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: 811-03916
Name of Registrant: | Vanguard Specialized 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: January 31
Date of reporting period: February 1, 2023—July 31, 2023
Item 1: Reports to Shareholders
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 16 |
Liquidity Risk Management | 18 |
• | 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 July 31, 2023 | |||
Beginning Account Value 1/31/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Energy Fund | |||
Investor Shares | $1,000.00 | $1,043.70 | $2.23 |
Admiral™ Shares | 1,000.00 | 1,043.90 | 1.82 |
Based on Hypothetical 5% Yearly Return | |||
Energy Fund | |||
Investor Shares | $1,000.00 | $1,022.61 | $2.21 |
Admiral Shares | 1,000.00 | 1,023.01 | 1.81 |
United States | 53.3% |
United Kingdom | 18.2 |
France | 10.7 |
Canada | 5.6 |
Spain | 2.5 |
Italy | 2.5 |
Norway | 2.0 |
India | 2.0 |
Germany | 1.3 |
Brazil | 1.3 |
Other | 0.6 |
Shares | Market Value• ($000) | ||
Common Stocks (99.4%) | |||
Brazil (1.3%) | |||
Petroleo Brasileiro SA | 10,144,425 | 74,677 | |
Canada (5.6%) | |||
Cenovus Energy Inc. | 9,645,827 | 183,464 | |
Enbridge Inc. | 3,240,764 | 119,146 | |
ARC Resources Ltd. | 1,651,299 | 24,945 | |
327,555 | |||
China (0.6%) | |||
China Yangtze Power Co. Ltd. Class A | 12,517,660 | 37,629 | |
France (10.6%) | |||
TotalEnergies SE | 3,786,386 | 230,048 | |
Engie SA (XPAR) | 13,979,989 | 229,346 | |
TotalEnergies SE ADR | 2,610,383 | 158,842 | |
618,236 | |||
Germany (1.3%) | |||
RWE AG | 1,739,520 | 74,867 | |
India (2.0%) | |||
Power Grid Corp. of India Ltd. | 35,179,855 | 113,903 | |
Italy (2.5%) | |||
Enel SpA | 14,914,461 | 102,838 | |
Tenaris SA | 2,498,357 | 41,517 | |
144,355 | |||
Norway (2.0%) | |||
Equinor ASA | 3,755,418 | 114,872 | |
Russia (0.0%) | |||
*,1 | LUKOIL PJSC ADR | 1,423,477 | — |
Spain (2.5%) | |||
Iberdrola SA (XMAD) | 11,878,304 | 148,259 | |
United Kingdom (18.0%) | |||
Shell plc (XLON) | 10,848,103 | 328,782 | |
BP plc | 42,744,752 | 265,208 | |
Shell plc ADR | 3,335,801 | 205,585 | |
BP plc ADR | 3,335,714 | 124,422 | |
National Grid plc | 8,359,202 | 110,800 | |
Glencore plc | 2,861,114 | 17,399 | |
1,052,196 | |||
United States (53.0%) | |||
ConocoPhillips | 3,515,746 | 413,874 | |
Schlumberger NV | 2,942,190 | 171,647 |
Shares | Market Value• ($000) | ||
Marathon Petroleum Corp. | 1,270,296 | 168,975 | |
EOG Resources Inc. | 1,266,985 | 167,914 | |
NextEra Energy Inc. | 2,278,457 | 167,011 | |
Phillips 66 | 1,483,243 | 165,456 | |
Diamondback Energy Inc. | 1,101,269 | 162,239 | |
Coterra Energy Inc. | 5,784,348 | 159,301 | |
Duke Energy Corp. | 1,655,520 | 154,990 | |
Exelon Corp. | 3,561,555 | 149,087 | |
Southern Co. | 1,973,153 | 142,738 | |
Targa Resources Corp. | 1,740,628 | 142,714 | |
FirstEnergy Corp. | 3,151,761 | 124,148 | |
Edison International | 1,650,701 | 118,784 | |
Sempra Energy (XNYS) | 755,528 | 112,589 | |
Williams Cos. Inc. | 3,163,824 | 108,994 | |
American Electric Power Co. Inc. | 1,241,887 | 105,237 | |
Chesapeake Energy Corp. | 1,222,089 | 103,071 | |
CenterPoint Energy Inc. | 2,389,381 | 71,896 | |
EQT Corp. | 1,580,686 | 66,673 | |
Pioneer Natural Resources Co. | 178,301 | 40,237 | |
AES Corp. | 1,669,442 | 36,110 | |
Exxon Mobil Corp. | 306,315 | 32,849 | |
3,086,534 | |||
Total Common Stocks (Cost $4,380,970) | 5,793,083 | ||
Temporary Cash Investments (0.6%) | |||
Money Market Fund (0.0%) | |||
2 | Vanguard Market Liquidity Fund, 5.274% | 1,368 | 137 |
Face Amount ($000) | Market Value• ($000) | ||
Repurchase Agreement (0.6%) | |||
NatWest Markets plc, 5.270%, 8/1/23 (Dated 7/31/23, Repurchase Value $33,505,000, collateralized by U.S. Treasury Note/Bond 2.625%, 2/15/29, with a value of $34,170,000) | 33,500 | 33,500 | |
Total Temporary Cash Investments (Cost $33,636) | 33,637 | ||
Total Investments (100.0%) (Cost $4,414,606) | 5,826,720 | ||
Other Assets and Liabilities—Net (0.0%) | 1,503 | ||
Net Assets (100%) | 5,828,223 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Security value determined using significant unobservable inputs. |
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. |
ADR—American Depositary Receipt. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $4,414,470) | 5,826,583 |
Affiliated Issuers (Cost $136) | 137 |
Total Investments in Securities | 5,826,720 |
Investment in Vanguard | 190 |
Foreign Currency, at Value (Cost $2,405) | 2,393 |
Receivables for Accrued Income | 13,306 |
Receivables for Capital Shares Issued | 3,502 |
Total Assets | 5,846,111 |
Liabilities | |
Due to Custodian | 20 |
Payables to Investment Advisor | 2,785 |
Payables for Capital Shares Redeemed | 8,032 |
Payables to Vanguard | 845 |
Deferred Foreign Capital Gains Taxes | 6,206 |
Total Liabilities | 17,888 |
Net Assets | 5,828,223 |
At July 31, 2023, net assets consisted of: | |
Paid-in Capital | 4,364,055 |
Total Distributable Earnings (Loss) | 1,464,168 |
Net Assets | 5,828,223 |
Investor Shares—Net Assets | |
Applicable to 38,498,938 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,861,671 |
Net Asset Value Per Share—Investor Shares | $48.36 |
Admiral Shares—Net Assets | |
Applicable to 43,711,263 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 3,966,552 |
Net Asset Value Per Share—Admiral Shares | $90.74 |
Six Months Ended July 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 141,096 |
Interest2 | 918 |
Securities Lending—Net | 155 |
Total Income | 142,169 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 4,364 |
Performance Adjustment | 1,284 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 2,063 |
Management and Administrative—Admiral Shares | 2,943 |
Marketing and Distribution—Investor Shares | 63 |
Marketing and Distribution—Admiral Shares | 102 |
Custodian Fees | 51 |
Shareholders’ Reports—Investor Shares | 38 |
Shareholders’ Reports—Admiral Shares | 21 |
Trustees’ Fees and Expenses | 2 |
Other Expenses | 63 |
Total Expenses | 10,994 |
Net Investment Income | 131,175 |
Realized Net Gain (Loss) | |
Investment Securities Sold2,3 | 355,274 |
Foreign Currencies | 423 |
Realized Net Gain (Loss) | 355,697 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,4 | (254,470) |
Foreign Currencies | 88 |
Change in Unrealized Appreciation (Depreciation) | (254,382) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 232,490 |
1 | Dividends are net of foreign withholding taxes of $8,040,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $0, less than $1,000, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
3 | Realized gain (loss) is net of foreign capital gain taxes of $109,000. |
4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $2,307,000. |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 131,175 | 277,927 | |
Realized Net Gain (Loss) | 355,697 | 262,262 | |
Change in Unrealized Appreciation (Depreciation) | (254,382) | 339,639 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 232,490 | 879,828 | |
Distributions | |||
Investor Shares | (3,616) | (85,883) | |
Admiral Shares | (8,453) | (187,798) | |
Total Distributions | (12,069) | (273,681) | |
Capital Share Transactions | |||
Investor Shares | (158,728) | (18,400) | |
Admiral Shares | (359,439) | 159,170 | |
Net Increase (Decrease) from Capital Share Transactions | (518,167) | 140,770 | |
Total Increase (Decrease) | (297,746) | 746,917 | |
Net Assets | |||
Beginning of Period | 6,125,969 | 5,379,052 | |
End of Period | 5,828,223 | 6,125,969 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $46.43 | $41.64 | $31.66 | $43.28 | $47.85 | $55.62 |
Investment Operations | ||||||
Net Investment Income1 | 1.027 | 2.099 | 1.364 | 1.449 | 1.519 | 1.300 |
Net Realized and Unrealized Gain (Loss) on Investments | .991 | 4.807 | 10.019 | (11.669) | (4.524) | (7.788) |
Total from Investment Operations | 2.018 | 6.906 | 11.383 | (10.220) | (3.005) | (6.488) |
Distributions | ||||||
Dividends from Net Investment Income | (.088) | (2.116) | (1.403) | (1.400) | (1.565) | (1.282) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (.088) | (2.116) | (1.403) | (1.400) | (1.565) | (1.282) |
Net Asset Value, End of Period | $48.36 | $46.43 | $41.64 | $31.66 | $43.28 | $47.85 |
Total Return2 | 4.37% | 16.72% | 36.33% | -23.55% | -6.55% | -11.48% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $1,862 | $1,950 | $1,771 | $1,363 | $1,793 | $2,265 |
Ratio of Total Expenses to Average Net Assets3 | 0.44% | 0.46%4 | 0.41% | 0.37% | 0.32% | 0.37% |
Ratio of Net Investment Income to Average Net Assets | 4.29% | 4.70% | 3.68% | 4.49% | 3.20% | 2.42% |
Portfolio Turnover Rate | 10% | 16% | 14% | 55% | 48% | 31% |
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 | Includes performance-based investment advisory fee increases (decreases) of 0.05%, 0.06%, 0.02%, (0.02%), (0.06%), and (0.01%). |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.46%. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $87.12 | $78.12 | $59.39 | $81.18 | $89.77 | $104.35 |
Investment Operations | ||||||
Net Investment Income1 | 1.958 | 4.014 | 2.615 | 2.787 | 2.926 | 2.511 |
Net Realized and Unrealized Gain (Loss) on Investments | 1.844 | 9.026 | 18.794 | (21.903) | (8.512) | (14.600) |
Total from Investment Operations | 3.802 | 13.040 | 21.409 | (19.116) | (5.586) | (12.089) |
Distributions | ||||||
Dividends from Net Investment Income | (.182) | (4.040) | (2.679) | (2.674) | (3.004) | (2.491) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (.182) | (4.040) | (2.679) | (2.674) | (3.004) | (2.491) |
Net Asset Value, End of Period | $90.74 | $87.12 | $78.12 | $59.39 | $81.18 | $89.77 |
Total Return2 | 4.39% | 16.83% | 36.43% | -23.47% | -6.50% | -11.40% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $3,967 | $4,176 | $3,608 | $2,751 | $4,388 | $5,606 |
Ratio of Total Expenses to Average Net Assets3 | 0.36% | 0.38%4 | 0.33% | 0.29% | 0.24% | 0.29% |
Ratio of Net Investment Income to Average Net Assets | 4.36% | 4.78% | 3.76% | 4.60% | 3.28% | 2.50% |
Portfolio Turnover Rate | 10% | 16% | 14% | 55% | 48% | 31% |
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 | Includes performance-based investment advisory fee increases (decreases) of 0.05%, 0.06%, 0.02%, (0.02%), (0.06%), and (0.01%). |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.38%. |
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. | Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments based on the fund's performance relative to the MSCI ACWI Energy Index for periods prior to October 21, 2020, and to the current benchmark MSCI ACWI Energy + Utilities Index, beginning October 21, 2020, for the preceding three years. The benchmark change will be fully phased in by October 2023. For the six months ended July 31, 2023, the investment advisory fee paid represented an effective annual rate of 0.15% of the fund’s average net assets, before a net increase of $1,284,000 (0.05%) based on performance. |
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—North and South America | 3,488,766 | — | — | 3,488,766 |
Common Stocks—Other | 488,849 | 1,815,468 | — | 2,304,317 |
Temporary Cash Investments | 137 | 33,500 | — | 33,637 |
Total | 3,977,752 | 1,848,968 | — | 5,826,720 |
E. | As of July 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 | 4,416,290 |
Gross Unrealized Appreciation | 1,513,459 |
Gross Unrealized Depreciation | (103,029) |
Net Unrealized Appreciation (Depreciation) | 1,410,430 |
F. | During the six months ended July 31, 2023, the fund purchased $551,181,000 of investment securities and sold $934,469,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 81,963 | 1,796 | 545,067 | 12,243 | |
Issued in Lieu of Cash Distributions | 3,363 | 76 | 79,747 | 1,759 | |
Redeemed | (244,054) | (5,368) | (643,214) | (14,541) | |
Net Increase (Decrease)—Investor Shares | (158,728) | (3,496) | (18,400) | (539) | |
Admiral Shares | |||||
Issued | 178,661 | 2,093 | 1,135,398 | 13,603 | |
Issued in Lieu of Cash Distributions | 7,517 | 91 | 166,639 | 1,960 | |
Redeemed | (545,617) | (6,407) | (1,142,867) | (13,815) | |
Net Increase (Decrease)—Admiral Shares | (359,439) | (4,223) | 159,170 | 1,748 |
H. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
I. | Management has determined that no events or transactions occurred subsequent to July 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 July 31, 2023 | |||
Global Capital Cycles Fund | Beginning Account Value 1/31/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,007.00 | $2.14 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.66 | 2.16 |
United States | 29.1% |
United Kingdom | 20.5 |
Canada | 12.5 |
China | 7.6 |
Germany | 6.8 |
Brazil | 4.6 |
France | 3.8 |
South Korea | 2.9 |
Australia | 2.8 |
Switzerland | 2.7 |
Taiwan | 2.3 |
Japan | 1.9 |
Austria | 1.1 |
Other | 1.4 |
Shares | Market Value• ($000) | |||||
Common Stocks (96.8%) | ||||||
Australia (2.7%) | ||||||
BHP Group Ltd. (XASX) | 677,588 | 21,088 | ||||
1 | BHP Group Ltd. ADR | 293,870 | 18,411 | |||
* | Metals Acquisition Ltd. Warrants Exp. 6/16/28 | 330,300 | 479 | |||
39,978 | ||||||
Austria (1.1%) | ||||||
2 | BAWAG Group AG | 336,663 | 16,401 | |||
Brazil (4.4%) | ||||||
Banco Bradesco SA ADR | 13,782,300 | 48,652 | ||||
Vale SA Class B ADR | 1,154,895 | 16,896 | ||||
65,548 | ||||||
Canada (12.1%) | ||||||
Barrick Gold Corp. | 8,085,317 | 139,795 | ||||
Intact Financial Corp. | 135,097 | 19,958 | ||||
Agnico Eagle Mines Ltd. | 286,965 | 15,040 | ||||
* | Foran Mining Corp. | 1,172,857 | 3,549 | |||
178,342 | ||||||
China (7.3%) | ||||||
* | Alibaba Group Holding Ltd. | 5,471,902 | 69,928 | |||
Contemporary Amperex Technology Co. Ltd. Class A | 667,150 | 22,243 | ||||
Sinoma Science & Technology Co. Ltd. Class A | 4,953,200 | 16,049 | ||||
108,220 | ||||||
France (3.7%) | ||||||
Engie SA | 3,314,102 | 54,369 | ||||
Germany (6.5%) | ||||||
Rheinmetall AG | 161,393 | 45,714 | ||||
Bayer AG (Registered) | 545,555 | 31,906 | ||||
Wacker Chemie AG | 122,246 | 18,995 | ||||
96,615 | ||||||
Greece (0.9%) | ||||||
* | Public Power Corp. SA | 1,080,483 | 12,784 |
Shares | Market Value• ($000) | |||||
Japan (1.9%) | ||||||
Panasonic Holdings Corp. | 1,307,500 | 16,139 | ||||
Ebara Corp. | 240,900 | 11,385 | ||||
27,524 | ||||||
South Korea (2.8%) | ||||||
Samsung Electronics Co. Ltd. | 755,399 | 41,360 | ||||
Sweden (0.5%) | ||||||
Boliden AB | 226,626 | 6,665 | ||||
Switzerland (2.7%) | ||||||
Novartis AG (Registered) | 373,666 | 39,122 | ||||
Taiwan (2.2%) | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 331,866 | 32,905 | ||||
United Kingdom (19.8%) | ||||||
Glencore plc | 13,182,846 | 80,171 | ||||
Anglo American plc | 2,007,015 | 61,719 | ||||
Unilever plc | 811,595 | 43,609 | ||||
Rio Tinto plc ADR | 567,573 | 37,772 | ||||
Haleon plc | 6,026,994 | 26,015 | ||||
* | Babcock International Group plc | 4,009,566 | 19,303 | |||
Admiral Group plc | 480,036 | 13,106 | ||||
Fresnillo plc | 1,210,683 | 9,595 | ||||
* | John Wood Group plc | 476,533 | 906 | |||
292,196 | ||||||
United States (28.2%) | ||||||
BWX Technologies Inc. | 1,318,456 | 90,973 | ||||
American Electric Power Co. Inc. | 912,529 | 77,328 | ||||
Intel Corp. | 1,876,603 | 67,126 | ||||
Pfizer Inc. | 1,183,962 | 42,694 | ||||
Viper Energy Partners LP | 1,212,762 | 32,890 | ||||
Schlumberger NV | 523,533 | 30,543 | ||||
Newmont Corp. | 590,620 | 25,349 | ||||
Chesapeake Energy Corp. | 259,332 | 21,872 |
Shares | Market Value• ($000) | |||||
* | Fluor Corp. | 515,046 | 15,956 | |||
* | Diamond Offshore Drilling Inc. | 731,765 | 11,584 | |||
416,315 | ||||||
Total Common Stocks (Cost $1,280,433) | 1,428,344 | |||||
Temporary Cash Investments (3.7%) | ||||||
Money Market Fund (3.7%) | ||||||
3,4 | Vanguard Market Liquidity Fund, 5.274% (Cost $54,378) | 543,890 | 54,378 | |||
Total Investments (100.5%) (Cost $1,334,811) | 1,482,722 | |||||
Other Assets and Liabilities—Net (-0.5%) | (7,958) | |||||
Net Assets (100%) | 1,474,764 |
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 $9,065,000. |
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 July 31, 2023, the aggregate value was $16,401,000, representing 1.1% of net assets. |
3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
4 | Collateral of $9,116,000 was received for securities on loan, of which $9,114,000 is held in Vanguard Market Liquidity Fund and $2,000 is held in cash. |
ADR—American Depositary Receipt. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $1,280,433) | 1,428,344 |
Affiliated Issuers (Cost $54,378) | 54,378 |
Total Investments in Securities | 1,482,722 |
