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: 811-01530
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
Date of reporting period: July 31, 2015
Item 1: Schedule of Investments
| Vanguard Explorer Fund | |||
| Schedule of Investments | |||
| As of July 31, 2015 | |||
| Market | |||
| Value | |||
| Shares | ($000) | ||
| Common Stocks (95.8%)1 | |||
| Consumer Discretionary (18.2%) | |||
| * | IMAX Corp. | 2,668,907 | 99,844 |
| * | Urban Outfitters Inc. | 2,601,099 | 84,848 |
| DSW Inc. Class A | 2,577,808 | 83,830 | |
| * | Ulta Salon Cosmetics & Fragrance Inc. | 441,959 | 73,378 |
| * | LKQ Corp. | 2,286,487 | 71,933 |
| Wolverine World Wide Inc. | 2,093,370 | 61,378 | |
| Texas Roadhouse Inc. Class A | 1,345,555 | 53,001 | |
| Bloomin' Brands Inc. | 2,078,044 | 48,398 | |
| Churchill Downs Inc. | 352,658 | 47,630 | |
| * | Five Below Inc. | 1,238,190 | 45,652 |
| HSN Inc. | 592,180 | 43,531 | |
| * | Tumi Holdings Inc. | 2,250,394 | 43,320 |
| Service Corp. International | 1,418,665 | 43,283 | |
| * | Grand Canyon Education Inc. | 993,702 | 43,156 |
| Tractor Supply Co. | 465,930 | 43,108 | |
| Cheesecake Factory Inc. | 733,448 | 42,349 | |
| Lennar Corp. Class A | 758,685 | 40,241 | |
| * | DreamWorks Animation SKG Inc. Class A | 1,667,830 | 40,211 |
| * | Crocs Inc. | 2,508,570 | 39,460 |
| * | Live Nation Entertainment Inc. | 1,486,165 | 38,967 |
| * | Standard Pacific Corp. | 4,277,370 | 38,454 |
| * | G-III Apparel Group Ltd. | 508,580 | 36,735 |
| PulteGroup Inc. | 1,724,240 | 35,726 | |
| * | Jarden Corp. | 636,327 | 34,998 |
| New York Times Co. Class A | 2,623,026 | 34,676 | |
| Chico's FAS Inc. | 2,272,200 | 34,583 | |
| * | CarMax Inc. | 526,460 | 33,962 |
| Brunswick Corp. | 635,960 | 33,763 | |
| * | Buffalo Wild Wings Inc. | 166,390 | 32,543 |
| * | Tenneco Inc. | 641,277 | 31,942 |
| Hanesbrands Inc. | 1,011,000 | 31,371 | |
| La-Z-Boy Inc. | 1,171,400 | 29,754 | |
| * | Burlington Stores Inc. | 532,626 | 29,316 |
| Pier 1 Imports Inc. | 2,453,520 | 28,976 | |
| National CineMedia Inc. | 1,826,606 | 28,312 | |
| * | Michaels Cos. Inc. | 1,114,745 | 28,248 |
| Sonic Corp. | 884,022 | 26,273 | |
| Columbia Sportswear Co. | 349,668 | 25,015 | |
| * | Cabela's Inc. | 487,975 | 21,681 |
| * | Red Robin Gourmet Burgers Inc. | 223,635 | 20,496 |
| * | MarineMax Inc. | 999,766 | 18,056 |
| Sotheby's | 418,129 | 17,490 | |
| * | Dorman Products Inc. | 328,927 | 17,361 |
| Callaway Golf Co. | 1,873,996 | 17,166 | |
| Williams-Sonoma Inc. | 197,524 | 16,722 | |
| * | Steven Madden Ltd. | 399,842 | 16,665 |
| Ryland Group Inc. | 352,246 | 16,017 | |
| * | Netflix Inc. | 139,300 | 15,923 |
| Papa John's International Inc. | 206,677 | 15,617 | |
| Ross Stores Inc. | 270,800 | 14,396 | |
| * | La Quinta Holdings Inc. | 678,297 | 14,393 |
