-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PRsJm1vZd9ftXel5mp+feA+6oDgD1G4PLZzGCuAWVqwqVSr/L1S/+KBt+gHhmXaa UNe8X20gXU5jZXI9yY3N2A== 0000932471-10-003100.txt : 20100930 0000932471-10-003100.hdr.sgml : 20100930 20100930093719 ACCESSION NUMBER: 0000932471-10-003100 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100731 FILED AS OF DATE: 20100930 DATE AS OF CHANGE: 20100930 EFFECTIVENESS DATE: 20100930 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VANGUARD EXPLORER FUND CENTRAL INDEX KEY: 0000034066 IRS NUMBER: 510106626 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-01530 FILM NUMBER: 101097950 BUSINESS ADDRESS: STREET 1: PO BOX 2600 STREET 2: V26 CITY: VALLEY FORGE STATE: PA ZIP: 19482 BUSINESS PHONE: 6106696295 MAIL ADDRESS: STREET 1: P.O. BOX 2600 STREET 2: V26 CITY: VALLEY FORGE STATE: PA ZIP: 19482 FORMER COMPANY: FORMER CONFORMED NAME: VANGUARD EXPLORER FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: EXPLORER FUND INC DATE OF NAME CHANGE: 19900305 0000034066 S000002578 VANGUARD EXPLORER FUND C000007081 Investor Shares VEXPX C000007082 Admiral Shares VEXRX N-Q 1 explorerfundfinal.htm VANGUARD EXPLORER FUND explorerfundfinal.htm - Generated by SEC Publisher for SEC Filing

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: 811-1530

Name of Registrant: Vanguard Explorer Fund

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: October 31, 2010

Date of reporting period: July 31, 2010

Item 1: Schedule of Investments


Vanguard Explorer Fund     
 
 
 
Schedule of Investments     
As of July 31, 2010     
 
      Market 
      Value 
    Shares  ($000) 
Common Stocks (88.7%)1     
Consumer Discretionary (13.2%)     
  DeVry Inc.  821,456  44,194 
*  O'Reilly Automotive Inc.  851,507  41,962 
*  WMS Industries Inc.  1,055,769  40,658 
*  GameStop Corp. Class A  1,958,015  39,258 
*  LKQ Corp.  1,781,610  35,240 
*  DreamWorks Animation SKG Inc. Class A  1,111,200  34,625 
  Tractor Supply Co.  456,885  31,758 
*  Life Time Fitness Inc.  839,210  30,514 
*  Penske Automotive Group Inc.  2,109,820  29,537 
*  TRW Automotive Holdings Corp.  803,389  28,191 
  Cinemark Holdings Inc.  1,885,800  27,514 
*,^ MGM Resorts International  2,514,800  27,311 
  Williams-Sonoma Inc.  1,016,415  27,148 
*  Tenneco Inc.  940,827  25,967 
*  Warnaco Group Inc.  561,341  23,447 
  Aaron's Inc.  1,274,850  23,151 
  Service Corp. International  2,340,785  19,943 
*  Panera Bread Co. Class A  248,250  19,416 
*  Childrens Place Retail Stores Inc.  448,924  18,787 
*  CarMax Inc.  880,440  18,577 
  Jarden Corp.  579,341  16,772 
*  Capella Education Co.  168,061  15,616 
*  Bally Technologies Inc.  482,000  15,569 
*  priceline.com Inc.  67,975  15,254 
*  Coinstar Inc.  334,850  15,236 
*  Talbots Inc.  1,324,690  15,221 
  Darden Restaurants Inc.  362,880  15,201 
*  Fossil Inc.  354,725  14,047 
*  Cheesecake Factory Inc.  564,493  13,232 
*  Aeropostale Inc.  464,065  13,193 
*  Select Comfort Corp.  1,626,727  12,688 
  Gentex Corp.  637,340  12,282 
  Monro Muffler Brake Inc.  294,900  12,103 
*  Buffalo Wild Wings Inc.  280,600  11,965 
*  Lumber Liquidators Holdings Inc.  470,650  11,682 
  American Eagle Outfitters Inc.  938,250  11,550 
*  Interpublic Group of Cos. Inc.  1,088,800  9,952 
  Regis Corp.  647,250  9,858 
*  Tempur-Pedic International Inc.  314,222  9,637 
*  K12 Inc.  366,751  9,554 
*  DSW Inc. Class A  356,349  9,482 
*  ITT Educational Services Inc.  112,100  9,051 
^  Strayer Education Inc.  36,750  8,798 
*  Gaylord Entertainment Co.  299,323  8,677 
  Foot Locker Inc.  626,000  8,507 
*,^ Liz Claiborne Inc.  1,713,600  8,122 
*  Steven Madden Ltd.  206,332  7,971 
  Finish Line Inc. Class A  556,377  7,962 
  Genuine Parts Co.  176,300  7,551 


* Big Lots Inc.  214,401  7,356 
* Royal Caribbean Cruises Ltd.  250,071  7,217 
* Texas Roadhouse Inc. Class A  531,779  7,168 
Tiffany & Co.  165,437  6,960 
* Valassis Communications Inc.  195,314  6,752 
Cracker Barrel Old Country Store Inc.  134,619  6,594 
* Pier 1 Imports Inc.  933,850  6,528 
* HSN Inc.  218,300  6,418 
Matthews International Corp. Class A  177,500  6,409 
Cablevision Systems Corp. Class A  233,450  6,399 
Guess? Inc.  179,230  6,398 
* JOS A Bank Clothiers Inc.  104,082  6,108 
* CEC Entertainment Inc.  174,496  6,060 
* G-III Apparel Group Ltd.  232,050  5,987 
Sotheby's  219,400  5,952 
PF Chang's China Bistro Inc.  137,834  5,706 
* Gymboree Corp.  125,464  5,433 
Polaris Industries Inc.  89,974  5,371 
Cooper Tire & Rubber Co.  233,943  5,055 
* J Crew Group Inc.  136,600  4,867 
* Wet Seal Inc. Class A  1,422,000  4,806 
Ross Stores Inc.  90,998  4,792 
Tupperware Brands Corp.  116,393  4,585 
* Kohl's Corp.  89,163  4,252 
* NVR Inc.  6,600  4,135 
Cato Corp. Class A  174,683  4,067 
* Ulta Salon Cosmetics & Fragrance Inc.  156,100  3,943 
* Dress Barn Inc.  149,500  3,693 
* True Religion Apparel Inc.  143,710  3,532 
* BJ's Restaurants Inc.  136,200  3,473 
* Citi Trends Inc.  110,055  3,455 
* Jo-Ann Stores Inc.  78,872  3,304 
Phillips-Van Heusen Corp.  62,393  3,238 
* Kirkland's Inc.  160,035  2,698 
* Denny's Corp.  944,150  2,530 
* Bridgepoint Education Inc.  132,800  2,463 
* Carter's Inc.  96,685  2,344 
* Group 1 Automotive Inc.  84,184  2,334 
* Grand Canyon Education Inc.  93,200  2,262 
* Sally Beauty Holdings Inc.  201,958  1,910 
* Lincoln Educational Services Corp.  87,541  1,846 
Hillenbrand Inc.  77,100  1,703 
* Belo Corp. Class A  278,200  1,683 
* Harman International Industries Inc.  50,500  1,536 
Harte-Hanks Inc.  134,600  1,518 
* Corinthian Colleges Inc.  159,200  1,449 
* Drew Industries Inc.  68,100  1,439 
Leggett & Platt Inc.  64,023  1,334 
* Perry Ellis International Inc.  57,900  1,296 
World Wrestling Entertainment Inc. Class A  76,000  1,219 
John Wiley & Sons Inc. Class A  25,488  1,004 
Big 5 Sporting Goods Corp.  72,831  1,001 
* Timberland Co. Class A  55,215  973 
* Sinclair Broadcast Group Inc. Class A  156,200  943 
Thor Industries Inc.  33,300  927 
* AutoNation Inc.  36,800  899 
* Stein Mart Inc.  114,718  886 
Brinker International Inc.  46,157  726 


