UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT COMPANY
Investment Company Act file number:
811-
0
3916
Name of Registrant:
Vanguard Specialized Funds
Address of Registrant:
P.O. Box 2600
Valley Forge, PA 19482
Name and address of agent for service:
Heidi Stam, Esquire
P.O. Box 876
Valley Forge, PA 19482
Date of fiscal year end:
January 31
Date of reporting period:
October 31
, 2012
Item 1:
Schedule of Investments
Precious Metals and Mining Fund
Schedule of Investments
As of October 31, 2012
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
|
Value
|
|
|
|
Shares
|
($000)
|
|
Common Stocks (98.2%)
|
|
|
|
Australia (30.3%)
|
|
|
|
1
|
OZ Minerals Ltd.
|
19,000,000
|
161,216
|
|
1
|
Medusa Mining Ltd.
|
25,250,000
|
160,838
|
|
1
|
Resolute Mining Ltd.
|
59,000,000
|
117,766
|
|
|
Iluka Resources Ltd.
|
11,250,000
|
115,395
|
|
*,1
St. Barbara Ltd.
|
51,000,000
|
100,732
|
|
*,^,1
Aquila Resources Ltd.
|
35,665,000
|
99,277
|
|
*,^,1
Cudeco Ltd.
|
18,500,000
|
89,683
|
|
*,1
Discovery Metals Ltd.
|
36,900,000
|
66,095
|
|
*,1
Ivanhoe Australia Ltd.
|
29,133,659
|
26,438
|
|
*,^,1
Galaxy Resources Ltd.
|
43,893,638
|
22,923
|
|
*,1
Equatorial Resources Ltd.
|
10,082,288
|
18,576
|
|
*
|
Papillon Resources Ltd.
|
7,500,000
|
14,402
|
|
1
|
Panoramic Resources Ltd.
|
22,200,000
|
14,346
|
|
*,1
Reed Resources Ltd.
|
76,166,667
|
14,236
|
|
*,1
Glory Resources Ltd.
|
33,500,000
|
10,402
|
|
*,1
Apex Minerals NL
|
43,779,166
|
3,497
|
|
*,^
Gindalbie Metals Ltd.
|
8,000,000
|
2,856
|
|
*,1
Kumarina Resources Ltd.
|
9,300,000
|
1,016
|
|
*,1
Speewah Metals Ltd.
|
13,500,000
|
727
|
|
*,1
Drummond Gold Ltd.
|
35,000,000
|
254
|
|
*
|
Zambezi Resources Ltd.
|
4,895,833
|
18
|
|
|
|
|
1,040,693
|
|
Belgium (4.8%)
|
|
|
|
|
Umicore SA
|
3,250,000
|
167,014
|
|
|
|
Canada (24.9%)
|
|
|
|
|
Potash Corp. of Saskatchewan Inc.
|
5,200,000
|
209,041
|
|
1
|
Nevsun Resources Ltd.
|
38,500,000
|
182,333
|
|
1
|
Centerra Gold Inc.
|
15,000,000
|
170,163
|
|
*,1
Harry Winston Diamond Corp.
|
11,700,000
|
167,871
|
|
*
|
Alacer Gold Corp.
|
9,950,000
|
54,594
|
|
|
Eldorado Gold Corp.
|
1,900,000
|
28,079
|
|
|
Barrick Gold Corp.
|
450,000
|
18,198
|
|
*,^
Belo Sun Mining Corp.
|
10,697,600
|
14,460
|
|
|
SEMAFO Inc.
|
1,000,000
|
4,005
|
|
*
|
Bear Creek Mining Corp.
|
750,000
|
2,658
|
|
*,^
NovaCopper Inc.
|
870,309
|
1,924
|
|
*
|
Lake Shore Gold Corp.
|
1,000,000
|
801
|
|
*
|
Claude Resources Inc.
|
400,000
|
288
|
|
|
|
|
854,415
|
|
|
|
|
|
|
France (4.7%)
|
|
|
|
|
Imerys SA
|
|
2,848,559
|
160,254
|
|
|
|
Germany (6.4%)
|
|
|
|
|
K+S AG
|
|
4,650,000
|
220,387
|
|
|
|
Indonesia (0.1%)
|
|
|
|
|
Vale Indonesia Tbk
|
|
6,500,000
|
1,814
|
|
|
|
Ireland (0.2%)
|
|
|
|
|
* Kenmare Resources plc
|
|
13,627,035
|
8,680
|
|
|
|
Papua New Guinea (0.0%)
|
|
|
|
|
* Bougainville Copper Ltd.
|
|
2,000,000
|
1,410
|
|
|
|
Russia (1.3%)
|
|
|
|
|
Uralkali OJSC GDR
|
|
1,150,000
|
45,209
|
|
|
|
United Kingdom (11.8%)
|
|
|
|
|
1 Hochschild Mining plc
|
|
40,500,000
|
323,797
|
|
Petropavlovsk plc
|
|
9,250,000
|
60,394
|
|
Rio Tinto plc
|
|
400,000
|
19,983
|
|
|
|
|
404,174
|
|
United States (13.7%)
|
|
|
|
|
Newmont Mining Corp.
|
|
5,100,000
|
278,205
|
|
1 AMCOL International Corp.
|
|
3,080,000
|
97,266
|
|
Mosaic Co.
|
|
1,800,000
|
94,212
|
|
|
|
|
469,683
|
|
Total Common Stocks (Cost $3,392,131)
|
|
|
3,373,733
|
|
Precious Metals (0.1%)
|
|
|
|
|
* Platinum Bullion (In Troy Ounces)
|
|
2,009
|
3,154
|
|
Total Precious Metals (Cost $1,212)
|
|
|
3,154
|
|
|
Coupon
|
|
|
|
Temporary Cash Investment (2.4%)
|
|
|
|
|
Money Market Fund (2.4%)
|
|
|
|
|
2,3
Vanguard Market Liquidity Fund (Cost
|
|
|
|
|
$82,335)
|
0.167%
|
82,334,587
|
82,335
|
|
Total Investments (100.7%) (Cost $3,475,678)
|
|
|
3,459,222
|
|
Other Assets and Liabilities-Net (-0.7%)
3
|
|
|
(22,395)
|
|
Net Assets (100%)
|
|
|
3,436,827
|
* Non-income-producing security.
^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $8,427,000.
1 Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities
of such company.
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 Includes $14,307,000 of collateral received for securities on loan.
GDR—Global Depositary Receipt.
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest
Precious Metals and Mining Fund
quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Precious metals are valued at the mean of the latest quoted bid and asked prices. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine
the fair value of investments).
The following table summarizes the market value of the fund's investments as of October 31, 2012,
based on the inputs used to value them:
|
|
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
|
Investments
|
($000)
|
($000)
|
($000)
|
|
Common Stocks—North America
|
1,324,098
|
—
|
—
|
|
Common Stocks—Other
|
—
|
2,049,635
|
—
|
|
Precious Metals
|
3,154
|
—
|
—
|
|
Temporary Cash Investments
|
82,335
|
—
|
—
|
|
Total
|
1,409,587
|
2,049,635
|
—
|
D. Certain of the fund's investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company. Transactions during the period in securities of these companies were as follows:
Precious Metals and Mining Fund
|
|
|
|
|
|
|
|
|
|
|
Current Period Transactions
|
|
|
|
|
|
Proceeds
|
|
|
|
|
Jan. 31, 2012
|
|
from
|
|
Oct. 31, 2012
|
|
|
Market
|
Purchases
|
Securities
|
Dividend
|
Market
|
|
|
Value
|
at Cost
|
Sold
|
Income
|
Value
|
|
|
($000)
|
($000)
|
($000)
|
($000)
|
($000)
|
|
Alacer Gold Corp.
|
239,924
|
—
|
99,514
|
—
|
NA
1
|
|
AMCOL International Corp.
|
87,965
|
—
|
—
|
1,725
|
97,266
|
|
Apex Minerals NL
|
3,979
|
5,911
|
—
|
—
|
3,497
|
|
Aquila Resources Ltd.
|
211,654
|
9,788
|
—
|
—
|
99,277
|
|
Centerra Gold Inc.
|
375,144
|
—
|
46,850
|
1,229
|
170,163
|
|
Cudeco Ltd.
|
55,382
|
15,787
|
—
|
—
|
89,683
|
|
Discovery Metals Ltd.
|
40,996
|
48,865
|
22,786
|
—
|
66,095
|
|
Drummond Gold Ltd.
|
929
|
—
|
—
|
—
|
254
|
|
Equatorial Resources Ltd.
|
15,509
|
9,630
|
—
|
—
|
18,576
|
|
Galaxy Resources Ltd.
|
24,581
|
36,152
|
—
|
—
|
22,923
|
|
Glory Resources Ltd.
|
8,711
|
—
|
—
|
—
|
10,402
|
|
Harry Winston Diamond Corp.
|
111,135
|
30,681
|
—
|
—
|
167,871
|
|
Hochschild Mining plc
|
315,742
|
—
|
—
|
2,417
|
323,797
|
|
Ivanhoe Australia Ltd.
|
NA
2
|
12,387
|
—
|
—
|
26,438
|
|
Kumarina Resources Ltd.
|
2,567
|
—
|
—
|
—
|
1,016
|
|
Medusa Mining Ltd.
|
144,972
|
—
|
—
|
1,564
|
160,838
|
|
Minefinders Corp.
|
172,996
|
—
|
27,650
|
—
|
NA
3
|
|
Nevsun Resources Ltd.
|
253,032
|
—
|
—
|
1,666
|
182,333
|
|
NovaGold Resources Inc.
|
219,420
|
—
|
165,773
|
133
|
—
|
|
OZ Minerals Ltd.
|
199,102
|
36,806
|
19,499
|
7,620
|
161,216
|
|
Panoramic Resources Ltd.
|
27,580
|
1,501
|
—
|
413
|
14,346
|
|
Reed Resources Ltd.
|
9,921
|
10,266
|
—
|
—
|
14,236
|
|
Resolute Mining Ltd.
|
112,781
|
14,264
|
—
|
2,851
|
117,766
|
|
SEMAFO Inc.
|
98,225
|
—
|
69,032
|
25
|
NA
1
|
|
Speewah Metals Ltd.
|
3,430
|
—
|
—
|
—
|
727
|
|
St. Barbara Ltd.
|
126,529
|
—
|
—
|
—
|
100,732
|
|
|
2,862,206
|
|
|
19,643
|
1,849,452
|
1 Not applicable — At October 31, 2012, the security was still held, but the issuer was no longer an affiliated
company of the fund.
2 Not applicable — At January 31, 2012, the issuer was not an affiliated company of the fund.
3 Not applicable — In March 2012, Minefinders Corp. merged into Pan American Silver Corp. At October 31, 2012,
the security was no longer held in the fund.
E. At October 31, 2012, the cost of investment securities for tax purposes was $3,699,151,000. Net unrealized depreciation of investment securities for tax purposes was $239,929,000, consisting of unrealized gains of $343,577,000 on securities that had risen in value since their purchase and $583,506,000 in unrealized losses on securities that had fallen in value since their purchase.