| * | Skechers U.S.A. Inc. Class A | 93,950 | 14,135 |
| * | Bright Horizons Family Solutions Inc. | 233,410 | 14,061 |
| * | Express Inc. | 731,305 | 13,924 |
| * | Chipotle Mexican Grill Inc. Class A | 18,600 | 13,805 |
| * | Vitamin Shoppe Inc. | 373,500 | 13,730 |
| Carter's Inc. | 133,611 | 13,549 | |
| MDC Partners Inc. Class A | 763,412 | 13,459 | |
| * | Boyd Gaming Corp. | 736,600 | 12,588 |
| * | Krispy Kreme Doughnuts Inc. | 667,517 | 12,443 |
| * | ServiceMaster Global Holdings Inc. | 319,204 | 12,363 |
| * | Gentherm Inc. | 226,414 | 11,395 |
| * | Hibbett Sports Inc. | 237,516 | 10,819 |
| Men's Wearhouse Inc. | 174,900 | 10,410 | |
| *,^ Rentrak Corp. | 151,173 | 10,351 | |
| * | Deckers Outdoor Corp. | 133,750 | 9,748 |
| * | Sally Beauty Holdings Inc. | 324,270 | 9,660 |
| Harman International Industries Inc. | 89,200 | 9,603 | |
| * | Under Armour Inc. Class A | 89,372 | 8,877 |
| * | Francesca's Holdings Corp. | 661,600 | 8,045 |
| * | GoPro Inc. Class A | 127,500 | 7,918 |
| Brinker International Inc. | 130,304 | 7,805 | |
| Cinemark Holdings Inc. | 177,060 | 6,987 | |
| Dunkin' Brands Group Inc. | 128,211 | 6,909 | |
| * | Chuy's Holdings Inc. | 225,189 | 6,398 |
| Tribune Publishing Co. | 412,200 | 6,138 | |
| * | Ascena Retail Group Inc. | 484,550 | 6,067 |
| Lithia Motors Inc. Class A | 47,300 | 5,661 | |
| Monro Muffler Brake Inc. | 88,411 | 5,592 | |
| * | BJ's Restaurants Inc. | 99,605 | 5,136 |
| * | Kona Grill Inc. | 268,209 | 5,107 |
| * | Tesla Motors Inc. | 17,939 | 4,774 |
| * | NVR Inc. | 3,200 | 4,768 |
| Leggett & Platt Inc. | 93,500 | 4,470 | |
| Foot Locker Inc. | 58,300 | 4,113 | |
| Nexstar Broadcasting Group Inc. Class A | 71,200 | 4,084 | |
| American Eagle Outfitters Inc. | 220,300 | 3,910 | |
| Jack in the Box Inc. | 41,100 | 3,904 | |
| * | Pinnacle Entertainment Inc. | 90,800 | 3,496 |
| Cablevision Systems Corp. Class A | 121,500 | 3,429 | |
| Nutrisystem Inc. | 110,900 | 3,333 | |
| Outerwall Inc. | 43,721 | 3,096 | |
| * | Performance Sports Group Ltd. | 185,000 | 3,038 |
| * | Strayer Education Inc. | 53,100 | 2,953 |
| * | American Axle & Manufacturing Holdings Inc. | 146,200 | 2,921 |
| * | Build-A-Bear Workshop Inc. | 163,300 | 2,850 |
| * | iRobot Corp. | 90,121 | 2,775 |
| Pool Corp. | 39,182 | 2,759 | |
| Cato Corp. Class A | 71,600 | 2,750 | |
| * | Skullcandy Inc. | 372,000 | 2,719 |
| *,^ Zoe's Kitchen Inc. | 58,723 | 2,634 | |
| ^ | World Wrestling Entertainment Inc. Class A | 131,200 | 2,568 |
| * | Fiesta Restaurant Group Inc. | 44,000 | 2,558 |
| * | Murphy USA Inc. | 46,400 | 2,541 |
| * | Universal Electronics Inc. | 46,900 | 2,431 |
| Cracker Barrel Old Country Store Inc. | 15,700 | 2,385 | |
| Cooper Tire & Rubber Co. | 71,300 | 2,348 |
| Big Lots Inc. | 51,700 | 2,232 |
| Dana Holding Corp. | 119,100 | 2,210 |