Investment in Vanguard | 49 |
Cash | 2 |
Receivables for Investment Securities Sold | 4,495 |
Receivables for Accrued Income | 3,015 |
Receivables for Capital Shares Issued | 360 |
Total Assets | 1,490,643 |
Liabilities | |
Due to Custodian | 2,087 |
Payables for Investment Securities Purchased | 1,540 |
Collateral for Securities on Loan | 9,116 |
Payables for Capital Shares Redeemed | 2,165 |
Payables to Investment Advisor | 736 |
Payables to Vanguard | 235 |
Total Liabilities | 15,879 |
Net Assets | 1,474,764 |
1 Includes $9,065,000 of securities on loan. | |
At July 31, 2023, net assets consisted of: | |
Paid-in Capital | 3,310,750 |
Total Distributable Earnings (Loss) | (1,835,986) |
Net Assets | 1,474,764 |
Net Assets | |
Applicable to 117,865,389 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,474,764 |
Net Asset Value Per Share | $12.51 |
Six Months Ended July 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 26,982 |
Interest2 | 1,204 |
Securities Lending—Net | 34 |
Total Income | 28,220 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 1,057 |
Performance Adjustment | 409 |
The Vanguard Group—Note C | |
Management and Administrative | 1,567 |
Marketing and Distribution | 46 |
Custodian Fees | 18 |
Shareholders’ Reports | 25 |
Trustees’ Fees and Expenses | — |
Other Expenses | 10 |
Total Expenses | 3,132 |
Net Investment Income | 25,088 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 75,224 |
Foreign Currencies | 526 |
Realized Net Gain (Loss) | 75,750 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | (92,404) |
Foreign Currencies | 90 |
Change in Unrealized Appreciation (Depreciation) | (92,314) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 8,524 |
1 | Dividends are net of foreign withholding taxes of $1,562,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $1,204,000, ($7,000), and ($1,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 25,088 | 48,509 | |
Realized Net Gain (Loss) | 75,750 | 103,976 | |
Change in Unrealized Appreciation (Depreciation) | (92,314) | 17,828 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 8,524 | 170,313 | |
Distributions | |||
Total Distributions | (879) | (44,720) | |
Capital Share Transactions | |||
Issued | 87,482 | 320,924 | |
Issued in Lieu of Cash Distributions | 763 | 38,683 | |
Redeemed | (141,139) | (324,685) | |
Net Increase (Decrease) from Capital Share Transactions | (52,894) | 34,922 | |
Total Increase (Decrease) | (45,249) | 160,515 | |
Net Assets | |||
Beginning of Period | 1,520,013 | 1,359,498 | |
End of Period | 1,474,764 | 1,520,013 |
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $12.43 | $11.28 | $9.57 | $7.97 | $7.62 | $10.57 |
Investment Operations | ||||||
Net Investment Income1 | .207 | .392 | .356 | .197 | .212 | .122 |
Net Realized and Unrealized Gain (Loss) on Investments | (.120) | 1.134 | 1.715 | 1.597 | .337 | (2.858) |
Total from Investment Operations | .087 | 1.526 | 2.071 | 1.794 | .549 | (2.736) |
Distributions | ||||||
Dividends from Net Investment Income | (.007) | (.376) | (.361) | (.194) | (.199) | (.214) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (.007) | (.376) | (.361) | (.194) | (.199) | (.214) |
Net Asset Value, End of Period | $12.51 | $12.43 | $11.28 | $9.57 | $7.97 | $7.62 |
Total Return2 | 0.70% | 13.81% | 21.74% | 22.63% | 7.11% | -26.17% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $1,475 | $1,520 | $1,359 | $1,182 | $1,212 | $1,399 |
Ratio of Total Expenses to Average Net Assets3 | 0.43% | 0.43%4 | 0.36% | 0.35% | 0.38% | 0.33% |
Ratio of Net Investment Income to Average Net Assets | 3.52% | 3.45% | 3.28% | 2.43% | 2.68% | 1.38% |
Portfolio Turnover Rate | 42% | 63% | 57% | 70% | 56% | 110% |
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 | Includes performance-based investment advisory fee increases (decreases) of 0.06%, 0.05%, (0.01%), (0.03%), 0.00%, and (0.04%). |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.43%. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 660,205 | — | — | 660,205 |
Common Stocks—Other | 89,567 | 678,572 | — | 768,139 |
Temporary Cash Investments | 54,378 | — | — | 54,378 |
Total | 804,150 | 678,572 | — | 1,482,722 |
Amount ($000) | |
Tax Cost | 1,338,623 |
Gross Unrealized Appreciation | 205,071 |
Gross Unrealized Depreciation | (60,972) |
Net Unrealized Appreciation (Depreciation) | 144,099 |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
Shares (000) | Shares (000) | ||
Issued | 7,257 | 27,145 | |
Issued in Lieu of Cash Distributions | 64 | 3,366 | |
Redeemed | (11,730) | (28,764) | |
Net Increase (Decrease) in Shares Outstanding | (4,409) | 1,747 |
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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 July 31, 2023 | |||
Beginning Account Value 1/31/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Health Care Fund | |||
Investor Shares | $1,000.00 | $1,038.30 | $1.82 |
Admiral™ Shares | 1,000.00 | 1,038.50 | 1.57 |
Based on Hypothetical 5% Yearly Return | |||
Health Care Fund | |||
Investor Shares | $1,000.00 | $1,023.01 | $1.81 |
Admiral Shares | 1,000.00 | 1,023.26 | 1.56 |
United States | 70.8% |
Japan | 8.9 |
United Kingdom | 7.4 |
Switzerland | 5.9 |
Belgium | 3.6 |
Denmark | 2.4 |
Other | 1.0 |
Shares | Market Value• ($000) | ||
Common Stocks (97.8%) | |||
Belgium (3.5%) | |||
1 | UCB SA | 10,923,125 | 967,213 |
* | Argenx SE | 1,304,652 | 657,074 |
* | Galapagos NV | 1,175,458 | 49,398 |
1,673,685 | |||
Brazil (0.0%) | |||
*,2 | Hapvida Participacoes e Investimentos SA | 8,909,471 | 9,044 |
China (1.0%) | |||
2 | WuXi AppTec Co. Ltd. Class H | 11,971,416 | 113,877 |
* | Legend Biotech Corp. ADR | 1,169,204 | 88,298 |
*,2 | Wuxi Biologics Cayman Inc. | 10,465,200 | 60,393 |
* | Zai Lab Ltd. | 16,916,600 | 51,731 |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. Class A (XSHE) | 965,017 | 40,049 | |
* | Zai Lab Ltd. ADR | 1,085,794 | 32,639 |
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 24,872,000 | 32,121 | |
*,2 | Remegen Co. Ltd. Class H | 4,397,500 | 25,096 |
444,204 | |||
Denmark (2.3%) | |||
* | Genmab A/S | 2,088,852 | 861,024 |
* | Ascendis Pharma A/S ADR | 1,636,751 | 147,553 |
*,3 | Genmab A/S ADR | 2,285,855 | 94,543 |
1,103,120 | |||
Italy (0.1%) | |||
DiaSorin SpA | 552,359 | 61,970 | |
Japan (8.7%) | |||
Daiichi Sankyo Co. Ltd. | 43,976,590 | 1,354,462 | |
1 | Eisai Co. Ltd. | 19,123,817 | 1,206,590 |
Chugai Pharmaceutical Co. Ltd. | 30,174,900 | 898,043 | |
Terumo Corp. | 6,976,400 | 228,471 | |
Ono Pharmaceutical Co. Ltd. | 10,972,490 | 201,075 | |
Otsuka Holdings Co. Ltd. | 4,985,900 | 183,318 |
Shares | Market Value• ($000) | ||
Asahi Intecc Co. Ltd. | 2,023,500 | 41,525 | |
Nippon Shinyaku Co. Ltd. | 951,400 | 38,474 | |
4,151,958 | |||
Switzerland (5.8%) | |||
Novartis AG (Registered) | 22,583,277 | 2,364,406 | |
Alcon Inc. | 3,393,208 | 288,734 | |
Tecan Group AG (Registered) | 236,453 | 94,092 | |
2,747,232 | |||
United Kingdom (7.2%) | |||
AstraZeneca plc | 19,784,351 | 2,842,541 | |
GSK plc | 11,995,095 | 213,527 | |
* | Abcam plc ADR | 7,161,997 | 167,877 |
*,3 | Immunocore Holdings plc ADR | 2,085,568 | 137,606 |
Genus plc | 1,791,160 | 56,657 | |
*,3 | Verona Pharma plc ADR | 1,160,032 | 25,625 |
3,443,833 | |||
United States (69.2%) | |||
UnitedHealth Group Inc. | 6,201,994 | 3,140,504 | |
Eli Lilly & Co. | 6,476,386 | 2,943,841 | |
Merck & Co. Inc. | 20,479,587 | 2,184,148 | |
Pfizer Inc. | 58,865,924 | 2,122,705 | |
Danaher Corp. | 5,113,563 | 1,304,265 | |
Abbott Laboratories | 11,672,803 | 1,299,533 | |
* | Biogen Inc. | 4,558,453 | 1,231,648 |
Elevance Health Inc. | 2,560,815 | 1,207,757 | |
Thermo Fisher Scientific Inc. | 2,108,134 | 1,156,649 | |
Humana Inc. | 2,265,222 | 1,034,821 | |
Stryker Corp. | 3,590,051 | 1,017,456 | |
* | Boston Scientific Corp. | 19,412,122 | 1,006,519 |
* | Vertex Pharmaceuticals Inc. | 2,827,342 | 996,186 |
* | Alnylam Pharmaceuticals Inc. | 4,718,518 | 921,998 |
* | Regeneron Pharmaceuticals Inc. | 1,218,831 | 904,263 |
Zoetis Inc. | 4,530,082 | 852,063 | |
* | Edwards Lifesciences Corp. | 9,386,095 | 770,317 |
HCA Healthcare Inc. | 2,796,119 | 762,809 | |
* | Centene Corp. | 8,903,692 | 606,252 |
* | Moderna Inc. | 4,452,688 | 523,903 |
Agilent Technologies Inc. | 3,576,445 | 435,504 |
Shares | Market Value• ($000) | ||
* | IQVIA Holdings Inc. | 1,797,052 | 402,108 |
* | Insulet Corp. | 1,325,762 | 366,905 |
* | agilon health Inc. | 19,042,628 | 364,666 |
* | Illumina Inc. | 1,744,376 | 335,182 |
* | Align Technology Inc. | 850,299 | 321,320 |
Laboratory Corp. of America Holdings | 1,485,818 | 317,861 | |
Teleflex Inc. | 1,217,493 | 305,798 | |
* | Exact Sciences Corp. | 2,807,222 | 273,817 |
* | Sarepta Therapeutics Inc. | 2,283,656 | 247,526 |
* | Acadia Healthcare Co. Inc. | 3,047,446 | 240,840 |
* | Waters Corp. | 811,122 | 224,040 |
* | Molina Healthcare Inc. | 729,664 | 222,175 |
* | United Therapeutics Corp. | 842,593 | 204,514 |
* | Blueprint Medicines Corp. | 2,379,137 | 157,023 |
* | Karuna Therapeutics Inc. | 765,799 | 152,984 |
*,1 | Apellis Pharmaceuticals Inc. | 5,894,862 | 151,793 |
* | Denali Therapeutics Inc. | 5,100,454 | 145,006 |
*,1 | Agios Pharmaceuticals Inc. | 5,148,413 | 136,536 |
* | Alkermes plc | 4,619,968 | 135,273 |
Encompass Health Corp. | 1,753,507 | 115,784 | |
* | Roivant Sciences Ltd. | 9,572,139 | 114,674 |
* | Vaxcyte Inc. | 2,365,953 | 113,708 |
* | Cytokinetics Inc. | 3,334,530 | 111,207 |
*,1 | Sage Therapeutics Inc. | 3,010,218 | 104,394 |
* | REVOLUTION Medicines Inc. | 3,968,987 | 104,186 |
* | Evolent Health Inc. Class A | 3,188,219 | 96,890 |
* | Prothena Corp. plc | 1,293,898 | 89,111 |
* | Mirati Therapeutics Inc. | 2,560,960 | 77,520 |
* | Seagen Inc. | 375,338 | 71,982 |
* | Syndax Pharmaceuticals Inc. | 3,092,082 | 65,923 |
* | Intellia Therapeutics Inc. | 1,534,651 | 64,962 |
* | TG Therapeutics Inc. | 3,066,304 | 63,442 |
* | Option Care Health Inc. | 1,777,073 | 60,030 |
* | Surgery Partners Inc. | 1,504,178 | 58,106 |
* | Privia Health Group Inc. | 2,035,900 | 56,842 |
* | Shockwave Medical Inc. | 214,553 | 55,913 |
* | Amicus Therapeutics Inc. | 4,067,651 | 55,401 |
* | Ultragenyx Pharmaceutical Inc. | 1,245,879 | 53,722 |
* | PTC Therapeutics Inc. | 1,235,744 | 49,850 |
* | Celldex Therapeutics Inc. | 1,384,641 | 48,961 |
* | Rocket Pharmaceuticals Inc. | 2,571,100 | 46,408 |
* | ImmunoGen Inc. | 2,495,000 | 44,461 |
* | Morphic Holding Inc. | 616,879 | 34,996 |
* | Kymera Therapeutics Inc. | 1,442,019 | 31,551 |
* | Ionis Pharmaceuticals Inc. | 591,458 | 24,504 |
* | Xenon Pharmaceuticals Inc. | 620,627 | 22,914 |
* | 2seventy bio Inc. | 2,046,666 | 15,534 |
Shares | Market Value• ($000) | ||
*,3 | MoonLake Immunotherapeutics Class A | 213,700 | 12,995 |
32,994,479 | |||
Total Common Stocks (Cost $28,366,720) | 46,629,525 | ||
Temporary Cash Investments (1.8%) | |||
Money Market Fund (0.2%) | |||
4,5 | Vanguard Market Liquidity Fund, 5.274% | 840,358 | 84,019 |
Face Amount ($000) | |||
Repurchase Agreements (1.6%) | |||
Bank of America Securities LLC, 5.300%, 8/1/23 (Dated 7/31/23, Repurchase Value $65,010,000, collateralized by U.S. Treasury Note/Bond 2.875%, 11/30/23, with a value of $66,300,000) | 65,000 | 65,000 | |
Bank of Nova Scotia, 5.270%, 8/1/23 (Dated 7/31/23, Repurchase Value $50,007,000, collateralized by U.S. Treasury Note/Bond 1.125%–4.000%, 6/15/25–5/15/53, with a value of $51,007,000) | 50,000 | 50,000 | |
Barclays Capital Inc., 5.300%, 8/1/23 (Dated 7/31/23, Repurchase Value $31,505,000, collateralized by U.S. Treasury Note/Bond 2.875%, 5/15/32, with a value of $32,130,000) | 31,500 | 31,500 | |
BNP Paribas Securities Corp., 5.260%, 8/1/23 (Dated 7/31/23, Repurchase Value $80,012,000, collateralized by U.S. Treasury Bill 0.000%, 8/22/23–2/22/24, U.S. Treasury Inflation Indexed Note/Bond 5.510%, 4/30/25, and U.S. Treasury Note/Bond 0.500%–5.375%, 11/30/23–8/15/47, with a value of $81,600,000) | 80,000 | 80,000 |
Face Amount ($000) | Market Value• ($000) | ||
BNP Paribas Securities Corp., 5.300%, 8/1/23 (Dated 7/31/23, Repurchase Value $87,213,000, collateralized by Fannie Mae 2.500%–6.500%, 12/1/30–7/1/53, Federal Home Loan Bank 2.800%, 7/11/39, Freddie Mac 2.000%–7.042%, 5/1/35–7/1/53, Ginnie Mae 2.500%–6.000%, 8/15/31–11/20/52, U.S. Treasury Bill 0.000%, 10/3/23–1/18/24, and U.S. Treasury Note/Bond 0.125%–6.250%, 8/15/23–11/15/51, with a value of $88,944,000) | 87,200 | 87,200 | |
Credit Agricole Securities, 5.280%, 8/1/23 (Dated 7/31/23, Repurchase Value $59,109,000, collateralized by U.S. Treasury Note/Bond 4.125%, 11/15/32, with a value of $60,282,000) | 59,100 | 59,100 | |
HSBC Bank USA, 5.270%, 8/1/23 (Dated 7/31/23, Repurchase Value $43,806,000, collateralized by U.S. Treasury Inflation Indexed Note/Bond 0.125%, 1/15/32, with a value of $44,676,000) | 43,800 | 43,800 | |
HSBC Bank USA, 5.300%, 8/1/23 (Dated 7/31/23, Repurchase Value $67,210,000, collateralized by Fannie Mae 2.00%–6.000%, 4/1/34–5/1/53, and Freddie Mac 2.500%, 4/1/37, with a value of $68,544,000) | 67,200 | 67,200 |
Face Amount ($000) | Market Value• ($000) | ||
JP Morgan Securities LLC, 5.290%, 8/1/23 (Dated 7/31/23, Repurchase Value $63,009,000, collateralized by U.S. Treasury Note/Bond 2.250%–2.500%, 8/15/23–11/15/24, with a value of $64,260,000) | 63,000 | 63,000 | |
Natixis SA, 5.280%, 8/1/23 (Dated 7/31/23, Repurchase Value $81,812,000, collateralized by Federal Home Loan Bank 2.840%–3.000%, 2/24/37–1/27/42, U.S. Treasury Inflation Indexed Note/Bond 0.125%–1.375%, 4/15/25–2/15/50, and U.S. Treasury Note/Bond 1.125%–6.000%, 2/15/26–11/15/51, with a value of $83,436,000) | 81,800 | 81,800 | |
Nomura International plc, 5.280%, 8/1/23 (Dated 7/31/23, Repurchase Value $102,815,000, collateralized by U.S. Treasury Note/Bond 0.375%–4.000%, 5/31/24–5/15/42, with a value of $104,856,000) | 102,800 | 102,800 |
Face Amount ($000) | Market Value• ($000) | ||
RBC Capital Markets LLC, 5.300%, 8/1/23 (Dated 7/31/23, Repurchase Value $62,509,000, collateralized by Fannie Mae 3.500%, 2/1/43, U.S. Treasury Inflation Indexed Note/Bond 5.376%, 10/31/23, and U.S. Treasury Note/Bond 2.875%, 5/15/28, with a value of $63,750,000) | 62,500 | 62,500 | |
793,900 | |||
Total Temporary Cash Investments (Cost $877,921) | 877,919 | ||
Total Investments (99.6%) (Cost $29,244,641) | 47,507,444 | ||
Other Assets and Liabilities—Net (0.4%) | 183,995 | ||
Net Assets (100%) | 47,691,439 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. |
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 July 31, 2023, the aggregate value was $208,410,000, representing 0.4% of net assets. |
3 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $79,328,000. |
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 $83,932,000 was received for securities on loan. |
ADR—American Depositary Receipt. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $27,089,087) | 44,856,899 |
Affiliated Issuers (Cost $2,155,554) | 2,650,545 |
Total Investments in Securities | 47,507,444 |
Investment in Vanguard | 1,626 |
Cash | 3,113 |
Foreign Currency, at Value (Cost $1,482) | 890 |
Receivables for Investment Securities Sold | 263,716 |
Receivables for Accrued Income | 89,545 |
Receivables for Capital Shares Issued | 4,033 |
Total Assets | 47,870,367 |
Liabilities | |
Payables for Investment Securities Purchased | 52,142 |
Collateral for Securities on Loan | 83,932 |
Payables to Investment Advisor | 19,079 |
Payables for Capital Shares Redeemed | 20,574 |
Payables to Vanguard | 3,201 |
Total Liabilities | 178,928 |
Net Assets | 47,691,439 |
1 Includes $79,328,000 of securities on loan. | |
At July 31, 2023, net assets consisted of: | |
Paid-in Capital | 28,056,172 |
Total Distributable Earnings (Loss) | 19,635,267 |
Net Assets | 47,691,439 |
Investor Shares—Net Assets | |
Applicable to 34,593,638 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 7,388,372 |
Net Asset Value Per Share—Investor Shares | $213.58 |
Admiral Shares—Net Assets | |
Applicable to 447,478,278 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 40,303,067 |
Net Asset Value Per Share—Admiral Shares | $90.07 |
Six Months Ended July 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 292,072 |
Dividends—Affiliated Issuers2 | 21,791 |
Interest—Unaffiliated Issuers | 18,229 |
Securities Lending—Net | 43 |
Total Income | 332,135 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 34,092 |
Performance Adjustment | 4,554 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 6,649 |
Management and Administrative—Admiral Shares | 26,700 |