Vanguard Health Care Fund
Schedule of Investments
As of October 31, 2012
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
|
Value
|
|
|
|
Shares
|
($000)
|
|
Common Stocks (93.7%)
|
|
|
|
United States (71.4%)
|
|
|
|
Biotechnology (8.3%)
|
|
|
|
|
Amgen Inc.
|
11,758,355
|
1,017,627
|
|
*
|
Gilead Sciences Inc.
|
3,982,100
|
267,438
|
|
*
|
Biogen Idec Inc.
|
1,570,000
|
217,005
|
|
*
|
Vertex Pharmaceuticals Inc.
|
2,243,700
|
108,236
|
|
*
|
Onyx Pharmaceuticals Inc.
|
1,022,700
|
80,139
|
|
*
|
Regeneron Pharmaceuticals Inc.
|
522,200
|
74,309
|
|
*
|
United Therapeutics Corp.
|
1,587,000
|
72,478
|
|
*
|
Cubist Pharmaceuticals Inc.
|
1,323,142
|
56,763
|
|
*
|
Ironwood Pharmaceuticals Inc. Class A
|
2,000,000
|
23,260
|
|
*
|
Alkermes plc
|
837,400
|
15,517
|
|
|
|
|
1,932,772
|
|
Chemicals (1.0%)
|
|
|
|
|
Sigma-Aldrich Corp.
|
3,380,000
|
237,073
|
|
|
|
Food & Staples Retailing (1.7%)
|
|
|
|
|
Walgreen Co.
|
10,844,700
|
382,059
|
|
|
CVS Caremark Corp.
|
300,000
|
13,920
|
|
|
|
|
395,979
|
|
Food Products (0.1%)
|
|
|
|
*,^
Green Mountain Coffee Roasters Inc.
|
1,240,000
|
29,959
|
|
|
|
Health Care Equipment & Supplies (8.9%)
|
|
|
|
|
Medtronic Inc.
|
10,901,100
|
453,268
|
|
|
St. Jude Medical Inc.
|
9,110,900
|
348,583
|
|
*
|
Boston Scientific Corp.
|
46,800,000
|
240,552
|
|
|
Baxter International Inc.
|
3,800,000
|
237,994
|
|
|
Becton Dickinson and Co.
|
3,102,500
|
234,797
|
|
|
Zimmer Holdings Inc.
|
2,400,000
|
154,104
|
|
*
|
CareFusion Corp.
|
4,734,654
|
125,752
|
|
|
Covidien plc
|
2,150,000
|
118,143
|
|
|
DENTSPLY International Inc.
|
2,485,400
|
91,562
|
|
|
STERIS Corp.
|
803,083
|
28,598
|
|
*
|
NuVasive Inc.
|
1,628,303
|
23,480
|
|
|
|
|
2,056,833
|
|
Health Care Providers & Services (22.4%)
|
|
|
|
|
UnitedHealth Group Inc.
|
18,785,100
|
1,051,966
|
|
|
McKesson Corp.
|
8,989,900
|
838,847
|
|
|
Humana Inc.
|
6,510,094
|
483,505
|
|
|
WellPoint Inc.
|
7,702,400
|
472,003
|
|
|
Cigna Corp.
|
7,710,600
|
393,241
|
|
|
Quest Diagnostics Inc.
|
6,485,400
|
374,337
|
|
1
|
Coventry Health Care Inc.
|
8,227,500
|
359,048
|
|
|
Cardinal Health Inc.
|
6,236,708
|
256,516
|
|
*
|
Laboratory Corp. of America Holdings
|
2,681,360
|
227,192
|
|
|
Universal Health Services Inc. Class B
|
4,020,800
|
166,421
|
|
*,1
Health Management Associates Inc. Class A
|
15,656,900
|
114,295
|
|
|
Aetna Inc.
|
2,450,000
|
107,065
|
|
|
|
|
|
|
|
HCA Holdings Inc.
|
3,400,000
|
96,594
|
|
|
Owens & Minor Inc.
|
3,000,000
|
85,410
|
|
*
|
Health Net Inc.
|
3,863,458
|
83,142
|
|
*
|
Tenet Healthcare Corp.
|
1,400,000
|
33,040
|
|
*
|
Vanguard Health Systems Inc.
|
2,556,780
|
24,750
|
|
*
|
DaVita HealthCare Partners Inc.
|
154,600
|
17,395
|
|
*
|
WellCare Health Plans Inc.
|
349,000
|
16,612
|
|
*
|
HealthSouth Corp.
|
386,000
|
8,542
|
|
|
|
|
5,209,921
|
|
Health Care Technology (2.0%)
|
|
|
|
*
|
Cerner Corp.
|
5,700,000
|
434,283
|
|
*
|
Allscripts Healthcare Solutions Inc.
|
2,439,400
|
31,517
|
|
|
|
|
465,800
|
|
Life Sciences Tools & Services (0.4%)
|
|
|
|
*
|
PAREXEL International Corp.
|
2,690,400
|
82,568
|
|
|
Agilent Technologies Inc.
|
500,000
|
17,995
|
|
|
|
|
100,563
|
|
Machinery (0.1%)
|
|
|
|
|
Pall Corp.
|
374,600
|
23,585
|
|
|
|
Pharmaceuticals (26.5%)
|
|
|
|
|
Merck & Co. Inc.
|
35,390,648
|
1,614,875
|
|
|
Pfizer Inc.
|
37,383,888
|
929,737
|
|
*,1
Forest Laboratories Inc.
|
25,903,000
|
873,190
|
|
|
Abbott Laboratories
|
12,100,000
|
792,792
|
|
|
Eli Lilly & Co.
|
15,364,300
|
747,166
|
|
|
Bristol-Myers Squibb Co.
|
12,003,061
|
399,102
|
|
|
Johnson & Johnson
|
4,500,000
|
318,690
|
|
|
Perrigo Co.
|
1,959,100
|
225,316
|
|
*
|
Watson Pharmaceuticals Inc.
|
1,600,000
|
137,520
|
|
*
|
Salix Pharmaceuticals Ltd.
|
1,754,300
|
68,488
|
|
*
|
Hospira Inc.
|
1,795,070
|
55,091
|
|
|
|
|
6,161,967
|
|
Total United States
|
|
16,614,452
|
|
International (22.3%)
|
|
|
|
Belgium (1.5%)
|
|
|
|
|
UCB SA
|
5,821,811
|
340,040
|
|
|
|
France (0.4%)
|
|
|
|
|
Sanofi
|
671,976
|
59,018
|
|
|
Ipsen SA
|
1,386,698
|
35,823
|
|
|
|
|
94,841
|
|
Germany (1.0%)
|
|
|
|
|
Bayer AG
|
2,194,656
|
191,360
|
|
|
Fresenius Medical Care AG & Co. KGaA
|
611,950
|
42,999
|
|
|
|
|
234,359
|
|
Ireland (0.4%)
|
|
|
|
*
|
Elan Corp. plc ADR
|
9,534,600
|
102,974
|
|
|
|
Israel (1.6%)
|
|
|
|
|
Teva Pharmaceutical Industries Ltd. ADR
|
9,130,000
|
369,035
|
|
|
|
Japan (8.2%)
|
|
|
|
|
Astellas Pharma Inc.
|
14,365,700
|
714,515
|
|
|
|
|
|
|
|
Takeda Pharmaceutical Co. Ltd.
|
|
|
5,599,900
|
260,288
|
|
Eisai Co. Ltd.
|
|
|
5,793,700
|
257,771
|
|
Shionogi & Co. Ltd.
|
|
|
12,066,234
|
200,323
|
|
Daiichi Sankyo Co. Ltd.
|
|
|
13,001,500
|
199,002
|
|
Chugai Pharmaceutical Co. Ltd.
|
|
|
5,621,700
|
113,903
|
|
Mitsubishi Tanabe Pharma Corp.
|
|
|
7,100,000
|
102,344
|
|
Ono Pharmaceutical Co. Ltd.
|
|
|
960,000
|
57,964
|
|
|
|
|
|
1,906,110
|
|
Norway (0.1%)
|
|
|
|
|
|
* Algeta ASA
|
|
|
565,247
|
15,203
|
|
|
|
Switzerland (5.8%)
|
|
|
|
|
|
Roche Holding AG
|
|
|
4,273,977
|
823,276
|
|
Novartis AG
|
|
|
4,969,880
|
299,687
|
|
Roche Holding AG (Bearer)
|
|
|
664,320
|
131,825
|
|
Novartis AG ADR
|
|
|
1,461,400
|
88,356
|
|
Actelion Ltd.
|
|
|
200,000
|
9,653
|
|
|
|
|
|
1,352,797
|
|
United Kingdom (3.3%)
|
|
|
|
|
|
AstraZeneca plc
|
|
|
13,881,500
|
643,756
|
|
GlaxoSmithKline plc ADR
|
|
|
2,742,381
|
123,133
|
|
|
|
|
|
766,889
|
|
Total International
|
|
|
|
5,182,248
|
|
Total Common Stocks (Cost $12,757,608)
|
|
|
|
21,796,700
|
|
|
|
|
|
Market
|
|
|
|
|
|
Value
|
|
|
Coupon
|
|
Shares
|
($000)
|
|
Temporary Cash Investments (6.4%)
|
|
|
|
|
|
Money Market Fund (0.0%)
|
|
|
|
|
|
2,3
Vanguard Market Liquidity Fund
|
0.167%
|
|
8,352,500
|
8,353
|
|
|
|
|
|
|
Face
|
|
|
|
|
Maturity
|
Amount
|
|
|
|
|
Date
|
($000)
|
|
|
Repurchase Agreements (4.6%)
|
|
|
|
|
|
Bank of America Securities, LLC
|
|
|
|
|
|
(Dated 10/31/12, Repurchase Value
|
|
|
|
|
|
$427,904,000, collateralized by Federal
|
|
|
|
|
|
Home Loan Mortgage Corp. 3.063%-
|
|
|
|
|
|
4.000%, 06/01/42-09/01/42 and Federal
|
|
|
|
|
|
National Mortgage Assn. 3.000%-6.000%,
|
|
|
|
|
|
05/01/25-11/01/42)
|
0.330%
|
11/1/12
|
427,900
|
427,900
|
|
BNP Paribas Securities Corp.
|
|
|
|
|
|
(Dated 10/31/12, Repurchase Value
|
|
|
|
|
|
$101,201,000, collateralized by Federal
|
|
|
|
|
|
National Mortgage Assn. 2.500%, 10/01/27
|
|
|
|
|
|
and Government National Mortgage Assn.
|
|
|
|
|
|
4.500%, 05/15/41)
|
0.300%
|
11/1/12
|
101,200
|
101,200
|
|
HSBC Bank USA
|
|
|
|
|
|
(Dated 10/31/12, Repurchase Value
|
|
|
|
|
|
$225,902,000, collateralized by Federal
|
|
|
|
|
|
Home Loan Mortgage Corp. 3.000%-
|
|
|
|
|
|
3.500%, 06/01/42-10/01/42)
|
0.320%
|
11/1/12
|
225,900
|
225,900
|
|
|
|
|
|
|
|
Morgan Stanley & Co., Inc.
|
|
|
|
|
|
(Dated 10/31/12, Repurchase Value
|
|
|
|
|
|
$274,603,000, collateralized by Federal
|
|
|
|
|
|
National Mortgage Assn. 3.500%-5.500%,
|
|
|
|
|
|
09/01/25-11/01/42)
|
0.350%
|
11/1/12
|
274,600
|
274,600
|
|
UBS Securities LLC
|
|
|
|
|
|
(Dated 10/31/12, Repurchase Value
|
|
|
|
|
|
$32,400,000, collateralized by Federal
|
|
|
|
|
|
Home Loan Mortgage Corp. 4.000%,
|
|
|
|
|
|
09/01/26)
|
0.300%
|
11/1/12
|
32,400
|
32,400
|
|
|
|
|
|
1,062,000
|
|
U.S. Government and Agency Obligations (0.1%)
|
|
|
|
|
|
United States Treasury Bill
|
0.083%
|
11/1/12
|
5,501
|
5,501
|
|
United States Treasury Bill
|
0.115%
|
1/31/13
|
5,501
|
5,499
|
|
|
|
|
|
11,000
|
|
Commercial Paper (1.7%)
|
|
|
|
|
|
General Electric Capital Corp.
|
0.270%
|
1/8/13
|
200,000
|
199,908
|
|
General Electric Capital Corp. CP
|
0.200%
|
3/5/13
|
200,000
|
199,834
|
|
|
|
|
|
399,742
|
|
Total Temporary Cash Investments (Cost $1,481,113)
|
|
|
|
1,481,095
|
|
Total Investments (100.1%) (Cost $14,238,721)
|
|
|
|
23,277,795
|
|
Other Assets and Liabilities-Net (-0.1%)
|
|
|
|
(24,136)
|
|
Net Assets (100%)
|
|
|
|
23,253,659
|
* Non-income-producing security.