| * Select Comfort Corp. | 82,800 | 2,156 |
| Caleres Inc. | 62,900 | 2,078 |
| * Denny's Corp. | 164,600 | 1,936 |
| Aramark | 60,400 | 1,922 |
| Dillard's Inc. Class A | 17,200 | 1,752 |
| * Jamba Inc. | 107,000 | 1,743 |
| * Starz | 42,800 | 1,731 |
| Dick's Sporting Goods Inc. | 32,800 | 1,672 |
| Abercrombie & Fitch Co. | 82,000 | 1,647 |
| * Diamond Resorts International Inc. | 51,200 | 1,605 |
| * Nautilus Inc. | 63,600 | 1,344 |
| PetMed Express Inc. | 72,800 | 1,227 |
| * Isle of Capri Casinos Inc. | 65,500 | 1,195 |
| AMC Entertainment Holdings Inc. | 31,700 | 1,022 |
| * ZAGG Inc. | 114,000 | 886 |
| * Vince Holding Corp. | 68,500 | 672 |
| * Tower International Inc. | 19,200 | 502 |
| Polaris Industries Inc. | 3,500 | 480 |
| Culp Inc. | 13,600 | 411 |
| Bassett Furniture Industries Inc. | 11,800 | 387 |
| ^ Buckle Inc. | 6,900 | 305 |
| Domino's Pizza Inc. | 2,342 | 267 |
| * Malibu Boats Inc. Class A | 9,300 | 180 |
| Clear Channel Outdoor Holdings Inc. Class A | 14,500 | 140 |
| 2,292,140 | ||
| Consumer Staples (1.8%) | ||
| * TreeHouse Foods Inc. | 995,345 | 81,579 |
| Greencore Group plc | 7,698,341 | 38,027 |
| * United Natural Foods Inc. | 712,394 | 32,435 |
| * Monster Beverage Corp. | 90,400 | 13,881 |
| ^ Sanderson Farms Inc. | 141,157 | 10,165 |
| PriceSmart Inc. | 80,520 | 7,803 |
| * Fresh Market Inc. | 225,469 | 6,877 |
| * Boulder Brands Inc. | 675,150 | 5,624 |
| * WhiteWave Foods Co. Class A | 108,300 | 5,591 |
| * Natural Grocers by Vitamin Cottage Inc. | 183,700 | 4,912 |
| Inter Parfums Inc. | 121,000 | 3,677 |
| Cal-Maine Foods Inc. | 61,500 | 3,331 |
| ^ Pilgrim's Pride Corp. | 114,286 | 2,473 |
| * USANA Health Sciences Inc. | 17,500 | 2,181 |
| Casey's General Stores Inc. | 12,000 | 1,227 |
| Ingles Markets Inc. Class A | 16,300 | 754 |
| * Seaboard Corp. | 217 | 754 |
| * SUPERVALU Inc. | 69,000 | 636 |
| Coca-Cola Bottling Co. Consolidated | 3,100 | 502 |
| Coty Inc. Class A | 9,100 | 243 |
| * Central Garden & Pet Co. Class A | 15,800 | 159 |
| 222,831 | ||
| Energy (2.7%) | ||
| Core Laboratories NV | 373,836 | 40,984 |
| Patterson-UTI Energy Inc. | 1,913,044 | 31,537 |
| ^ Veresen Inc. | 2,782,700 | 31,490 |
| Energen Corp. | 565,660 | 31,224 |
| * | Matador Resources Co. | 1,135,672 | 25,019 |
| * | Gulfport Energy Corp. | 690,492 | 22,621 |
| Cabot Oil & Gas Corp. | 853,775 | 22,335 | |
| Superior Energy Services Inc. | 1,063,825 | 18,085 | |
| Scorpio Tankers Inc. | 1,118,812 | 12,016 | |
| * | RigNet Inc. | 399,468 | 10,358 |
| * | Diamondback Energy Inc. | 152,310 | 10,250 |
| * | Carrizo Oil & Gas Inc. | 257,170 | 9,806 |
| Atwood Oceanics Inc. | 418,940 | 8,714 | |
| * | Rice Energy Inc. | 399,500 | 7,211 |
| * | Bonanza Creek Energy Inc. | 917,680 | 7,167 |
| RPC Inc. | 572,950 | 7,047 | |
