Vanguard® U.S. Growth Fund
Schedule of Investments (unaudited)
As of May 31, 2021
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
Shares | Market Value ($000) | ||
Common Stocks (98.4%) | |||
Communication Services (14.9%) | |||
* | Alphabet Inc. Class C | 673,291 | 1,623,682 |
* | Facebook Inc. Class A | 4,361,600 | 1,433,789 |
* | Netflix Inc. | 1,780,663 | 895,335 |
* | Alphabet Inc. Class A | 265,133 | 624,879 |
* | Snap Inc. Class A | 9,575,355 | 594,821 |
* | Roku Inc. | 1,602,401 | 555,568 |
* | Match Group Inc. | 3,069,325 | 440,080 |
* | Spotify Technology SA | 846,189 | 204,414 |
* | Pinterest Inc. Class A | 3,034,439 | 198,149 |
* | Zillow Group Inc. Class A | 1,349,229 | 159,600 |
* | ZoomInfo Technologies Inc. Class A | 2,909,208 | 127,510 |
Tencent Holdings Ltd. | 1,551,522 | 123,257 | |
* | Walt Disney Co. | 633,568 | 113,187 |
* | Bumble Inc. Class A | 986,081 | 47,056 |
Activision Blizzard Inc. | 274,542 | 26,699 | |
* | Take-Two Interactive Software Inc. | 130,748 | 24,262 |
Electronic Arts Inc. | 66,639 | 9,525 | |
* | Playtika Holding Corp. | 263,244 | 7,221 |
* | Eventbrite Inc. Class A | 192,174 | 3,901 |
* | Altice USA Inc. Class A | 70,567 | 2,545 |
1 | Sirius XM Holdings Inc. | 234,231 | 1,464 |
Nexstar Media Group Inc. Class A | 9,555 | 1,451 | |
7,218,395 | |||
Consumer Discretionary (20.9%) | |||
* | Amazon.com Inc. | 1,054,492 | 3,398,702 |
* | Tesla Inc. | 2,367,653 | 1,480,304 |
* | Wayfair Inc. Class A | 2,476,876 | 759,262 |
* | Carvana Co. Class A | 1,502,947 | 398,416 |
TJX Cos. Inc. | 5,670,732 | 383,001 | |
* | Lululemon Athletica Inc. | 1,176,610 | 380,198 |
LVMH Moet Hennessy Louis Vuitton SE | 457,016 | 366,085 | |
* | Chegg Inc. | 4,148,297 | 319,045 |
*,1 | Chewy Inc. Class A | 4,306,274 | 317,028 |
* | MercadoLibre Inc. | 217,597 | 295,642 |
*,1 | Airbnb Inc. Class A | 1,950,839 | 273,898 |
* | Vroom Inc. | 5,556,797 | 245,666 |
NIKE Inc. Class B | 1,777,346 | 242,537 | |
* | Burlington Stores Inc. | 436,022 | 140,996 |
* | Booking Holdings Inc. | 58,839 | 138,951 |
* | Stitch Fix Inc. Class A | 2,564,530 | 137,100 |
* | DraftKings Inc. Class A | 2,579,781 | 128,860 |
* | Hilton Worldwide Holdings Inc. | 835,131 | 104,617 |
Shares | Market Value ($000) | ||
Lowe's Cos. Inc. | 458,823 | 89,392 | |
*,1 | DoorDash Inc. Class A | 584,177 | 87,790 |
Home Depot Inc. | 234,187 | 74,685 | |
*,1 | Coursera Inc. | 1,545,413 | 58,726 |
eBay Inc. | 721,363 | 43,917 | |
H&R Block Inc. | 1,558,271 | 38,676 | |
* | Etsy Inc. | 234,107 | 38,564 |
Best Buy Co. Inc. | 327,786 | 38,102 | |
Polaris Inc. | 270,729 | 35,525 | |
Yum! Brands Inc. | 250,719 | 30,079 | |
Tempur Sealy International Inc. | 545,117 | 20,987 | |
* | frontdoor Inc. | 201,139 | 10,801 |
* | Chipotle Mexican Grill Inc. Class A | 7,840 | 10,756 |
* | AutoZone Inc. | 6,445 | 9,066 |
McDonald's Corp. | 36,269 | 8,483 | |
* | 2U Inc. | 217,508 | 7,922 |
* | O'Reilly Automotive Inc. | 12,422 | 6,647 |
* | NVR Inc. | 1,337 | 6,534 |
Williams-Sonoma Inc. | 22,011 | 3,732 | |
Wendy's Co. | 136,829 | 3,177 | |
Service Corp. International | 53,943 | 2,860 | |
* | Vail Resorts Inc. | 4,516 | 1,476 |
10,138,205 | |||