^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $8,072,000.
1 Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities
of such company.
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 Includes $8,353,000 of collateral received for securities on loan.
ADR—American Depositary Receipt.
CP—Commercial Paper.
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value.
Health Care Fund
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. Repurchase Agreements: The fund may enter into repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. In the event of default or bankruptcy by the other party to the agreement, the fund may sell or retain the collateral; however, such action may be subject to legal proceedings.
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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine
the fair value of investments).
The following table summarizes the market value of the fund's investments as of October 31, 2012,
based on the inputs used to value them:
|
|
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
|
Investments
|
($000)
|
($000)
|
($000)
|
|
Common Stocks— U.S.
|
16,614,452
|
—
|
—
|
|
Common Stocks— International
|
683,497
|
4,498,751
|
—
|
|
Temporary Cash Investments
|
8,353
|
1,472,742
|
—
|
|
Forward Currency Contracts—Assets
|
—
|
2,098
|
—
|
|
Total
|
17,306,302
|
5,973,591
|
—
|
E. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. Counterparty risk is mitigated by entering into forward currency contracts only with highly rated counterparties, by a master netting arrangement between the fund and the counterparty, and by the posting of collateral by the counterparty. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has posted. Any securities posted as collateral for open contracts are noted in the Schedule of Investments.
Health Care Fund
Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The aggregate principal amounts of the contracts are not recorded in the Schedule of Investments. Fluctuations in the value of the contracts are recorded in the Schedule of Investments as an asset (liability).
At October 31, 2012, the fund had open forward currency contracts to receive and deliver currencies as follows. Unrealized appreciation (depreciation) on open forward currency contracts is treated as realized gain (loss) for tax purposes.
|
|
|
|
|
|
|
|
|
|
|
Contract Amount (000)
|
|
|
|
|
|
|
|
Unrealized
|
|
|
Contract
|
|
|
|
Appreciation
|
|
|
Settlement
|
|
|
|
(Depreciation)
|
|
Counterparty
|
Date
|
|
Receive
|
Deliver
|
($000)
|
|
Bank of America NA
|
11/16/12
|
USD
|
238,660 JPY
|
19,062,436
|
2,098
|
|
JPY—Japanese yen.
|
|
|
|
|
|
|
USD—U.S. dollar.
|
|
|
|
|
|
At October 31, 2012, the counterparty had deposited in a segregated account securities with a value sufficient to cover substantially all amounts due to the fund in connection with open forward currency contracts.
F. Certain of the fund's investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company. Transactions during the period in securities of these companies were as follows:
|
|
|
|
|
|
|
|
|
|
|
Current Period Transactions
|
|
|
|
|
|
Proceeds
|
|
October 31,
|
|
|
Jan. 31, 2012
|
|
from
|
|
2012
|
|
|
Market
|
Purchases
|
Securities
|
Dividend
|
Market
|
|
|
Value
|
at Cost
|
Sold
|
Income
|
Value
|
|
|
($000)
|
($000)
|
($000)
|
($000)
|
($000)
|
|
Coventry Health Care Inc.
|
256,422
|
3,041
|
15,038
|
3,135
|
359,048
|
|
Forest Laboratories Inc.
|
823,198
|
—
|
—
|
—
|
873,190
|
|
Health Management Associates Inc.
|
99,720
|
665
|
—
|
—
|
114,295
|
|
Class A
|
|
|
|
|
|
|
Health Net Inc.
|
174,112
|
—
|
37,048
|
—
|
N/A
1
|
|
|
1,353,452
|
|
|
|
1,346,533
|
1 Not applicable — At October 31, 2012, the security was still held, but the issuer was no longer an affiliated company of the fund.
G. At October 31, 2012, the cost of investment securities for tax purposes was $14,262,187,000. Net unrealized appreciation of investment securities for tax purposes was $9,015,608,000, consisting of unrealized gains of $9,467,106,000 on securities that had risen in value since their purchase and $451,498,000 in unrealized losses on securities that had fallen in value since their purchase.
Vanguard Energy Fund
Schedule of Investments
As of October 31, 2012
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
|
Value
|
|
|
|
Shares
|
($000)
|
|
Common Stocks (96.2%)
1
|
|
|
|
United States (55.9%)
|
|
|
|
Energy Equipment & Services (9.0%)
|
|
|
|
|
Schlumberger Ltd.
|
3,672,214
|
255,329
|
|
|
Baker Hughes Inc.
|
5,183,970
|
217,571
|
|
|
Halliburton Co.
|
5,194,632
|
167,735
|
|
|
National Oilwell Varco Inc.
|
1,323,486
|
97,541
|
|
*
|
SEACOR Holdings Inc.
|
892,198
|
78,255
|
|
|
Bristow Group Inc.
|
1,196,035
|
59,706
|
|
*
|
Weatherford International Ltd.
|
5,257,250
|
59,407
|
|
*
|
Superior Energy Services Inc.
|
2,650,315
|
53,881
|
|
|
Transocean Ltd.
|
1,058,402
|
48,358
|
|
|
Noble Corp.
|
986,315
|
37,224
|
|
|
Diamond Offshore Drilling Inc.
|
35,800
|
2,479
|
|
|
Helmerich & Payne Inc.
|
50,900
|
2,433
|
|
*
|
Nabors Industries Ltd.
|
36,200
|
488
|
|
|
|
|
1,080,407
|
|
Exchange-Traded Fund (0.6%)
|
|
|
|
^,2
Vanguard Energy ETF
|
663,000
|
69,058
|
|
|
|
Oil, Gas & Consumable Fuels (46.3%)
|
|
|
|
|
Exxon Mobil Corp.
|
11,876,019
|
1,082,737
|
|
|
Chevron Corp.
|
5,590,725
|
616,154
|
|
|
Occidental Petroleum Corp.
|
4,937,001
|
389,826
|
|
|
CONSOL Energy Inc.
|
8,297,520
|
291,741
|
|
|
Anadarko Petroleum Corp.
|
3,524,000
|
242,486
|
|
|
Cabot Oil & Gas Corp.
|
4,606,662
|
216,421
|
|
|
EOG Resources Inc.
|
1,728,966
|
201,407
|
|
|
Devon Energy Corp.
|
3,160,705
|
183,985
|
|
*
|
Southwestern Energy Co.
|
4,723,605
|
163,909
|
|
|
Range Resources Corp.
|
2,265,890
|
148,099
|
|
|
ConocoPhillips
|
2,542,169
|
147,064
|
|
|
Noble Energy Inc.
|
1,534,444
|
145,787
|
|
*
|
Denbury Resources Inc.
|
9,277,114
|
142,218
|
|
|
Valero Energy Corp.
|
4,689,709
|
136,470
|
|
|
Apache Corp.
|
1,616,335
|
133,752
|
|
|
EQT Corp.
|
2,030,950
|
123,136
|
|
|
Marathon Petroleum Corp.
|
2,072,485
|
113,842
|
|
*
|
WPX Energy Inc.
|
6,553,710
|
111,020
|
|
|
Hess Corp.
|
1,896,774
|
99,125
|
|
|
Pioneer Natural Resources Co.
|
842,730
|
89,034
|
|
|
Phillips 66
|
1,645,504
|
77,602
|
|
|
Chesapeake Energy Corp.
|
3,535,307
|
71,625
|
|
|
Marathon Oil Corp.
|
2,004,641
|
60,259
|
|
*,^
Ultra Petroleum Corp.
|
2,589,816
|
59,074
|
|
|
Peabody Energy Corp.
|
2,089,500
|
58,297
|
|
*
|
Cobalt International Energy Inc.
|
2,800,747
|
58,284
|
|
|
Kinder Morgan Inc.
|
1,642,831
|
57,023
|
|
|
QEP Resources Inc.
|
1,908,479
|
55,346
|
|
*
|
Whiting Petroleum Corp.
|
1,288,640
|
54,149
|
|
|
|
|
|
* Plains Exploration & Production Co.
|
1,412,700
|
50,377
|
|
* Newfield Exploration Co.
|
1,726,803
|
46,831
|
|
* Gran Tierra Energy Inc.
|
6,791,100
|
34,202
|
|
Energen Corp.
|
557,961
|
26,029
|
|
Murphy Oil Corp.
|
343,400
|
20,604
|
|
* Kosmos Energy Ltd.
|
1,765,010
|
20,086
|
|
* Laredo Petroleum Holdings Inc.
|
250,161
|
5,076
|
|
HollyFrontier Corp.
|
70,500
|
2,723
|
|
* Continental Resources Inc.
|
13,700
|
984
|
|
Williams Cos. Inc.
|
17,200
|
602
|
|
Spectra Energy Corp.
|
12,500
|
361
|
|
|
|
5,537,747
|
|
Total United States
|
|
6,687,212
|
|
International (40.3%)
|
|
|
|
Argentina (0.3%)
|
|
|
|
YPF SA ADR
|
2,948,600
|
32,936
|
|
|
|
Australia (0.3%)
|
|
|
|
Oil Search Ltd.
|
3,897,262
|
30,031
|
|
Caltex Australia Ltd.
|
134,227
|
2,372
|
|
Woodside Petroleum Ltd.
|
21,393
|
763
|
|
|
|
33,166
|
|
Austria (0.0%)
|
|
|
|
OMV AG
|
72,993
|
2,671
|
|
|
|
Brazil (1.4%)
|
|
|
|
Petroleo Brasileiro SA ADR
|
7,364,870
|
156,209
|
|
* OGX Petroleo e Gas Participacoes SA
|
4,205,100
|
9,752
|
|
Petroleo Brasileiro SA Prior Pfd.
|
385,244
|
3,945
|
|
Petroleo Brasileiro SA
|
252,132
|
2,669
|
|
Petroleo Brasileiro SA ADR Type A
|
4,150
|
85
|
|
|
|
172,660
|
|
Canada (11.1%)
|
|
|
|
Canadian Natural Resources Ltd.
|
6,741,738
|
203,601
|
|
Suncor Energy Inc.
|
5,675,122
|
190,798
|
|
Encana Corp.
|
7,784,145
|
175,532
|
|
Cenovus Energy Inc.
|
4,532,980
|
160,060
|
|
Progress Energy Resources Corp.
|
4,665,650
|
93,990
|
|
TransCanada Corp.
|
1,759,516
|
79,224
|
|
* Celtic Exploration Ltd.
|
2,554,600
|
66,707
|
|
Canadian Oil Sands Ltd.
|
2,879,280
|
61,285
|
|
* Tourmaline Oil Corp.
|
1,725,300
|
57,006
|
|
Cameco Corp.
|
2,622,000
|
50,736
|
|
Pacific Rubiales Energy Corp.
|
2,094,400
|
49,259
|
|
Penn West Petroleum Ltd.
|
3,100,121
|
40,271
|
|
Nexen Inc.
|
818,300
|
19,541
|
|
* Athabasca Oil Corp.
|
1,519,900
|
18,399
|
|
Petrominerales Ltd.
|
2,260,180
|
18,127
|
|
* MEG Energy Corp.
|
274,017
|
10,009
|
|
Suncor Energy Inc.
|
235,234
|
7,895
|
|
Cenovus Energy Inc.
|
113,339
|
3,998
|
|
Encana Corp.
|
163,800
|
3,690
|
|
Husky Energy Inc.