Marketing and Distribution—Investor Shares | 202 |
Marketing and Distribution—Admiral Shares | 663 |
Custodian Fees | 335 |
Shareholders’ Reports—Investor Shares | 81 |
Shareholders’ Reports—Admiral Shares | 75 |
Trustees’ Fees and Expenses | 13 |
Other Expenses | 7 |
Total Expenses | 73,371 |
Expenses Paid Indirectly | (56) |
Net Expenses | 73,315 |
Net Investment Income | 258,820 |
Realized Net Gain (Loss) | |
Investment Securities Sold—Unaffiliated Issuers | 1,211,616 |
Investment Securities Sold—Affiliated Issuers | 714 |
Foreign Currencies | 797 |
Realized Net Gain (Loss) | 1,213,127 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | 416,445 |
Investment Securities—Affiliated Issuers | (111,309) |
Foreign Currencies | 2,390 |
Change in Unrealized Appreciation (Depreciation) | 307,526 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,779,473 |
1 | Dividends are net of foreign withholding taxes of $11,428,000. |
2 | Dividends are net of foreign withholding taxes of $5,985,000. |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 258,820 | 391,728 | |
Realized Net Gain (Loss) | 1,213,127 | 2,054,086 | |
Change in Unrealized Appreciation (Depreciation) | 307,526 | 549,022 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,779,473 | 2,994,836 | |
Distributions | |||
Investor Shares | (235,271) | (407,436) | |
Admiral Shares | (1,260,883) | (2,190,665) | |
Total Distributions | (1,496,154) | (2,598,101) | |
Capital Share Transactions | |||
Investor Shares | (152,694) | (56,992) | |
Admiral Shares | 83,389 | (289,544) | |
Net Increase (Decrease) from Capital Share Transactions | (69,305) | (346,536) | |
Total Increase (Decrease) | 214,014 | 50,199 | |
Net Assets | |||
Beginning of Period | 47,477,425 | 47,427,226 | |
End of Period | 47,691,439 | 47,477,425 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $212.59 | $210.54 | $218.60 | $204.57 | $203.34 | $215.96 |
Investment Operations | ||||||
Net Investment Income1 | 1.112 | 1.654 | 1.869 | 2.005 | 2.506 | 2.375 |
Net Realized and Unrealized Gain (Loss) on Investments | 6.611 | 11.988 | 8.949 | 29.203 | 23.326 | 2.489 |
Total from Investment Operations | 7.723 | 13.642 | 10.818 | 31.208 | 25.832 | 4.864 |
Distributions | ||||||
Dividends from Net Investment Income | (.078) | (1.659) | (1.951) | (1.886) | (2.428) | (2.323) |
Distributions from Realized Capital Gains | (6.655) | (9.933) | (16.927) | (15.292) | (22.174) | (15.161) |
Total Distributions | (6.733) | (11.592) | (18.878) | (17.178) | (24.602) | (17.484) |
Net Asset Value, End of Period | $213.58 | $212.59 | $210.54 | $218.60 | $204.57 | $203.34 |
Total Return2 | 3.83% | 6.57% | 4.48% | 16.16% | 13.16% | 2.76% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $7,388 | $7,496 | $7,493 | $8,342 | $8,729 | $8,850 |
Ratio of Total Expenses to Average Net Assets3 | 0.36%4 | 0.34%4 | 0.30% | 0.32% | 0.32% | 0.34% |
Ratio of Net Investment Income to Average Net Assets | 1.06% | 0.80% | 0.82% | 0.95% | 1.25% | 1.12% |
Portfolio Turnover Rate | 9% | 19% | 15% | 18% | 18% | 16% |
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 | Includes performance-based investment advisory fee increases (decreases) of 0.02%, 0.00%, (0.04%), (0.01%), (0.02%), and 0.00%. |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset and broker commission abatement arrangements was 0.36% and 0.34%, respectively. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $89.64 | $88.77 | $92.17 | $86.27 | $85.75 | $91.08 |
Investment Operations | ||||||
Net Investment Income1 | .489 | .750 | .830 | .883 | 1.097 | 1.036 |
Net Realized and Unrealized Gain (Loss) on Investments | 2.791 | 5.052 | 3.780 | 12.316 | 9.844 | 1.057 |
Total from Investment Operations | 3.280 | 5.802 | 4.610 | 13.199 | 10.941 | 2.093 |
Distributions | ||||||
Dividends from Net Investment Income | (.044) | (.743) | (.870) | (.849) | (1.068) | (1.027) |
Distributions from Realized Capital Gains | (2.806) | (4.189) | (7.140) | (6.450) | (9.353) | (6.396) |
Total Distributions | (2.850) | (4.932) | (8.010) | (7.299) | (10.421) | (7.423) |
Net Asset Value, End of Period | $90.07 | $89.64 | $88.77 | $92.17 | $86.27 | $85.75 |
Total Return2 | 3.85% | 6.63% | 4.53% | 16.21% | 13.22% | 2.81% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $40,303 | $39,981 | $39,934 | $40,769 | $38,126 | $37,888 |
Ratio of Total Expenses to Average Net Assets3 | 0.31%4 | 0.29%4 | 0.25% | 0.27% | 0.27% | 0.28% |
Ratio of Net Investment Income to Average Net Assets | 1.11% | 0.86% | 0.86% | 0.99% | 1.30% | 1.18% |
Portfolio Turnover Rate | 9% | 19% | 15% | 18% | 18% | 16% |
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 | Includes performance-based investment advisory fee increases (decreases) of 0.02%, 0.00%, (0.04%), (0.01%), (0.02%), and 0.00%. |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset and broker commission abatement arrangements was 0.31% and 0.29%, respectively. |
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. | Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments based on the fund’s performance relative to the MSCI All Country World Health Care Index for the preceding three years. For the six months ended July 31, 2023, the investment advisory fee represented an effective annual basic rate of 0.15% of the fund’s average net assets, before a net increase of $4,554,000 (0.02%) based on performance. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
D. | The fund has asked its investment advisor 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. The fund’s custodian bank has also agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended July 31, 2023, these arrangements reduced the fund’s management and administrative expenses by $45,000 and custodian fees by $11,000. The total expense reduction represented an effective annual rate of less than 0.01% of the fund’s average net assets. |
E. | Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 33,003,523 | — | — | 33,003,523 |
Common Stocks—Other | 694,141 | 12,931,861 | — | 13,626,002 |
Temporary Cash Investments | 84,019 | 793,900 | — | 877,919 |
Total | 33,781,683 | 13,725,761 | — | 47,507,444 |
F. | As of July 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 | 29,346,141 |
Gross Unrealized Appreciation | 19,851,123 |
Gross Unrealized Depreciation | (1,689,820) |
Net Unrealized Appreciation (Depreciation) | 18,161,303 |
G. | During the six months ended July 31, 2023, the fund purchased $4,044,148,000 of investment securities and sold $5,604,916,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 177,276 | 842 | 421,032 | 2,016 | |
Issued in Lieu of Cash Distributions | 222,306 | 1,104 | 383,037 | 1,809 | |
Redeemed | (552,276) | (2,611) | (861,061) | (4,158) | |
Net Increase (Decrease)—Investor Shares | (152,694) | (665) | (56,992) | (333) | |
Admiral Shares | |||||
Issued | 490,918 | 5,487 | 917,744 | 10,465 | |
Issued in Lieu of Cash Distributions | 1,110,366 | 13,082 | 1,929,691 | 21,616 | |
Redeemed | (1,517,895) | (17,100) | (3,136,979) | (35,909) | |
Net Increase (Decrease)—Admiral Shares | 83,389 | 1,469 | (289,544) | (3,828) |
I. | Certain of the fund’s investments were in companies that were considered to be affiliated companies of the fund because the fund owned more than 5% of the outstanding voting securities of the company or the issuer was another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows: |
Current Period Transactions | ||||||||
Jan. 31, 2023 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) | Jul. 31, 2023 Market Value ($000) | |
2seventy bio Inc. | 27,835 | — | — | — | (12,301) | — | — | NA1 |
Agios Pharmaceuticals Inc. | 151,775 | — | — | — | (15,239) | — | — | 136,536 |
Apellis Pharmaceuticals Inc. | NA2 | 147,250 | 23,539 | 6,741 | (148,603) | — | — | 151,793 |
Eisai Co. Ltd. | 1,152,216 | 47,189 | 23,329 | 310 | 30,204 | 10,564 | — | 1,206,590 |
Ironwood Pharmaceuticals Inc. Class A | 125,592 | — | 113,327 | (6,333) | (5,932) | — | — | — |
Sage Therapeutics Inc. | NA2 | 71,840 | — | — | (29,809) | — | — | 104,394 |
UCB SA | 896,839 | — | — | — | 70,374 | 11,227 | — | 967,213 |
Vanguard Market Liquidity Fund | 669 | NA3 | NA3 | (4) | (3) | — | — | 84,019 |
Total | 2,354,926 | 266,279 | 160,195 | 714 | (111,309) | 21,791 | — | 2,650,545 |
1 | Not applicable—at July 31, 2023, the security was still held, but the issuer was no longer an affiliated company of the fund. |
2 | Not applicable—at January 31, 2023, the issuer was not an affiliated company of the fund. |
3 | Not applicable—purchases and sales are for temporary cash investment purposes. |
J. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
K. | Management has determined that no events or transactions occurred subsequent to July 31, 2023, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Vanguard Real Estate Index Fund |
Vanguard Real Estate II Index Fund |
• | 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 July 31, 2023 | |||
Beginning Account Value 1/31/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Real Estate Index Fund | |||
Investor Shares | $1,000.00 | $955.80 | $1.31 |
ETF Shares | 1,000.00 | 956.00 | 0.63 |
Admiral™ Shares | 1,000.00 | 956.40 | 0.63 |
Institutional Shares | 1,000.00 | 956.60 | 0.53 |
Real Estate II Index Fund | $1,000.00 | $956.90 | $0.39 |
Based on Hypothetical 5% Yearly Return | |||
Real Estate Index Fund | |||
Investor Shares | $1,000.00 | $1,023.46 | $1.35 |
ETF Shares | 1,000.00 | 1,024.15 | 0.65 |
Admiral Shares | 1,000.00 | 1,024.15 | 0.65 |
Institutional Shares | 1,000.00 | 1,024.25 | 0.55 |
Real Estate II Index Fund | $1,000.00 | $1,024.40 | $0.40 |
Data Center REITs | 8.3% |
Diversified Real Estate Activities | 0.2 |
Diversified REITs | 2.1 |
Health Care REITs | 8.1 |
Hotel & Resort REITs | 2.7 |
Industrial REITs | 12.7 |
Multi-Family Residential REITs | 9.2 |
Office REITs | 4.7 |
Other Specialized REITs | 5.9 |
Real Estate Development | 0.3 |
Real Estate Operating Companies | 0.3 |
Real Estate Services | 6.9 |
Retail REITs | 12.6 |
Self-Storage REITs | 6.6 |
Single-Family Residential REITs | 4.7 |
Telecom Tower REITs | 12.1 |
Timber REITs | 2.6 |
Shares | Market Value• ($000) | |||||
Equity Real Estate Investment Trusts (REITs) (92.6%) | ||||||
Data Center REITs (7.2%) | ||||||
Equinix Inc. | 3,942,576 | 3,193,171 | ||||
Digital Realty Trust Inc. | 11,656,281 | 1,452,606 | ||||
4,645,777 | ||||||
Diversified REITs (1.8%) | ||||||
WP Carey Inc. | 9,017,490 | 608,951 | ||||
Essential Properties Realty Trust Inc. | 6,274,690 | 154,044 | ||||
Broadstone Net Lease Inc. | 7,891,758 | 128,636 | ||||
Alexander & Baldwin Inc. | 3,060,193 | 58,756 | ||||
Empire State Realty Trust Inc. Class A | 5,746,815 | 51,434 | ||||
American Assets Trust Inc. | 2,174,837 | 48,933 | ||||
1 | Global Net Lease Inc. | 4,375,006 | 46,769 | |||
Armada Hoffler Properties Inc. | 2,854,748 | 35,456 | ||||
Gladstone Commercial Corp. | 1,705,890 | 22,688 | ||||
NexPoint Diversified Real Estate Trust | 1,331,846 | 15,569 | ||||
One Liberty Properties Inc. | 716,078 | 14,629 | ||||
1,185,865 | ||||||
Health Care REITs (7.0%) | ||||||
Welltower Inc. | 20,173,802 | 1,657,278 | ||||
Ventas Inc. | 16,867,251 | 818,399 | ||||
Healthpeak Properties Inc. | 23,061,148 | 503,425 | ||||
Omega Healthcare Investors Inc. | 9,875,701 | 315,035 | ||||
1 | Healthcare Realty Trust Inc. Class A | 16,052,884 | 313,513 | |||
1 | Medical Properties Trust Inc. | 25,226,304 | 254,533 | |||
Physicians Realty Trust | 10,058,406 | 148,261 |
Shares | Market Value• ($000) | |||||
Sabra Health Care REIT Inc. | 9,743,190 | 126,564 | ||||
National Health Investors Inc. | 1,828,463 | 100,401 | ||||
CareTrust REIT Inc. | 4,196,942 | 87,254 | ||||
LTC Properties Inc. | 1,744,302 | 58,539 | ||||
Community Healthcare Trust Inc. | 1,043,689 | 36,780 | ||||
Universal Health Realty Income Trust | 553,369 | 26,412 | ||||
Global Medical REIT Inc. | 2,629,583 | 26,033 | ||||
Diversified Healthcare Trust | 10,120,172 | 21,151 | ||||
4,493,578 | ||||||
Hotel & Resort REITs (2.4%) | ||||||
Host Hotels & Resorts Inc. | 30,078,602 | 553,446 | ||||
Ryman Hospitality Properties Inc. | 2,212,844 | 210,862 | ||||
Apple Hospitality REIT Inc. | 9,185,969 | 142,382 | ||||
Park Hotels & Resorts Inc. | 9,352,889 | 127,480 | ||||
Sunstone Hotel Investors Inc. | 8,342,160 | 85,007 | ||||
Pebblebrook Hotel Trust | 5,269,087 | 81,407 | ||||
DiamondRock Hospitality Co. | 8,895,336 | 75,610 | ||||
RLJ Lodging Trust | 6,816,044 | 70,205 | ||||
Xenia Hotels & Resorts Inc. | 4,686,682 | 59,521 | ||||
Service Properties Trust | 6,974,746 | 59,216 | ||||
Summit Hotel Properties Inc. | 4,514,474 | 29,073 | ||||
Chatham Lodging Trust | 2,061,410 | 19,790 | ||||
1,513,999 | ||||||
Industrial REITs (11.0%) | ||||||
Prologis Inc. | 38,932,811 | 4,856,868 | ||||
Rexford Industrial Realty Inc. | 8,464,510 | 466,310 | ||||
Americold Realty Trust Inc. | 11,387,047 | 369,168 | ||||
EastGroup Properties Inc. | 1,865,210 | 330,478 |
Shares | Market Value• ($000) | |||||
First Industrial Realty Trust Inc. | 5,574,611 | 288,207 | ||||
STAG Industrial Inc. | 7,563,346 | 274,550 | ||||
Terreno Realty Corp. | 3,490,187 | 207,108 | ||||
LXP Industrial Trust | 12,332,576 | 124,189 | ||||
Innovative Industrial Properties Inc. | 1,180,592 | 93,538 | ||||
Plymouth Industrial REIT Inc. | 1,631,043 | 37,139 | ||||
Industrial Logistics Properties Trust | 2,753,579 | 11,675 | ||||
7,059,230 | ||||||
Multi-Family Residential REITs (8.0%) | ||||||
AvalonBay Communities Inc. | 5,902,869 | 1,113,576 | ||||
Equity Residential | 14,576,104 | 961,148 | ||||
Mid-America Apartment Communities Inc. | 4,916,146 | 735,751 | ||||
Essex Property Trust Inc. | 2,717,872 | 661,938 | ||||
UDR Inc. | 13,183,660 | 538,948 | ||||
Camden Property Trust | 4,498,636 | 490,756 | ||||
Apartment Income REIT Corp. Class A | 6,287,346 | 217,165 | ||||
Independence Realty Trust Inc. | 9,460,758 | 161,211 | ||||
Elme Communities | 3,697,367 | 60,082 | ||||
* | Veris Residential Inc. | 3,073,847 | 57,420 | |||
Apartment Investment & Management Co. Class A | 5,685,970 | 47,364 | ||||
NexPoint Residential Trust Inc. | 972,958 | 40,436 | ||||
Centerspace | 633,038 | 39,331 | ||||
5,125,126 | ||||||
Office REITs (4.1%) | ||||||
Alexandria Real Estate Equities Inc. | 6,929,166 | 870,857 | ||||
Boston Properties Inc. | 6,280,981 | 418,502 | ||||
Kilroy Realty Corp. | 4,689,655 | 167,421 | ||||
Cousins Properties Inc. | 6,393,921 | 156,203 | ||||
Vornado Realty Trust | 6,874,326 | 154,535 | ||||
Corporate Office Properties Trust | 4,742,660 | 123,309 | ||||
Highwoods Properties Inc. | 4,448,091 | 112,403 | ||||
Douglas Emmett Inc. | 7,407,684 | 108,893 | ||||
1 | SL Green Realty Corp. | 2,714,642 | 102,369 | |||
Equity Commonwealth | 4,692,954 | 91,935 | ||||
JBG SMITH Properties | 4,567,909 | 76,421 | ||||
Easterly Government Properties Inc. Class A | 3,877,384 | 57,230 | ||||
Piedmont Office Realty Trust Inc. Class A | 5,209,491 | 38,759 | ||||
Brandywine Realty Trust | 7,233,191 | 36,528 |
Shares | Market Value• ($000) | |||||
Paramount Group Inc. | 6,862,147 | 35,958 | ||||
Hudson Pacific Properties Inc. | 5,355,707 | 31,438 | ||||
Office Properties Income Trust | 2,049,098 | 15,778 | ||||
Orion Office REIT Inc. | 2,264,876 | 14,722 | ||||
City Office REIT Inc. | 1,679,263 | 9,185 | ||||
Franklin Street Properties Corp. | 3,909,501 | 6,568 | ||||
*,2 | New York REIT Liquidating LLC | 1,208 | 9 | |||
2,629,023 | ||||||
Other (12.6%)3 | ||||||
4,5 | Vanguard Real Estate II Index Fund | 395,983,094 | 8,105,774 | |||
Other Specialized REITs (5.1%) | ||||||
VICI Properties Inc. Class A | 36,936,653 | 1,162,766 | ||||
Iron Mountain Inc. | 12,293,438 | 754,817 | ||||
Gaming & Leisure Properties Inc. | 11,060,685 | 524,940 | ||||
Lamar Advertising Co. Class A | 3,686,910 | 363,898 | ||||
EPR Properties | 3,174,109 | 141,692 | ||||
Outfront Media Inc. | 6,262,717 | 96,822 | ||||
Four Corners Property Trust Inc. | 3,631,831 | 95,517 | ||||
Uniti Group Inc. | 10,052,886 | 56,095 | ||||
Safehold Inc. | 1,615,634 | 39,955 | ||||
Gladstone Land Corp. | 1,433,103 | 23,990 | ||||
3,260,492 | ||||||
Retail REITs (10.9%) | ||||||
Realty Income Corp. | 27,847,385 | 1,697,855 | ||||
Simon Property Group Inc. | 13,375,136 | 1,666,542 | ||||
Kimco Realty Corp. | 26,134,145 | 529,478 | ||||
Regency Centers Corp. | 6,499,869 | 425,936 | ||||
NNN REIT Inc. | 7,676,979 | 327,653 | ||||
Federal Realty Investment Trust | 3,093,291 | 314,031 | ||||
Brixmor Property Group Inc. | 12,671,459 | 288,149 | ||||
