU Corp. | 391,600 | 12,753 | ||||
Fujitsu Ltd. | 83,000 | 11,216 | ||||
Tokio Marine Holdings Inc. | 535,100 | 10,298 | ||||
Yamaha Motor Co. Ltd. | 344,300 | 9,011 | ||||
Ono Pharmaceutical Co. Ltd. | 403,500 | 8,408 | ||||
Bandai Namco Holdings Inc. | 389,400 | 8,395 | ||||
Daiichi Sankyo Co. Ltd. | 223,800 | 8,164 | ||||
Panasonic Holdings Corp. | 821,700 | 7,352 | ||||
Isuzu Motors Ltd. | 580,800 | 6,941 | ||||
Mitsui Fudosan Co. Ltd. | 363,400 | 6,826 | ||||
134,723 | ||||||
Mexico (1.3%) | ||||||
Wal-Mart de Mexico SAB de CV | 3,378,900 | 13,506 | ||||
Netherlands (4.4%) | ||||||
ASML Holding NV | 26,883 | 18,319 | ||||
* | AerCap Holdings NV | 189,995 | 10,684 | |||
Coca-Cola Europacific Partners plc | 179,344 | 10,615 | ||||
Koninklijke Ahold Delhaize NV | 215,897 | 7,376 | ||||
46,994 | ||||||
Norway (0.9%) | ||||||
Equinor ASA | 346,540 | 9,852 | ||||
Other (2.4%) | ||||||
2 | Vanguard FTSE Developed Markets ETF | 562,798 | 25,422 | |||
Philippines (0.8%) | ||||||
BDO Unibank Inc. | 3,557,180 | 8,436 | ||||
Russia (0.0%) | ||||||
*,3 | Magnit PJSC | 31,141 | — | |||
Singapore (1.4%) | ||||||
DBS Group Holdings Ltd. | 609,200 | 15,146 |
Shares | Market Value• ($000) | |||||
South Korea (3.0%) | ||||||
Samsung Electronics Co. Ltd. | 483,090 | 23,889 | ||||
SK Telecom Co. Ltd. | 211,701 | 7,855 | ||||
31,744 | ||||||
Spain (1.0%) | ||||||
Industria de Diseno Textil SA | 326,181 | 10,958 | ||||
Sweden (1.5%) | ||||||
Volvo AB Class B | 790,103 | 16,281 | ||||
Switzerland (3.7%) | ||||||
Novartis AG (Registered) | 231,920 | 21,295 | ||||
Cie Financiere Richemont SA (Registered) Class A | 117,303 | 18,810 | ||||
40,105 | ||||||
Taiwan (4.0%) | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,714,000 | 30,037 | ||||
Hon Hai Precision Industry Co. Ltd. | 3,637,309 | 12,451 | ||||
42,488 | ||||||
Thailand (1.6%) | ||||||
Kasikornbank PCL (Foreign) | 2,323,200 | 9,012 | ||||
Bangkok Dusit Medical Services PCL (Foreign) | 9,793,800 | 8,455 | ||||
17,467 | ||||||
United Kingdom (12.9%) | ||||||
Shell plc | 836,747 | 23,846 | ||||
AstraZeneca plc | 146,541 | 20,304 | ||||
BAE Systems plc | 1,433,159 | 17,336 | ||||
Compass Group plc | 589,500 | 14,815 | ||||
Anglo American plc | 402,300 | 13,381 | ||||
Glencore plc | 2,020,789 | 11,628 | ||||
Standard Chartered plc | 1,525,129 | 11,559 | ||||
WPP plc | 890,407 | 10,579 | ||||
Haleon plc | 2,510,021 | 9,971 | ||||
* | Wise plc Class A | 751,069 | 5,042 | |||
138,461 | ||||||
Total Common Stocks (Cost $1,009,067) | 1,056,991 |
Shares | Market Value• ($000) | |||||
Temporary Cash Investments (0.5%) | ||||||
Money Market Fund (0.5%) | ||||||
4 | Vanguard Market Liquidity Fund, 4.839% (Cost $5,352) | 53,535 | 5,353 | |||
Total Investments (98.9%) (Cost $1,014,419) | 1,062,344 | |||||
Other Assets and Liabilities—Net (1.1%) | 11,821 | |||||
Net Assets (100%) | 1,074,165 |
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 March 31, 2023, the aggregate value was $9,740,000, 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. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $984,704) | 1,031,569 |
Affiliated Issuers (Cost $29,715) | 30,775 |
Total Investments in Securities | 1,062,344 |
Investment in Vanguard | 37 |
Cash | 138 |
Foreign Currency, at Value (Cost $914) | 915 |
Receivables for Investment Securities Sold | 10,796 |
Receivables for Accrued Income | 4,791 |
Receivables for Capital Shares Issued | 2,961 |
Total Assets | 1,081,982 |
Liabilities | |
Payables for Investment Securities Purchased | 6,337 |
Payables for Capital Shares Redeemed | 479 |
Payables to Investment Advisor | 519 |
Payables to Vanguard | 92 |
Deferred Foreign Capital Gains Taxes | 390 |
Total Liabilities | 7,817 |