Consumer Staples (2.4%) | |||
Estee Lauder Cos. Inc. Class A | 959,626 | 294,145 | |
Constellation Brands Inc. Class A | 1,099,071 | 263,469 | |
Costco Wholesale Corp. | 493,748 | 186,770 | |
* | Monster Beverage Corp. | 1,808,200 | 170,459 |
Altria Group Inc. | 1,097,454 | 54,017 | |
* | Herbalife Nutrition Ltd. | 799,436 | 42,026 |
* | Sprouts Farmers Market Inc. | 1,409,836 | 37,502 |
Hershey Co. | 215,163 | 37,234 | |
Campbell Soup Co. | 514,071 | 25,020 | |
Procter & Gamble Co. | 127,430 | 17,184 | |
PepsiCo Inc. | 101,687 | 15,044 | |
Coca-Cola Co. | 229,109 | 12,667 | |
1 | Albertsons Cos. Inc. Class A | 453,260 | 8,698 |
* | Pilgrim's Pride Corp. | 303,886 | 7,305 |
1,171,540 | |||
Energy (0.1%) | |||
Schlumberger NV | 1,872,635 | 58,670 | |
Equitrans Midstream Corp. | 617,610 | 5,089 | |
63,759 | |||
Financials (3.6%) | |||
MarketAxess Holdings Inc. | 805,788 | 375,932 | |
First Republic Bank | 1,940,437 | 371,477 | |
American Express Co. | 1,393,616 | 223,160 | |
*,1 | Lemonade Inc. | 1,982,279 | 179,337 |
Blackstone Group Inc. | 1,143,411 | 105,960 | |
Marsh & McLennan Cos. Inc. | 714,183 | 98,807 | |
S&P Global Inc. | 240,837 | 91,390 | |
* | Markel Corp. | 72,385 | 88,707 |
Progressive Corp. | 823,281 | 81,571 | |
*,1 | Coinbase Global Inc. Class A | 189,884 | 44,915 |
SLM Corp. | 2,005,764 | 40,617 | |
Virtu Financial Inc. Class A | 597,170 | 18,184 | |
LPL Financial Holdings Inc. | 110,708 | 16,372 |
Shares | Market Value ($000) | ||
Synchrony Financial | 310,554 | 14,723 | |
Primerica Inc. | 68,234 | 11,068 | |
1,762,220 | |||
Health Care (10.3%) | |||
* | Illumina Inc. | 1,425,184 | 578,112 |
* | Moderna Inc. | 2,832,264 | 523,997 |
* | Novocure Ltd. | 1,799,178 | 367,032 |
* | ABIOMED Inc. | 1,254,830 | 357,100 |
UnitedHealth Group Inc. | 791,616 | 326,082 | |
* | Denali Therapeutics Inc. | 3,403,159 | 216,407 |
Danaher Corp. | 759,592 | 194,562 | |
* | Boston Scientific Corp. | 4,303,172 | 183,100 |
* | Teladoc Health Inc. | 1,024,306 | 154,240 |
* | Glaukos Corp. | 1,951,471 | 143,589 |
* | Penumbra Inc. | 565,961 | 140,987 |
* | Alnylam Pharmaceuticals Inc. | 984,554 | 139,797 |
* | Seagen Inc. | 863,179 | 134,095 |
* | Intuitive Surgical Inc. | 154,241 | 129,899 |
* | 10X Genomics Inc. Class A | 626,897 | 112,841 |
Merck & Co. Inc. | 1,075,337 | 81,607 | |
* | Zai Lab Ltd. ADR | 451,317 | 80,181 |
Thermo Fisher Scientific Inc. | 165,402 | 77,656 | |
Eli Lilly & Co. | 363,233 | 72,552 | |
* | Mettler-Toledo International Inc. | 52,610 | 68,443 |
Sartorius Stedim Biotech | 157,858 | 68,426 | |
HCA Healthcare Inc. | 244,396 | 52,494 | |
* | Sana Biotechnology Inc. | 2,456,509 | 51,513 |
* | Biogen Inc. | 189,477 | 50,681 |
Cigna Corp. | 187,646 | 48,572 | |
* | IQVIA Holdings Inc. | 190,192 | 45,677 |
McKesson Corp. | 233,239 | 44,873 | |
*,1 | Recursion Pharmaceuticals Inc. Class A | 1,610,000 | 42,440 |
* | Avantor Inc. | 1,317,970 | 42,373 |
Cardinal Health Inc. | 742,758 | 41,646 | |
Johnson & Johnson | 231,937 | 39,255 | |
* | Charles River Laboratories International Inc. | 103,590 | 35,012 |
* | Laboratory Corp. of America Holdings | 123,909 | 34,011 |