* 99 Cents Only Stores  42,650  709 
* Goodyear Tire & Rubber Co.  64,300  686 
* Hawk Corp. Class A  20,400  596 
* Caribou Coffee Co. Inc.  54,578  580 
* Exide Technologies  95,989  578 
* LodgeNet Interactive Corp.  143,262  516 
* Deckers Outdoor Corp.  10,000  509 
* Autoliv Inc.  8,800  505 
* RCN Corp.  32,800  490 
National CineMedia Inc.  24,991  448 
* Papa John's International Inc.  17,100  433 
PetSmart Inc.  13,900  432 
* Fisher Communications Inc.  24,375  431 
CPI Corp.  16,754  416 
* Playboy Enterprises Inc. Class B  69,500  376 
* LIN TV Corp. Class A  63,000  369 
* Lacrosse Footwear Inc.  24,939  366 
* Journal Communications Inc. Class A  69,900  333 
* Domino's Pizza Inc.  22,417  287 
* CROCS Inc.  22,300  286 
* Unifi Inc.  65,301  256 
* West Marine Inc.  18,529  192 
National Presto Industries Inc.  1,625  166 
* Dorman Products Inc.  6,640  155 
* DineEquity Inc.  3,900  142 
Buckle Inc.  5,102  141 
Winmark Corp.  3,600  120 
* Career Education Corp.  4,900  120 
* Media General Inc. Class A  10,802  112 
Chico's FAS Inc.  11,700  110 
* Carrols Restaurant Group Inc.  16,638  86 
Blyth Inc.  2,000  79 
PRIMEDIA Inc.  22,800  69 
* New York Times Co. Class A  7,100  62 
* Krispy Kreme Doughnuts Inc. Warrants Exp. 03/02/2012  8,183  1 
    1,150,024 
Consumer Staples (2.9%)     
Ruddick Corp.  1,433,960  50,834 
Herbalife Ltd.  757,019  37,578 
Pricesmart Inc.  1,012,570  28,352 
* United Natural Foods Inc.  789,129  26,617 
Nu Skin Enterprises Inc. Class A  924,700  26,335 
* BJ's Wholesale Club Inc.  401,400  18,284 
* Constellation Brands Inc. Class A  836,450  14,270 
Church & Dwight Co. Inc.  149,833  9,929 
Diamond Foods Inc.  187,101  8,334 
Lancaster Colony Corp.  110,502  5,737 
* Medifast Inc.  135,907  4,110 
* Revlon Inc. Class A  319,696  4,009 
* Boston Beer Co. Inc. Class A  53,628  3,720 
Sanderson Farms Inc.  60,700  2,838 
Casey's General Stores Inc.  71,300  2,727 
Spartan Stores Inc.  188,720  2,710 
Coca-Cola Bottling Co. Consolidated  26,877  1,387 
* Darling International Inc.  143,500  1,171 
* Nature's Sunshine Products Inc.  83,530  685 
Nash Finch Co.  14,946  588 


*  Overhill Farms Inc.  101,913  530 
*  Elizabeth Arden Inc.  27,962  434 
  J&J Snack Foods Corp.  2,000  83 
  Schiff Nutrition International Inc.  7,800  63 
      251,325 
Energy (4.0%)     
^  Core Laboratories NV  534,580  41,296 
*  Ultra Petroleum Corp.  530,460  22,476 
*  Atwood Oceanics Inc.  761,660  20,717 
  Niko Resources Ltd.  161,880  17,450 
*  Tesco Corp.  1,266,897  17,356 
*  Brigham Exploration Co.  939,475  16,215 
*  Comstock Resources Inc.  635,500  16,084 
*  Whiting Petroleum Corp.  182,273  16,042 
*  Alpha Natural Resources Inc.  380,390  14,580 
  Frontier Oil Corp.  1,160,300  14,260 
  EXCO Resources Inc.  957,950  13,900 
*  Petrohawk Energy Corp.  827,620  13,052 
*  Clean Energy Fuels Corp.  615,020  11,612 
  SM Energy Co.  264,845  10,970 
*  Southwestern Energy Co.  298,080  10,865 
  CARBO Ceramics Inc.  134,819  10,812 
*  Global Industries Ltd.  2,161,000  10,243 
  Holly Corp.  345,100  9,225 
*  Atlas Energy Inc.  284,900  8,430 
*  Venoco Inc.  409,978  7,716 
*  Rex Energy Corp.  673,162  7,136 
*  Oceaneering International Inc.  138,270  6,842 
*  Forest Oil Corp.  208,000  5,947 
^  Frontline Ltd.  178,900  5,474 
  World Fuel Services Corp.  159,246  4,148 
*  Dril-Quip Inc.  74,250  3,882 
*  Rowan Cos. Inc.  110,800  2,799 
*  Gulfport Energy Corp.  166,301  2,172 
*  SandRidge Energy Inc.  358,282  2,114 
*  McMoRan Exploration Co.  198,000  2,061 
  Ship Finance International Ltd.  59,700  1,138 
*  Petroleum Development Corp.  24,288  708 
*,^ CAMAC Energy Inc.  187,500  675 
*  Westmoreland Coal Co.  30,319  258 
*  International Coal Group Inc.  55,600  250 
*  Cloud Peak Energy Inc.  15,500  238 
  W&T Offshore Inc.  8,300  76 
      349,219 
Exchange-Traded Funds (1.9%)     
^,2 Vanguard Small-Cap ETF  1,165,083  70,685 
^  iShares Russell 2000 Index Fund  848,600  55,210 
^,2 Vanguard Small-Cap Growth ETF  713,200  44,882 
      170,777 
Financials (6.4%)     
  Discover Financial Services  2,246,037  34,297 
  Jefferies Group Inc.  1,161,063  28,667 
*  Affiliated Managers Group Inc.  380,320  26,938 
*  NASDAQ OMX Group Inc.  1,341,100  26,111 
  Comerica Inc.  671,600  25,763 
  Cash America International Inc.  753,198  25,232 
*  Signature Bank  643,970  24,754 