| Bristow Group Inc. | 139,120 | 6,267 | |
| * | Southwestern Energy Co. | 333,605 | 6,205 |
| * | Dril-Quip Inc. | 102,040 | 5,960 |
| Oceaneering International Inc. | 146,200 | 5,851 | |
| Range Resources Corp. | 122,600 | 4,823 | |
| * | Forum Energy Technologies Inc. | 249,800 | 3,817 |
| Western Refining Inc. | 75,700 | 3,343 | |
| * | Basic Energy Services Inc. | 310,000 | 1,872 |
| * | Pacific Ethanol Inc. | 230,200 | 1,699 |
| Nabors Industries Ltd. | 133,000 | 1,544 | |
| *,^ Sanchez Energy Corp. | 168,664 | 1,236 | |
| * | Key Energy Services Inc. | 1,195,002 | 1,088 |
| Alon USA Energy Inc. | 28,000 | 521 | |
| * | REX American Resources Corp. | 8,367 | 432 |
| *,^ CHC Group Ltd. | 539,134 | 200 | |
| 340,722 | |||
| Financials (7.9%) | |||
| NASDAQ OMX Group Inc. | 1,631,567 | 83,259 | |
| * | MGIC Investment Corp. | 6,362,089 | 70,428 |
| * | Affiliated Managers Group Inc. | 334,311 | 69,503 |
| PacWest Bancorp | 951,226 | 44,032 | |
| Zions Bancorporation | 1,378,500 | 42,995 | |
| Assured Guaranty Ltd. | 1,716,440 | 41,984 | |
| MFA Financial Inc. | 4,857,005 | 36,573 | |
| First American Financial Corp. | 846,900 | 34,367 | |
| ^ | WisdomTree Investments Inc. | 1,374,207 | 34,218 |
| MarketAxess Holdings Inc. | 347,050 | 33,942 | |
| ^ | Financial Engines Inc. | 730,367 | 33,495 |
| Pebblebrook Hotel Trust | 794,319 | 32,329 | |
| * | Signature Bank | 188,143 | 27,392 |
| Redwood Trust Inc. | 1,753,420 | 27,178 | |
| Solar Capital Ltd. | 1,370,110 | 24,347 | |
| *,2 eHealth Inc. | 1,380,405 | 22,459 | |
| Assurant Inc. | 283,300 | 21,134 | |
| Och-Ziff Capital Management Group LLC Class A | 1,771,846 | 20,536 | |
| * | First BanCorp | 4,713,567 | 20,315 |
| Evercore Partners Inc. Class A | 339,180 | 19,944 | |
| LPL Financial Holdings Inc. | 399,256 | 18,825 | |
| * | PRA Group Inc. | 268,395 | 17,057 |
| * | Texas Capital Bancshares Inc. | 266,855 | 15,728 |
| STAG Industrial Inc. | 720,900 | 14,158 | |
| * | SVB Financial Group | 96,700 | 13,838 |
| * | First NBC Bank Holding Co. | 275,562 | 10,526 |
| Opus Bank | 268,824 | 10,524 | |
| Cardinal Financial Corp. | 430,109 | 10,047 | |
| Cohen & Steers Inc. | 324,884 | 10,042 | |
| * | Encore Capital Group Inc. | 229,621 | 9,876 |
| Hancock Holding Co. | 313,800 | 9,169 | |
| Bank of the Ozarks Inc. | 193,353 | 8,531 | |
| * | Hilltop Holdings Inc. | 373,600 | 7,864 |
| * | Customers Bancorp Inc. | 310,300 | 7,804 |
| * | Cowen Group Inc. Class A | 1,321,193 | 7,465 |
| State Bank Financial Corp. | 329,679 | 6,676 | |
| EastGroup Properties Inc. | 81,204 | 4,888 | |
| Lazard Ltd. Class A | 86,800 | 4,810 | |
| Lexington Realty Trust | 547,020 | 4,704 | |
| Terreno Realty Corp. | 214,562 | 4,499 | |
| QTS Realty Trust Inc. Class A | 97,046 | 4,027 | |
| Lamar Advertising Co. Class A | 62,800 | 3,771 | |