Humana Inc. | 77,249 | 33,812 | |
* | Veeva Systems Inc. Class A | 106,731 | 31,095 |
AbbVie Inc. | 259,102 | 29,330 | |
* | Regeneron Pharmaceuticals Inc. | 45,957 | 23,090 |
* | Quidel Corp. | 157,613 | 18,616 |
Bristol-Myers Squibb Co. | 272,231 | 17,891 | |
Anthem Inc. | 43,061 | 17,148 | |
Amgen Inc. | 52,219 | 12,425 | |
* | Hologic Inc. | 196,598 | 12,398 |
* | IDEXX Laboratories Inc. | 20,676 | 11,540 |
Agilent Technologies Inc. | 83,120 | 11,481 | |
AmerisourceBergen Corp. Class A | 98,680 | 11,323 | |
* | Waters Corp. | 34,949 | 11,262 |
PerkinElmer Inc. | 77,598 | 11,257 | |
* | Vertex Pharmaceuticals Inc. | 48,737 | 10,168 |
Bruker Corp. | 144,057 | 10,003 | |
Zoetis Inc. | 56,185 | 9,927 | |
* | Incyte Corp. | 79,022 | 6,620 |
* | DaVita Inc. | 17,072 | 2,050 |
* | Centene Corp. | 20,264 | 1,491 |
* | Sarepta Therapeutics Inc. | 19,099 | 1,445 |
Shares | Market Value ($000) | ||
Chemed Corp. | 2,636 | 1,295 | |
4,974,919 | |||
Industrials (5.0%) | |||
* | Uber Technologies Inc. | 7,655,877 | 389,148 |
* | CoStar Group Inc. | 328,334 | 280,397 |
TransUnion | 2,356,845 | 252,182 | |
Watsco Inc. | 717,461 | 209,068 | |
* | Copart Inc. | 1,389,561 | 179,267 |
Safran SA | 1,092,679 | 163,148 | |
IHS Markit Ltd. | 1,395,988 | 147,012 | |
Northrop Grumman Corp. | 340,157 | 124,453 | |
HEICO Corp. Class A | 732,211 | 96,989 | |
* | Airbus SE ADR | 2,298,850 | 75,172 |
JB Hunt Transport Services Inc. | 437,202 | 74,998 | |
United Parcel Service Inc. Class B | 318,757 | 68,405 | |
Lockheed Martin Corp. | 169,997 | 64,973 | |
* | Lyft Inc. Class A | 844,983 | 48,240 |
Booz Allen Hamilton Holding Corp. Class A | 491,088 | 41,708 | |
IDEX Corp. | 149,572 | 33,304 | |
Allison Transmission Holdings Inc. | 769,880 | 32,574 | |
Landstar System Inc. | 139,136 | 23,723 | |
WW Grainger Inc. | 51,282 | 23,701 | |
Nielsen Holdings plc | 824,371 | 22,431 | |
Allegion plc | 124,025 | 17,423 | |
* | Generac Holdings Inc. | 52,917 | 17,395 |
Illinois Tool Works Inc. | 55,684 | 12,905 | |
Old Dominion Freight Line Inc. | 30,195 | 8,015 | |
Cintas Corp. | 19,339 | 6,837 | |
Union Pacific Corp. | 20,874 | 4,691 | |
Expeditors International of Washington Inc. | 33,612 | 4,225 | |
Toro Co. | 37,939 | 4,215 | |
Donaldson Co. Inc. | 35,024 | 2,157 | |
Lincoln Electric Holdings Inc. | 11,099 | 1,427 | |
2,430,183 | |||
Information Technology (40.2%) | |||
Microsoft Corp. | 9,743,775 | 2,432,826 | |
Apple Inc. | 19,327,689 | 2,408,423 | |
* | Shopify Inc. Class A (XTSE) | 1,442,763 | 1,793,167 |
NVIDIA Corp. | 1,551,586 | 1,008,190 | |
* | PayPal Holdings Inc. | 3,215,937 | 836,208 |
* | Adobe Inc. | 1,549,192 | 781,691 |
Mastercard Inc. Class A | 2,138,712 | 771,177 | |
* | Trade Desk Inc. Class A | 1,170,026 | 688,139 |
* | Twilio Inc. Class A | 1,973,285 | 663,024 |
Visa Inc. Class A | 2,866,758 | 651,614 | |
* | Workday Inc. Class A | 2,591,996 | 592,841 |
* | Zoom Video Communications Inc. Class A | 1,635,593 | 542,248 |
* | salesforce.com Inc. | 2,275,896 | 541,891 |
* | Square Inc. Class A | 2,289,046 | 509,359 |
*,2 | Adyen NV | 156,679 | 362,628 |
*,1 | Affirm Holdings Inc. | 5,253,703 | 319,478 |
* | ServiceNow Inc. | 646,749 | 306,481 |