|
105,900
|
2,868
|
|
Crescent Point Energy Corp.
|
68,585
|
2,850
|
|
Canadian Natural Resources Ltd.
|
65,078
|
1,961
|
|
|
|
|
|
Enbridge Inc.
|
40,950
|
1,629
|
|
Crescent Point Energy Corp.
|
29,200
|
1,213
|
|
|
|
1,320,649
|
|
China (2.3%)
|
|
|
|
PetroChina Co. Ltd. ADR
|
952,160
|
129,265
|
|
Beijing Enterprises Holdings Ltd.
|
12,399,790
|
79,927
|
|
China Shenhua Energy Co. Ltd.
|
11,806,000
|
50,024
|
|
CNOOC Ltd.
|
2,962,717
|
6,097
|
|
China Petroleum & Chemical Corp.
|
3,892,000
|
4,102
|
|
PetroChina Co. Ltd.
|
2,150,000
|
2,918
|
|
China Oilfield Services Ltd.
|
1,274,000
|
2,404
|
|
Kunlun Energy Co. Ltd.
|
582,000
|
1,077
|
|
|
|
275,814
|
|
France (2.9%)
|
|
|
|
^ Total SA ADR
|
6,512,810
|
328,246
|
|
Total SA
|
281,392
|
14,174
|
|
* Cie Generale de Geophysique - Veritas
|
63,223
|
2,058
|
|
Technip SA
|
1,183
|
133
|
|
|
|
344,611
|
|
Hungary (0.0%)
|
|
|
|
MOL Hungarian Oil and Gas plc
|
27,913
|
2,428
|
|
|
|
India (0.8%)
|
|
|
|
Reliance Industries Ltd.
|
5,809,210
|
86,680
|
|
Oil & Natural Gas Corp. Ltd.
|
444,511
|
2,214
|
|
* Cairn India Ltd.
|
322,307
|
2,011
|
|
|
|
90,905
|
|
Italy (2.2%)
|
|
|
|
Eni SPA ADR
|
5,078,750
|
233,064
|
|
Eni SPA
|
1,197,209
|
27,549
|
|
Tenaris SA
|
81,113
|
1,521
|
|
|
|
262,134
|
|
Japan (1.6%)
|
|
|
|
Inpex Corp.
|
28,863
|
164,428
|
|
JX Holdings Inc.
|
5,404,900
|
28,787
|
|
Japan Petroleum Exploration Co.
|
47,600
|
1,792
|
|
|
|
195,007
|
|
Netherlands (0.0%)
|
|
|
|
* SBM Offshore NV
|
118,965
|
1,557
|
|
|
|
Norway (1.0%)
|
|
|
|
Statoil ASA ADR
|
4,043,080
|
99,258
|
|
Statoil ASA
|
199,383
|
4,910
|
|
^ Nordic American Tankers Ltd.
|
537,284
|
4,513
|
|
Seadrill Ltd.
|
85,926
|
3,482
|
|
Aker Solutions ASA
|
123,103
|
2,426
|
|
|
|
114,589
|
|
Poland (0.0%)
|
|
|
|
* Polski Koncern Naftowy Orlen SA
|
173,792
|
2,382
|
|
* Grupa Lotos SA
|
94,281
|
996
|
|
|
|
3,378
|
|
|
|
|
|
Portugal (0.5%)
|
|
|
|
Galp Energia SGPS SA
|
3,356,250
|
53,727
|
|
|
|
Russia (2.7%)
|
|
|
|
Gazprom OAO ADR
|
16,994,690
|
156,096
|
|
Rosneft OAO GDR
|
10,744,835
|
79,837
|
|
Lukoil OAO ADR
|
1,083,360
|
65,747
|
|
Lukoil OAO ADR
|
89,143
|
5,410
|
|
Tatneft OAO ADR
|
75,220
|
2,925
|
|
AK Transneft OAO Prior Pfd.
|
1,226
|
2,457
|
|
Surgutneftegas OAO ADR
|
179,780
|
1,573
|
|
TMK OAO GDR
|
100,333
|
1,490
|
|
Surgutneftegas OAO Prior Pfd.
|
2,250,000
|
1,392
|
|
Gazprom OAO
|
124,674
|
577
|
|
|
|
317,504
|
|
South Africa (0.0%)
|
|
|
|
Sasol Ltd.
|
21,200
|
903
|
|
|
|
South Korea (0.0%)
|
|
|
|
SK Innovation Co. Ltd.
|
15,004
|
2,206
|
|
|
|
Spain (0.8%)
|
|
|
|
Repsol SA
|
4,758,061
|
95,356
|
|
|
|
Thailand (0.0%)
|
|
|
|
PTT PCL (Foreign)
|
265,500
|
2,745
|
|
PTT Exploration & Production PCL (Foreign)
|
21,500
|
116
|
|
|
|
2,861
|
|
United Kingdom (12.4%)
|
|
|
|
Royal Dutch Shell plc ADR
|
6,926,160
|
474,303
|
|
BP plc ADR
|
10,813,380
|
463,786
|
|
BG Group plc
|
10,352,858
|
192,222
|
|
Royal Dutch Shell plc Class B
|
4,240,107
|
149,984
|
|
Ensco plc Class A
|
2,423,046
|
140,101
|
|
Royal Dutch Shell plc Class A
|
773,955
|
26,557
|
|
BP plc
|
2,421,323
|
17,292
|
|
* Genel Energy plc
|
1,288,081
|
16,904
|
|
Royal Dutch Shell plc Class A (Amsterdam Shares)
|
116,597
|
3,997
|
|
AMEC plc
|
127,701
|
2,191
|
|
Tullow Oil plc
|
20,375
|
463
|
|
|
|
1,487,800
|
|
Total International
|
|
4,812,862
|
|
Total Common Stocks (Cost $7,789,461)
|
|
11,500,074
|
|
|
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
|
|
Value
|
|
|
Coupon
|
|
Shares
|
($000)
|
|
Temporary Cash Investments (4.1%)
1
|
|
|
|
|
|
Money Market Fund (1.3%)
|
|
|
|
|
|
3,4
Vanguard Market Liquidity Fund
|
0.167%
|
|
157,841,642
|
157,842
|
|
|
|
|
|
|
Face
|
|
|
|
|
Maturity
|
Amount
|
|
|
|
|
Date
|
($000)
|
|
|
Repurchase Agreements (2.7%)
|
|
|
|
|
|
Deutsche Bank Securities, Inc.
|
|
|
|
|
|
(Dated 10/31/12, Repurchase value
|
|
|
|
|
|
114,501,000, collateralized by Federal
|
|
|
|
|
|
National Mortgage Assn. 2.500%-3.500%,
|
|
|
|
|
|
7/01/27-10/01/42)
|
0.350%
|
11/1/12
|
114,500
|
114,500
|
|
RBS Securities, Inc.
|
|
|
|
|
|
(Dated 10/31/12, Repurchase Value
|
|
|
|
|
|
$202,902,000, collateralized by U.S.
|
|
|
|
|
|
Treasury Bond 0.750%-2.250%, 6/30/17-
|
|
|
|
|
|
7/31/18)
|
0.280%
|
11/1/12
|
202,900
|
202,900
|
|
|
|
|
|
317,400
|
|
U.S. Government and Agency Obligations (0.1%)
|
|
|
|
|
|
5,6
Federal Home Loan Bank Discount Notes
|
0.140%
|
11/28/12
|
3,500
|
3,499
|
|
5 United States Treasury Note/Bond
|
0.625%
|
12/31/12
|
6,100
|
6,105
|
|
|
|
|
|
9,604
|
|
Total Temporary Cash Investments (Cost $484,846)
|
|
|
|
484,846
|
|
Total Investments (100.3%) (Cost $8,274,307)
|
|
|
|
11,984,920
|
|
Other Assets and Liabilities-Net (-0.3%)
4
|
|
|
|
(32,838)
|
|
Net Assets (100%)
|
|
|
|
11,952,082
|
* Non-income-producing security.
^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $17,072,000.
1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After
giving effect to futures investments, the fund's effective common stock and temporary cash investment positions
represent 97.4% and 2.9%, respectively, of net assets.
2 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
3 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by
Vanguard. Rate shown is the 7-day yield.
4 Includes $17,862,000 of collateral received for securities on loan.
5 Securities with a value of $3,600,000 have been segregated as initial margin for open futures contracts.
6 The issuer operates under a congressional charter; its securities are generally neither guaranteed by the U.S.
Treasury nor backed by the full faith and credit of the U.S. government.
ADR—American Depositary Receipt.
GDR—Global Depositary Receipt.
Energy Fund
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. Repurchase Agreements: The fund may enter into repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. In the event of default or bankruptcy by the other party to the agreement, the fund may sell or retain the collateral; however, such action may be subject to legal proceedings.
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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine
the fair value of investments).
Energy Fund
The following table summarizes the market value of the fund's investments as of October 31, 2012, based on the inputs used to value them:
|
|
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
|
Investments
|
($000)
|
($000)
|
($000)
|
|
Common Stocks—United States
|
6,687,212
|
—
|
—
|
|
Common Stocks—International
|
3,395,930
|
1,416,932
|
—
|
|
Temporary Cash Investments
|
157,842
|
327,004
|
—
|
|
Futures Contracts—Assets
1
|
8
|
—
|
—
|
|
Futures Contracts—Liabilities
1
|
(137)
|
—
|
—
|
|
Total
|
10,240,855
|
1,743,936
|
—
|
|
1 Represents variation margin on the last day of the reporting period.
|
|
|
E. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, enhancing returns, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The fund may seek to enhance returns by using futures contracts instead of the underlying securities when futures are believed to be priced more attractively than the underlying securities. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market.
Futures contracts are valued at their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the Schedule of Investments. Fluctuations in the value of the contracts are recorded in the Schedule of Investments as an asset (liability).
At October 31, 2012, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:
|
|
|
|
|
|
|
|
|
|
|
($000)
|
|
|
|
|
Aggregate
|
|
|
|
|
Number of
|
Settlement
|
Unrealized
|
|
|
|
Long (Short)
|
Value
|
Appreciation
|
|
Futures Contracts
|
Expiration
|
Contracts
|
Long (Short)
|
(Depreciation)
|
|
E-mini S&P 500 Index
|
December 2012
|
1,838
|
129,285
|
(1,956)
|
|
S&P 500 Index
|
December 2012
|
34
|
11,958
|
(393)
|
Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.
F. At October 31, 2012, the cost of investment securities for tax purposes was $8,287,167,000. Net unrealized appreciation of investment securities for tax purposes was $3,697,753,000, consisting of unrealized gains of $4,049,344,000 on securities that had risen in value since their purchase and $351,591,000 in unrealized losses on securities that had fallen in value since their purchase.