Agree Realty Corp. | 3,805,982 | 246,551 | ||||
Spirit Realty Capital Inc. | 5,958,860 | 240,321 | ||||
Kite Realty Group Trust | 9,246,111 | 211,551 | ||||
1 | Phillips Edison & Co. Inc. | 4,943,857 | 174,568 | |||
Macerich Co. | 9,060,700 | 115,524 | ||||
SITE Centers Corp. | 7,937,438 | 111,521 | ||||
1 | Tanger Factory Outlet Centers Inc. | 4,438,122 | 103,896 | |||
Urban Edge Properties | 4,958,062 | 84,337 | ||||
Retail Opportunity Investments Corp. | 5,272,156 | 77,659 | ||||
InvenTrust Properties Corp. | 2,844,927 | 69,246 | ||||
Acadia Realty Trust | 4,012,731 | 63,040 |
Shares | Market Value• ($000) | |||||
Getty Realty Corp. | 1,873,541 | 60,553 | ||||
NETSTREIT Corp. | 2,454,233 | 43,906 | ||||
Necessity Retail REIT Inc. Class A | 5,635,384 | 40,011 | ||||
RPT Realty | 3,648,737 | 39,662 | ||||
Urstadt Biddle Properties Inc. Class A | 1,205,129 | 27,332 | ||||
Saul Centers Inc. | 555,560 | 21,417 | ||||
Alexander's Inc. | 97,127 | 18,781 | ||||
CBL & Associates Properties Inc. | 473,776 | 10,314 | ||||
Urstadt Biddle Properties Inc. | 16,032 | 360 | ||||
*,2 | Spirit MTA REIT | 2,071,263 | — | |||
7,010,194 | ||||||
Self-Storage REITs (5.7%) | ||||||
Public Storage | 6,670,305 | 1,879,358 | ||||
Extra Space Storage Inc. | 8,902,683 | 1,242,548 | ||||
CubeSmart | 9,507,704 | 412,254 | ||||
National Storage Affiliates Trust | 3,537,556 | 119,534 | ||||
3,653,694 | ||||||
Single-Family Residential REITs (4.1%) | ||||||
Invitation Homes Inc. | 25,796,679 | 915,782 | ||||
Sun Communities Inc. | 5,245,281 | 683,460 | ||||
Equity LifeStyle Properties Inc. | 7,456,722 | 530,770 | ||||
American Homes 4 Rent Class A | 12,652,694 | 474,223 | ||||
UMH Properties Inc. | 2,401,043 | 39,977 | ||||
* | Bluerock Homes Trust Inc. | 149 | 2 | |||
2,644,214 | ||||||
Telecom Tower REITs (10.5%) | ||||||
American Tower Corp. | 19,648,163 | 3,739,242 | ||||
Crown Castle Inc. | 18,283,746 | 1,979,947 | ||||
SBA Communications Corp. Class A | 4,566,956 | 999,935 | ||||
6,719,124 | ||||||
Timber REITs (2.2%) | ||||||
Weyerhaeuser Co. | 30,899,171 | 1,052,426 | ||||
Rayonier Inc. | 5,905,320 | 195,584 | ||||
PotlatchDeltic Corp. | 3,370,203 | 180,744 | ||||
1,428,754 | ||||||
Total Equity Real Estate Investment Trusts (REITs) (Cost $58,933,754) | 59,474,844 | |||||
Real Estate Management & Development (6.7%) | ||||||
Diversified Real Estate Activities (0.2%) | ||||||
St. Joe Co. | 1,476,299 | 93,715 | ||||
RMR Group Inc. Class A | 656,652 | 15,484 | ||||
109,199 |
Shares | Market Value• ($000) | |||||
Real Estate Development (0.2%) | ||||||
* | Howard Hughes Corp. | 1,475,666 | 124,591 | |||
* | Forestar Group Inc. | 840,551 | 24,779 | |||
149,370 | ||||||
Real Estate Operating Companies (0.3%) | ||||||
DigitalBridge Group Inc. | 6,816,877 | 109,206 | ||||
Kennedy-Wilson Holdings Inc. | 4,071,692 | 67,183 | ||||
*,1 | Seritage Growth Properties Class A | 1,535,324 | 14,417 | |||
*,1 | WeWork Inc. Class A | 6,038,835 | 1,307 | |||
192,113 | ||||||
Real Estate Services (6.0%) | ||||||
* | CoStar Group Inc. | 17,149,630 | 1,440,054 | |||
* | CBRE Group Inc. Class A | 13,103,483 | 1,091,651 | |||
* | Zillow Group Inc. Class C | 6,497,236 | 351,890 | |||
* | Jones Lang LaSalle Inc. | 2,007,227 | 334,304 | |||
* | Zillow Group Inc. Class A | 2,400,101 | 127,733 | |||
* | Opendoor Technologies Inc. | 21,679,831 | 110,784 | |||
1 | eXp World Holdings Inc. | 3,143,060 | 78,388 | |||
* | Cushman & Wakefield plc | 6,698,796 | 65,849 | |||
*,1 | Redfin Corp. | 4,276,913 | 64,068 | |||
* | Compass Inc. Class A | 12,060,878 | 50,535 | |||
Newmark Group Inc. Class A | 6,099,416 | 42,208 | ||||
Marcus & Millichap Inc. | 1,074,172 | 39,401 | ||||
* | Anywhere Real Estate Inc. | 4,182,102 | 35,046 | |||
RE/MAX Holdings Inc. Class A | 762,497 | 15,029 | ||||
Douglas Elliman Inc. | 3,158,515 | 6,980 | ||||
*,1 | Offerpad Solutions Inc. | 228,257 | 2,703 | |||
*,1 | Doma Holdings Inc. | 200,189 | 1,656 | |||
3,858,279 | ||||||
Total Real Estate Management & Development (Cost $5,060,270) | 4,308,961 |
Shares | Market Value• ($000) | |||||
Temporary Cash Investments (1.2%) | ||||||
Money Market Fund (1.2%) | ||||||
6,7 | Vanguard Market Liquidity Fund, 5.274% (Cost $748,640) | 7,488,214 | 748,672 | |||
Total Investments (100.5%) (Cost $64,742,664) | 64,532,477 | |||||
Other Assets and Liabilities—Net (-0.5%) | (300,258) | |||||
Net Assets (100%) | 64,232,219 |
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 $302,594,000. |
2 | Security value determined using significant unobservable inputs. |
3 | “Other” represents securities that are not classified by the fund’s benchmark index. |
4 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
5 | Represents a wholly owned subsidiary of the fund. See accompanying financial statements for Vanguard Real Estate II Index Fund's Schedule of Investments. |
6 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
7 | Collateral of $318,355,000 was received for securities on loan. |
REIT—Real Estate Investment Trust. |
Over-the-Counter Total Return Swaps | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Floating Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
American Homes 4 Rent Class A | 8/31/23 | BANA | 37,223 | (5.272) | 1,979 | — |
Digital Realty Trust Inc. | 8/31/23 | BANA | 42,701 | (5.272) | 3,857 | — |
Digital Realty Trust Inc. | 1/31/24 | GSI | 29,553 | (5.301) | 1,547 | — |
Equity Residential | 8/31/23 | BANA | 39,582 | (5.272) | 218 | — |
Redfin Corp. | 1/31/24 | GSI | 5,796 | (5.251) | — | (564) |
Simon Property Group Inc. | 1/31/24 | GSI | 48,660 | (5.301) | 1,089 | — |
VICI Properties Inc. Class A | 8/31/23 | BANA | 169,722 | (5.672) | 1,629 | — |
Welltower Inc. | 8/31/23 | BANA | 60,668 | (5.272) | 697 | — |
11,016 | (564) |
1 | Based on USD Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/paid monthly. |
BANA—Bank of America, N.A. | |
GSI—Goldman Sachs International. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $56,454,915) | 55,678,031 |
Affiliated Issuers (Cost $748,640) | 748,672 |
Vanguard Real Estate II Index Fund (Cost $7,539,109) | 8,105,774 |
Total Investments in Securities | 64,532,477 |
Investment in Vanguard | 1,834 |
Cash | 7,946 |
Receivables for Accrued Income | 31,640 |
Receivables for Capital Shares Issued | 21,660 |
Unrealized Appreciation—Over-the-Counter Swap Contracts | 11,016 |
Total Assets | 64,606,573 |
Liabilities | |
Payables for Investment Securities Purchased | 21,487 |
Collateral for Securities on Loan | 318,355 |
Payables for Capital Shares Redeemed | 30,788 |
Payables to Vanguard | 3,160 |
Unrealized Depreciation—Over-the-Counter Swap Contracts | 564 |
Total Liabilities | 374,354 |
Net Assets | 64,232,219 |
1 Includes $302,594,000 of securities on loan. |
Statement of Assets and Liabilities (continued) | |
At July 31, 2023, net assets consisted of: | |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Paid-in Capital | 67,350,617 |
Total Distributable Earnings (Loss) | (3,118,398) |
Net Assets | 64,232,219 |
Investor Shares—Net Assets | |
Applicable to 3,427,358 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 97,115 |
Net Asset Value Per Share—Investor Shares | $28.34 |
ETF Shares—Net Assets | |
Applicable to 394,822,280 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 33,663,918 |
Net Asset Value Per Share—ETF Shares | $85.26 |
Admiral Shares—Net Assets | |
Applicable to 169,437,432 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 20,474,793 |
Net Asset Value Per Share—Admiral Shares | $120.84 |
Institutional Shares—Net Assets | |
Applicable to 534,490,081 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 9,996,393 |
Net Asset Value Per Share—Institutional Shares | $18.70 |
Six Months Ended July 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers | 851,077 |
Dividends—Vanguard Real Estate II Index Fund | 161,605 |
Interest—Affiliated Issuers | 8,377 |
Securities Lending—Net | 760 |
Total Income | 1,021,819 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 674 |
Management and Administrative—Investor Shares | 120 |
Management and Administrative—ETF Shares | 16,838 |
Management and Administrative—Admiral Shares | 10,574 |
Management and Administrative—Institutional Shares | 4,250 |
Marketing and Distribution—Investor Shares | 4 |
Marketing and Distribution—ETF Shares | 838 |
Marketing and Distribution—Admiral Shares | 552 |
Marketing and Distribution—Institutional Shares | 180 |
Custodian Fees | 44 |
Shareholders’ Reports—Investor Shares | — |
Shareholders’ Reports—ETF Shares | 655 |
Shareholders’ Reports—Admiral Shares | 179 |
Shareholders’ Reports—Institutional Shares | 73 |
Trustees’ Fees and Expenses | 17 |
Other Expenses | 30 |
Total Expenses | 35,028 |
Net Investment Income | 986,791 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received—Unaffiliated Issuers | 168,393 |
Capital Gain Distributions Received—Vanguard Real Estate II Index Fund | — |
Investment Securities Sold—Unaffiliated Issuers1 | (94,554) |
Investment Securities Sold—Affiliated Issuers | 24 |
Investment Securities Sold—Vanguard Real Estate II Index Fund | — |
Futures Contracts | 99 |
Swap Contracts | 21,755 |
Realized Net Gain (Loss) | 95,717 |
Statement of Operations (continued) | |
Six Months Ended July 31, 2023 | |
($000) | |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | (3,716,698) |
Investment Securities—Affiliated Issuers | (46) |
Investment Securities—Vanguard Real Estate II Index Fund | (527,018) |
Swap Contracts | (20,545) |
Change in Unrealized Appreciation (Depreciation) | (4,264,307) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,181,799) |
1 | Includes $874,579,000 of net gain (loss) resulting from in-kind redemptions. |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 986,791 | 1,757,360 | |
Realized Net Gain (Loss) | 95,717 | 2,948,495 | |
Change in Unrealized Appreciation (Depreciation) | (4,264,307) | (14,507,077) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,181,799) | (9,801,222) | |
Distributions | |||
Net Investment Income and/or Realized Capital Gains | |||
Investor Shares | (2,008) | (3,184) | |
ETF Shares | (663,421) | (893,338) | |
Admiral Shares | (408,596) | (518,210) | |
Institutional Shares | (199,226) | (253,055) | |
Return of Capital | |||
Investor Shares | — | (1,590) | |
ETF Shares | — | (446,081) | |
Admiral Shares | — | (258,764) | |
Institutional Shares | — | (126,361) | |
Total Distributions | (1,273,251) | (2,500,583) | |
Capital Share Transactions | |||
Investor Shares | (21,777) | (41,427) | |
ETF Shares | (767,399) | (3,046,898) | |
Admiral Shares | (237,649) | 34,532 | |
Institutional Shares | 41,028 | 306,763 | |
Net Increase (Decrease) from Capital Share Transactions | (985,797) | (2,747,030) | |
Total Increase (Decrease) | (5,440,847) | (15,048,835) | |
Net Assets | |||
Beginning of Period | 69,673,066 | 84,721,901 | |
End of Period | 64,232,219 | 69,673,066 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $30.26 | $35.37 | $28.23 | $31.21 | $27.69 | $26.40 |
Investment Operations | ||||||
Net Investment Income1 | .397 | .684 | .602 | .586 | .719 | .787 |
Net Realized and Unrealized Gain (Loss) on Investments | (1.774) | (4.766) | 7.475 | (2.498) | 3.801 | 1.639 |
Total from Investment Operations | (1.377) | (4.082) | 8.077 | (1.912) | 4.520 | 2.426 |
Distributions | ||||||
Dividends from Net Investment Income | (.543) | (.686) | (.620) | (.624) | (.752) | (.851) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Return of Capital | — | (.342) | (.317) | (.444) | (.248) | (.285) |
Total Distributions | (.543) | (1.028) | (.937) | (1.068) | (1.000) | (1.136) |
Net Asset Value, End of Period | $28.34 | $30.26 | $35.37 | $28.23 | $31.21 | $27.69 |
Total Return2 | -4.42% | -11.39% | 28.73% | -5.88% | 16.59% | 9.53% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $97 | $127 | $196 | $188 | $243 | $1,871 |
Ratio of Total Expenses to Average Net Assets | 0.26% | 0.26%3 | 0.26% | 0.26% | 0.26% | 0.25% |
Acquired Fund Fees and Expenses4 | 0.01% | — | — | — | — | — |
Ratio of Net Investment Income to Average Net Assets | 2.78% | 2.18% | 1.77% | 2.18% | 2.48% | 3.02% |
Portfolio Turnover Rate5 | 6% | 7% | 7% | 8% | 6% | 24% |
The expense ratio, acquired fund fees and expenses, 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 0.25%. |
4 | For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%. |
5 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
ETF Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $91.06 | $106.44 | $84.96 | $93.93 | $83.36 | $79.47 |
Investment Operations | ||||||
Net Investment Income1 | 1.299 | 2.240 | 1.960 | 1.889 | 2.335 | 2.487 |
Net Realized and Unrealized Gain (Loss) on Investments | (5.401) | (14.394) | 22.486 | (7.525) | 11.379 | 4.934 |
Total from Investment Operations | (4.102) | (12.154) | 24.446 | (5.636) | 13.714 | 7.421 |
Distributions | ||||||
Dividends from Net Investment Income | (1.698) | (2.152) | (1.943) | (1.947) | (2.364) | (2.646) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Return of Capital | — | (1.074) | (1.023) | (1.387) | (.780) | (.885) |
Total Distributions | (1.698) | (3.226) | (2.966) | (3.334) | (3.144) | (3.531) |
Net Asset Value, End of Period | $85.26 | $91.06 | $106.44 | $84.96 | $93.93 | $83.36 |
Total Return | -4.40% | -11.25% | 28.88% | -5.80% | 16.70% | 9.70% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $33,664 | $36,825 | $46,673 | $32,064 | $37,682 | $30,857 |
Ratio of Total Expenses to Average Net Assets | 0.12% | 0.12%2 | 0.12% | 0.12% | 0.12% | 0.12% |
Acquired Fund Fees and Expenses3 | 0.01% | — | — | — | — | — |
Ratio of Net Investment Income to Average Net Assets | 3.04% | 2.38% | 1.90% | 2.33% | 2.60% | 3.15% |
Portfolio Turnover Rate4 | 6% | 7% | 7% | 8% | 6% | 24% |
The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%. |
3 | For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $129.05 | $150.85 | $120.40 | $133.12 | $118.14 | $112.63 |
Investment Operations | ||||||
Net Investment Income1 | 1.866 | 3.201 | 2.761 | 2.677 | 3.315 | 3.507 |
Net Realized and Unrealized Gain (Loss) on Investments | (7.669) | (20.428) | 31.890 | (10.672) | 16.121 | 7.008 |
Total from Investment Operations | (5.803) | (17.227) | 34.651 | (7.995) | 19.436 | 10.515 |
Distributions | ||||||
Dividends from Net Investment Income | (2.407) | (3.050) | (2.770) | (2.759) | (3.350) | (3.751) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Return of Capital | — | (1.523) | (1.431) | (1.966) | (1.106) | (1.254) |
Total Distributions | (2.407) | (4.573) | (4.201) | (4.725) | (4.456) | (5.005) |
Net Asset Value, End of Period | $120.84 | $129.05 | $150.85 | $120.40 | $133.12 | $118.14 |
Total Return2 | -4.36% | -11.26% | 28.91% | -5.74% | 16.73% | 9.69% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $20,475 | $22,110 | $25,764 | $19,702 | $23,274 | $18,223 |
Ratio of Total Expenses to Average Net Assets | 0.12% | 0.12%3 | 0.12% | 0.12% | 0.12% | 0.11% |
Acquired Fund Fees and Expenses4 | 0.01% | — | — | — | — | — |
Ratio of Net Investment Income to Average Net Assets | 3.09% | 2.41% | 1.90% | 2.33% | 2.60% | 3.16% |
Portfolio Turnover Rate5 | 6% | 7% | 7% | 8% | 6% | 24% |
The expense ratio, acquired fund fees and expenses, 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 0.12%. |
4 | For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%. |
5 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
Institutional Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $19.97 | $23.35 | $18.64 | $20.60 | $18.28 | $17.43 |
Investment Operations | ||||||
Net Investment Income1 | .294 | .500 | .432 | .421 | .518 | .543 |
Net Realized and Unrealized Gain (Loss) on Investments | (1.190) | (3.168) | 4.933 | (1.646) | 2.496 | 1.085 |
Total from Investment Operations | (.896) | (2.668) | 5.365 | (1.225) | 3.014 | 1.628 |
Distributions | ||||||
Dividends from Net Investment Income | (.374) | (.475) | (.432) | (.429) | (.522) | (.583) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Return of Capital | — | (.237) | (.223) | (.306) | (.172) | (.195) |
Total Distributions | (.374) | (.712) | (.655) | (.735) | (.694) | (.778) |
Net Asset Value, End of Period | $18.70 | $19.97 | $23.35 | $18.64 | $20.60 | $18.28 |
Total Return | -4.34% | -11.27% | 28.91% | -5.68% | 16.77% | 9.70% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $9,996 | $10,610 | $12,089 | $9,478 | $10,027 | $8,206 |
Ratio of Total Expenses to Average Net Assets | 0.10% | 0.10%2 | 0.10% | 0.10% | 0.10% | 0.09% |
Acquired Fund Fees and Expenses3 | 0.01% | — | — | — | — | — |