  BR Malls Participacoes SA  1,599,300  24,042 
  Synovus Financial Corp.  9,092,400  23,822 
  SEI Investments Co.  1,197,554  22,969 
  MFA Financial Inc.  2,823,900  20,727 
  Och-Ziff Capital Management Group LLC Class A  1,484,450  20,396 
  Redwood Trust Inc.  1,277,300  19,990 
  Umpqua Holdings Corp.  1,367,800  17,139 
  MB Financial Inc.  883,975  15,328 
*  Stifel Financial Corp.  323,400  14,986 
*  MGIC Investment Corp.  1,593,600  13,689 
  Huntington Bancshares Inc.  2,248,012  13,623 
  Cullen/Frost Bankers Inc.  234,400  12,941 
  Waddell & Reed Financial Inc.  369,750  8,811 
  Brown & Brown Inc.  421,114  8,431 
  Assured Guaranty Ltd.  530,077  8,322 
  Invesco Ltd.  388,154  7,585 
*  CB Richard Ellis Group Inc. Class A  431,549  7,336 
  Lazard Ltd. Class A  230,295  6,833 
  Wintrust Financial Corp.  193,050  6,008 
  Greenhill & Co. Inc.  80,325  5,466 
  Federated Investors Inc. Class B  255,500  5,422 
  Endurance Specialty Holdings Ltd.  137,220  5,295 
  BOK Financial Corp.  104,727  5,101 
*  MSCI Inc. Class A  155,166  5,007 
  Duff & Phelps Corp. Class A  440,000  4,770 
*  Arch Capital Group Ltd.  53,200  4,163 
  Nelnet Inc. Class A  200,983  4,052 
  Jones Lang LaSalle Inc.  52,200  4,043 
  Iberiabank Corp.  73,760  3,833 
*  World Acceptance Corp.  91,544  3,793 
*  Credit Acceptance Corp.  65,983  3,694 
  Digital Realty Trust Inc.  53,478  3,381 
  QC Holdings Inc.  675,485  2,776 
*  Strategic Hotels & Resorts Inc.  581,500  2,681 
  Mid-America Apartment Communities Inc.  43,300  2,446 
  PennantPark Investment Corp.  212,305  2,231 
  Associated Estates Realty Corp.  127,636  1,766 
*  Ezcorp Inc. Class A  88,256  1,756 
*  Dollar Financial Corp.  88,254  1,731 
*  Envestnet Inc.  165,100  1,661 
*  Cardtronics Inc.  120,230  1,557 
  Equity Lifestyle Properties Inc.  27,900  1,477 
  Westamerica Bancorporation  26,905  1,446 
  PS Business Parks Inc.  24,268  1,409 
*  First Cash Financial Services Inc.  58,300  1,398 
  Rayonier Inc.  27,500  1,343 
*,3 Doral Financial Convertible Pfd.  2,872  1,339 
  Highwoods Properties Inc.  41,500  1,299 
  Solar Capital Ltd.  48,100  992 
  BGC Partners Inc. Class A  145,611  789 
*  Gleacher & Co. Inc.  376,368  753 
  Potlatch Corp.  11,500  426 
  First Financial Bankshares Inc.  7,300  358 
  GAMCO Investors Inc.  6,733  271 
  Getty Realty Corp.  11,177  268 
  Brookline Bancorp Inc.  20,400  197 
*  Ashford Hospitality Trust Inc.  20,814  183 
  Princeton National Bancorp Inc.  18,005  106 


Bank of the Ozarks Inc.  2,200  82 
FBL Financial Group Inc. Class A  3,100  70 
MarketAxess Holdings Inc.  4,400  63 
* Transcontinental Realty Investors Inc.  6,960  63 
* Tree.com Inc.  7,904  57 
First Merchants Corp.  3,440  30 
    555,784 
Health Care (16.1%)     
* Mettler-Toledo International Inc.  397,309  46,406 
* ResMed Inc.  657,700  43,204 
Cooper Cos. Inc.  1,106,730  43,007 
* Bruker Corp.  3,060,253  40,303 
* Nektar Therapeutics  2,886,506  37,698 
* Regeneron Pharmaceuticals Inc.  1,505,085  36,408 
* Edwards Lifesciences Corp.  601,500  34,767 
* Seattle Genetics Inc.  2,803,504  34,147 
* Bio-Rad Laboratories Inc. Class A  342,119  30,380 
* Henry Schein Inc.  569,800  29,909 
* Health Management Associates Inc. Class A  4,081,000  29,220 
* ICON PLC ADR  1,234,045  29,123 
* Varian Medical Systems Inc.  524,282  28,940 
* QIAGEN NV  1,492,500  27,940 
* Alkermes Inc.  2,054,300  26,500 
* Alexion Pharmaceuticals Inc.  485,097  26,370 
DENTSPLY International Inc.  860,100  25,820 
* Align Technology Inc.  1,396,300  24,226 
* Salix Pharmaceuticals Ltd.  561,613  23,818 
* Volcano Corp.  1,063,765  23,477 
Pharmaceutical Product Development Inc.  916,850  22,243 
* BioMarin Pharmaceutical Inc.  994,800  21,736 
* Parexel International Corp.  965,650  19,825 
* Haemonetics Corp.  355,222  19,626 
* ABIOMED Inc.  1,763,000  19,552 
* Onyx Pharmaceuticals Inc.  721,550  18,760 
* Cephalon Inc.  325,300  18,461 
* Impax Laboratories Inc.  1,118,985  18,340 
* Martek Biosciences Corp.  875,552  18,115 
* Coventry Health Care Inc.  889,100  17,631 
* Community Health Systems Inc.  535,500  17,366 
* Amylin Pharmaceuticals Inc.  907,100  17,162 
* Watson Pharmaceuticals Inc.  420,300  17,022 
* Elan Corp. PLC ADR  3,490,700  16,651 
* Sun Healthcare Group Inc.  1,948,900  16,137 
* Par Pharmaceutical Cos. Inc.  583,632  15,408 
* Isis Pharmaceuticals Inc.  1,511,549  14,949 
* Kindred Healthcare Inc.  1,072,044  14,258 
* Cubist Pharmaceuticals Inc.  651,900  14,068 
* MWI Veterinary Supply Inc.  264,143  13,910 
* SXC Health Solutions Corp.  189,985  12,900 
Quality Systems Inc.  229,900  12,626 
* Targacept Inc.  575,158  12,441 
* Sirona Dental Systems Inc.  403,275  12,413 
Perrigo Co.  217,400  12,177 
* PSS World Medical Inc.  639,945  12,044 
* NxStage Medical Inc.  757,050  11,954 
* Luminex Corp.  700,400  11,402 
Hikma Pharmaceuticals PLC  983,635  11,057 