Vanguard REIT Index Fund
Schedule of Investments
As of October 31, 2012
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
|
Value
|
|
|
|
Shares
|
($000)
|
|
Real Estate Investment Trusts (99.5%)
1
|
|
|
|
Diversified REITs (7.3%)
|
|
|
|
2
|
Vornado Realty Trust
|
11,077,047
|
888,490
|
|
2
|
Liberty Property Trust
|
7,779,225
|
273,206
|
|
2
|
Duke Realty Corp.
|
17,664,956
|
255,789
|
|
2
|
Washington REIT
|
4,395,846
|
113,017
|
|
|
WP Carey Inc.
|
1,983,173
|
108,480
|
|
2
|
Lexington Realty Trust
|
10,209,912
|
96,892
|
|
2
|
PS Business Parks Inc.
|
1,284,990
|
82,407
|
|
|
American Assets Trust Inc.
|
2,213,396
|
60,138
|
|
2
|
Cousins Properties Inc.
|
6,212,293
|
52,245
|
|
2
|
Investors Real Estate Trust
|
5,711,717
|
48,093
|
|
2
|
First Potomac Realty Trust
|
3,378,357
|
40,236
|
|
2
|
Winthrop Realty Trust
|
1,972,507
|
21,579
|
|
2
|
CapLease Inc.
|
4,204,295
|
21,568
|
|
|
|
|
2,062,140
|
|
Industrial REITs (4.8%)
|
|
|
|
2
|
Prologis Inc.
|
30,523,611
|
1,046,655
|
|
2
|
DCT Industrial Trust Inc.
|
17,673,220
|
113,992
|
|
2
|
EastGroup Properties Inc.
|
1,887,395
|
98,258
|
|
*,2
First Industrial Realty Trust Inc.
|
6,190,467
|
82,643
|
|
2
|
Monmouth Real Estate Investment Corp. Class A
|
2,132,836
|
23,674
|
|
|
|
|
1,365,222
|
|
Office REITs (14.2%)
|
|
|
|
2
|
Boston Properties Inc.
|
9,932,466
|
1,055,821
|
|
2
|
Digital Realty Trust Inc.
|
7,973,559
|
489,816
|
|
2
|
SL Green Realty Corp.
|
5,990,939
|
451,118
|
|
2
|
Alexandria Real Estate Equities Inc.
|
4,116,206
|
289,905
|
|
2
|
Kilroy Realty Corp.
|
4,901,662
|
217,683
|
|
2
|
Douglas Emmett Inc.
|
8,794,476
|
206,231
|
|
2
|
Piedmont Office Realty Trust Inc. Class A
|
11,452,025
|
203,846
|
|
2
|
BioMed Realty Trust Inc.
|
10,220,520
|
195,417
|
|
2
|
Highwoods Properties Inc.
|
4,901,093
|
158,060
|
|
2
|
Mack-Cali Realty Corp.
|
5,822,247
|
151,320
|
|
2
|
Corporate Office Properties Trust
|
5,281,521
|
131,774
|
|
2
|
Brandywine Realty Trust
|
9,496,576
|
110,160
|
|
2
|
DuPont Fabros Technology Inc.
|
4,191,343
|
89,946
|
|
^
|
Government Properties Income Trust
|
2,660,718
|
59,041
|
|
2
|
Franklin Street Properties Corp.
|
4,947,694
|
56,453
|
|
|
CommonWealth REIT
|
3,429,470
|
47,018
|
|
|
Hudson Pacific Properties Inc.
|
2,261,905
|
42,908
|
|
2
|
Coresite Realty Corp.
|
1,391,334
|
31,625
|
|
|
Parkway Properties Inc.
|
1,470,312
|
20,246
|
|
|
|
|
4,008,388
|
|
Residential REITs (17.6%)
|
|
|
|
2
|
Equity Residential
|
19,930,898
|
1,144,233
|
|
2
|
AvalonBay Communities Inc.
|
6,321,701
|
856,970
|
|
2
|
UDR Inc.
|
16,399,796
|
398,023
|
|
2
|
Essex Property Trust Inc.
|
2,334,694
|
350,204
|
|
2
|
Camden Property Trust
|
5,322,959
|
349,346
|
|
|
|
|
|
|
2
|
American Campus Communities Inc.
|
6,834,702
|
309,680
|
|
2
|
Apartment Investment & Management Co. Class A
|
9,559,884
|
255,153
|
|
2
|
BRE Properties Inc.
|
5,085,029
|
245,861
|
|
2
|
Home Properties Inc.
|
3,226,303
|
196,127
|
|
2
|
Mid-America Apartment Communities Inc.
|
2,714,129
|
175,631
|
|
2
|
Equity Lifestyle Properties Inc.
|
2,601,097
|
175,132
|
|
2
|
Post Properties Inc.
|
3,586,810
|
175,072
|
|
2
|
Colonial Properties Trust
|
5,536,550
|
119,756
|
|
2
|
Sun Communities Inc.
|
1,872,303
|
78,599
|
|
2
|
Education Realty Trust Inc.
|
7,342,171
|
77,313
|
|
2
|
Associated Estates Realty Corp.
|
3,225,998
|
48,358
|
|
2
|
Campus Crest Communities Inc.
|
2,490,967
|
27,625
|
|
|
|
|
4,983,083
|
|
Retail REITs (27.6%)
|
|
|
|
2
|
Simon Property Group Inc.
|
20,094,302
|
3,058,554
|
|
|
General Growth Properties Inc.
|
27,980,996
|
550,106
|
|
2
|
Kimco Realty Corp.
|
26,978,599
|
526,622
|
|
2
|
Macerich Co.
|
8,788,627
|
500,952
|
|
2
|
Federal Realty Investment Trust
|
4,237,388
|
456,917
|
|
^,2
Realty Income Corp.
|
8,844,751
|
347,333
|
|
2
|
Taubman Centers Inc.
|
3,896,384
|
306,061
|
|
2
|
Regency Centers Corp.
|
5,962,237
|
286,307
|
|
|
DDR Corp.
|
14,970,811
|
229,952
|
|
2
|
National Retail Properties Inc.
|
7,095,095
|
224,773
|
|
2
|
CBL & Associates Properties Inc.
|
9,366,743
|
209,534
|
|
2
|
Weingarten Realty Investors
|
7,633,243
|
206,098
|
|
2
|
Tanger Factory Outlet Centers
|
6,141,167
|
193,262
|
|
2
|
Glimcher Realty Trust
|
9,243,716
|
98,630
|
|
2
|
Acadia Realty Trust
|
3,243,301
|
83,288
|
|
|
Equity One Inc.
|
3,803,614
|
79,495
|
|
|
Alexander's Inc.
|
135,350
|
60,090
|
|
2
|
Pennsylvania REIT
|
3,523,323
|
58,240
|
|
2
|
Inland Real Estate Corp.
|
5,903,922
|
48,235
|
|
^,2
Retail Opportunity Investments Corp.
|
3,337,173
|
42,249
|
|
2
|
Ramco-Gershenson Properties Trust
|
3,045,568
|
39,471
|
|
2
|
Excel Trust Inc.
|
2,783,753
|
34,240
|
|
|
Saul Centers Inc.
|
775,533
|
33,557
|
|
^,2
Getty Realty Corp.
|
1,770,783
|
32,423
|
|
|
Urstadt Biddle Properties Inc. Class A
|
1,485,683
|
28,139
|
|
2
|
Kite Realty Group Trust
|
4,793,566
|
26,221
|
|
2
|
Cedar Realty Trust Inc.
|
3,904,650
|
20,656
|
|
|
Rouse Properties Inc.
|
1,304,793
|
19,650
|
|
|
Urstadt Biddle Properties Inc.
|
69,255
|
1,276
|
|
|
|
|
7,802,331
|
|
Specialized REITs (28.0%)
|
|
|
|
2
|
Public Storage
|
9,664,096
|
1,339,734
|
|
2
|
HCP Inc.
|
30,025,261
|
1,330,119
|
|
2
|
Ventas Inc.
|
19,506,849
|
1,234,198
|
|
2
|
Health Care REIT Inc.
|
16,914,369
|
1,005,221
|
|
2
|
Host Hotels & Resorts Inc.
|
47,628,322
|
688,706
|
|
2
|
Extra Space Storage Inc.
|
6,541,445
|
225,614
|
|
|
Senior Housing Properties Trust
|
8,480,623
|
186,404
|
|
^,2
Omega Healthcare Investors Inc.
|
7,014,495
|
160,912
|
|
2
|
Entertainment Properties Trust
|
3,104,283
|
137,985
|
|
|
Hospitality Properties Trust
|
5,891,524
|
136,212
|
|
2
|
LaSalle Hotel Properties
|
5,677,523
|
135,920
|
|
|
|
|
|
|
|
|
2
|
Healthcare Realty Trust Inc.
|
|
|
5,702,191
|
133,944
|
|
2
|
RLJ Lodging Trust
|
|
|
6,364,895
|
113,422
|
|
2
|
Sovran Self Storage Inc.
|
|
|
1,922,077
|
111,096
|
|
2
|
DiamondRock Hospitality Co.
|
|
|
12,456,847
|
105,634
|
|
2
|
Medical Properties Trust Inc.
|
|
|
8,986,396
|
103,164
|
|
2
|
CubeSmart
|
|
|
7,756,515
|
101,765
|
|
*,2
Sunstone Hotel Investors Inc.
|
|
|
8,991,187
|
88,833
|
|
2
|
National Health Investors Inc.
|
|
|
1,565,248
|
83,600
|
|
2
|
Pebblebrook Hotel Trust
|
|
|
3,759,545
|
79,778
|
|
2
|
LTC Properties Inc.
|
|
|
2,015,854
|
66,543
|
|
*,2
Strategic Hotels & Resorts Inc.
|
|
|
10,831,821
|
59,467
|
|
2
|
Sabra Health Care REIT Inc.
|
|
|
2,455,882
|
54,570
|
|
2
|
Hersha Hospitality Trust Class A
|
|
|
11,832,225
|
54,073
|
|
2
|
Chesapeake Lodging Trust
|
|
|
2,560,718
|
48,270
|
|
2
|
Universal Health Realty Income Trust
|
|
|
797,828
|
39,445
|
|
2
|
Ashford Hospitality Trust Inc.
|
|
|
4,291,142
|
36,861
|
|
*,2
FelCor Lodging Trust Inc.
|
|
|
7,822,620
|
34,420
|
|
2
|
Summit Hotel Properties Inc.
|
|
|
2,778,707
|
22,952
|
|
|
|
|
|
|
7,918,862
|
|
Total Real Estate Investment Trusts (Cost $24,171,818)
|
|
|
|
28,140,026
|
|
|
|
Coupon
|
|
|
|
|
Temporary Cash Investments (0.7%)
1
|
|
|
|
|
|
Money Market Fund (0.7%)
|
|
|
|
|
|
3,4
Vanguard Market Liquidity Fund
|
0.167%
|
|
194,127,859
|
194,128
|
|
|
|
|
|
|
|
Face
|
|
|
|
|
|
Maturity
|
Amount
|
|
|
|
|
|
Date
|
($000)
|
|
|
U.S. Government and Agency Obligations (0.0%)
|
|
|
|
|
|
5
|
United States Treasury Note/Bond
|
1.375%
|
11/15/12
|
5,000
|
5,002
|
|
Total Temporary Cash Investments (Cost $199,130)
|
|
|
|
199,130
|
|
Total Investments (100.2%) (Cost $24,370,948)
|
|
|
|
28,339,156
|
|
Other Assets and Liabilities-Net (-0.2%)
4
|
|
|
|
(44,519)
|
|
Net Assets (100%)
|
|
|
|
28,294,637
|
* Non-income-producing security.
^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $34,014,000.
1 The fund invests a portion of its assets in Real Estate Investment Trusts through the use of swap contracts. After
giving effect to swap investments, the fund's effective Real Estate Investment Trust and temporary cash
investment positions represent 100.0% and 0.2%, respectively, of net assets.
2 Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities
of such company.
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 Includes $35,574,000 of collateral received for securities on loan.
5 Securities with a value of $49,000 have been segregated as collateral for open swap contracts.
REIT—Real Estate Investment Trust.
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of
REIT Index Fund
trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Temporary cash investments acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine
the fair value of investments).
The following table summarizes the market value of the fund's investments as of October 31, 2012,
based on the inputs used to value them:
|
|
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
|
Investments
|
($000)
|
($000)
|
($000)
|
|
Real Estate Investment Trusts
|
28,140,026
|
—
|
—
|
|
Temporary Cash Investments
|
194,128
|
5,002
|
—
|
|
Swap Contracts—Assets
|
—
|
1,059
|
—
|
|
Swap Contracts—Liabilities
|
—
|
(1,117)
|
|
|
Total
|
28,334,154
|
4,944
|
—
|
C. Swap Contracts: The fund enters into swap transactions to earn the total return on a specified commodity index. Under the terms of the swaps, the fund receives the total return (either receiving the increase or paying the decrease) on a reference index, applied to a notional principal amount. In return, the fund agrees to pay the counterparty a floating rate, which is reset periodically based on short-term interest rates, applied to the same notional amount. At the same time, the fund invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.