Ratio of Net Investment Income to Average Net Assets | 3.14% | 2.43% | 1.92% | 2.37% | 2.63% | 3.18% |
Portfolio Turnover Rate4 | 6% | 7% | 7% | 8% | 6% | 24% |
The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
3 | For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 63,783,796 | — | 9 | 63,783,805 |
Temporary Cash Investments | 748,672 | — | — | 748,672 |
Total | 64,532,468 | — | 9 | 64,532,477 |
Derivative Financial Instruments | ||||
Assets | ||||
Swap Contracts | — | 11,016 | — | 11,016 |
Liabilities | ||||
Swap Contracts | — | 564 | — | 564 |
Amount ($000) | |
Tax Cost | 65,047,486 |
Gross Unrealized Appreciation | 8,039,695 |
Gross Unrealized Depreciation | (8,544,252) |
Net Unrealized Appreciation (Depreciation) | (504,557) |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 4,597 | 165 | 12,156 | 378 | |
Issued in Lieu of Cash Distributions | 2,008 | 76 | 4,774 | 163 | |
Redeemed | (28,382) | (1,019) | (58,357) | (1,875) | |
Net Increase (Decrease)—Investor Shares | (21,777) | (778) | (41,427) | (1,334) | |
ETF Shares | |||||
Issued | 2,713,573 | 32,493 | 6,166,911 | 65,225 | |
Issued in Lieu of Cash Distributions | — | — | — | — | |
Redeemed | (3,480,972) | (42,100) | (9,213,809) | (99,300) | |
Net Increase (Decrease)—ETF Shares | (767,399) | (9,607) | (3,046,898) | (34,075) | |
Admiral Shares | |||||
Issued | 1,090,760 | 9,213 | 2,666,411 | 20,054 | |
Issued in Lieu of Cash Distributions | 359,906 | 3,188 | 682,639 | 5,494 | |
Redeemed | (1,688,315) | (14,296) | (3,314,518) | (25,007) | |
Net Increase (Decrease)—Admiral Shares | (237,649) | (1,895) | 34,532 | 541 | |
Institutional Shares | |||||
Issued | 842,292 | 46,430 | 2,009,244 | 97,409 | |
Issued in Lieu of Cash Distributions | 188,354 | 10,777 | 357,630 | 18,606 | |
Redeemed | (989,618) | (53,934) | (2,060,111) | (102,593) | |
Net Increase (Decrease)—Institutional Shares | 41,028 | 3,273 | 306,763 | 13,422 |
Current Period Transactions | ||||||||
Jan. 31, 2023 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Jul. 31, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 399,890 | NA2 | NA2 | 24 | (46) | 8,377 | — | 748,672 |
Vanguard Real Estate II Index Fund | 8,471,187 | 161,605 | — | — | (527,018) | 161,605 | — | 8,105,774 |
Total | 8,871,077 | 161,605 | — | 24 | (527,064) | 169,982 | — | 8,854,446 |
1 | Does not include adjustments related to return of capital. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
Data Center REITs | 8.4% |
Diversified Real Estate Activities | 0.2 |
Diversified REITs | 2.1 |
Health Care REITs | 8.1 |
Hotel & Resort REITs | 2.6 |
Industrial REITs | 12.5 |
Multi-Family Residential REITs | 9.2 |
Office REITs | 4.7 |
Other Specialized REITs | 6.1 |
Real Estate Development | 0.3 |
Real Estate Operating Companies | 0.4 |
Real Estate Services | 6.9 |
Retail REITs | 12.6 |
Self-Storage REITs | 6.5 |
Single-Family Residential REITs | 4.8 |
Telecom Tower REITs | 12.0 |
Timber REITs | 2.6 |
Shares | Market Value• ($000) | |||||
Equity Real Estate Investment Trusts (REITs) (92.1%) | ||||||
Data Center REITs (8.4%) | ||||||
Equinix Inc. | 587,443 | 475,782 | ||||
Digital Realty Trust Inc. | 1,829,912 | 228,043 | ||||
703,825 | ||||||
Diversified REITs (2.1%) | ||||||
WP Carey Inc. | 1,343,609 | 90,734 | ||||
Essential Properties Realty Trust Inc. | 935,225 | 22,960 | ||||
Broadstone Net Lease Inc. | 1,176,757 | 19,181 | ||||
Alexander & Baldwin Inc. | 456,328 | 8,761 | ||||
Empire State Realty Trust Inc. Class A | 857,807 | 7,677 | ||||
American Assets Trust Inc. | 324,583 | 7,303 | ||||
Global Net Lease Inc. | 651,051 | 6,960 | ||||
Armada Hoffler Properties Inc. | 424,682 | 5,275 | ||||
Gladstone Commercial Corp. | 253,297 | 3,369 | ||||
NexPoint Diversified Real Estate Trust | 198,130 | 2,316 | ||||
One Liberty Properties Inc. | 106,763 | 2,181 | ||||
176,717 | ||||||
Health Care REITs (8.1%) | ||||||
Welltower Inc. | 3,117,650 | 256,115 | ||||
Ventas Inc. | 2,513,126 | 121,937 | ||||
Healthpeak Properties Inc. | 3,435,708 | 75,001 | ||||
Omega Healthcare Investors Inc. | 1,471,877 | 46,953 | ||||
Healthcare Realty Trust Inc. Class A | 2,392,450 | 46,725 | ||||
1 | Medical Properties Trust Inc. | 3,759,071 | 37,929 | |||
Physicians Realty Trust | 1,499,083 | 22,096 | ||||
Sabra Health Care REIT Inc. | 1,453,255 | 18,878 | ||||
National Health Investors Inc. | 272,909 | 14,985 | ||||
1 | CareTrust REIT Inc. | 625,117 | 12,996 | |||
LTC Properties Inc. | 260,065 | 8,728 |
Shares | Market Value• ($000) | |||||
Community Healthcare Trust Inc. | 155,386 | 5,476 | ||||
Universal Health Realty Income Trust | 82,242 | 3,925 | ||||
Global Medical REIT Inc. | 390,459 | 3,866 | ||||
Diversified Healthcare Trust | 1,503,164 | 3,142 | ||||
678,752 | ||||||
Hotel & Resort REITs (2.6%) | ||||||
Host Hotels & Resorts Inc. | 4,482,467 | 82,477 | ||||
Ryman Hospitality Properties Inc. | 329,655 | 31,413 | ||||
Apple Hospitality REIT Inc. | 1,369,203 | 21,223 | ||||
Park Hotels & Resorts Inc. | 994,915 | 13,561 | ||||
Sunstone Hotel Investors Inc. | 1,242,571 | 12,662 | ||||
Pebblebrook Hotel Trust | 785,075 | 12,129 | ||||
DiamondRock Hospitality Co. | 1,325,572 | 11,267 | ||||
RLJ Lodging Trust | 1,015,725 | 10,462 | ||||
Xenia Hotels & Resorts Inc. | 698,930 | 8,877 | ||||
Service Properties Trust | 1,039,842 | 8,828 | ||||
Summit Hotel Properties Inc. | 670,418 | 4,318 | ||||
Chatham Lodging Trust | 306,386 | 2,941 | ||||
220,158 | ||||||
Industrial REITs (12.5%) | ||||||
Prologis Inc. | 5,800,982 | 723,672 | ||||
Rexford Industrial Realty Inc. | 1,261,311 | 69,486 | ||||
EastGroup Properties Inc. | 277,944 | 49,246 | ||||
Americold Realty Trust Inc. | 1,446,613 | 46,899 | ||||
First Industrial Realty Trust Inc. | 830,362 | 42,930 | ||||
STAG Industrial Inc. | 1,126,656 | 40,898 | ||||
Terreno Realty Corp. | 519,847 | 30,848 | ||||
LXP Industrial Trust | 1,839,052 | 18,519 | ||||
Innovative Industrial Properties Inc. | 175,887 | 13,936 |
Shares | Market Value• ($000) | |||||
Plymouth Industrial REIT Inc. | 242,877 | 5,530 | ||||
Industrial Logistics Properties Trust | 411,150 | 1,743 | ||||
1,043,707 | ||||||
Multi-Family Residential REITs (9.2%) | ||||||
AvalonBay Communities Inc. | 879,493 | 165,916 | ||||
Equity Residential | 2,261,118 | 149,098 | ||||
Mid-America Apartment Communities Inc. | 732,419 | 109,614 | ||||
Essex Property Trust Inc. | 404,969 | 98,630 | ||||
UDR Inc. | 1,964,562 | 80,311 | ||||
Camden Property Trust | 670,352 | 73,129 | ||||
Apartment Income REIT Corp. Class A | 936,857 | 32,359 | ||||
Independence Realty Trust Inc. | 1,409,758 | 24,022 | ||||
Elme Communities | 551,223 | 8,957 | ||||
* | Veris Residential Inc. | 458,588 | 8,567 | |||
Apartment Investment & Management Co. Class A | 848,623 | 7,069 | ||||
NexPoint Residential Trust Inc. | 144,817 | 6,019 | ||||
Centerspace | 94,248 | 5,856 | ||||
769,547 | ||||||
Office REITs (4.7%) | ||||||
Alexandria Real Estate Equities Inc. | 1,032,549 | 129,771 | ||||
Boston Properties Inc. | 935,876 | 62,357 | ||||
Kilroy Realty Corp. | 699,156 | 24,960 | ||||
Cousins Properties Inc. | 953,177 | 23,286 | ||||
Vornado Realty Trust | 1,025,138 | 23,045 | ||||
Corporate Office Properties Trust | 707,404 | 18,392 | ||||
Highwoods Properties Inc. | 662,959 | 16,753 | ||||
Douglas Emmett Inc. | 1,104,122 | 16,231 | ||||
1 | SL Green Realty Corp. | 404,291 | 15,246 | |||
Equity Commonwealth | 698,721 | 13,688 | ||||
JBG SMITH Properties | 681,013 | 11,393 | ||||
Easterly Government Properties Inc. Class A | 578,240 | 8,535 | ||||
Piedmont Office Realty Trust Inc. Class A | 775,476 | 5,770 | ||||
Brandywine Realty Trust | 1,077,029 | 5,439 | ||||
Paramount Group Inc. | 1,021,740 | 5,354 | ||||
Hudson Pacific Properties Inc. | 795,243 | 4,668 | ||||
Office Properties Income Trust | 304,573 | 2,345 | ||||
Orion Office REIT Inc. | 337,384 | 2,193 |
Shares | Market Value• ($000) | |||||
City Office REIT Inc. | 250,470 | 1,370 | ||||
Franklin Street Properties Corp. | 582,646 | 979 | ||||
391,775 | ||||||
Other Specialized REITs (6.1%) | ||||||
VICI Properties Inc. Class A | 6,308,079 | 198,578 | ||||
Iron Mountain Inc. | 1,831,641 | 112,463 | ||||
Gaming & Leisure Properties Inc. | 1,648,153 | 78,221 | ||||
Lamar Advertising Co. Class A | 549,458 | 54,232 | ||||
EPR Properties | 472,982 | 21,114 | ||||
Outfront Media Inc. | 932,476 | 14,416 | ||||
Four Corners Property Trust Inc. | 540,734 | 14,221 | ||||
Uniti Group Inc. | 1,500,203 | ��� 8,371 | ||||
Safehold Inc. | 240,552 | 5,949 | ||||
Gladstone Land Corp. | 212,786 | 3,562 | ||||
511,127 | ||||||
Retail REITs (12.6%) | ||||||
Simon Property Group Inc. | 2,052,497 | 255,741 | ||||
Realty Income Corp. | 4,149,201 | 252,977 | ||||
Kimco Realty Corp. | 3,894,384 | 78,900 | ||||
Regency Centers Corp. | 968,400 | 63,459 | ||||
NNN REIT Inc. | 1,143,927 | 48,823 | ||||
Federal Realty Investment Trust | 460,918 | 46,792 | ||||
Brixmor Property Group Inc. | 1,887,584 | 42,924 | ||||
Agree Realty Corp. | 566,985 | 36,729 | ||||
Spirit Realty Capital Inc. | 887,774 | 35,804 | ||||
Kite Realty Group Trust | 1,377,371 | 31,514 | ||||
Phillips Edison & Co. Inc. | 736,686 | 26,012 | ||||
Macerich Co. | 1,350,332 | 17,217 | ||||
SITE Centers Corp. | 1,182,667 | 16,617 | ||||
Tanger Factory Outlet Centers Inc. | 661,387 | 15,483 | ||||
Urban Edge Properties | 738,521 | 12,562 | ||||
Retail Opportunity Investments Corp. | 785,556 | 11,571 | ||||
InvenTrust Properties Corp. | 424,000 | 10,320 | ||||
Acadia Realty Trust | 598,719 | 9,406 | ||||
Getty Realty Corp. | 279,318 | 9,028 | ||||
NETSTREIT Corp. | 366,436 | 6,556 | ||||
Necessity Retail REIT Inc. Class A | 838,870 | 5,956 | ||||
RPT Realty | 543,222 | 5,905 | ||||
Urstadt Biddle Properties Inc. Class A | 181,705 | 4,121 | ||||
Saul Centers Inc. | 82,487 | 3,180 | ||||
Alexander's Inc. | 14,415 | 2,787 |
Shares | Market Value• ($000) | |||||
CBL & Associates Properties Inc. | 70,377 | 1,532 | ||||
*,2 | Spirit MTA REIT | 257,871 | — | |||
1,051,916 | ||||||
Self-Storage REITs (6.5%) | ||||||
Public Storage | 993,870 | 280,023 | ||||
Extra Space Storage Inc. | 1,326,495 | 185,139 | ||||
CubeSmart | 1,416,567 | 61,422 | ||||
National Storage Affiliates Trust | 527,242 | 17,816 | ||||
544,400 | ||||||
Single-Family Residential REITs (4.8%) | ||||||
Invitation Homes Inc. | 3,843,523 | 136,445 | ||||
Sun Communities Inc. | 781,616 | 101,845 | ||||
Equity LifeStyle Properties Inc. | 1,111,161 | 79,092 | ||||
American Homes 4 Rent Class A | 2,041,988 | 76,534 | ||||
UMH Properties Inc. | 357,483 | 5,952 | ||||
399,868 | ||||||
Telecom Tower REITs (12.0%) | ||||||
American Tower Corp. | 2,927,580 | 557,148 | ||||
Crown Castle Inc. | 2,724,272 | 295,011 | ||||
SBA Communications Corp. Class A | 680,470 | 148,989 | ||||
1,001,148 | ||||||
Timber REITs (2.5%) | ||||||
Weyerhaeuser Co. | 4,603,891 | 156,808 | ||||
Rayonier Inc. | 879,943 | 29,144 | ||||
PotlatchDeltic Corp. | 501,988 | 26,922 | ||||
212,874 | ||||||
Total Equity Real Estate Investment Trusts (REITs) (Cost $6,959,736) | 7,705,814 | |||||
Real Estate Management & Development (7.7%) | ||||||
Diversified Real Estate Activities (0.2%) | ||||||
St. Joe Co. | 219,984 | 13,964 | ||||
RMR Group Inc. Class A | 97,862 | 2,308 | ||||
16,272 | ||||||
Real Estate Development (0.3%) | ||||||
* | Howard Hughes Corp. | 220,011 | 18,576 | |||
* | Forestar Group Inc. | 124,871 | 3,681 | |||
22,257 | ||||||
Real Estate Operating Companies (0.3%) | ||||||
DigitalBridge Group Inc. | 1,015,094 | 16,262 | ||||
Kennedy-Wilson Holdings Inc. | 606,881 | 10,013 | ||||
*,1 | Seritage Growth Properties Class A | 228,505 | 2,146 | |||
*,1 | WeWork Inc. Class A | 906,069 | 196 | |||
28,617 |
Shares | Market Value• ($000) | |||||
Real Estate Services (6.9%) | ||||||
* | CoStar Group Inc. | 2,555,313 | 214,570 | |||
* | CBRE Group Inc. Class A | 1,952,421 | 162,656 | |||
* | Zillow Group Inc. Class C | 964,649 | 52,245 | |||
* | Jones Lang LaSalle Inc. | 299,137 | 49,821 | |||
* | Zillow Group Inc. Class A | 361,047 | 19,215 | |||
* | Opendoor Technologies Inc. | 3,228,388 | 16,497 | |||
1 | eXp World Holdings Inc. | 468,451 | 11,683 | |||
* | Redfin Corp. | 689,490 | 10,329 | |||
* | Cushman & Wakefield plc | 998,900 | 9,819 | |||
* | Compass Inc. Class A | 1,800,307 | 7,543 | |||
Newmark Group Inc. Class A | 908,197 | 6,285 | ||||
Marcus & Millichap Inc. | 159,605 | 5,854 | ||||
* | Anywhere Real Estate Inc. | 622,774 | 5,219 | |||
RE/MAX Holdings Inc. Class A | 113,649 | 2,240 | ||||
Douglas Elliman Inc. | 472,368 | 1,044 | ||||
*,1 | Offerpad Solutions Inc. | 34,520 | 409 | |||
* | Doma Holdings Inc. | 28,787 | 238 | |||
575,667 | ||||||
Total Real Estate Management & Development (Cost $709,864) | 642,813 | |||||
Temporary Cash Investments (0.9%) | ||||||
Money Market Fund (0.9%) | ||||||
3,4 | Vanguard Market Liquidity Fund, 5.274% (Cost $71,479) | 714,905 | 71,476 | |||
Total Investments (100.7%) (Cost $7,741,079) | 8,420,103 | |||||
Other Assets and Liabilities—Net (-0.7%) | (56,350) | |||||
Net Assets (100%) | 8,363,753 |
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 $55,810,000. |
2 | Security value determined using significant unobservable inputs. |
3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
4 | Collateral of $59,444,000 was received for securities on loan. |
REIT—Real Estate Investment Trust. |
Over-the-Counter Total Return Swaps | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Floating Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
Americold Realty Trust Inc. | 1/31/24 | GSI | 8,148 | (5.251) | — | (58) |
Park Hotels & Resorts Inc. | 1/31/24 | GSI | 5,224 | (5.251) | 218 | — |
218 | (58) |
1 | Based on USD Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/paid monthly. |
GSI—Goldman Sachs International. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $7,669,600) | 8,348,627 |
Affiliated Issuers (Cost $71,479) | 71,476 |
Total Investments in Securities | 8,420,103 |
Investment in Vanguard | 278 |
Cash | 2,092 |
Receivables for Accrued Income | 4,484 |
Receivables for Capital Shares Issued | 93 |
Unrealized Appreciation—Over-the-Counter Swap Contracts | 218 |
Total Assets | 8,427,268 |
Liabilities | |
Payables for Investment Securities Purchased | 3,712 |
Collateral for Securities on Loan | 59,444 |
Payables for Capital Shares Redeemed | 6 |
Payables to Vanguard | 295 |
Unrealized Depreciation—Over-the-Counter Swap Contracts | 58 |
Total Liabilities | 63,515 |
Net Assets | 8,363,753 |
1 Includes $55,810,000 of securities on loan. | |
At July 31, 2023, net assets consisted of: | |
Paid-in Capital | 7,798,161 |
Total Distributable Earnings (Loss) | 565,592 |
Net Assets | 8,363,753 |
Net Assets | |
Applicable to 408,622,376 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 8,363,753 |
Net Asset Value Per Share | $20.47 |
Six Months Ended July 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends | 124,070 |
Interest1 | 134 |
Securities Lending—Net | 110 |
Total Income | 124,314 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 82 |
Management and Administrative | 2,957 |
Marketing and Distribution | 71 |
Custodian Fees | 83 |
Shareholders’ Reports | 9 |
Trustees’ Fees and Expenses | 2 |
Other Expenses | 8 |
Total Expenses | 3,212 |
Net Investment Income | 121,102 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received | 24,390 |
Investment Securities Sold1 | (78,412) |
Futures Contracts | 14 |
Swap Contracts | (422) |
Realized Net Gain (Loss) | (54,430) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | (441,731) |
Swap Contracts | 160 |
Change in Unrealized Appreciation (Depreciation) | (441,571) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (374,899) |
1 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $134,000, ($4,000), and ($5,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 121,102 | 211,725 | |
Realized Net Gain (Loss) | (54,430) | 70,280 | |
Change in Unrealized Appreciation (Depreciation) | (441,571) | (1,336,365) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (374,899) | (1,054,360) | |
Distributions | |||
Net Investment Income and/or Realized Capital Gains | (166,659) | (291,773) | |
Return of Capital | — | (48,996) | |
Total Distributions | (166,659) | (340,769) | |
Capital Share Transactions | |||
Issued | 53,498 | 203,267 | |
Issued in Lieu of Cash Distributions | 166,659 | 340,769 | |
Redeemed | (4,681) | (1,113) | |
Net Increase (Decrease) from Capital Share Transactions | 215,476 | 542,923 | |
Total Increase (Decrease) | (326,082) | (852,206) | |
Net Assets | |||