* | Advanced Micro Devices Inc. | 3,660,302 | 293,117 |
* | Snowflake Inc. Class A | 1,039,970 | 247,544 |
Microchip Technology Inc. | 1,546,991 | 242,800 | |
* | Cloudflare Inc. Class A | 2,890,732 | 237,213 |
* | FleetCor Technologies Inc. | 844,303 | 231,711 |
Shares | Market Value ($000) | ||
* | Autodesk Inc. | 800,177 | 228,739 |
* | Crowdstrike Holdings Inc. Class A | 948,651 | 210,743 |
Fidelity National Information Services Inc. | 1,266,468 | 188,678 | |
Intuit Inc. | 419,629 | 184,255 | |
*,1 | Appian Corp. Class A | 1,961,222 | 177,451 |
* | Atlassian Corp. plc Class A | 757,671 | 176,749 |
Global Payments Inc. | 895,750 | 173,516 | |
* | Datadog Inc. Class A | 1,359,459 | 123,779 |
* | Avalara Inc. | 817,224 | 108,013 |
* | nCino Inc. | 1,699,483 | 103,872 |
Accenture plc Class A | 366,605 | 103,441 | |
CDW Corp. | 602,423 | 99,653 | |
Oracle Corp. | 1,101,757 | 86,752 | |
QUALCOMM Inc. | 585,016 | 78,708 | |
Lam Research Corp. | 113,608 | 73,828 | |
Texas Instruments Inc. | 370,206 | 70,273 | |
* | Afterpay Ltd. | 794,494 | 57,379 |
* | DocuSign Inc. Class A | 270,238 | 54,485 |
* | Cadence Design Systems Inc. | 372,663 | 47,324 |
* | Synopsys Inc. | 182,479 | 46,412 |
Applied Materials Inc. | 328,056 | 45,314 | |
* | Teradata Corp. | 937,329 | 44,870 |
* | Fortinet Inc. | 200,700 | 43,861 |
* | Manhattan Associates Inc. | 315,090 | 42,846 |
* | Dropbox Inc. Class A | 1,529,225 | 41,824 |
* | GoDaddy Inc. Class A | 499,954 | 40,476 |
Jabil Inc. | 697,340 | 39,365 | |
* | Okta Inc. | 176,392 | 39,237 |
Monolithic Power Systems Inc. | 112,476 | 38,593 | |
Teradyne Inc. | 270,627 | 35,817 | |
* | Yext Inc. | 1,617,232 | 23,401 |
Broadcom Inc. | 47,128 | 22,260 | |
* | Fair Isaac Corp. | 41,361 | 20,931 |
KLA Corp. | 63,094 | 19,994 | |
* | Comm Scope Holding Co. Inc. | 969,224 | 19,685 |
* | Gartner Inc. | 81,763 | 18,956 |
HP Inc. | 570,018 | 16,662 | |
* | Enphase Energy Inc. | 58,949 | 8,433 |
MKS Instruments Inc. | 44,516 | 8,379 | |
* | EPAM Systems Inc. | 17,348 | 8,285 |
* | Qualtrics International Inc. Class A | 208,064 | 7,166 |
Automatic Data Processing Inc. | 31,797 | 6,233 | |
* | Aspen Technology Inc. | 42,160 | 5,754 |
*,1 | UiPath Inc. Class A | 65,500 | 5,228 |
* | Nutanix Inc. Class A | 118,010 | 3,718 |
NortonLifeLock Inc. | 129,781 | 3,590 | |
Genpact Ltd. | 72,595 | 3,321 | |
* | FireEye Inc. | 137,625 | 3,079 |
* | SolarEdge Technologies Inc. | 11,399 | 2,941 |
Western Union Co. | 108,958 | 2,666 | |
SS&C Technologies Holdings Inc. | 26,917 | 1,988 | |
* | Elastic NV | 16,238 | 1,919 |
Cognizant Technology Solutions Corp. Class A | 19,952 | 1,428 | |
19,484,040 | |||
Materials (0.1%) | |||
Sherwin-Williams Co. | 77,120 | 21,866 | |
RPM International Inc. | 113,520 | 10,617 | |
Royal Gold Inc. | 69,901 | 8,652 |
Shares | Market Value ($000) | ||
* | Berry Global Group Inc. | 76,868 | 5,243 |
Graphic Packaging Holding Co. | 138,981 | 2,457 | |
48,835 | |||
Real Estate (0.9%) | |||
* | Redfin Corp. | 4,224,220 | 249,356 |
Equinix Inc. | 87,462 | 64,435 | |
Iron Mountain Inc. | 1,041,580 | 45,350 | |
Simon Property Group Inc. | 299,838 | 38,526 | |