The notional amounts of swap contracts are not recorded in the Schedule of Investments. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded as unrealized appreciation (depreciation) until periodic payments are made, or the swap terminates, at which time realized gain (loss) is recorded. The primary risk associated with the swaps is that a counterparty will default on its obligation to pay net amounts due to the fund. The fund’s maximum risk of loss from counterparty credit risk is the amount of unrealized appreciation on the swap contract. This risk is mitigated by entering into swaps only with highly rated counterparties, by a master netting arrangement between the fund and the counterparty, and by the posting of collateral by the counterparty. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund's net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has posted. Any securities posted as collateral for open contracts are noted in the Schedule of Investments.
REIT Index Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
Notional
|
Floating Interest
|
Appreciation
|
|
|
Termination
|
|
Amount
|
Rate Received
|
(Depreciation)
|
|
Reference Entity
|
Date
|
Counterparty
1
|
($000)
|
(Paid)
|
($000)
|
|
CommonWealth REIT
|
8/7/13
|
GSI
|
30,416
|
(0.564%)
2
|
(834)
|
|
Hospitality Propeties Trust
|
8/2/13
|
GSI
|
54,510
|
(0.565%)
2
|
(283)
|
|
Senior Housing Properties Trust
|
8/9/13
|
GSI
|
68,262
|
(0.568%)
2
|
1,059
|
1 GSI—Goldman Sachs International.
2 Based on one-month London Interbank Offered Rate (LIBOR) as of the most recent payment date plus a 0.35% spread.
D. Certain of the fund's investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company. Transactions during the period in securities of these companies were as follows:
|
|
|
|
|
|
|
|
|
|
Current Period Transactions
|
|
|
|
|
|
Proceeds
|
|
|
|
|
Jan. 31, 2012
|
|
from
|
|
Oct. 31, 2012
|
|
|
Market
|
Purchases
|
Securities
|
Dividend
|
Market
|
|
|
Value
|
at Cost
|
Sold
|
Income
|
Value
|
|
|
($000)
|
($000)
|
($000)
|
($000)
|
($000)
|
|
Acadia Realty Trust
|
51,097
|
23,972
|
4,200
|
1,411
|
83,288
|
|
Alexandria Real Estate Equities Inc.
|
255,999
|
64,812
|
22,064
|
5,353
|
289,905
|
|
American Campus Communities Inc.
|
169,885
|
142,374
|
15,263
|
1,360
|
309,680
|
|
Apartment Investment & Management
|
|
|
|
|
|
|
Co. Class A
|
169,368
|
89,005
|
17,592
|
437
|
255,153
|
|
Ashford Hospitality Trust Inc.
|
N/A
1
|
11,806
|
1,655
|
842
|
36,861
|
|
Associated Estates Realty Corp.
|
39,638
|
16,085
|
3,167
|
1,372
|
48,358
|
|
AvalonBay Communities Inc.
|
730,160
|
197,518
|
63,102
|
10,172
|
856,970
|
|
BioMed Realty Trust Inc.
|
163,067
|
41,405
|
13,988
|
3,539
|
195,417
|
|
Boston Properties Inc.
|
872,582
|
233,690
|
66,208
|
12,547
|
1,055,821
|
|
Brandywine Realty Trust
|
82,324
|
27,628
|
7,037
|
3,470
|
110,160
|
|
BRE Properties Inc.
|
221,085
|
57,667
|
16,420
|
3,547
|
245,861
|
|
Camden Property Trust
|
286,927
|
80,030
|
21,309
|
5,236
|
349,346
|
|
Campus Crest Communities Inc.
|
18,730
|
9,427
|
1,618
|
711
|
27,625
|
|
CapLease Inc.
|
15,361
|
3,816
|
1,465
|
262
|
21,568
|
|
CBL & Associates Properties Inc.
|
139,759
|
39,417
|
13,530
|
5,772
|
209,534
|
|
Cedar Realty Trust Inc.
|
N/A
1
|
4,307
|
1,132
|
332
|
20,656
|
|
Chesapeake Lodging Trust
|
29,717
|
17,856
|
2,621
|
1,371
|
48,270
|
|
Cogdell Spencer Inc.
|
11,770
|
623
|
12,394
|
—
|
—
|
|
Colonial Properties Trust
|
100,689
|
26,095
|
8,029
|
1,858
|
119,756
|
|
Coresite Realty Corp.
|
22,717
|
8,271
|
1,825
|
690
|
31,625
|
|
Corporate Office Properties Trust
|
99,468
|
36,893
|
8,271
|
2,515
|
131,774
|
|
Cousins Properties Inc.
|
39,291
|
10,042
|
3,231
|
537
|
52,245
|
REIT Index Fund
|
|
|
|
|
|
|
|
CubeSmart
|
73,791
|
21,848
|
6,375
|
1,446
|
101,765
|
|
DCT Industrial Trust Inc.
|
77,573
|
29,351
|
6,933
|
1,618
|
113,992
|
|
DiamondRock Hospitality Co.
|
100,713
|
37,978
|
8,492
|
2,316
|
105,634
|
|
Digital Realty Trust Inc.
|
401,986
|
203,560
|
35,630
|
15,042
|
489,816
|
|
Douglas Emmett Inc.
|
144,724
|
55,328
|
13,311
|
—
|
206,231
|
|
Duke Realty Corp.
|
193,225
|
61,872
|
15,202
|
2,565
|
255,789
|
|
DuPont Fabros Technology Inc.
|
90,899
|
23,143
|
6,926
|
1,667
|
89,946
|
|
EastGroup Properties Inc.
|
73,381
|
23,417
|
5,727
|
2,134
|
98,258
|
|
Education Realty Trust Inc.
|
55,041
|
29,565
|
5,360
|
200
|
77,313
|
|
Entertainment Properties Trust
|
118,450
|
29,923
|
9,865
|
4,548
|
137,985
|
|
Equity Lifestyle Properties Inc.
|
154,795
|
39,055
|
11,805
|
2,771
|
175,132
|
|
Equity Residential
|
1,007,899
|
263,156
|
79,379
|
8,338
|
1,144,233
|
|
Essex Property Trust Inc.
|
277,977
|
82,134
|
20,732
|
5,372
|
350,204
|
|
Excel Trust Inc.
|
21,309
|
15,065
|
1,796
|
940
|
34,240
|
|
Extra Space Storage Inc.
|
134,550
|
56,360
|
13,207
|
3,531
|
225,614
|
|
Federal Realty Investment Trust
|
338,666
|
96,315
|
29,778
|
7,696
|
456,917
|
|
FelCor Lodging Trust Inc.
|
25,751
|
7,235
|
2,463
|
—
|
34,420
|
|
First Industrial Realty Trust Inc.
|
53,925
|
24,144
|
5,349
|
—
|
82,643
|
|
First Potomac Realty Trust
|
42,540
|
9,191
|
2,554
|
1,255
|
40,236
|
|
Franklin Street Properties Corp.
|
42,644
|
11,820
|
3,662
|
1,723
|
56,453
|
|
Getty Realty Corp.
|
N/A
1
|
6,287
|
2,043
|
421
|
32,423
|
|
Glimcher Realty Trust
|
59,069
|
37,383
|
5,939
|
544
|
98,630
|
|
HCP Inc.
|
976,956
|
367,543
|
70,731
|
21,790
|
1,330,119
|
|
Health Care REIT Inc.
|
619,795
|
403,226
|
58,346
|
15,384
|
1,005,221
|
|
Healthcare Realty Trust Inc.
|
93,613
|
37,540
|
8,764
|
1,723
|
133,944
|
|
Hersha Hospitality Trust Class A
|
47,394
|
21,147
|
4,285
|
467
|
54,073
|
|
Highwoods Properties Inc.
|
136,758
|
35,948
|
10,288
|
2,949
|
158,060
|
|
Home Properties Inc.
|
162,439
|
43,926
|
12,940
|
3,018
|
196,127
|
|
Host Hotels & Resorts Inc.
|
661,904
|
167,081
|
49,982
|
9,346
|
688,706
|
|
Inland Real Estate Corp.
|
43,369
|
10,558
|
3,404
|
1,756
|
48,235
|
|
Investors Real Estate Trust
|
34,434
|
10,763
|
2,389
|
581
|
48,093
|
|
Kilroy Realty Corp.
|
138,935
|
86,036
|
14,912
|
595
|
217,683
|
|
Kimco Realty Corp.
|
424,002
|
112,644
|
39,873
|
10,277
|
526,622
|
|
Kite Realty Group Trust
|
17,237
|
8,424
|
1,256
|
34
|
26,221
|
|
LaSalle Hotel Properties
|
131,385
|
35,540
|
12,514
|
2,732
|
135,920
|
|
Lexington Realty Trust
|
69,756
|
26,734
|
7,252
|
2,359
|
96,892
|
|
Liberty Property Trust
|
219,807
|
60,125
|
17,725
|
8,339
|
273,206
|
|
LTC Properties Inc.
|
55,337
|
14,146
|
4,710
|
2,163
|
66,543
|
|
Macerich Co.
|
408,910
|
109,781
|
36,415
|
3,188
|
500,952
|
|
Mack-Cali Realty Corp.
|
142,918
|
34,665
|
10,676
|
6,034
|
151,320
|
|
Medical Properties Trust Inc.
|
68,359
|
31,064
|
5,776
|
2,403
|
103,164
|
REIT Index Fund
|
|
|
|
|
|
|
|
Mid-America Apartment Communities
|
135,528
|
50,233
|
10,460
|
3,445
|
175,631
|
|
Inc.
|
|
|
|
|
|
|
Monmouth Real Estate Investment
|
N/A
1
|
5,937
|
898
|
821
|
23,674
|
|
Corp. Class A
|
|
|
|
|
|
|
National Health Investors Inc.
|
N/A
1
|
17,011
|
5,811
|
2,687
|
83,600
|
|
National Retail Properties Inc.
|
159,430
|
48,319
|
13,599
|
6,424
|
224,773
|
|
Omega Healthcare Investors Inc.
|
122,651
|
34,838
|
9,302
|
5,485
|
160,912
|
|
Parkway Properties Inc.
|
12,200
|
3,273
|
956
|
183
|
N/A
2
|
|
Pebblebrook Hotel Trust
|
64,445
|
25,665
|
6,060
|
1,229
|
79,778
|
|
Pennsylvania REIT
|
37,104
|
10,983
|
3,478
|
1,529
|
58,240
|
|
Piedmont Office Realty Trust Inc. Class
|
182,718
|
42,798
|
15,010
|
4,879
|
203,846
|
|
A
|
|
|
|
|
|
|
Post Properties Inc.
|
128,765
|
43,997
|
9,960
|
222
|
175,072
|
|
Prologis Inc.
|
830,882
|
223,894
|
75,589
|
16,802
|
1,046,655
|
|
PS Business Parks Inc.
|
N/A
1
|
18,497
|
7,808
|
1,572
|
82,407
|
|
Public Storage
|
N/A
1
|
293,406
|
98,001
|
29,588
|
1,339,734
|
|
Ramco-Gershenson Properties Trust
|
25,476
|
12,512
|
2,213
|
944
|
39,471
|
|
Realty Income Corp.
|
276,781
|
76,380
|
26,677
|
8,379
|
347,333
|
|
Regency Centers Corp.
|
212,068
|
59,404
|
21,031
|
3,216
|
286,307
|
|
Retail Opportunity Investments Corp.