*  Warner Chilcott PLC Class A  430,800  11,028 
*  Incyte Corp. Ltd.  825,525  10,748 
*  Brookdale Senior Living Inc.  730,950  10,365 
  Lincare Holdings Inc.  431,825  10,260 
*,^ Cadence Pharmaceuticals Inc.  1,277,200  9,783 
*  Covance Inc.  242,307  9,392 
*  Catalyst Health Solutions Inc.  267,821  9,261 
*  Ardea Biosciences Inc.  459,200  9,161 
  West Pharmaceutical Services Inc.  245,700  8,929 
*  VCA Antech Inc.  426,330  8,885 
*  IPC The Hospitalist Co. Inc.  341,450  8,792 
  Patterson Cos. Inc.  321,085  8,567 
*  Express Scripts Inc.  182,948  8,266 
*  Momenta Pharmaceuticals Inc.  383,000  8,173 
*  Cepheid Inc.  475,200  7,865 
*  United Therapeutics Corp.  154,662  7,561 
*  Immunogen Inc.  790,300  7,452 
*  American Medical Systems Holdings Inc.  291,566  6,519 
*  Orthovita Inc.  3,430,703  6,347 
  STERIS Corp.  195,600  6,218 
*  Zimmer Holdings Inc.  110,987  5,881 
*  Emergency Medical Services Corp. Class A  125,418  5,611 
*  Life Technologies Corp.  129,780  5,579 
*  Human Genome Sciences Inc.  214,122  5,554 
  Medicis Pharmaceutical Corp. Class A  218,100  5,529 
*  Dionex Corp.  73,200  5,527 
*  Exelixis Inc.  1,659,800  5,179 
*  HMS Holdings Corp.  90,885  5,119 
  Universal Health Services Inc. Class B  134,600  4,842 
  Invacare Corp.  203,100  4,840 
*  Arthrocare Corp.  174,400  4,670 
*  Healthsouth Corp.  251,865  4,662 
  Chemed Corp.  79,300  4,197 
*  Corvel Corp.  101,059  4,021 
*  Durect Corp.  1,545,600  3,771 
*  Health Net Inc.  141,781  3,339 
*  Cyberonics Inc.  131,700  3,137 
*  Valeant Pharmaceuticals International  52,800  2,974 
*  BioScrip Inc.  668,904  2,843 
*  MedAssets Inc.  112,678  2,638 
*  Wright Medical Group Inc.  158,027  2,467 
*  Accelrys Inc.  337,080  2,376 
*  Tenet Healthcare Corp.  497,100  2,287 
*  Gentiva Health Services Inc.  97,332  2,008 
*,^ Amedisys Inc.  74,562  1,959 
  PDL BioPharma Inc.  313,485  1,950 
  Atrion Corp.  13,355  1,929 
*  Bio-Reference Labs Inc.  86,685  1,818 
*  Hi-Tech Pharmacal Co. Inc.  101,300  1,781 
  America Service Group Inc.  98,731  1,742 
*  Greatbatch Inc.  72,366  1,634 
*  Dendreon Corp.  45,275  1,490 
*  Savient Pharmaceuticals Inc.  102,174  1,400 
*  athenahealth Inc.  50,006  1,389 
*  Micromet Inc.  201,583  1,381 
*  Questcor Pharmaceuticals Inc.  117,909  1,326 
*  Nabi Biopharmaceuticals  231,100  1,322 
*  IDEXX Laboratories Inc.  21,900  1,286 


*  Depomed Inc.  373,755  1,069 
  Hill-Rom Holdings Inc.  32,100  1,061 
*  Affymetrix Inc.  193,100  944 
*  Furiex Pharmaceuticals Inc.  76,404  895 
*  Odyssey HealthCare Inc.  28,896  773 
*  Harvard Bioscience Inc.  204,132  737 
  Techne Corp.  12,500  730 
*  Sciclone Pharmaceuticals Inc.  209,916  724 
  PerkinElmer Inc.  34,600  673 
*  Pharmasset Inc.  22,870  618 
*  Array Biopharma Inc.  187,350  594 
*  Providence Service Corp.  41,239  594 
*  PharMerica Corp.  41,480  542 
*  Continucare Corp.  137,064  522 
*  Phase Forward Inc.  29,300  492 
*  Rural/Metro Corp.  45,745  414 
*  Caliper Life Sciences Inc.  102,300  401 
*  Auxilium Pharmaceuticals Inc.  17,500  395 
*  Genomic Health Inc.  27,900  360 
*  LHC Group Inc.  15,237  350 
*  Kinetic Concepts Inc.  8,000  284 
*  Orthofix International NV  8,451  256 
*  Hanger Orthopedic Group Inc.  13,459  231 
*  Enzon Pharmaceuticals Inc.  15,300  167 
  Analogic Corp.  3,321  151 
*  inVentiv Health Inc.  4,300  112 
*  Allied Healthcare International Inc.  42,059  104 
*  Akorn Inc.  26,200  95 
*  Metropolitan Health Networks Inc.  24,140  91 
*  SIGA Technologies Inc.  10,100  85 
*  Triple-S Management Corp. Class B  4,100  81 
*  Curis Inc.  35,100  60 
*  ADAM Inc.  8,639  28 
      1,411,560 
Industrials (15.9%)     
  MSC Industrial Direct Co. Class A  1,110,540  55,960 
  Kennametal Inc.  1,876,745  51,404 
*,4 Beacon Roofing Supply Inc.  2,959,193  50,484 
  AMETEK Inc.  797,397  35,301 
  Watsco Inc.  614,010  34,206 
*  Genesee & Wyoming Inc. Class A  814,430  33,294 
*  ArvinMeritor Inc.  1,979,750  32,488 
  Flowserve Corp.  292,410  28,995 
*  Stericycle Inc.  441,200  27,796 
*  HUB Group Inc. Class A  861,200  27,688 
*  EnerSys  1,132,140  27,420 
  Knight Transportation Inc.  1,310,340  27,412 
*  AerCap Holdings NV  2,088,726  27,195 
*  US Airways Group Inc.  2,495,200  27,073 
*  IHS Inc. Class A  403,050  25,517 
*  Kansas City Southern  658,300  24,160 
*  JetBlue Airways Corp.  3,702,330  23,806 
*  Continental Airlines Inc. Class B  873,300  21,850 
*  GeoEye Inc.  627,120  21,648 
*  DigitalGlobe Inc.  793,790  21,639 
  Con-way Inc.  622,700  20,979 
*  RBC Bearings Inc.  680,494  20,871 