Beginning of Period | 8,689,835 | 9,542,041 | |
End of Period | 8,363,753 | 8,689,835 |
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $21.86 | $25.69 | $20.50 | $22.64 | $20.10 | $19.17 |
Investment Operations | ||||||
Net Investment Income1 | .300 | .558 | .484 | .471 | .571 | .611 |
Net Realized and Unrealized Gain (Loss) on Investments | (1.275) | (3.493) | 5.427 | (1.808) | 2.752 | 1.176 |
Total from Investment Operations | (.975) | (2.935) | 5.911 | (1.337) | 3.323 | 1.787 |
Distributions | ||||||
Dividends from Net Investment Income | (.415) | (.528) | (.477) | (.465) | (.590) | (.626) |
Distributions from Realized Capital Gains | — | (.238) | (.034) | — | — | — |
Return of Capital | — | (.129) | (.210) | (.338) | (.193) | (.231) |
Total Distributions | (.415) | (.895) | (.721) | (.803) | (.783) | (.857) |
Net Asset Value, End of Period | $20.47 | $21.86 | $25.69 | $20.50 | $22.64 | $20.10 |
Total Return | -4.31% | -11.23% | 28.96% | -5.70% | 16.78% | 9.68% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $8,364 | $8,690 | $9,542 | $7,400 | $7,848 | $6,719 |
Ratio of Total Expenses to Average Net Assets | 0.08% | 0.08%2 | 0.08% | 0.08% | 0.08% | 0.08% |
Ratio of Net Investment Income to Average Net Assets | 2.93% | 2.47% | 1.95% | 2.41% | 2.63% | 3.22% |
Portfolio Turnover Rate | 5% | 5%3 | 6% | 4% | 3% | 23% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.08%. |
3 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 8,348,627 | — | — | 8,348,627 |
Temporary Cash Investments | 71,476 | — | — | 71,476 |
Total | 8,420,103 | — | — | 8,420,103 |
Derivative Financial Instruments | ||||
Assets | ||||
Swap Contracts | — | 218 | — | 218 |
Liabilities | ||||
Swap Contracts | — | 58 | — | 58 |
Amount ($000) | |
Tax Cost | 7,791,542 |
Gross Unrealized Appreciation | 1,641,298 |
Gross Unrealized Depreciation | (1,012,577) |
Net Unrealized Appreciation (Depreciation) | 628,721 |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
Shares (000) | Shares (000) | ||
Issued | 2,645 | 9,838 | |
Issued in Lieu of Cash Distributions | 8,728 | 16,244 | |
Redeemed | (232) | (52) | |
Net Increase (Decrease) in Shares Outstanding | 11,141 | 26,030 |
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About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Liquidity Risk Management | 15 |
• | 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 July 31, 2023 | |||
Dividend Growth Fund | Beginning Account Value 1/31/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,038.80 | $1.47 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.36 | 1.45 |
Consumer Discretionary | 11.6% |
Consumer Staples | 15.1 |
Financials | 14.3 |
Health Care | 18.8 |
Industrials | 21.5 |
Information Technology | 9.4 |
Materials | 5.6 |
Real Estate | 2.7 |
Utilities | 1.0 |
Shares | Market Value• ($000) | ||
Common Stocks (97.7%) | |||
Consumer Discretionary (11.3%) | |||
TJX Cos. Inc. | 21,905,500 | 1,895,483 | |
McDonald's Corp. | 5,354,152 | 1,569,837 | |
NIKE Inc. Class B | 13,996,536 | 1,545,078 | |
Home Depot Inc. | 3,005,113 | 1,003,227 | |
6,013,625 | |||
Consumer Staples (14.8%) | |||
Colgate-Palmolive Co. | 20,305,449 | 1,548,493 | |
PepsiCo Inc. | 8,137,195 | 1,525,399 | |
Procter & Gamble Co. | 9,661,520 | 1,510,096 | |
Coca-Cola Co. | 19,678,563 | 1,218,693 | |
Costco Wholesale Corp. | 2,088,215 | 1,170,799 | |
Diageo plc | 20,938,497 | 913,804 | |
7,887,284 | |||
Financials (14.0%) | |||
Visa Inc. Class A | 6,564,304 | 1,560,532 | |
Marsh & McLennan Cos. Inc. | 7,771,644 | 1,464,333 | |
Mastercard Inc. Class A | 3,556,678 | 1,402,327 | |
American Express Co. | 7,736,675 | 1,306,570 | |
Chubb Ltd. | 5,807,696 | 1,187,151 | |
PNC Financial Services Group Inc. | 3,813,205 | 521,990 | |
7,442,903 | |||
Health Care (18.3%) | |||
UnitedHealth Group Inc. | 3,792,207 | 1,920,260 | |
Stryker Corp. | 6,321,560 | 1,791,593 | |
Danaher Corp. | 5,712,622 | 1,457,061 | |
Johnson & Johnson | 7,891,857 | 1,322,123 | |
Abbott Laboratories | 9,952,693 | 1,108,033 | |
Medtronic plc | 12,087,177 | 1,060,771 | |
Merck & Co. Inc. | 6,828,210 | 728,228 | |
Pfizer Inc. | 10,529,691 | 379,701 | |
9,767,770 |
Shares | Market Value• ($000) | ||
Industrials (21.0%) | |||
Honeywell International Inc. | 8,288,241 | 1,608,996 | |
Northrop Grumman Corp. | 3,270,720 | 1,455,470 | |
Union Pacific Corp. | 5,452,417 | 1,265,070 | |
RTX Corp. | 14,165,736 | 1,245,593 | |
General Dynamics Corp. | 5,308,424 | 1,186,857 | |
United Parcel Service Inc. Class B (XNYS) | 5,643,110 | 1,055,995 | |
Canadian National Railway Co. | 8,711,462 | 1,055,959 | |
Automatic Data Processing Inc. | 3,948,604 | 976,332 | |
Lockheed Martin Corp. | 1,738,044 | 775,811 | |
Deere & Co. | 1,351,145 | 580,452 | |
11,206,535 | |||
Information Technology (9.2%) | |||
Microsoft Corp. | 6,212,918 | 2,087,043 | |
Accenture plc Class A | 4,754,021 | 1,503,935 | |
Texas Instruments Inc. | 7,263,187 | 1,307,374 | |
4,898,352 | |||
Materials (5.5%) | |||
Linde plc | 3,923,013 | 1,532,603 | |
Ecolab Inc. | 7,532,767 | 1,379,551 | |
2,912,154 | |||
Real Estate (2.6%) | |||
American Tower Corp. | 3,698,887 | 703,935 | |
Public Storage | 2,449,493 | 690,145 | |
1,394,080 | |||
Utilities (1.0%) | |||
NextEra Energy Inc. | 7,166,381 | 525,296 | |
Total Common Stocks (Cost $27,797,737) | 52,047,999 | ||
Temporary Cash Investments (2.2%) | |||
Money Market Fund (0.0%) | |||
1 | Vanguard Market Liquidity Fund, 5.274% | 262 | 26 |
Face Amount ($000) | Market Value• ($000) | ||
Repurchase Agreements (2.2%) | |||
Credit Agricole Securities 5.280%, 8/1/23 (Dated 7/31/23, Repurchase Value $206,130,000, collateralized by U.S. Treasury Note/Bond 3.500%–3.750%, 4/30/30–5/31/30, with a value of $210,222,000) | 206,100 | 206,100 | |
JP Morgan Securities LLC 5.290%, 8/1/23 (Dated 7/31/23, Repurchase Value $49,007,000, collateralized by U.S. Treasury Note/Bond 2.500%–3.000%, 8/15/23–9/30/25, with a value of $49,980,000) | 49,000 | 49,000 | |
Natixis SA 5.280%, 8/1/23 (Dated 7/31/23, Repurchase Value $460,368,000, collateralized by Federal Home Loan Bank 3.000%, 2/24/37, U.S Treasury Bill 0.000%, 11/9/23, U.S. Treasury Inflation Indexed Note/Bond 0.125%–1.750%, 10/15/26–2/15/53 and U.S. Treasury Note/Bond 0.500%–4.625%, 11/15/23–11/15/51, with a value of $469,506,000) | 460,300 | 460,300 |
Face Amount ($000) | Market Value• ($000) | ||
NatWest Markets plc 5.270%, 8/1/23 (Dated 7/31/23, Repurchase Value $287,342,000, collateralized by U.S. Treasury Note/Bond 0.375%–4.500%, 1/31/24–6/30/30, with a value of $293,046,000) | 287,300 | 287,300 | |
Societe Generale 5.280%, 8/1/23 (Dated 7/31/23, Repurchase Value $175,726,000, collateralized by U.S. Treasury Note/Bond 4.125%, 7/31/28, with a value of $179,214,000) | 175,700 | 175,700 | |
1,178,400 | |||
Total Temporary Cash Investments (Cost $1,178,426) | 1,178,426 | ||
Total Investments (99.9%) (Cost $28,976,163) | 53,226,425 | ||
Other Assets and Liabilities—Net (0.1%) | 51,854 | ||
Net Assets (100%) | 53,278,279 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | 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 $28,976,137) | 53,226,399 |
Affiliated Issuers (Cost $26) | 26 |
Total Investments in Securities | 53,226,425 |
Investment in Vanguard | 1,802 |
Receivables for Investment Securities Sold | 39,746 |
Receivables for Accrued Income | 70,614 |
Receivables for Capital Shares Issued | 13,722 |
Total Assets | 53,352,309 |
Liabilities | |
Due to Custodian | 136 |
Payables for Investment Securities Purchased | 18,522 |
Payables to Investment Advisor | 15,748 |
Payables for Capital Shares Redeemed | 36,341 |
Payables to Vanguard | 3,283 |
Total Liabilities | 74,030 |
Net Assets | 53,278,279 |
At July 31, 2023, net assets consisted of: | |
Paid-in Capital | 28,917,595 |
Total Distributable Earnings (Loss) | 24,360,684 |
Net Assets | 53,278,279 |
Net Assets | |
Applicable to 1,460,157,197 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 53,278,279 |
Net Asset Value Per Share | $36.49 |
Six Months Ended July 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 474,745 |
Interest2 | 23,794 |
Securities Lending—Net | 1 |
Total Income | 498,540 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 34,184 |
Performance Adjustment | 4,040 |
The Vanguard Group—Note C | |
Management and Administrative | 34,301 |
Marketing and Distribution | 1,683 |
Custodian Fees | 130 |
Shareholders’ Reports | 248 |
Trustees’ Fees and Expenses | 14 |
Other Expenses | 7 |
Total Expenses | 74,607 |
Expenses Paid Indirectly | (6) |
Net Expenses | 74,601 |
Net Investment Income | 423,939 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 53,763 |
Foreign Currencies | 405 |
Realized Net Gain (Loss) | 54,168 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 1,505,696 |
Foreign Currencies | 30 |
Change in Unrealized Appreciation (Depreciation)2 | 1,505,726 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,983,833 |
1 | Dividends are net of foreign withholding taxes of $1,584,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $0, $0, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 423,939 | 881,404 | |
Realized Net Gain (Loss) | 54,168 | 950,732 | |
Change in Unrealized Appreciation (Depreciation) | 1,505,726 | (2,275,243) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,983,833 | (443,107) | |
Distributions | |||
Total Distributions | (429,979) | (3,115,838) | |
Capital Share Transactions | |||
Issued | 2,203,208 | 6,800,227 | |
Issued in Lieu of Cash Distributions | 377,631 | 2,759,975 | |
Redeemed | (4,308,521) | (6,734,733) | |
Net Increase (Decrease) from Capital Share Transactions | (1,727,682) | 2,825,469 | |
Total Increase (Decrease) | (173,828) | (733,476) | |
Net Assets | |||
Beginning of Period | 53,452,107 | 54,185,583 | |
End of Period | 53,278,279 | 53,452,107 |
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $35.42 | $37.85 | $31.82 | $30.63 | $26.03 | $27.85 |
Investment Operations | ||||||
Net Investment Income1 | .286 | .596 | .576 | .557 | .536 | .520 |
Net Realized and Unrealized Gain (Loss) on Investments | 1.077 | (.893) | 7.593 | 1.572 | 5.499 | (.178) |
Total from Investment Operations | 1.363 | (.297) | 8.169 | 2.129 | 6.035 | .342 |
Distributions | ||||||
Dividends from Net Investment Income | (.293) | (.590) | (.574) | (.539) | (.525) | (.526) |
Distributions from Realized Capital Gains | — | (1.543) | (1.565) | (.400) | (.910) | (1.636) |
Total Distributions | (.293) | (2.133) | (2.139) | (.939) | (1.435) | (2.162) |
Net Asset Value, End of Period | $36.49 | $35.42 | $37.85 | $31.82 | $30.63 | $26.03 |
Total Return2 | 3.88% | -0.76% | 25.66% | 7.03% | 23.33% | 1.63% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $53,278 | $53,452 | $54,186 | $45,099 | $43,024 | $32,856 |
Ratio of Total Expenses to Average Net Assets3 | 0.29%4 | 0.30%4 | 0.27% | 0.26% | 0.27% | 0.22% |
Ratio of Net Investment Income to Average Net Assets | 1.69% | 1.68% | 1.56% | 1.85% | 1.82% | 1.93% |
Portfolio Turnover Rate | 4% | 11% | 15% | 15% | 17% | 23% |
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 | Includes performance-based investment advisory fee increases (decreases) of 0.02%, 0.03%, (0.00%), (0.01%), 0.00%, and (0.05%). |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset and broker commission abatement arrangements was 0.29% and 0.30%, respectively. |
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. | Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments based on the fund’s performance relative to the NASDAQ US Dividend Achievers Select Index for periods prior to September 20, 2021, and to the current benchmark S&P U.S. Dividend Growers Index, beginning September 20, 2021, for the preceding three years. The benchmark change will be fully phased in by October 2024. For the six months ended July 31, 2023, the investment advisory fee represented an effective annual basic rate of 0.13% of the fund’s average net assets, before a net increase of $4,040,000 (0.02%) based on performance. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
D. | The fund has asked its investment advisor 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. The fund’s custodian bank has also agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended July 31, 2023, these arrangements reduced the fund’s management and administrative expenses by $2,000 and custodian fees by $4,000. The total expense reduction represented an effective annual rate of less than 0.01% of the fund’s average net assets. |
E. | Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 51,134,195 | 913,804 | — | 52,047,999 |
Temporary Cash Investments | 26 | 1,178,400 | — | 1,178,426 |
Total | 51,134,221 | 2,092,204 | — | 53,226,425 |
F. | As of July 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 | 28,981,282 |
Gross Unrealized Appreciation | 24,254,913 |
Gross Unrealized Depreciation | (9,770) |
Net Unrealized Appreciation (Depreciation) | 24,245,143 |
G. | During the six months ended July 31, 2023, the fund purchased $2,280,274,000 of investment securities and sold $3,683,680,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
Shares (000) | Shares (000) | ||
Issued | 62,515 | 191,019 | |
Issued in Lieu of Cash Distributions | 10,674 | 76,943 | |
Redeemed | (122,254) | (190,197) | |
Net Increase (Decrease) in Shares Outstanding | (49,065) | 77,765 |
I. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
J. | Management has determined that no events or transactions occurred subsequent to July 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 | 20 |
Liquidity Risk Management | 22 |
• | 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 July 31, 2023 | |||
Beginning Account Value 1/31/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Dividend Appreciation Index Fund | |||
ETF Shares | $1,000.00 | $1,074.30 | $0.31 |
Admiral™ Shares | 1,000.00 | 1,074.10 | 0.41 |
Based on Hypothetical 5% Yearly Return | |||
Dividend Appreciation Index Fund | |||
ETF Shares | $1,000.00 | $1,024.50 | $0.30 |
Admiral Shares | 1,000.00 | 1,024.40 | 0.40 |
Communication Services | 1.3% |
Consumer Discretionary | 7.2 |
Consumer Staples | 12.0 |
Energy | 3.0 |
Financials | 18.0 |
Health Care | 15.4 |
Industrials | 13.1 |
Information Technology | 22.5 |
Materials | 4.5 |
Utilities | 3.0 |
Shares | Market Value• ($000) | ||
Common Stocks (99.6%) | |||
Communication Services (1.3%) | |||
Comcast Corp. Class A | 24,081,195 | 1,089,915 | |
John Wiley & Sons Inc. Class A | 239,789 | 8,208 | |
1,098,123 | |||
Consumer Discretionary (7.2%) | |||
Home Depot Inc. | 5,743,449 | 1,917,393 | |
McDonald's Corp. | 4,121,905 | 1,208,542 | |
Lowe's Cos. Inc. | 3,456,037 | 809,646 | |
NIKE Inc. Class B | 7,034,749 | 776,566 | |
Starbucks Corp. | 6,464,753 | 656,625 | |
Tractor Supply Co. | 618,168 | 138,463 | |
Genuine Parts Co. | 793,752 | 123,603 | |
Pool Corp. | 220,523 | 84,844 | |
Service Corp. International | 853,794 | 56,905 | |
Williams-Sonoma Inc. | 371,610 | 51,520 | |
Lithia Motors Inc. Class A | 155,317 | 48,231 | |
Churchill Downs Inc. | 372,443 | 43,147 | |
Polaris Inc. | 302,036 | 41,029 | |
Thor Industries Inc. | 302,294 | 34,912 | |
Brunswick Corp. | 397,681 | 34,324 | |
1 | Dillard's Inc. Class A | 19,195 | 6,585 |
Monro Inc. | 175,800 | 6,443 | |
Aaron's Co. Inc. | 178,828 | 2,829 | |
Haverty Furniture Cos. Inc. | 75,331 | 2,682 | |
Shoe Carnival Inc. | 98,135 | 2,611 | |
6,046,900 | |||
Consumer Staples (11.9%) | |||
Procter & Gamble Co. | 13,367,448 | 2,089,332 | |
PepsiCo Inc. | 7,781,472 | 1,458,715 | |
Costco Wholesale Corp. | 2,497,811 | 1,400,448 | |
Coca-Cola Co. | 21,973,660 | 1,360,829 | |
Walmart Inc. | 7,969,920 | 1,274,071 | |
Colgate-Palmolive Co. | 4,683,628 | 357,173 | |
Target Corp. | 2,605,993 | 355,640 | |
Archer-Daniels-Midland Co. | 3,088,342 | 262,385 | |
Sysco Corp. | 2,857,119 | 218,027 | |
Hershey Co. | 831,664 | 192,372 | |
Church & Dwight Co. Inc. | 1,378,551 | 131,886 | |
Kroger Co. | 2,684,669 | 130,582 | |
McCormick & Co. Inc. | 1,414,403 | 126,561 | |
Clorox Co. | 696,871 | 105,562 |
Shares | Market Value• ($000) | ||
Tyson Foods Inc. Class A | 1,635,042 | 91,104 | |
J M Smucker Co. | 601,605 | 90,632 | |
Brown-Forman Corp. Class B | 1,033,433 | 72,960 | |
Hormel Foods Corp. | 1,636,292 | 66,892 | |
Casey's General Stores Inc. | 210,028 | 53,066 | |
Ingredion Inc. | 372,285 | 41,420 | |
Flowers Foods Inc. | 1,089,584 | 26,924 | |
Lancaster Colony Corp. | 112,295 | 21,631 | |
WD-40 Co. | 76,243 | 17,498 | |
J & J Snack Foods Corp. | 84,061 | 13,477 | |
Andersons Inc. | 176,027 | 8,594 | |