|
32,989
|
9,020
|
2,172
|
1,043
|
42,249
|
|
RLJ Lodging Trust
|
97,453
|
24,806
|
8,199
|
2,950
|
113,422
|
|
Sabra Health Care REIT Inc.
|
29,943
|
8,871
|
2,780
|
2,094
|
54,570
|
|
Simon Property Group Inc.
|
2,276,966
|
688,769
|
181,682
|
45,318
|
3,058,554
|
|
SL Green Realty Corp.
|
358,736
|
117,456
|
29,247
|
4,093
|
451,118
|
|
Sovran Self Storage Inc.
|
73,570
|
24,446
|
6,686
|
1,587
|
111,096
|
|
Strategic Hotels & Resorts Inc.
|
N/A
1
|
19,422
|
4,307
|
—
|
59,467
|
|
Summit Hotel Properties Inc.
|
14,567
|
11,187
|
917
|
562
|
22,952
|
|
Sun Communities Inc.
|
56,230
|
41,609
|
5,008
|
714
|
78,599
|
|
Sunstone Hotel Investors Inc.
|
62,766
|
29,730
|
6,391
|
—
|
88,833
|
|
Tanger Factory Outlet Centers
|
144,685
|
50,224
|
11,101
|
3,157
|
193,262
|
|
Taubman Centers Inc.
|
221,511
|
71,479
|
26,800
|
3,404
|
306,061
|
|
UDR Inc.
|
325,415
|
153,261
|
51,751
|
5,778
|
398,023
|
|
Universal Health Realty Income Trust
|
27,415
|
6,952
|
2,264
|
911
|
39,445
|
|
Ventas Inc.
|
958,394
|
264,947
|
77,015
|
31,115
|
1,234,198
|
|
Vornado Realty Trust
|
766,367
|
198,030
|
64,032
|
12,074
|
888,490
|
|
Washington REIT
|
112,317
|
26,619
|
8,569
|
3,100
|
113,017
|
|
Weingarten Realty Investors
|
159,043
|
43,667
|
14,841
|
5,038
|
206,098
|
|
Winthrop Realty Trust
|
20,230
|
4,607
|
1,398
|
862
|
21,579
|
|
|
19,388,495
|
|
|
433,804
|
26,477,314
|
1 Not applicable — At January 31, 2012, the issuer was not an affiliated company of the fund.
2 Not applicable — At October 31, 2012, the security was still held, but the issuer was no longer an affiliated
company of the fund.
REIT Index Fund
E. At October 31, 2012, the cost of investment securities for tax purposes was $24,370,948,000. Net unrealized appreciation of investment securities for tax purposes was $3,968,208,000, consisting of unrealized gains of $4,677,597,000 on securities that had risen in value since their purchase and $709,389,000 in unrealized losses on securities that had fallen in value since their purchase.
Dividend Growth Fund
Schedule of Investments
As of October 31, 2012
|
|
|
|
|
|
|
Market
|
|
|
|
Value
|
|
|
Shares
|
($000)
|
|
Common Stocks (96.5%)
|
|
|
|
Consumer Discretionary (14.7%)
|
|
|
|
Target Corp.
|
5,342,462
|
340,582
|
|
McDonald's Corp.
|
2,830,370
|
245,676
|
|
Lowe's Cos. Inc.
|
7,394,399
|
239,431
|
|
Mattel Inc.
|
5,646,315
|
207,671
|
|
NIKE Inc. Class B
|
2,137,246
|
195,302
|
|
Omnicom Group Inc.
|
3,896,657
|
186,689
|
|
Walt Disney Co.
|
3,354,955
|
164,628
|
|
Comcast Corp. Class A
|
3,328,802
|
124,863
|
|
|
|
1,704,842
|
|
Consumer Staples (12.3%)
|
|
|
|
PepsiCo Inc.
|
5,326,826
|
368,829
|
|
Procter & Gamble Co.
|
4,229,602
|
292,858
|
|
CVS Caremark Corp.
|
4,650,835
|
215,799
|
|
Colgate-Palmolive Co.
|
1,976,291
|
207,432
|
|
Wal-Mart Stores Inc.
|
2,634,129
|
197,612
|
|
Coca-Cola Co.
|
3,866,360
|
143,751
|
|
|
|
1,426,281
|
|
Energy (12.1%)
|
|
|
|
Occidental Petroleum Corp.
|
4,699,935
|
371,107
|
|
Exxon Mobil Corp.
|
3,827,383
|
348,942
|
|
BG Group plc
|
14,211,337
|
263,862
|
|
Enbridge Inc.
|
5,470,132
|
217,547
|
|
Chevron Corp.
|
1,810,639
|
199,551
|
|
|
|
1,401,009
|
|
Financials (8.9%)
|
|
|
|
ACE Ltd.
|
2,899,889
|
228,076
|
|
PNC Financial Services Group Inc.
|
3,806,659
|
221,509
|
|
Wells Fargo & Co.
|
5,788,342
|
195,009
|
|
Chubb Corp.
|
1,683,477
|
129,594
|
|
Marsh & McLennan Cos. Inc.
|
3,710,185
|
126,258
|
|
BlackRock Inc.
|
659,129
|
125,024
|
|
|
|
1,025,470
|
|
Health Care (17.4%)
|
|
|
|
Johnson & Johnson
|
5,361,982
|
379,736
|
|
Medtronic Inc.
|
6,894,941
|
286,692
|
|
Roche Holding AG
|
1,465,134
|
282,222
|
|
Pfizer Inc.
|
10,496,477
|
261,047
|
|
Cardinal Health Inc.
|
6,340,477
|
260,784
|
|
Amgen Inc.
|
2,615,084
|
226,322
|
|
Teva Pharmaceutical Industries Ltd. ADR
|
4,087,400
|
165,213
|
|
UnitedHealth Group Inc.
|
2,696,830
|
151,022
|
|
|
|
2,013,038
|
|
Industrials (13.9%)
|
|
|
|
United Parcel Service Inc. Class B
|
3,745,955
|
274,391
|
|
Lockheed Martin Corp.
|
2,524,566
|
236,476
|
|
General Dynamics Corp.
|
3,256,102
|
221,675
|
|
United Technologies Corp.
|
2,567,220
|
200,654
|
|
|
|
|
|
|
|
C.H. Robinson Worldwide Inc.
|
|
|
3,142,510
|
189,588
|
|
Honeywell International Inc.
|
|
|
3,026,962
|
185,371
|
|
Northrop Grumman Corp.
|
|
|
2,508,404
|
172,302
|
|
Emerson Electric Co.
|
|
|
2,735,235
|
132,468
|
|
|
|
|
|
1,612,925
|
|
Information Technology (12.4%)
|
|
|
|
|
|
Automatic Data Processing Inc.
|
|
|
5,437,156
|
314,213
|
|
Microsoft Corp.
|
|
|
9,883,012
|
282,012
|
|
International Business Machines Corp.
|
|
|
1,331,332
|
258,984
|
|
Oracle Corp.
|
|
|
8,018,065
|
248,961
|
|
Accenture plc Class A
|
|
|
2,776,375
|
187,156
|
|
Western Union Co.
|
|
|
11,817,100
|
150,077
|
|
|
|
|
|
1,441,403
|
|
Materials (3.3%)
|
|
|
|
|
|
Ecolab Inc.
|
|
|
3,021,226
|
210,277
|
|
Praxair Inc.
|
|
|
1,609,976
|
170,996
|
|
|
|
|
|
381,273
|
|
Utilities (1.5%)
|
|
|
|
|
|
Dominion Resources Inc.
|
|
|
3,259,616
|
172,042
|
|
|
|
Total Common Stocks (Cost $9,517,325)
|
|
|
|
11,178,283
|
|
|
|
Temporary Cash Investments (3.6%)
|
|
|
|
|
|
|
|
|
Face
|
|
|
|
|
Maturity
|
Amount
|
|
|
|
Coupon
|
Date
|
($000)
|
|
|
Repurchase Agreements (3.6%)
|
|
|
|
|
|
Morgan Stanley & Co., Inc.
|
|
|
|
|
|
(Dated 10/31/12, Repurchase Value
|
|
|
|
|
|
$194,702,000, collateralized by Federal
|
|
|
|
|
|
National Mortgage Assn., 3.000%-6.000%,
|
|
|
|
|
|
6/1/25-9/1/42)
|
0.350%
|
11/1/12
|
194,700
|
194,700
|
|
RBS Securities, Inc.
|
|
|
|
|
|
(Dated 10/31/12, Repurchase Value
|
|
|
|
|
|
$214,302,000, collateralized by U.S.
|
|
|
|
|
|
Treasury Note/Bond, 0.750%, 6/30/17)
|
0.280%
|
11/1/12
|
214,300
|
214,300
|
|
|
|
|
|
409,000
|
|
Total Temporary Cash Investments (Cost $409,000)
|
|
|
|
409,000
|
|
Total Investments (100.1%) (Cost $9,926,325)
|
|
|
|
11,587,283
|
|
Other Assets and Liabilities-Net (-0.1%)
|
|
|
|
(6,245)
|
|
Net Assets (100%)
|
|
|
|
11,581,038
|
|
ADR—American Depositary Receipt.
|
|
|
|
|
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events,
Dividend Growth Fund
and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Temporary cash investments acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. Repurchase Agreements: The portfolio may enter into repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. In the event of default or bankruptcy by the other party to the agreement, the portfolio may sell or retain the collateral; however, such action may be subject to legal proceedings.
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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine
the fair value of investments).
The following table summarizes the market value of the fund's investments as of October 31, 2012,
based on the inputs used to value them:
|
|
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
|
Investments
|
($000)
|
($000)
|
($000)
|
|
Common Stocks
|
10,632,199
|
546,084
|
—
|
|
Temporary Cash Investments
|
—
|
409,000
|
—
|
|
Total
|
10,632,199
|
955,084
|
—
|
E. At October 31, 2012, the cost of investment securities for tax purposes was $9,926,325,000. Net unrealized appreciation of investment securities for tax purposes was $1,660,958,000, consisting of unrealized gains of $1,807,633,000 on securities that had risen in value since their purchase and $146,675,000 in unrealized losses on securities that had fallen in value since their purchase.