*  Teledyne Technologies Inc.  506,800  20,794 
*  Kforce Inc.  1,538,877  20,790 
*  Advisory Board Co.  472,173  20,710 
  Lennox International Inc.  468,500  20,459 
  Triumph Group Inc.  264,678  20,089 
*  Chicago Bridge & Iron Co. NV  866,175  19,498 
  Gardner Denver Inc.  361,500  18,353 
*  EnerNOC Inc.  545,620  18,191 
*  Atlas Air Worldwide Holdings Inc.  295,005  17,252 
  UTi Worldwide Inc.  1,152,235  16,834 
  Belden Inc.  702,430  16,781 
  Trinity Industries Inc.  823,800  16,781 
  Equifax Inc.  478,930  15,010 
*  Huron Consulting Group Inc.  677,829  13,916 
  Healthcare Services Group Inc.  614,670  13,732 
*  II-VI Inc.  391,550  13,422 
  Applied Industrial Technologies Inc.  471,550  13,203 
  Woodward Governor Co.  428,550  12,959 
  Landstar System Inc.  307,865  12,481 
*,^ A123 Systems Inc.  1,126,000  12,138 
*  United Stationers Inc.  208,965  11,315 
  Steelcase Inc. Class A  1,630,509  11,267 
*  TrueBlue Inc.  871,030  11,210 
*  Kirby Corp.  239,200  9,195 
  McGrath Rentcorp  391,688  9,134 
  Acuity Brands Inc.  213,300  8,986 
*  Ladish Co. Inc.  290,400  8,541 
*  Polypore International Inc.  343,750  8,442 
  Robert Half International Inc.  331,589  8,349 
*  UAL Corp.  347,200  8,243 
  CH Robinson Worldwide Inc.  125,875  8,207 
  Timken Co.  230,300  7,743 
*  General Cable Corp.  290,500  7,710 
  Deluxe Corp.  374,601  7,709 
*  Exponent Inc.  229,572  7,578 
*  Resources Connection Inc.  571,400  7,422 
*  Avis Budget Group Inc.  597,928  7,378 
  Goodrich Corp.  98,746  7,196 
*  American Superconductor Corp.  238,150  7,180 
*  EMCOR Group Inc.  275,000  7,153 
  WW Grainger Inc.  63,600  7,124 
*  RailAmerica Inc.  629,195  6,990 
*  Corrections Corp. of America  343,174  6,716 
  Nordson Corp.  105,300  6,639 
*  McDermott International Inc.  280,693  6,599 
*  LaBarge Inc.  523,522  6,560 
*  Owens Corning  206,285  6,494 
*  Alliant Techsystems Inc.  92,716  6,227 
*  Chart Industries Inc.  345,800  6,159 
*  Navistar International Corp.  113,500  5,869 
  Towers Watson & Co. Class A  130,500  5,809 
  Hubbell Inc. Class B  116,500  5,498 
*  Armstrong World Industries Inc.  149,500  5,466 
  Heartland Express Inc.  329,670  5,281 
*  Sensata Technologies Holding NV  320,050  5,185 
  Bucyrus International Inc. Class A  78,300  4,872 
  Carlisle Cos. Inc.  141,920  4,780 
  Ingersoll-Rand PLC  125,775  4,712 


* Oshkosh Corp.  135,200  4,648 
Ritchie Bros Auctioneers Inc.  242,510  4,513 
* Flow International Corp.  1,589,318  4,323 
Allegiant Travel Co. Class A  96,582  4,287 
* Orion Marine Group Inc.  328,435  4,079 
Copa Holdings SA Class A  77,697  4,013 
Dun & Bradstreet Corp.  57,700  3,944 
* Korn/Ferry International  270,000  3,794 
Cubic Corp.  83,530  3,385 
Toro Co.  64,400  3,352 
TAL International Group Inc.  119,400  3,217 
Interface Inc. Class A  242,560  3,015 
* ICF International Inc.  129,600  2,981 
* Thomas & Betts Corp.  71,123  2,819 
AZZ Inc.  62,327  2,713 
Pall Corp.  70,800  2,707 
Watts Water Technologies Inc. Class A  82,500  2,657 
Mine Safety Appliances Co.  94,570  2,369 
Rollins Inc.  95,700  2,090 
* SYKES Enterprises Inc.  128,023  2,029 
* Hawaiian Holdings Inc.  337,710  2,026 
Textainer Group Holdings Ltd.  69,700  1,903 
Standex International Corp.  62,800  1,885 
* Consolidated Graphics Inc.  43,300  1,861 
* Michael Baker Corp.  43,983  1,707 
* M&F Worldwide Corp.  59,000  1,663 
* Pacer International Inc.  200,700  1,654 
* WESCO International Inc.  45,000  1,617 
AAON Inc.  64,940  1,614 
* Waste Connections Inc.  39,800  1,519 
* Altra Holdings Inc.  104,740  1,519 
* Trimas Corp.  124,732  1,489 
ABM Industries Inc.  63,761  1,384 
* GenCorp Inc.  262,345  1,380 
Brink's Co.  58,500  1,281 
* Amerco Inc.  18,028  1,229 
* Alaska Air Group Inc.  23,480  1,211 
* DXP Enterprises Inc.  57,700  1,185 
* APAC Customer Services Inc.  216,520  1,174 
* Tetra Tech Inc.  55,700  1,168 
HNI Corp.  38,200  987 
Titan International Inc.  83,500  917 
* KAR Auction Services Inc.  62,000  785 
* GrafTech International Ltd.  42,940  673 
* Sauer-Danfoss Inc.  39,252  585 
* LMI Aerospace Inc.  33,417  575 
Regal-Beloit Corp.  9,100  554 
* EnPro Industries Inc.  18,460  553 
US Ecology Inc.  36,800  544 
* WABCO Holdings Inc.  9,740  377 
Ampco-Pittsburgh Corp.  15,276  367 
Raven Industries Inc.  10,430  365 
* Harbin Electric Inc.  18,002  331 
VSE Corp.  8,978  319 
* Sparton Corp.  53,927  307 
* Intersections Inc.  54,893  271 
* Ultrapetrol Bahamas Ltd.  54,680  261 
Standard Register Co.  63,796  212 