Extra Space Storage Inc. | 98,956 | 14,825 | |
Crown Castle International Corp. | 44,811 | 8,492 | |
Public Storage | 28,074 | 7,930 | |
Brookfield Property REIT Inc. Class A | 224,489 | 4,207 | |
433,121 | |||
Utilities (0.0%) | |||
NRG Energy Inc. | 230,642 | 7,415 | |
Total Common Stocks (Cost $27,389,468) | 47,732,632 | ||
Preferred Stocks (0.0%) | |||
*,3,4 | The We Company Pfd. D1 PP (Acquired 12/8/14, Cost $2,412) | 144,857 | 1,329 |
*,3,4 | The We Company Pfd. D2 PP (Acquired 12/8/14, Cost $3,407) | 204,614 | 1,877 |
Total Preferred Stocks (Cost $5,819) | 3,206 | ||
Temporary Cash Investments (3.0%) | |||
Money Market Fund (2.7%) | |||
5,6 | Vanguard Market Liquidity Fund, 0.055% | 13,051,040 | 1,305,104 |
Face Amount ($000) | |||
Repurchase Agreement (0.3%) | |||
Bank of America Securities, LLC 0.010%, 6/1/21 (Dated 5/28/2021, Repurchase Value $138,000,000, collateralized by Government National Mortgage Association, 2.500%–4.500%, 6/20/50–2/20/51, with a value of $140,760,000) | 138,000 | 138,000 |
Face Amount ($000) | Market Value ($000) | ||
U.S. Government and Agency Obligations (0.0%) | |||
7 | U.S. Treasury Bill, 0.010%, 8/26/21 | 1,300 | 1,300 |
Total Temporary Cash Investments (Cost $1,444,231) | 1,444,404 | ||
Total Investments (101.4%) (Cost $28,839,518) | 49,180,242 | ||
Other Assets and Liabilities—Net (-1.4%) | (674,096) | ||
Net Assets (100%) | 48,506,146 | ||
Cost is in $000. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $667,473,000. |
2 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2021, the aggregate value was $362,628,000, representing 0.7% of net assets. |
3 | Perpetual security with no stated maturity date. |
4 | Restricted securities totaling $3,206,000, representing 0.0% of net assets. |
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 $672,562,000 was received for securities on loan, of which $666,806,000 is held in Vanguard Market Liquidity Fund and $5,756,000 is held in cash. |
7 | Securities with a value of $1,011,000 have been segregated as initial margin for open futures contracts. |
ADR—American Depositary Receipt. | |
PP—Private Placement. | |
REIT—Real Estate Investment Trust. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | June 2021 | 2,307 | 484,747 | 7,824 |
E-mini S&P Mid-Cap 400 Index | June 2021 | 262 | 71,440 | 2,259 |
10,083 |
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities.
Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Temporary
cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. Fluctuations in the value of the contracts are recorded as an asset (liability).
D. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.
E. Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of May 31, 2021, based on the inputs used to value them:
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 46,591,709 | 1,140,923 | — | 47,732,632 |
Preferred Stocks | — | 3,206 | — | 3,206 |
Temporary Cash Investments | 1,305,104 | 139,300 | — | 1,444,404 |
Total | 47,896,813 | 1,283,429 | — | 49,180,242 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 10,083 | — | — | 10,083 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. |