Vanguard Dividend Appreciation Index Fund
Schedule of Investments
As of October 31, 2012
|
|
|
|
|
|
|
Market
|
|
|
|
Value
|
|
|
Shares
|
($000)
|
|
Common Stocks (100.0%)
|
|
|
|
Consumer Discretionary (14.7%)
|
|
|
|
McDonald's Corp.
|
5,453,109
|
473,330
|
|
Target Corp.
|
5,212,625
|
332,305
|
|
Lowe's Cos. Inc.
|
9,175,304
|
297,096
|
|
NIKE Inc. Class B
|
2,694,765
|
246,248
|
|
TJX Cos. Inc.
|
5,556,496
|
231,317
|
|
VF Corp.
|
804,667
|
125,914
|
|
McGraw-Hill Cos. Inc.
|
2,162,195
|
119,526
|
|
Ross Stores Inc.
|
1,596,788
|
97,324
|
|
Genuine Parts Co.
|
1,126,087
|
70,470
|
|
Family Dollar Stores Inc.
|
925,604
|
61,053
|
|
Polaris Industries Inc.
|
478,452
|
40,429
|
|
John Wiley & Sons Inc. Class A
|
370,704
|
16,081
|
|
Matthews International Corp. Class A
|
211,912
|
6,097
|
|
NACCO Industries Inc. Class A
|
48,905
|
2,477
|
|
|
|
2,119,667
|
|
Consumer Staples (24.8%)
|
|
|
|
Wal-Mart Stores Inc.
|
9,037,791
|
678,015
|
|
Coca-Cola Co.
|
16,065,564
|
597,318
|
|
Procter & Gamble Co.
|
8,469,050
|
586,397
|
|
PepsiCo Inc.
|
8,328,181
|
576,643
|
|
Colgate-Palmolive Co.
|
3,845,489
|
403,622
|
|
Walgreen Co.
|
6,481,278
|
228,335
|
|
Archer-Daniels-Midland Co.
|
4,857,256
|
130,369
|
|
JM Smucker Co.
|
830,576
|
71,131
|
|
Brown-Forman Corp. Class B
|
954,129
|
61,121
|
|
Hormel Foods Corp.
|
1,996,466
|
58,956
|
|
McCormick & Co. Inc.
|
897,692
|
55,316
|
|
Church & Dwight Co. Inc.
|
1,076,805
|
54,659
|
|
Nu Skin Enterprises Inc. Class A
|
472,515
|
22,364
|
|
Lancaster Colony Corp.
|
205,010
|
14,921
|
|
Casey's General Stores Inc.
|
279,787
|
14,423
|
|
^ Tootsie Roll Industries Inc.
|
280,086
|
7,464
|
|
Sanderson Farms Inc.
|
164,089
|
7,432
|
|
|
|
3,568,486
|
|
Energy (10.5%)
|
|
|
|
Exxon Mobil Corp.
|
6,293,473
|
573,776
|
|
Chevron Corp.
|
5,144,255
|
566,948
|
|
EOG Resources Inc.
|
1,905,972
|
222,027
|
|
Murphy Oil Corp.
|
1,344,342
|
80,661
|
|
Helmerich & Payne Inc.
|
786,140
|
37,577
|
|
Energen Corp.
|
516,349
|
24,088
|
|
^ CARBO Ceramics Inc.
|
169,567
|
12,539
|
|
|
|
1,517,616
|
|
Financials (6.3%)
|
|
|
|
Franklin Resources Inc.
|
1,569,118
|
200,533
|
|
Aflac Inc.
|
3,192,770
|
158,936
|
|
Chubb Corp.
|
2,059,900
|
158,571
|
|
T. Rowe Price Group Inc.
|
1,816,385
|
117,956
|
|
|
|
|
|
WR Berkley Corp.
|
1,017,499
|
39,571
|
|
HCC Insurance Holdings Inc.
|
782,517
|
27,889
|
|
SEI Investments Co.
|
1,255,257
|
27,465
|
|
Brown & Brown Inc.
|
1,065,057
|
27,212
|
|
Commerce Bancshares Inc.
|
634,350
|
24,156
|
|
Erie Indemnity Co. Class A
|
378,008
|
23,520
|
|
Eaton Vance Corp.
|
787,039
|
22,147
|
|
Prosperity Bancshares Inc.
|
399,748
|
16,733
|
|
UMB Financial Corp.
|
281,527
|
12,536
|
|
StanCorp Financial Group Inc.
|
315,894
|
10,851
|
|
RLI Corp.
|
157,219
|
10,719
|
|
Westamerica Bancorporation
|
210,145
|
9,272
|
|
Bank of the Ozarks Inc.
|
262,116
|
8,582
|
|
Bancfirst Corp.
|
106,421
|
4,678
|
|
1st Source Corp.
|
183,140
|
4,068
|
|
First Financial Corp.
|
96,903
|
2,964
|
|
Republic Bancorp Inc.
|
132,412
|
2,863
|
|
Southside Bancshares Inc.
|
133,455
|
2,724
|
|
|
|
913,946
|
|
Health Care (5.4%)
|
|
|
|
Medtronic Inc.
|
7,758,308
|
322,590
|
|
Stryker Corp.
|
2,737,324
|
143,983
|
|
Becton Dickinson and Co.
|
1,562,930
|
118,283
|
|
Cardinal Health Inc.
|
2,538,272
|
104,399
|
|
CR Bard Inc.
|
619,056
|
59,547
|
|
West Pharmaceutical Services Inc.
|
243,831
|
13,135
|
|
Owens & Minor Inc.
|
452,613
|
12,886
|
|
|
|
774,823
|
|
Industrials (21.0%)
|
|
|
|
United Technologies Corp.
|
6,547,941
|
511,787
|
|
3M Co.
|
5,084,606
|
445,412
|
|
Caterpillar Inc.
|
4,185,475
|
354,970
|
|
Emerson Electric Co.
|
5,233,784
|
253,472
|
|
Illinois Tool Works Inc.
|
3,327,297
|
204,063
|
|
General Dynamics Corp.
|
2,504,465
|
170,504
|
|
Norfolk Southern Corp.
|
2,449,829
|
150,297
|
|
WW Grainger Inc.
|
489,556
|
98,601
|
|
Fastenal Co.
|
2,123,147
|
94,905
|
|
Stanley Black & Decker Inc.
|
1,225,641
|
84,937
|
|
Parker Hannifin Corp.
|
1,071,567
|
84,289
|
|
Dover Corp.
|
1,364,106
|
79,418
|
|
C.H. Robinson Worldwide Inc.
|
1,276,026
|
76,983
|
|
Roper Industries Inc.
|
676,113
|
73,811
|
|
Expeditors International of Washington Inc.
|
1,492,214
|
54,630
|
|
Cintas Corp.
|
913,586
|
38,197
|
|
Donaldson Co. Inc.
|
1,081,966
|
34,915
|
|
Pentair Ltd.
|
673,935
|
28,467
|
|
Nordson Corp.
|
450,359
|
26,585
|
|
Valmont Industries Inc.
|
178,939
|
24,175
|
|
Carlisle Cos. Inc.
|
431,688
|
23,980
|
|
Graco Inc.
|
427,789
|
20,560
|
|
AO Smith Corp.
|
289,684
|
17,604
|
|
CLARCOR Inc.
|
366,327
|
16,573
|
|
Brady Corp. Class A
|
348,925
|
10,733
|
|
Mine Safety Appliances Co.
|
266,536
|
10,288
|
|
Franklin Electric Co. Inc.
|
156,735
|
9,081
|
|
|
|
|
|
ABM Industries Inc.
|
384,504
|
7,306
|
|
Raven Industries Inc.
|
260,974
|
7,122
|
|
Tennant Co.
|
144,639
|
5,412
|
|
McGrath RentCorp
|
174,182
|
4,574
|
|
Gorman-Rupp Co.
|
138,787
|
3,747
|
|
† Hyster-Yale Materials Handling Inc. Class B
|
48,345
|
1,986
|
|
|
|
3,029,384
|
|
Information Technology (6.4%)
|
|
|
|
International Business Machines Corp.
|
2,897,700
|
563,690
|
|
Automatic Data Processing Inc.
|
3,538,853
|
204,510
|
|
Linear Technology Corp.
|
1,567,088
|
48,987
|
|
Harris Corp.
|
815,331
|
37,326
|
|
FactSet Research Systems Inc.
|
325,461
|
29,470
|
|
Jack Henry & Associates Inc.
|
652,884
|
24,810
|
|
Badger Meter Inc.
|
104,394
|
4,472
|
|
Cass Information Systems Inc.
|
77,485
|
3,252
|
|
|
|
916,517
|
|
Materials (8.9%)
|
|
|
|
Monsanto Co.
|
3,568,238
|
307,118
|
|
Praxair Inc.
|
2,221,713
|
235,968
|
|
Ecolab Inc.
|
2,184,263
|
152,025
|
|
PPG Industries Inc.
|
1,109,295
|
129,876
|
|
Air Products & Chemicals Inc.
|
1,515,706
|
117,513
|
|
Sherwin-Williams Co.
|
740,295
|
105,551
|
|
Sigma-Aldrich Corp.
|
846,205
|
59,353
|
|
Valspar Corp.
|
659,937
|
36,976
|
|
Royal Gold Inc.
|
412,165
|
36,303
|
|
Albemarle Corp.
|
577,947
|
31,851
|
|
Aptargroup Inc.
|
507,776
|
26,039
|
|
Bemis Co. Inc.
|
784,344
|
25,923
|
|
HB Fuller Co.
|
317,683
|
9,658
|
|
Stepan Co.
|
74,908
|
7,176
|
|
|
|
1,281,330
|
|
Telecommunication Services (0.1%)
|
|
|
|
Telephone & Data Systems Inc.
|
341,647
|
8,497
|
|
Atlantic Tele-Network Inc.
|
127,120
|
5,268
|
|
|
|
13,765
|
|
Utilities (1.9%)
|
|
|
|
Northeast Utilities
|
2,492,549
|
97,957
|
|
National Fuel Gas Co.
|
694,762
|
36,614
|
|
MDU Resources Group Inc.
|
1,432,676
|
31,132
|
|
Questar Corp.
|
1,369,588
|
27,720
|
|
Aqua America Inc.
|
1,066,092
|
27,068
|
|
New Jersey Resources Corp.
|
322,986
|
14,360
|
|
South Jersey Industries Inc.
|
235,492
|
11,914
|
|
MGE Energy Inc.
|
185,073
|
9,742
|
|
American States Water Co.
|
139,071
|
6,122
|
|
SJW Corp.
|
144,965
|
3,514
|
|
|
|
266,143
|
|
Total Common Stocks (Cost $12,624,721)
|
|
14,401,677
|
|
|
|
|
|
|
|
Coupon
|
|
|
|
Temporary Cash Investment (0.0%)
|
|
|
|
|
Money Market Fund (0.0%)
|
|
|
|
|
1,2
Vanguard Market Liquidity Fund (Cost
|
|
|
|
|
$6,848)
|
0.167%
|
6,848,000
|
6,848
|
|
Total Investments (100.0%) (Cost $12,631,569)
|
|
|
14,408,525
|
|
Other Assets and Liabilities-Net (0.0%)
2
|
|
|
(3,603)
|
|
Net Assets (100%)
|
|
|
14,404,922
|
^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $6,590,000.
† Non-income producing security - new issue that has not paid a dividend as of October 31, 2012.
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.
2 Includes $6,848,000 of collateral received for securities on loan.
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine
the fair value of investments).
The following table summarizes the market value of the fund's investments as of October 31, 2012,
based on the inputs used to value them:
|
|
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
|
Investments
|
($000)
|
($000)
|
($000)
|
|
Common Stocks
|
14,399,691
|
1,986
|
—
|
|
Temporary Cash Investments
|
6,848
|
—
|
—
|
|
Total
|
14,406,539
|
1,986
|
—
|
C. At October 31, 2012, the cost of investment securities for tax purposes was $12,631,569,000. Net unrealized appreciation of investment securities for tax purposes was $1,776,956,000, consisting of unrealized gains of $1,935,283,000 on securities that had risen in value since their purchase and $158,327,000 in unrealized losses on securities that had fallen in value since their purchase.
Item 2: 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. During the last fiscal quarter, there was no significant change in the Registrant’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3: Exhibits
(a) Certifications
|
|
|
|
|
VANGUARD SPECIALIZED FUNDS
|
|
|
|
By:
|
/s/ F. WILLIAM MCNABB III*
|
|
|
F. WILLIAM MCNABB III
|
|
|
CHIEF EXECUTIVE OFFICER
|
|
|
|
Date: December 19, 2012
|
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/ F. WILLIAM MCNABB III*
|
|
|
F. WILLIAM MCNABB III
|
|
|
CHIEF EXECUTIVE OFFICER
|
|
|
|
Date: December 19, 2012
|
|
|
|
|
|
VANGUARD SPECIALIZED FUNDS
|
|
|
|
By:
|
/s/ THOMAS J. HIGGINS*
|
|
|
THOMAS J. HIGGINS
|
|
|
CHIEF FINANCIAL OFFICER
|
|
|
|
Date: December 19, 2012
|
* By:/s/ Heidi Stam
Heidi Stam, pursuant to a Power of Attorney filed on March 27, 2012 see file Number 2-11444,
Incorporated by Reference.