  Bowne & Co. Inc.  17,200  195 
*  ATC Technology Corp.  7,772  186 
*  Copart Inc.  4,600  168 
  Valmont Industries Inc.  2,300  163 
*  Colfax Corp.  9,900  128 
  Quanex Building Products Corp.  6,600  116 
  Tennant Co.  2,800  105 
  Vicor Corp.  6,500  102 
*  CRA International Inc.  4,995  96 
  AO Smith Corp.  1,400  77 
*  Blount International Inc.  6,900  73 
*  Geo Group Inc.  3,400  73 
*  On Assignment Inc.  15,004  72 
*  Covenant Transportation Group Inc. Class A  7,400  69 
*  Generac Holdings Inc.  4,300  64 
  SIFCO Industries Inc.  5,720  59 
*  Herley Industries Inc.  2,970  46 
*  United Capital Corp.  1,770  44 
  Primoris Services Corp.  1,035  7 
      1,385,747 
Information Technology (22.5%)     
*  Informatica Corp.  1,662,636  50,095 
*  Alliance Data Systems Corp.  845,331  48,590 
*  Netlogic Microsystems Inc.  1,571,718  46,460 
*  TiVo Inc.  5,272,760  45,240 
*  ON Semiconductor Corp.  6,584,864  44,448 
*  MICROS Systems Inc.  1,205,605  43,137 
  Sapient Corp.  3,915,852  43,074 
*,4 Sourcefire Inc.  2,000,062  42,681 
*  Teradyne Inc.  3,898,128  41,944 
*  Concur Technologies Inc.  775,875  35,907 
*  Rovi Corp.  803,635  35,762 
*  NICE Systems Ltd. ADR  1,173,371  33,641 
*  Hewitt Associates Inc. Class A  681,990  33,486 
*  Acme Packet Inc.  1,159,678  32,772 
*  Polycom Inc.  1,075,235  31,913 
  Factset Research Systems Inc.  407,100  30,532 
*  PMC - Sierra Inc.  3,654,160  29,599 
*  VeriFone Systems Inc.  1,231,440  26,944 
*  Ariba Inc.  1,658,085  26,480 
*  Atmel Corp.  4,863,830  25,438 
  ADTRAN Inc.  789,060  24,919 
  Jabil Circuit Inc.  1,687,280  24,482 
  Solera Holdings Inc.  644,237  24,468 
*  Salesforce.com Inc.  240,440  23,792 
*  WebMD Health Corp.  512,991  23,736 
  Maxim Integrated Products Inc.  1,287,400  22,568 
*  Netezza Corp.  1,445,670  22,408 
*  Ingram Micro Inc.  1,331,753  22,014 
*  Parametric Technology Corp.  1,199,010  21,510 
*  Gartner Inc.  834,102  20,994 
*  Acxiom Corp.  1,360,303  20,867 
*  Blue Coat Systems Inc.  947,109  20,742 
*  SuccessFactors Inc.  1,013,930  20,593 
*  Nuance Communications Inc.  1,231,659  20,335 
*  MKS Instruments Inc.  941,100  20,196 
*  Trimble Navigation Ltd.  691,525  19,619 


* F5 Networks Inc.  218,779  19,215 
* Littelfuse Inc.  526,950  18,765 
* j2 Global Communications Inc.  787,200  18,523 
Syntel Inc.  441,657  18,223 
* Celestica Inc.  2,008,000  17,871 
* Verigy Ltd.  1,948,920  17,345 
* FEI Co.  868,095  16,980 
* QLogic Corp.  1,065,785  16,967 
* Microsemi Corp.  1,058,270  16,890 
* Progress Software Corp.  562,265  16,812 
* Atheros Communications Inc.  624,821  16,520 
* Silicon Laboratories Inc.  405,945  16,258 
* Cymer Inc.  488,440  16,255 
* Euronet Worldwide Inc.  1,001,330  15,721 
* Websense Inc.  831,520  15,433 
* Riverbed Technology Inc.  412,510  15,300 
Power Integrations Inc.  428,760  15,157 
* SunPower Corp. Class B  1,306,836  15,081 
* Avago Technologies Ltd.  688,275  14,977 
* Cadence Design Systems Inc.  2,147,455  14,946 
* Finisar Corp.  929,700  14,903 
* Convergys Corp.  1,151,200  12,859 
Amphenol Corp. Class A  271,250  12,152 
Intersil Corp. Class A  1,051,784  11,948 
* NetApp Inc.  277,789  11,750 
iGate Corp.  654,389  11,615 
* S1 Corp.  1,971,000  11,570 
* Hittite Microwave Corp.  241,450  11,097 
* Varian Semiconductor Equipment Associates Inc.  385,930  10,906 
* Cogent Inc.  1,210,222  10,880 
* IAC/InterActiveCorp  418,200  10,455 
* DG FastChannel Inc.  262,300  10,001 
* Cypress Semiconductor Corp.  939,881  9,963 
* Aruba Networks Inc.  580,989  9,865 
* RightNow Technologies Inc.  601,975  9,523 
Pegasystems Inc.  303,700  9,342 
* Mellanox Technologies Ltd.  538,500  8,971 
* Hollysys Automation Technologies Ltd.  876,400  8,554 
* Equinix Inc.  91,345  8,542 
* Cognizant Technology Solutions Corp. Class A  149,014  8,130 
* Digital River Inc.  304,170  7,997 
* Advent Software Inc.  154,939  7,942 
* Oclaro Inc.  580,178  7,154 
Global Payments Inc.  187,200  7,063 
* Advanced Energy Industries Inc.  399,600  7,037 
* Ciena Corp.  534,100  6,991 
* Compellent Technologies Inc.  515,720  6,916 
* Marvell Technology Group Ltd.  458,046  6,834 
Black Box Corp.  224,500  6,834 
* Diodes Inc.  373,605  6,605 
* NeuStar Inc. Class A  266,653  6,194 
Plantronics Inc.  206,000  6,174 
* Isilon Systems Inc.  345,000  6,051 
* VanceInfo Technologies Inc. ADR  230,446  5,851 
* Fairchild Semiconductor International Inc. Class A  634,581  5,762 
* Veeco Instruments Inc.  132,000  5,716 
* Intuit Inc.  141,750  5,635 
* LoopNet Inc.  487,250  5,574 