Net Assets | 1,074,165 |
At March 31, 2023, net assets consisted of: | |
Paid-in Capital | 1,066,194 |
Total Distributable Earnings (Loss) | 7,971 |
Net Assets | 1,074,165 |
Investor Shares—Net Assets | |
Applicable to 7,197,021 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 81,555 |
Net Asset Value Per Share—Investor Shares | $11.33 |
Admiral Shares—Net Assets | |
Applicable to 43,782,662 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 992,610 |
Net Asset Value Per Share—Admiral Shares | $22.67 |
Six Months Ended March 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 8,956 |
Dividends—Affiliated Issuers | 335 |
Non-Cash Dividends | 1,056 |
Interest—Unaffiliated Issuers | — |
Interest—Affiliated Issuers | 244 |
Securities Lending—Net | 4 |
Total Income | 10,595 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 803 |
Performance Adjustment | 133 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 84 |
Management and Administrative—Admiral Shares | 617 |
Marketing and Distribution—Investor Shares | 3 |
Marketing and Distribution—Admiral Shares | 22 |
Custodian Fees | 39 |
Shareholders’ Reports—Investor Shares | 8 |
Shareholders’ Reports—Admiral Shares | 12 |
Trustees’ Fees and Expenses | — |
Other Expenses | 6 |
Total Expenses | 1,727 |
Net Investment Income | 8,868 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received—Affiliated Issuers | — |
Investment Securities Sold—Unaffiliated Issuers2 | (13,833) |
Investment Securities Sold—Affiliated Issuers | (326) |
Foreign Currencies | 148 |
Realized Net Gain (Loss) | (14,011) |
Statement of Operations (continued) | |
Six Months Ended March 31, 2023 | |
($000) | |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers3 | 152,117 |
Investment Securities—Affiliated Issuers | 3,948 |
Foreign Currencies | 62 |
Change in Unrealized Appreciation (Depreciation) | 156,127 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 150,984 |
1 | Dividends are net of foreign withholding taxes of $955,000. |
2 | Realized Gain (Loss) is net of foreign capital gains taxes of $53,000. |
3 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $200,000. |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 8,868 | 18,178 | |
Realized Net Gain (Loss) | (14,011) | (28,253) | |
Change in Unrealized Appreciation (Depreciation) | 156,127 | (142,159) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 150,984 | (152,234) | |
Distributions | |||
Investor Shares | (1,381) | (3,031) | |
Admiral Shares | (16,186) | (20,529) | |
Total Distributions | (17,567) | (23,560) | |
Capital Share Transactions | |||
Investor Shares | 10,631 | 8,218 | |
Admiral Shares | 245,670 | 315,299 | |
Net Increase (Decrease) from Capital Share Transactions | 256,301 | 323,517 | |
Total Increase (Decrease) | 389,718 | 147,723 | |
Net Assets | |||
Beginning of Period | 684,447 | 536,724 | |
End of Period | 1,074,165 | 684,447 |
Investor Shares | ||||
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2023 | Year Ended September 30, | October 1, 20191 to September 30, 2020 | |
2022 | 2021 | |||
Net Asset Value, Beginning of Period | $9.58 | $12.50 | $9.91 | $10.00 |
Investment Operations | ||||
Net Investment Income2 | .101 | .329 | .307 | .190 |
Net Realized and Unrealized Gain (Loss) on Investments | 1.864 | (2.723) | 2.490 | (.269) |
Total from Investment Operations | 1.965 | (2.394) | 2.797 | (.079) |
Distributions | ||||
Dividends from Net Investment Income | (.215) | (.336) | (.207) | (.011) |
Distributions from Realized Capital Gains | — | (.190) | — | — |
Total Distributions | (.215) | (.526) | (.207) | (.011) |
Net Asset Value, End of Period | $11.33 | $9.58 | $12.50 | $9.91 |
Total Return3 | 20.65% | -20.00% | 28.44% | -0.79% |