SpartanNash Co. | 200,473 | 4,499 | |
Tootsie Roll Industries Inc. | 103,851 | 3,620 | |
9,975,900 | |||
Energy (3.0%) | |||
Exxon Mobil Corp. | 22,829,584 | 2,448,245 | |
Texas Pacific Land Corp. | 34,711 | 52,285 | |
2,500,530 | |||
Financials (17.9%) | |||
JPMorgan Chase & Co. | 16,500,256 | 2,606,380 | |
Visa Inc. Class A | 8,748,437 | 2,079,766 | |
Mastercard Inc. Class A | 4,753,098 | 1,874,051 | |
S&P Global Inc. | 1,873,909 | 739,276 | |
Goldman Sachs Group Inc. | 1,877,583 | 668,175 | |
BlackRock Inc. | 848,275 | 626,748 | |
Marsh & McLennan Cos. Inc. | 2,799,905 | 527,558 | |
Chubb Ltd. | 2,337,922 | 477,895 | |
CME Group Inc. | 2,030,731 | 404,034 | |
Aon plc Class A (XNYS) | 1,161,117 | 369,816 | |
Moody's Corp. | 891,209 | 314,374 | |
PNC Financial Services Group Inc. | 2,265,616 | 310,140 | |
Arthur J Gallagher & Co. | 1,202,525 | 258,302 | |
MetLife Inc. | 3,635,680 | 228,939 | |
Travelers Cos. Inc. | 1,321,524 | 228,108 | |
Aflac Inc. | 3,135,371 | 226,813 | |
Ameriprise Financial Inc. | 594,766 | 207,246 | |
Bank of New York Mellon Corp. | 4,052,049 | 183,801 | |
Allstate Corp. | 1,495,586 | 168,523 |
Shares | Market Value• ($000) | ||
Discover Financial Services | 1,466,733 | 154,814 | |
State Street Corp. | 1,982,895 | 143,641 | |
Hartford Financial Services Group Inc. | 1,767,932 | 127,079 | |
Raymond James Financial Inc. | 1,075,037 | 118,329 | |
Fifth Third Bancorp | 3,857,237 | 112,246 | |
Principal Financial Group Inc. | 1,274,826 | 101,820 | |
Nasdaq Inc. | 1,911,173 | 96,495 | |
Cincinnati Financial Corp. | 887,793 | 95,509 | |
FactSet Research Systems Inc. | 215,330 | 93,677 | |
Brown & Brown Inc. | 1,328,835 | 93,616 | |
Cboe Global Markets Inc. | 595,638 | 83,199 | |
W R Berkley Corp. | 1,137,402 | 70,166 | |
Jack Henry & Associates Inc. | 410,611 | 68,806 | |
MarketAxess Holdings Inc. | 212,791 | 57,288 | |
Globe Life Inc. | 502,147 | 56,326 | |
RenaissanceRe Holdings Ltd. | 284,098 | 53,058 | |
Reinsurance Group of America Inc. | 375,827 | 52,747 | |
Unum Group | 1,045,914 | 50,842 | |
American Financial Group Inc. | 393,177 | 47,814 | |
Primerica Inc. | 204,725 | 43,545 | |
Assurant Inc. | 299,925 | 40,343 | |
Cullen/Frost Bankers Inc. | 362,337 | 39,343 | |
SEI Investments Co. | 573,315 | 36,113 | |
Commerce Bancshares Inc. | 644,053 | 34,251 | |
Prosperity Bancshares Inc. | 535,034 | 33,878 | |
SouthState Corp. | 426,781 | 33,148 | |
Morningstar Inc. | 142,366 | 32,813 | |
Zions Bancorp NA | 832,708 | 31,851 | |
Erie Indemnity Co. Class A | 140,545 | 31,195 | |
RLI Corp. | 228,013 | 30,419 | |
Evercore Inc. Class A | 199,156 | 26,898 | |
Bank OZK | 610,181 | 26,683 | |
Home BancShares Inc. | 1,071,500 | 26,048 | |
Axis Capital Holdings Ltd. | 440,438 | 24,277 | |
First Financial Bankshares Inc. | 732,938 | 23,886 | |
Hanover Insurance Group Inc. | 202,525 | 22,983 | |
Glacier Bancorp Inc. | 624,170 | 20,410 | |
Assured Guaranty Ltd. | 333,710 | 19,949 | |
American Equity Investment Life Holding Co. | 358,068 | 19,218 | |
UMB Financial Corp. | 245,605 | 17,438 | |
CNO Financial Group Inc. | 643,473 | 16,550 | |
Community Bank System Inc. | 303,672 | 16,347 | |
Independent Bank Corp. (XNGS) | 252,263 | 15,199 | |
International Bancshares Corp. | 295,109 | 14,649 |
Shares | Market Value• ($000) | ||
BOK Financial Corp. | 163,277 | 14,545 | |
Simmons First National Corp. Class A | 708,779 | 14,310 | |
Atlantic Union Bankshares Corp. | 422,292 | 13,505 | |
First Merchants Corp. | 348,901 | 11,207 | |
BancFirst Corp. | 97,622 | 9,752 | |
Towne Bank | 371,151 | 9,383 | |
NBT Bancorp Inc. | 242,437 | 9,019 | |
Cohen & Steers Inc. | 140,086 | 9,009 | |
Federal Agricultural Mortgage Corp. Class C | 52,408 | 8,425 | |
City Holding Co. | 84,166 | 8,325 | |
Stock Yards Bancorp Inc. | 167,959 | 8,030 | |
Lakeland Financial Corp. | 143,418 | 7,951 | |
Westamerica BanCorp | 147,914 | 7,276 | |
TriCo Bancshares | 189,482 | 7,083 | |
Horace Mann Educators Corp. | 231,961 | 6,989 | |
Southside Bancshares Inc. | 174,370 | 5,791 | |
Lakeland Bancorp Inc. | 363,312 | 5,490 | |
German American Bancorp Inc. | 159,086 | 4,687 | |
1st Source Corp. | 98,975 | 4,642 | |
Tompkins Financial Corp. | 73,096 | 4,397 | |
Heritage Financial Corp. | 200,419 | 3,760 | |
Cass Information Systems Inc. | 72,874 | 2,766 | |
First Financial Corp. | 60,221 | 2,301 | |
Southern Missouri Bancorp Inc. | 43,509 | 2,091 | |
Hingham Institution for Savings | 8,543 | 1,900 | |
Bank of Marin Bancorp | 75,250 | 1,579 | |
15,039,064 | |||
Health Care (15.4%) | |||
UnitedHealth Group Inc. | 5,256,753 | 2,661,862 | |
1 | Johnson & Johnson | 14,672,824 | 2,458,138 |
Merck & Co. Inc. | 14,327,598 | 1,528,038 | |
Abbott Laboratories | 9,819,254 | 1,093,178 | |
Bristol-Myers Squibb Co. | 11,861,031 | 737,637 | |
Medtronic plc | 7,505,921 | 658,720 | |
Elevance Health Inc. | 1,338,625 | 631,336 | |
Stryker Corp. | 1,905,648 | 540,080 | |
Zoetis Inc. | 2,609,072 | 490,740 | |
Becton Dickinson & Co. | 1,610,596 | 448,744 | |
Humana Inc. | 714,657 | 326,477 | |
McKesson Corp. | 792,784 | 319,016 | |
ResMed Inc. | 826,648 | 183,805 | |
AmerisourceBergen Corp. | 916,021 | 171,204 | |
West Pharmaceutical Services Inc. | 418,865 | 154,159 | |
Cardinal Health Inc. | 1,461,530 | 133,686 | |
STERIS plc | 563,277 | 127,047 | |
Quest Diagnostics Inc. | 648,504 | 87,684 | |
Chemed Corp. | 84,826 | 44,202 | |
Ensign Group Inc. | 314,821 | 30,497 | |
Perrigo Co. plc | 765,155 | 28,035 | |
Embecta Corp. | 326,231 | 6,962 | |
LeMaitre Vascular Inc. | 109,389 | 6,917 |
Shares | Market Value• ($000) | ||
Atrion Corp. | 7,491 | 4,200 | |
12,872,364 | |||
Industrials (13.0%) | |||
Union Pacific Corp. | 3,458,901 | 802,534 | |
Caterpillar Inc. | 2,910,194 | 771,696 | |
United Parcel Service Inc. Class B (XNYS) | 4,092,211 | 765,775 | |
Honeywell International Inc. | 3,780,725 | 733,952 | |
Lockheed Martin Corp. | 1,306,407 | 583,141 | |
Automatic Data Processing Inc. | 2,335,719 | 577,530 | |
Eaton Corp. plc | 2,250,452 | 462,063 | |
Illinois Tool Works Inc. | 1,572,876 | 414,170 | |
CSX Corp. | 11,481,091 | 382,550 | |
Northrop Grumman Corp. | 810,446 | 360,649 | |
Waste Management Inc. | 2,102,239 | 344,326 | |
Emerson Electric Co. | 3,338,929 | 305,011 | |
General Dynamics Corp. | 1,271,412 | 284,262 | |
Cintas Corp. | 487,537 | 244,763 | |
Paychex Inc. | 1,812,785 | 227,450 | |
Rockwell Automation Inc. | 649,213 | 218,324 | |
Cummins Inc. | 797,237 | 207,919 | |
L3Harris Technologies Inc. | 1,070,440 | 202,838 | |
Fastenal Co. | 3,233,991 | 189,544 | |
WW Grainger Inc. | 252,184 | 186,235 | |
Republic Services Inc. Class A | 1,160,213 | 175,320 | |
Xylem Inc. | 1,349,936 | 152,205 | |
Dover Corp. | 793,249 | 115,791 | |
Broadridge Financial Solutions Inc. | 665,625 | 111,772 | |
Expeditors International of Washington Inc. | 862,385 | 109,782 | |
IDEX Corp. | 426,684 | 96,350 | |
JB Hunt Transport Services Inc. | 468,134 | 95,471 | |
Hubbell Inc. Class B | 303,359 | 94,648 | |
Booz Allen Hamilton Holding Corp. Class A | 745,638 | 90,282 | |
Stanley Black & Decker Inc. | 864,289 | 85,798 | |
Snap-on Inc. | 298,767 | 81,396 | |
Carlisle Cos. Inc. | 287,779 | 79,772 | |
Nordson Corp. | 304,159 | 76,529 | |
Graco Inc. | 949,949 | 75,359 | |
Lennox International Inc. | 182,505 | 67,060 | |
CH Robinson Worldwide Inc. | 659,724 | 66,091 | |
Lincoln Electric Holdings Inc. | 325,254 | 65,282 | |
Pentair plc | 930,908 | 64,698 | |
Toro Co. | 587,599 | 59,729 | |
Regal Rexnord Corp. | 374,165 | 58,437 | |
Allegion plc | 497,186 | 58,101 | |
HEICO Corp. Class A | 401,772 | 56,389 | |
Huntington Ingalls Industries Inc. | 225,401 | 51,768 | |
A O Smith Corp. | 702,143 | 50,997 | |
ITT Inc. | 465,801 | 46,394 | |
Robert Half International Inc. | 613,920 | 45,522 |
Shares | Market Value• ($000) | ||
Donaldson Co. Inc. | 688,896 | 43,283 | |
HEICO Corp. | 218,963 | 38,533 | |
UFP Industries Inc. | 351,341 | 36,104 | |
Comfort Systems USA Inc. | 202,705 | 35,265 | |
MSA Safety Inc. | 209,125 | 34,715 | |
Applied Industrial Technologies Inc. | 217,637 | 31,555 | |
Watts Water Technologies Inc. Class A | 153,771 | 28,683 | |
Ryder System Inc. | 261,762 | 26,739 | |
MDU Resources Group Inc. | 1,146,325 | 25,357 | |
GATX Corp. | 198,581 | 24,894 | |
Insperity Inc. | 203,318 | 23,920 | |
ManpowerGroup Inc. | 284,389 | 22,433 | |
Franklin Electric Co. Inc. | 218,524 | 21,595 | |
Hillenbrand Inc. | 391,369 | 20,328 | |
ABM Industries Inc. | 371,546 | 17,195 | |
McGrath RentCorp. | 139,932 | 13,487 | |
Brady Corp. Class A | 260,574 | 13,440 | |
Trinity Industries Inc. | 464,029 | 12,167 | |
Griffon Corp. | 270,491 | 11,285 | |
Standex International Corp. | 67,470 | 10,024 | |
Tennant Co. | 104,204 | 8,361 | |
Lindsay Corp. | 61,211 | 8,112 | |
Matthews International Corp. Class A | 175,343 | 8,048 | |
Apogee Enterprises Inc. | 126,268 | 6,254 | |
Gorman-Rupp Co. | 125,876 | 3,990 | |
Douglas Dynamics Inc. | 127,514 | 3,959 | |
10,925,401 | |||
Information Technology (22.5%) | |||
Microsoft Corp. | 12,063,544 | 4,052,386 | |
Apple Inc. | 19,924,789 | 3,914,225 | |
Broadcom Inc. | 2,281,443 | 2,050,219 | |
Cisco Systems Inc. | 23,113,535 | 1,202,828 | |
Accenture plc Class A | 3,567,916 | 1,128,710 | |
Oracle Corp. | 8,688,652 | 1,018,571 | |
Texas Instruments Inc. | 5,133,234 | 923,982 | |
QUALCOMM Inc. | 6,323,924 | 835,833 | |
Intuit Inc. | 1,589,404 | 813,298 | |
Analog Devices Inc. | 2,898,595 | 578,357 | |
KLA Corp. | 792,742 | 407,430 | |
Amphenol Corp. Class A | 3,362,219 | 296,917 | |
Roper Technologies Inc. | 601,858 | 296,746 | |
Microchip Technology Inc. | 3,106,013 | 291,779 | |
Motorola Solutions Inc. | 947,078 | 271,461 | |
TE Connectivity Ltd. | 1,787,274 | 256,456 | |
HP Inc. | 5,010,544 | 164,496 | |
Corning Inc. | 4,317,581 | 146,539 | |
Amdocs Ltd. | 687,901 | 64,415 | |
Littelfuse Inc. | 140,286 | 42,731 | |
Power Integrations Inc. | 324,666 | 31,538 | |
Badger Meter Inc. | 166,381 | 27,393 | |
18,816,310 | |||
Materials (4.4%) | |||
Linde plc | 2,774,755 | 1,084,014 | |
Air Products and Chemicals Inc. | 1,252,585 | 382,452 | |
Sherwin-Williams Co. | 1,325,158 | 366,406 | |
Ecolab Inc. | 1,399,533 | 256,310 | |
Nucor Corp. | 1,439,257 | 247,682 |
Shares | Market Value• ($000) | ||
PPG Industries Inc. | 1,328,572 | 191,181 | |
Albemarle Corp. | 662,041 | 140,538 | |
International Flavors & Fragrances Inc. | 1,439,616 | 121,806 | |
Reliance Steel & Aluminum Co. | 331,874 | 97,193 | |
Steel Dynamics Inc. | 905,974 | 96,559 | |
Avery Dennison Corp. | 456,030 | 83,914 | |
Packaging Corp. of America | 507,693 | 77,855 | |
RPM International Inc. | 727,074 | 75,114 | |
Celanese Corp. Class A | 565,063 | 70,853 | |
Eastman Chemical Co. | 679,953 | 58,190 | |
AptarGroup Inc. | 368,917 | 44,809 | |
Royal Gold Inc. | 371,500 | 44,632 | |
Sonoco Products Co. | 553,390 | 32,451 | |
Westlake Corp. | 195,638 | 26,900 | |
Ashland Inc. | 275,917 | 25,208 | |
Balchem Corp. | 181,106 | 24,402 | |
Cabot Corp. | 316,121 | 22,445 | |
HB Fuller Co. | 299,978 | 22,207 | |
Silgan Holdings Inc. | 470,906 | 20,649 | |
Avient Corp. | 481,616 | 19,520 | |
Scotts Miracle-Gro Co. | 227,820 | 15,956 | |
Quaker Chemical Corp. | 77,201 | 15,470 | |
Sensient Technologies Corp. | 237,039 | 15,180 | |
Materion Corp. | 115,302 | 13,737 | |
Worthington Industries Inc. | 170,410 | 12,716 | |
Stepan Co. | 119,529 | 11,453 | |
Hawkins Inc. | 108,552 | 5,075 | |
3,722,877 | |||
Utilities (3.0%) | |||
NextEra Energy Inc. | 11,423,282 | 837,327 | |
Sempra Energy (XNYS) | 1,776,990 | 264,807 | |
Xcel Energy Inc. | 3,109,186 | 195,039 | |
American Water Works Co. Inc. | 1,099,082 | 162,038 | |
WEC Energy Group Inc. | 1,784,511 | 160,356 | |
Eversource Energy | 1,968,173 | 142,358 | |
DTE Energy Co. | 1,163,695 | 133,010 | |
CMS Energy Corp. | 1,639,983 | 100,154 | |
Atmos Energy Corp. | 796,208 | 96,906 | |
AES Corp. | 3,781,061 | 81,784 |
Shares | Market Value• ($000) | ||
Alliant Energy Corp. | 1,418,892 | 76,251 | |
Essential Utilities Inc. | 1,357,778 | 57,420 | |
IDACORP Inc. | 284,624 | 29,265 | |
National Fuel Gas Co. | 514,317 | 27,315 | |
ONE Gas Inc. | 312,177 | 24,703 | |
New Jersey Resources Corp. | 545,157 | 24,369 | |
American States Water Co. | 208,676 | 18,449 | |
California Water Service Group | 317,070 | 16,811 | |
MGE Energy Inc. | 203,890 | 16,360 | |
Chesapeake Utilities Corp. | 100,439 | 11,876 | |
SJW Group | 158,077 | 11,138 | |
Middlesex Water Co. | 99,411 | 7,995 | |
York Water Co. | 79,287 | 3,277 | |
Artesian Resources Corp. Class A | 44,068 | 2,008 | |
2,501,016 | |||
Total Common Stocks (Cost $60,408,645) | 83,498,485 | ||
Temporary Cash Investments (0.3%) | |||
Money Market Fund (0.3%) | |||
2,3 | Vanguard Market Liquidity Fund, 5.274% (Cost $246,181) | 2,462,407 | 246,191 |
Total Investments (99.9%) (Cost $60,654,826) | 83,744,676 | ||
Other Assets and Liabilities—Net (0.1%) | 71,543 | ||
Net Assets (100%) | 83,816,219 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $5,598,000. |
2 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
3 | Collateral of $5,940,000 was received for securities on loan. |
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 | September 2023 | 719 | 165,891 | 3,879 |
Over-the-Counter Total Return Swaps | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Floating Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
Kroger Co. | 1/31/24 | GSI | 46,540 | (5.164) | 2,007 | — |
Visa Inc. Class A | 8/31/23 | BANA | 105,790 | (5.023) | — | (428) |
2,007 | (428) |
1 | Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/paid monthly. |
BANA—Bank of America, N.A. | |
GSI—Goldman Sachs International. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $60,408,645) | 83,498,485 |
Affiliated Issuers (Cost $246,181) | 246,191 |
Total Investments in Securities | 83,744,676 |
Investment in Vanguard | 2,791 |
Cash | 5,841 |
Cash Collateral Pledged—Futures Contracts | 8,060 |
Cash Collateral Pledged—Over-the-Counter Swap Contracts | 1,170 |
Receivables for Investment Securities Sold | 111 |
Receivables for Accrued Income | 67,264 |
Receivables for Capital Shares Issued | 9,655 |
Variation Margin Receivable—Futures Contracts | 288 |
Unrealized Appreciation—Over-the-Counter Swap Contracts | 2,007 |
Total Assets | 83,841,863 |
Liabilities | |
Payables for Investment Securities Purchased | 6,804 |
Collateral for Securities on Loan | 5,940 |
Payables for Capital Shares Redeemed | 10,162 |
Payables to Vanguard | 2,310 |
Unrealized Depreciation—Over-the-Counter Swap Contracts | 428 |
Total Liabilities | 25,644 |
Net Assets | 83,816,219 |
1 Includes $5,598,000 of securities on loan. | |
At July 31, 2023, net assets consisted of: | |
Paid-in Capital | 62,775,761 |
Total Distributable Earnings (Loss) | 21,040,458 |
Net Assets | 83,816,219 |
ETF Shares—Net Assets | |
Applicable to 424,004,260 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 70,482,017 |
Net Asset Value Per Share—ETF Shares | $166.23 |
Admiral Shares—Net Assets | |
Applicable to 295,582,027 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 13,334,202 |
Net Asset Value Per Share—Admiral Shares | $45.11 |
Six Months Ended July 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends | 780,701 |
Interest1 | 5,524 |
Securities Lending—Net | 2 |
Total Income | 786,227 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 886 |
Management and Administrative—ETF Shares | 16,827 |
Management and Administrative—Admiral Shares | 4,428 |
Marketing and Distribution—ETF Shares | 1,434 |
Marketing and Distribution—Admiral Shares | 300 |
Custodian Fees | 165 |
Shareholders’ Reports—ETF Shares | 603 |
Shareholders’ Reports—Admiral Shares | 71 |
Trustees’ Fees and Expenses | 21 |
Other Expenses | 29 |
Total Expenses | 24,764 |
Expenses Paid Indirectly | (20) |
Net Expenses | 24,744 |
Net Investment Income | 761,483 |
Realized Net Gain (Loss) | |
Investment Securities Sold1,2 | 343,527 |
Futures Contracts | 9,389 |
Swap Contracts | 2,787 |
Realized Net Gain (Loss) | 355,703 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | 4,711,721 |
Futures Contracts | 429 |
Swap Contracts | 1,894 |
Change in Unrealized Appreciation (Depreciation) | 4,714,044 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 5,831,230 |
1 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $5,342,000, $20,000, and ($13,000), respectively. Purchases and sales are for temporary cash investment purposes. |
2 | Includes $1,528,510,000 of net gain (loss) resulting from in-kind redemptions. |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 761,483 | 1,480,125 | |