* PROS Holdings Inc.  782,100  5,529 
* Rambus Inc.  278,603  5,475 
* Brightpoint Inc.  676,819  5,360 
* Applied Micro Circuits Corp.  437,645  5,234 
MAXIMUS Inc.  82,500  4,966 
* Blackboard Inc.  129,919  4,933 
* Rackspace Hosting Inc.  259,525  4,853 
* Lattice Semiconductor Corp.  850,400  4,728 
* Art Technology Group Inc.  1,301,932  4,687 
* Cirrus Logic Inc.  234,765  4,578 
* CommVault Systems Inc.  244,700  4,532 
* Constant Contact Inc.  227,175  4,428 
* Ancestry.com Inc.  218,849  4,320 
* Aviat Networks Inc.  1,052,337  4,251 
* Electronic Arts Inc.  250,000  3,982 
Fair Isaac Corp.  156,997  3,744 
* Radiant Systems Inc.  262,136  3,725 
* GSI Commerce Inc.  159,693  3,596 
* SolarWinds Inc.  252,750  3,493 
* Arris Group Inc.  359,196  3,348 
* ArcSight Inc.  128,150  3,205 
* JDA Software Group Inc.  131,600  3,093 
* TeleTech Holdings Inc.  206,826  2,875 
* Manhattan Associates Inc.  102,700  2,759 
* DealerTrack Holdings Inc.  172,000  2,685 
* Quest Software Inc.  132,300  2,667 
* OSI Systems Inc.  95,611  2,657 
* Mantech International Corp. Class A  66,711  2,645 
* Shanda Interactive Entertainment Ltd. ADR  65,000  2,594 
Diamond Management & Technology Consultants Inc. Class A  233,453  2,533 
Jack Henry & Associates Inc.  98,300  2,497 
* Silicon Motion Technology Corp. ADR  454,800  2,410 
* Coherent Inc.  63,100  2,336 
* Anixter International Inc.  48,300  2,334 
* Fabrinet  225,400  2,290 
* DemandTec Inc.  324,940  2,187 
* Interactive Intelligence Inc.  134,317  2,173 
* Advanced Micro Devices Inc.  288,661  2,162 
* Insight Enterprises Inc.  139,300  2,030 
* Amkor Technology Inc.  327,722  1,891 
* Tekelec  128,038  1,810 
* Oplink Communications Inc.  110,500  1,780 
* Power-One Inc.  143,000  1,777 
* Multi-Fineline Electronix Inc.  69,191  1,753 
* Netgear Inc.  72,900  1,750 
* Conexant Systems Inc.  832,500  1,715 
* LivePerson Inc.  234,713  1,652 
* Red Hat Inc.  50,000  1,607 
* Ulticom Inc.  166,780  1,581 
Lender Processing Services Inc.  48,100  1,536 
* Netscout Systems Inc.  95,615  1,515 
* Sanmina-SCI Corp.  120,100  1,510 
* Quantum Corp.  935,000  1,496 
* TIBCO Software Inc.  108,800  1,475 
* LSI Corp.  350,469  1,412 
Opnet Technologies Inc.  91,700  1,397 
* Loral Space & Communications Inc.  29,122  1,393 
* Brooks Automation Inc.  180,300  1,376 


*  Nova Measuring Instruments Ltd.  250,000  1,257 
*  Comtech Telecommunications Corp.  56,265  1,214 
*  Hypercom Corp.  279,763  1,211 
*  Mercury Computer Systems Inc.  90,471  1,194 
*  Radisys Corp.  119,849  1,183 
*  InterDigital Inc.  43,100  1,176 
*  Brocade Communications Systems Inc.  226,390  1,121 
*  Net 1 UEPS Technologies Inc.  73,491  1,069 
*  Volterra Semiconductor Corp.  46,100  1,038 
*  QLIK Technologies Inc.  71,700  1,030 
*  Silicon Image Inc.  241,400  1,028 
*  ADC Telecommunications Inc.  76,300  971 
*,^ Synaptics Inc.  30,471  954 
*  CSG Systems International Inc.  48,705  919 
  CTS Corp.  96,360  901 
*  MIPS Technologies Inc. Class A  161,770  882 
*  Monolithic Power Systems Inc.  50,000  881 
*  Emulex Corp.  98,600  858 
*  Global Cash Access Holdings Inc.  182,438  750 
*  RF Micro Devices Inc.  177,700  741 
*  Epicor Software Corp.  77,900  603 
*  Ness Technologies Inc.  121,189  542 
*  Saba Software Inc.  106,576  523 
*  Internap Network Services Corp.  110,612  518 
*  Mindspeed Technologies Inc.  62,395  441 
*  Zygo Corp.  51,084  423 
  QAD Inc.  100,002  417 
*  Computer Task Group Inc.  46,450  372 
  Blackbaud Inc.  15,300  362 
*  Symmetricom Inc.  65,430  349 
*  TriQuint Semiconductor Inc.  47,700  331 
*  Unisys Corp.  11,730  317 
  Heartland Payment Systems Inc.  18,937  299 
*  support.com Inc.  68,200  282 
*  Magma Design Automation Inc.  86,600  281 
*  Seachange International Inc.  27,662  248 
*  Bottomline Technologies Inc.  15,300  217 
*  Digi International Inc.  25,819  215 
*  Actel Corp.  13,895  204 
*  IntriCon Corp.  37,287  197 
*  Extreme Networks  58,100  166 
*  LaserCard Corp.  40,968  164 
*  INX Inc.  34,070  156 
*  Ceva Inc.  10,752  137 
*  Occam Networks Inc.  21,500  137 
*  Exar Corp.  13,959  98 
*  Electronics for Imaging Inc.  7,944  85 
*  Image Sensing Systems Inc.  6,990  84 
*  Forrester Research Inc.  2,340  76 
*  Avid Technology Inc.  5,703  74 
  Renaissance Learning Inc.  5,100  71 
*  CACI International Inc. Class A  1,500  71 
*  Checkpoint Systems Inc.  3,500  70 
  Keithley Instruments Inc.  6,300  68 
*  Travelzoo Inc.  4,320  67 
*  Infospace Inc.  8,500  67 
  Micrel Inc.  6,800  66 
*  Lionbridge Technologies Inc.  13,400  66 


Richardson Electronics Ltd.  6,500  62 
* Xyratex Ltd.  4,500  58 
* Spansion Inc. Class A  3,400  57 
* Stamps.com Inc.  3,123  34 
* Lawson Software Inc.  3,525  28 
* Tessco Technologies Inc.  1,623  23 
* GTSI Corp.  2,402  13 
* CSP Inc.  929  4 
    1,963,822 
Materials (4.1%)     
Sensient Technologies Corp.  1,580,000  46,547 
* Titanium Metals Corp.  1,346,623  29,814 
Albemarle Corp.  667,055  29,097 
Silgan Holdings Inc.  1,013,800  28,812 
* Pactiv Corp.  835,345  25,411 
Olin Corp.  1,129,000  22,919 
Aptargroup Inc.  472,420  20,347 
* Fronteer Gold Inc.  2,960,745  17,764 
Steel Dynamics Inc.  1,234,600  17,679 
Arch Chemicals Inc.  475,599  16,299 
Cytec Industries Inc.  241,900  12,076 
Ashland Inc.  207,941  10,574 
Schnitzer Steel Industries Inc.  197,450  9,047 
* OM Group Inc.  296,200  7,997 
Eagle Materials Inc.  313,870  7,677 
Ball Corp.  113,000  6,581 
Greif Inc. Class A  108,029  6,442 
NewMarket Corp.  59,756  6,405 
Lubrizol Corp.  60,200  5,628 
Walter Energy Inc.  77,766  5,545 
Stepan Co.  76,047  5,020 
Rock-Tenn Co. Class A  76,537  4,073 
* Solutia Inc.  265,600  3,748 
Schweitzer-Mauduit International Inc.  70,575  3,736 
* Clearwater Paper Corp.  47,249  2,912 
* Crown Holdings Inc.  102,633  2,856 
Valspar Corp.  62,800  1,973 
* PolyOne Corp.  184,600  1,903 
* WR Grace & Co.  41,300  1,060 
Airgas Inc.  4,000  261 
* Kraton Performance Polymers Inc.  7,100  167 
* US Energy Corp.  27,880  134 
* General Steel Holdings Inc.  40,366  117 
    360,621 
Telecommunication Services (1.1%)     
* tw telecom inc Class A  1,467,400  27,763 
* SBA Communications Corp. Class A  513,367  18,574 
* MetroPCS Communications Inc.  1,808,900  16,190 
* Clearwire Corp. Class A  1,957,810  13,666 
* Vonage Holdings Corp.  4,578,165  11,216 
NTELOS Holdings Corp.  196,800  3,682 
Consolidated Communications Holdings Inc.  200,200  3,495 
Frontier Communications Corp.  319,100  2,438 
USA Mobility Inc.  94,966  1,408 
* Premiere Global Services Inc.  205,250  1,285 
* PAETEC Holding Corp.  111,200  437 
* ICO Global Communications Holdings Ltd.  206,300  392 