Ratios/Supplemental Data | ||||
Net Assets, End of Period (Millions) | $82 | $60 | $70 | $39 |
Ratio of Total Expenses to Average Net Assets4 | 0.48% | 0.48%5 | 0.45% | 0.46%5,6 |
Ratio of Net Investment Income to Average Net Assets | 1.85% | 2.84% | 2.53% | 2.04%6 |
Portfolio Turnover Rate | 38% | 63% | 89% | 80% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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%, 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 | Six Months Ended March 31, 2023 | Year Ended September 30, | October 1, 20191 to September 30, 2020 | |
2022 | 2021 | |||
Net Asset Value, Beginning of Period | $19.17 | $25.02 | $19.85 | $20.00 |
Investment Operations | ||||
Net Investment Income2 | .218 | .671 | .684 | .401 |
Net Realized and Unrealized Gain (Loss) on Investments | 3.735 | (5.446) | 4.921 | (.527) |
Total from Investment Operations | 3.953 | (4.775) | 5.605 | (.126) |
Distributions | ||||
Dividends from Net Investment Income | (.453) | (.695) | (.435) | (.024) |
Distributions from Realized Capital Gains | — | (.380) | — | — |
Total Distributions | (.453) | (1.075) | (.435) | (.024) |
Net Asset Value, End of Period | $22.67 | $19.17 | $25.02 | $19.85 |
Total Return3 | 20.77% | -19.95% | 28.47% | -0.64% |
Ratios/Supplemental Data | ||||
Net Assets, End of Period (Millions) | $993 | $625 | $466 | $149 |
Ratio of Total Expenses to Average Net Assets4 | 0.38% | 0.38%5 | 0.35% | 0.36%5,6 |
Ratio of Net Investment Income to Average Net Assets | 2.01% | 2.93% | 2.78% | 2.15%6 |
Portfolio Turnover Rate | 38% | 63% | 89% | 80% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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%, 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 | 78,113 | — | — | 78,113 |
Common Stocks—Other | 46,720 | 932,158 | — | 978,878 |
Temporary Cash Investments | 5,353 | — | — | 5,353 |
Total | 130,186 | 932,158 | — | 1,062,344 |
Amount ($000) | |
Tax Cost | 1,019,719 |
Gross Unrealized Appreciation | 94,730 |
Gross Unrealized Depreciation | (52,105) |
Net Unrealized Appreciation (Depreciation) | 42,625 |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 22,140 | 2,015 | 41,467 | 3,472 | |
Issued in Lieu of Cash Distributions | 1,167 | 109 | 2,587 | 216 | |
Redeemed | (12,676) | (1,157) | (35,836) | (3,086) | |
Net Increase (Decrease)—Investor Shares | 10,631 | 967 | 8,218 | 602 | |
Admiral Shares | |||||
Issued | 300,987 | 13,750 | 460,904 | 20,399 | |
Issued in Lieu of Cash Distributions | 13,521 | 633 | 17,527 | 730 | |
Redeemed | (68,838) | (3,193) | (163,132) | (7,175) | |
Net Increase (Decrease)—Admiral Shares | 245,670 | 11,190 | 315,299 | 13,954 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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) | Mar. 31, 2023 Market Value ($000) | |
Vanguard FTSE Developed Markets ETF | 23,501 | 73,800 | 75,501 | (325) | 3,947 | 335 | — | 25,422 |
Vanguard Market Liquidity Fund | 8,783 | NA1 | NA1 | (1) | 1 | 244 | — | 5,353 |
Total | 32,284 | 73,800 | 75,501 | (326) | 3,948 | 579 | — | 30,775 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
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Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
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) | Not applicable. |
(a)(2) | Certifications filed herewith. |
(b) | Certifications filed 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: May 19, 2023
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: May 19, 2023
VANGUARD horizon FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: May 19, 2023
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on March 29, 2023 (see File Number 2-11444), Incorporated by Reference.