Realized Net Gain (Loss) | 355,703 | 2,757,929 | |
Change in Unrealized Appreciation (Depreciation) | 4,714,044 | (5,746,536) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 5,831,230 | (1,508,482) | |
Distributions | |||
ETF Shares | (647,058) | (1,250,613) | |
Admiral Shares | (120,292) | (233,770) | |
Total Distributions | (767,350) | (1,484,383) | |
Capital Share Transactions | �� | ||
ETF Shares | 154,117 | 2,946,879 | |
Admiral Shares | 64,988 | 87,399 | |
Net Increase (Decrease) from Capital Share Transactions | 219,105 | 3,034,278 | |
Total Increase (Decrease) | 5,282,985 | 41,413 | |
Net Assets | |||
Beginning of Period | 78,533,234 | 78,491,821 | |
End of Period | 83,816,219 | 78,533,234 |
ETF Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $156.26 | $162.69 | $137.11 | $125.38 | $104.09 | $107.10 |
Investment Operations | ||||||
Net Investment Income1 | 1.510 | 2.982 | 2.736 | 2.299 | 2.214 | 2.084 |
Net Realized and Unrealized Gain (Loss) on Investments | 9.982 | (6.439) | 25.504 | 11.728 | 21.210 | (3.056) |
Total from Investment Operations | 11.492 | (3.457) | 28.240 | 14.027 | 23.424 | (.972) |
Distributions | ||||||
Dividends from Net Investment Income | (1.522) | (2.973) | (2.660) | (2.297) | (2.134) | (2.038) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (1.522) | (2.973) | (2.660) | (2.297) | (2.134) | (2.038) |
Net Asset Value, End of Period | $166.23 | $156.26 | $162.69 | $137.11 | $125.38 | $104.09 |
Total Return | 7.43% | -2.02% | 20.71% | 11.44% | 22.68% | -0.87% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $70,482 | $66,062 | $65,589 | $51,842 | $42,217 | $30,969 |
Ratio of Total Expenses to Average Net Assets | 0.06%2 | 0.06%2 | 0.06% | 0.06% | 0.06% | 0.06% |
Ratio of Net Investment Income to Average Net Assets | 1.94% | 1.96% | 1.74% | 1.84% | 1.90% | 2.01% |
Portfolio Turnover Rate3 | 13% | 12% | 26% | 25% | 14% | 16% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.06%. |
3 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $42.41 | $44.15 | $37.21 | $34.03 | $28.25 | $29.07 |
Investment Operations | ||||||
Net Investment Income1 | .406 | .801 | .734 | .617 | .594 | .560 |
Net Realized and Unrealized Gain (Loss) on Investments | 2.703 | (1.743) | 6.920 | 3.179 | 5.757 | (.830) |
Total from Investment Operations | 3.109 | (.942) | 7.654 | 3.796 | 6.351 | (.270) |
Distributions | ||||||
Dividends from Net Investment Income | (.409) | (.798) | (.714) | (.616) | (.571) | (.550) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (.409) | (.798) | (.714) | (.616) | (.571) | (.550) |
Net Asset Value, End of Period | $45.11 | $42.41 | $44.15 | $37.21 | $34.03 | $28.25 |
Total Return2 | 7.41% | -2.02% | 20.67% | 11.44% | 22.65% | -0.89% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $13,334 | $12,471 | $12,903 | $10,685 | $9,955 | $6,755 |
Ratio of Total Expenses to Average Net Assets | 0.08%3 | 0.08%3 | 0.08% | 0.08% | 0.08% | 0.08% |
Ratio of Net Investment Income to Average Net Assets | 1.92% | 1.94% | 1.72% | 1.82% | 1.87% | 1.99% |
Portfolio Turnover Rate4 | 13% | 12% | 26% | 25% | 14% | 16% |
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 0.08%. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
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 July 31, 2023, custodian fee offset arrangements reduced the fund’s expenses by $20,000 (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 | 83,498,485 | — | — | 83,498,485 |
Temporary Cash Investments | 246,191 | — | — | 246,191 |
Total | 83,744,676 | — | — | 83,744,676 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 3,879 | — | — | 3,879 |
Swap Contracts | — | 2,007 | — | 2,007 |
Total | 3,879 | 2,007 | — | 5,886 |
Liabilities | ||||
Swap Contracts | — | 428 | — | 428 |
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 July 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 | 60,669,610 |
Gross Unrealized Appreciation | 23,788,732 |
Gross Unrealized Depreciation | (709,787) |
Net Unrealized Appreciation (Depreciation) | 23,078,945 |
F. | During the six months ended July 31, 2023, the fund purchased $13,942,405,000 of investment securities and sold $13,784,002,000 of investment securities, other than temporary cash investments. Purchases and sales include $3,812,772,000 and $3,861,077,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares. |
G. | Capital share transactions for each class of shares were: |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
ETF Shares | |||||
Issued | 4,024,724 | 26,539 | 9,908,220 | 64,894 | |
Issued in Lieu of Cash Distributions | — | — | — | — | |
Redeemed | (3,870,607) | (25,300) | (6,961,341) | (45,275) | |
Net Increase (Decrease)—ETF Shares | 154,117 | 1,239 | 2,946,879 | 19,619 | |
Admiral Shares | |||||
Issued | 817,983 | 19,198 | 1,662,170 | 40,062 | |
Issued in Lieu of Cash Distributions | 102,678 | 2,462 | 199,774 | 4,966 | |
Redeemed | (855,673) | (20,165) | (1,774,545) | (43,189) | |
Net Increase (Decrease)—Admiral Shares | 64,988 | 1,495 | 87,399 | 1,839 |
H. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
I. | Management has determined that no events or transactions occurred subsequent to July 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 July 31, 2023 | |||
Beginning Account Value 1/31/2023 | Ending Account Value 7/31/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Global ESG Select Stock Fund | |||
Investor Shares | $1,000.00 | $1,066.30 | $2.97 |
Admiral™ Shares | 1,000.00 | 1,066.80 | 2.46 |
Based on Hypothetical 5% Yearly Return | |||
Global ESG Select Stock Fund | |||
Investor Shares | $1,000.00 | $1,021.92 | $2.91 |
Admiral Shares | 1,000.00 | 1,022.41 | 2.41 |
United States | 51.4% |
United Kingdom | 9.3 |
Netherlands | 9.0 |
France | 6.6 |
Japan | 5.6 |
Spain | 5.3 |
Taiwan | 3.8 |
Singapore | 2.7 |
Hong Kong | 2.4 |
Switzerland | 2.4 |
Canada | 1.5 |
Shares | Market Value• ($000) | |||||
Common Stocks (98.2%) | ||||||
Canada (1.5%) | ||||||
BCE Inc. | 349,232 | 15,085 | ||||
France (6.5%) | ||||||
Cie Generale des Etablissements Michelin SCA | 881,507 | 28,867 | ||||
Schneider Electric SE | 106,047 | 18,916 | ||||
L'Oreal SA | 39,493 | 18,368 | ||||
66,151 | ||||||
Hong Kong (2.4%) | ||||||
AIA Group Ltd. | 2,408,519 | 24,097 | ||||
Japan (5.5%) | ||||||
Recruit Holdings Co. Ltd. | 1,029,900 | 35,671 | ||||
Mitsubishi UFJ Financial Group Inc. | 2,532,300 | 20,391 | ||||
56,062 | ||||||
Netherlands (8.8%) | ||||||
ING Groep NV | 1,797,888 | 26,243 | ||||
DSM-Firmenich AG | 235,539 | 25,963 | ||||
ASML Holding NV | 30,833 | 22,085 | ||||
Wolters Kluwer NV | 119,493 | 15,006 | ||||
89,297 | ||||||
Singapore (2.6%) | ||||||
DBS Group Holdings Ltd. | 1,030,872 | 26,593 | ||||
Spain (5.2%) | ||||||
Industria de Diseno Textil SA | 733,454 | 28,075 | ||||
Iberdrola SA | 1,959,251 | 24,454 | ||||
52,529 | ||||||
Switzerland (2.4%) | ||||||
Novartis AG (Registered) | 229,781 | 24,057 | ||||
Taiwan (3.7%) | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,116,163 | 38,213 | ||||
United Kingdom (9.1%) | ||||||
National Grid plc | 2,038,933 | 27,026 | ||||
GSK plc | 1,436,999 | 25,580 |
Shares | Market Value• ($000) | |||||
Diageo plc | 498,166 | 21,741 | ||||
Compass Group plc | 708,772 | 18,441 | ||||
92,788 | ||||||
United States (50.5%) | ||||||
Microsoft Corp. | 158,620 | 53,284 | ||||
Deere & Co. | 91,559 | 39,334 | ||||
Northern Trust Corp. | 486,850 | 39,006 | ||||
Home Depot Inc. | 100,334 | 33,495 | ||||
Texas Instruments Inc. | 184,466 | 33,204 | ||||
Visa Inc. Class A | 137,465 | 32,680 | ||||
Cisco Systems Inc. | 578,968 | 30,129 | ||||
Weyerhaeuser Co. | 851,015 | 28,986 | ||||
Prologis Inc. | 217,597 | 27,145 | ||||
Merck & Co. Inc. | 250,007 | 26,663 | ||||
* | Edwards Lifesciences Corp. | 318,004 | 26,099 | |||
Accenture plc Class A | 78,537 | 24,845 | ||||
Automatic Data Processing Inc. | 93,941 | 23,228 | ||||
Ecolab Inc. | 116,238 | 21,288 | ||||
Colgate-Palmolive Co. | 270,049 | 20,594 | ||||
Trane Technologies plc | 96,452 | 19,236 | ||||
Procter & Gamble Co. | 112,400 | 17,568 | ||||
Progressive Corp. | 127,742 | 16,093 | ||||
512,877 | ||||||
Total Common Stocks (Cost $847,883) | 997,749 |
Shares | Market Value• ($000) | |||||
Temporary Cash Investments (1.1%) | ||||||
Money Market Fund (1.1%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.274% (Cost $10,911) | 109,130 | 10,911 | |||
Total Investments (99.3%) (Cost $858,794) | 1,008,660 | |||||
Other Assets and Liabilities—Net (0.7%) | 6,940 | |||||
Net Assets (100%) | 1,015,600 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | 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 $847,883) | 997,749 |
Affiliated Issuers (Cost $10,911) | 10,911 |
Total Investments in Securities | 1,008,660 |
Investment in Vanguard | 33 |
Foreign Currency, at Value (Cost $80) | 80 |
Receivables for Investment Securities Sold | 12,560 |
Receivables for Accrued Income | 2,144 |
Receivables for Capital Shares Issued | 2,172 |
Total Assets | 1,025,649 |
Liabilities | |
Payables for Investment Securities Purchased | 8,430 |
Payables for Capital Shares Redeemed | 889 |
Payables to Investment Advisor | 615 |
Payables to Vanguard | 115 |
Total Liabilities | 10,049 |
Net Assets | 1,015,600 |
At July 31, 2023, net assets consisted of: | |
Paid-in Capital | 872,355 |
Total Distributable Earnings (Loss) | 143,245 |
Net Assets | 1,015,600 |
Investor Shares—Net Assets | |
Applicable to 6,185,136 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 195,018 |
Net Asset Value Per Share—Investor Shares | $31.53 |
Admiral Shares—Net Assets | |
Applicable to 20,808,348 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 820,582 |
Net Asset Value Per Share—Admiral Shares | $39.44 |
Six Months Ended July 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 13,379 |
Interest2 | 477 |
Total Income | 13,856 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 1,051 |
Performance Adjustment | 130 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 270 |
Management and Administrative—Admiral Shares | 791 |
Marketing and Distribution—Investor Shares | 9 |
Marketing and Distribution—Admiral Shares | 24 |
Custodian Fees | 15 |
Shareholders’ Reports—Investor Shares | 12 |
Shareholders’ Reports—Admiral Shares | 6 |
Trustees’ Fees and Expenses | — |
Other Expenses | 8 |
Total Expenses | 2,316 |
Net Investment Income | 11,540 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | (4,115) |
Foreign Currencies | (60) |
Realized Net Gain (Loss) | (4,175) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 56,260 |
Foreign Currencies | 48 |
Change in Unrealized Appreciation (Depreciation) | 56,308 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 63,673 |
1 | Dividends are net of foreign withholding taxes of $926,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $477,000, ($2,000), and ($2,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 11,540 | 14,575 | |
Realized Net Gain (Loss) | (4,175) | (12,919) | |
Change in Unrealized Appreciation (Depreciation) | 56,308 | (12,470) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 63,673 | (10,814) | |
Distributions | |||
Investor Shares | (241) | (3,362) | |
Admiral Shares | (1,166) | (13,272) | |
Total Distributions | (1,407) | (16,634) | |
Capital Share Transactions | |||
Investor Shares | 5,420 | 15,722 | |
Admiral Shares | 78,969 | 105,498 | |
Net Increase (Decrease) from Capital Share Transactions | 84,389 | 121,220 | |
Total Increase (Decrease) | 146,655 | 93,772 | |
Net Assets | |||
Beginning of Period | 868,945 | 775,173 | |
End of Period | 1,015,600 | 868,945 |
Investor Shares | |||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | May 21, 20191 to January 31, 2020 | ||
2023 | 2022 | 2021 | |||
Net Asset Value, Beginning of Period | $29.61 | $30.97 | $26.32 | $22.34 | $20.00 |
Investment Operations | |||||
Net Investment Income2 | .356 | .524 | .487 | .378 | .258 |
Net Realized and Unrealized Gain (Loss) on Investments | 1.603 | (1.298) | 5.004 | 3.866 | 2.257 |
Total from Investment Operations | 1.959 | (.774) | 5.491 | 4.244 | 2.515 |
Distributions | |||||
Dividends from Net Investment Income | (.039) | (.467) | (.386) | (.229) | (.167) |
Distributions from Realized Capital Gains | — | (.119) | (.455) | (.035) | (.008) |
Total Distributions | (.039) | (.586) | (.841) | (.264) | (.175) |
Net Asset Value, End of Period | $31.53 | $29.61 | $30.97 | $26.32 | $22.34 |
Total Return3 | 6.63% | -2.39% | 20.86% | 19.06% | 12.57% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $195 | $178 | $169 | $86 | $34 |
Ratio of Total Expenses to Average Net Assets | 0.58%4 | 0.57%4 | 0.56%4 | 0.55%4 | 0.58%5,6 |
Ratio of Net Investment Income to Average Net Assets | 2.39% | 1.88% | 1.61% | 1.62% | 1.81%5 |
Portfolio Turnover Rate | 13% | 38% | 19% | 21% | 15% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | The subscription period for the fund was May 21, 2019, to June 4, 2019, during which time all assets were held in cash. Performance measurement began June 5, 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%, 0.02%, 0.01%, and 0.00%. |
5 | Annualized. |
6 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.55%. |
Admiral Shares | |||||
For a Share Outstanding Throughout Each Period | Six Months Ended July 31, 2023 | Year Ended January 31, | May 21, 20191 to January 31, 2020 | ||
2023 | 2022 | 2021 | |||
Net Asset Value, Beginning of Period | $37.03 | $38.73 | $32.91 | $27.93 | $25.00 |
Investment Operations | |||||
Net Investment Income2 | .466 | .684 | .649 | .504 | .338 |
Net Realized and Unrealized Gain (Loss) on Investments | 2.003 | (1.609) | 6.258 | 4.830 | 2.823 |
Total from Investment Operations | 2.469 | (.925) | 6.907 | 5.334 | 3.161 |
Distributions | |||||
Dividends from Net Investment Income | (.059) | (.626) | (.517) | (.310) | (.221) |
Distributions from Realized Capital Gains | — | (.149) | (.570) | (.044) | (.010) |
Total Distributions | (.059) | (.775) | (1.087) | (.354) | (.231) |
Net Asset Value, End of Period | $39.44 | $37.03 | $38.73 | $32.91 | $27.93 |
Total Return3 | 6.68% | -2.27% | 20.99% | 19.17% | 12.64% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $821 | $691 | $606 | $247 | $74 |
Ratio of Total Expenses to Average Net Assets | 0.48%4 | 0.47%4 | 0.46%4 | 0.45%4 | 0.48%5,6 |
Ratio of Net Investment Income to Average Net Assets | 2.50% | 1.97% | 1.71% | 1.71% | 1.89%5 |
Portfolio Turnover Rate | 13% | 38% | 19% | 21% | 15% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | The subscription period for the fund was May 21, 2019, to June 4, 2019, during which time all assets were held in cash. Performance measurement began June 5, 2019, the first business day after the subscription period, at a net asset value of $25.00. |
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%, 0.02%, 0.01%, and 0.00%. |
5 | Annualized. |
6 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.45%. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 527,962 | — | — | 527,962 |
Common Stocks—Other | — | 469,787 | — | 469,787 |
Temporary Cash Investments | 10,911 | — | — | 10,911 |
Total | 538,873 | 469,787 | — | 1,008,660 |
Amount ($000) | |
Tax Cost | 861,626 |
Gross Unrealized Appreciation | 173,348 |
Gross Unrealized Depreciation | (26,314) |
Net Unrealized Appreciation (Depreciation) | 147,034 |
Six Months Ended July 31, 2023 | Year Ended January 31, 2023 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 29,822 | 999 | 51,485 | 1,829 | |
Issued in Lieu of Cash Distributions | 211 | 7 | 2,932 | 104 | |
Redeemed | (24,613) | (826) | (38,695) | (1,394) | |
Net Increase (Decrease)—Investor Shares | 5,420 | 180 | 15,722 | 539 | |
Admiral Shares | |||||
Issued | 158,472 | 4,252 | 229,900 | 6,607 | |
Issued in Lieu of Cash Distributions | 994 | 28 | 11,097 | 317 | |
Redeemed | (80,497) | (2,138) | (135,499) | (3,904) | |
Net Increase (Decrease)—Admiral Shares | 78,969 | 2,142 | 105,498 | 3,020 |
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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 SPECIALIZED FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: September 21, 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 SPECIALIZED FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: September 21, 2023
VANGUARD SPECIALIZED FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: September 21, 2023
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on July 21, 2023 (see File Number 33-53683) and to a Power of Attorney filed on March 29, 2023 (see File Number 2-11444), Incorporated by Reference.