* Cincinnati Bell Inc.      95,000  281 
        100,827 
Utilities (0.6%)         
ITC Holdings Corp.      389,500  22,100 
UGI Corp.      731,600  19,724 
CenterPoint Energy Inc.      370,100  5,267 
Ormat Technologies Inc.      147,380  4,100 
Integrys Energy Group Inc.      28,300  1,340 
Southwest Water Co.      10,000  108 
        52,639 
Total Common Stocks (Cost $6,671,222)        7,752,345 
        Market 
        Value 
  Coupon    Shares  ($000) 
Temporary Cash Investments (8.8%)1         
Money Market Fund (7.8%)         
5,6 Vanguard Market Liquidity Fund  0.297%    677,971,795  677,972 
 
      Face  Market 
    Maturity  Amount  Value 
  Coupon  Date  ($000)  ($000) 
Repurchase Agreement (0.2%)         
Deutsche Bank Securities, Inc.         
(Dated 7/30/10, Repurchase Value         
$12,400,000, collateralized by Government         
National Mortgage Assn. 4.500%, 7/15/40)  0.210%  8/2/10  12,400  12,400 
 
U.S. Government and Agency Obligations (0.8%)         
7,8 Fannie Mae Discount Notes  0.300%  10/20/10  200  200 
7,8 Federal Home Loan Bank Discount Notes  0.090%  8/6/10  55,000  54,999 
7,8 Freddie Mac Discount Notes  0.296%  3/31/11  3,000  2,994 
7,8 Freddie Mac Discount Notes  0.245%  9/21/10  15,300  15,297 
        73,490 
Total Temporary Cash Investments (Cost $763,860)        763,862 
Total Investments (97.5%) (Cost $7,435,082)        8,516,207 
Other Assets and Liabilities-Net (2.5%)6        221,442 
Net Assets (100%)        8,737,649 

* Non-income-producing security.
^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $74,990,000.
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 97.9% and -0.4%, respectively, of net assets.
2 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
3 Restricted security represents 0.0% of net assets.
4 Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company.
5 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
6 Includes $77,761,000 of collateral received for securities on loan.
7 The issuer operates under a congressional charter; its securities are not backed by the full faith and credit of the U.S. government.
8 Securities with a value of $73,490,000 have been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.


Explorer 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 f oreign 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. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market.

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 July 31, 2010, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:

        ($000) 
    Number of  Aggregate Settlement  Unrealized 
    Long (Short)  Value  Appreciation 
Futures Contracts  Expiration  Contracts  Long (Short)  (Depreciation) 
E-mini Russell 2000 Index  September 2010  11,772  764,709  (1,357) 
S&P MidCap 400 Index  September 2010  31  11,761  48 
E-mini S&P MidCap 400 Index  September 2010  278  21,095  1,680 

Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.


Explorer Fund

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   
  Oct. 31, 2009        July 31, 2010 
  Market  Purchases Proceeds from   Dividend  Market 
  Value  at Cost Securities Sold   Income  Value 
  ($000)  ($000)  ($000)  ($000)  ($000) 
Beacon Roofing Supply Inc  N/A1  38,427  3,888  —  50,484 
Sourcefire Inc  N/A1  53,170  9,041  —  42,681 
Verigy Ltd.  N/A2  11,951  17,458  —  N/A2 
  —      —  93,165 

1 Not applicable — At October 31, 2009, the issuer was not an affiliated company of the fund.
2 Not applicable — At October 31, 2009 and July 31, 2010, the issuer was not an affiliated company of the fund, but was affiliated during the period.

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.

The following table summarizes the fund's investments as of July 31, 2010, based on the inputs used to value them:

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).

  Level 1  Level 2  Level 3 
Investments  ($000)  ($000)  ($000) 
Common Stocks  7,739,949  11,057  1,339 
Temporary Cash Investments  677,972  85,890  — 
Futures Contracts—Assets1  2,233  —  — 
Futures Contracts—Liabilities1  (13)  —  — 
Total  8,420,141  96,947  1,339 
1 Represents variation margin on the last day of the reporting period.       

The following table summarizes changes in investments valued based on Level 3 inputs during the period ended July 31, 2010:

  Investments in 
  Common Stocks 
Amount Valued Based on Level 3 Inputs  ($000) 
Balance as of October 31, 2009  — 
Total Purchases  1,814 
Change in Unrealized Appreciation (Depreciation)  (475) 
Balance as of July 31, 2010  1,339 


Explorer Fund

F. At July 31, 2010, the cost of investment securities for tax purposes was $7,435,082,000. Net unrealized appreciation of investment securities for tax purposes was $1,081,125,000, consisting of unrealized gains of $1,472,478,000 on securities that had risen in value since their purchase and $391,353,000 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 EXPLORER FUND
 
By: /s/ F. WILLIAM MCNABB III*
  F. WILLIAM MCNABB III
  CHIEF EXECUTIVE OFFICER
 
Date: September 23, 2010

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 EXPLORER FUND
 
By: /s/ F. WILLIAM MCNABB III*
  F. WILLIAM MCNABB III
  CHIEF EXECUTIVE OFFICER
 
Date: September 23, 2010

  VANGUARD EXPLORER FUND
 
By: /s/ THOMAS J. HIGGINS*
  THOMAS J. HIGGINS
  CHIEF FINANCIAL OFFICER
 
Date: September 23, 2010

* By:/s/ Heidi Stam

Heidi Stam, pursuant to a Power of Attorney filed on April 26, 2010, see file Number 33-53683,
Incorporated by Reference.

 EX-99.CERT 2 explorercerts.htm CERTIFICATIONS explorercerts.htm - Generated by SEC Publisher for SEC Filing

 

CERTIFICATIONS

 

I, F. William McNabb III, certify that:

 

1. I have reviewed this report on Form N-Q of Vanguard Explorer Fund;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: September 23, 2010

/s/ F. William McNabb III

 

F. William McNabb III

 

Chief Executive Officer

 

 

CERTIFICATIONS

 

I, Thomas J. Higgins, certify that:

 

1. I have reviewed this report on Form N-Q of Vanguard Explorer Fund;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: September 23, 2010

/s/ Thomas J Higgins

 

Thomas J. Higgins

 

Chief Financial Officer

 

 

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