| Extra Space Storage Inc. | 45,100 | 3,316 | |
| * | Credit Acceptance Corp. | 13,517 | 3,247 |
| Universal Insurance Holdings Inc. | 111,620 | 3,061 | |
| Radian Group Inc. | 163,100 | 3,011 | |
| Legg Mason Inc. | 60,000 | 2,960 | |
| Boston Private Financial Holdings Inc. | 198,475 | 2,497 | |
| *,^ World Acceptance Corp. | 43,076 | 2,344 | |
| * | Strategic Hotels & Resorts Inc. | 158,500 | 2,167 |
| National Storage Affiliates Trust | 174,113 | 2,060 | |
| * | Marcus & Millichap Inc. | 38,700 | 1,983 |
| Investar Holding Corp. | 128,006 | 1,983 | |
| CoreSite Realty Corp. | 34,900 | 1,752 | |
| Ryman Hospitality Properties Inc. | 29,000 | 1,658 | |
| Omega Healthcare Investors Inc. | 44,000 | 1,595 | |
| DuPont Fabros Technology Inc. | 46,600 | 1,405 | |
| * | INTL. FCStone Inc. | 45,800 | 1,336 |
| * | Heritage Insurance Holdings Inc. | 44,700 | 1,105 |
| AmTrust Financial Services Inc. | 15,000 | 1,043 | |
| Investment Technology Group Inc. | 49,200 | 1,001 | |
| Sovran Self Storage Inc. | 9,600 | 914 | |
| * | Walker & Dunlop Inc. | 28,000 | 671 |
| Iron Mountain Inc. | 20,900 | 628 | |
| OM Asset Management plc | 30,000 | 530 | |
| Jones Lang LaSalle Inc. | 2,600 | 463 | |
| HCI Group Inc. | 9,000 | 404 | |
| *,^ Impac Mortgage Holdings Inc. | 18,100 | 396 | |
| * | Western Alliance Bancorp | 11,200 | 379 |
| Universal Health Realty Income Trust | 7,000 | 343 | |
| * | Virtu Financial Inc. Class A | 10,000 | 235 |
| * | Realogy Holdings Corp. | 4,900 | 223 |
| Federal Realty Investment Trust | 1,400 | 192 | |
| 990,161 | |||
| Health Care (19.2%) | |||
| West Pharmaceutical Services Inc. | 1,571,190 | 94,067 | |
| * | Globus Medical Inc. | 3,261,318 | 91,513 |
| * | Akorn Inc. | 1,681,668 | 77,542 |
| Cooper Cos. Inc. | 435,554 | 77,093 | |
| Universal Health Services Inc. Class B | 488,982 | 71,015 | |
| * | Alkermes plc | 983,242 | 68,847 |
| * | Insulet Corp. | 1,839,234 | 62,332 |
| * | Ligand Pharmaceuticals Inc. | 572,554 | 61,985 |
| * | ICON plc | 730,647 | 59,036 |
| * | Cepheid | 1,013,860 | 56,360 |
| * Allscripts Healthcare Solutions Inc. | 3,424,420 | 49,517 |
| * Team Health Holdings Inc. | 726,295 | 48,960 |
| Kindred Healthcare Inc. | 2,191,329 | 45,207 |
| ResMed Inc. | 754,189 | 43,705 |
| Teleflex Inc. | 321,500 | 43,078 |
| * ABIOMED Inc. | 549,554 | 42,568 |
| * Surgical Care Affiliates Inc. | 1,093,600 | 41,579 |
| * LifePoint Health Inc. | 493,171 | 40,864 |
| * WellCare Health Plans Inc. | 490,740 | 39,652 |
| * Align Technology Inc. | 625,495 | 39,219 |
| * Medivation Inc. | 344,055 | 36,239 |
| * Acadia Healthcare Co. Inc. | 428,532 | 34,188 |
| * Jazz Pharmaceuticals plc | 177,152 | 34,056 |
| * Alnylam Pharmaceuticals Inc. | 266,160 | 33,917 |
| * PharMerica Corp. | 989,972 | 33,827 |
| * Bruker Corp. | 1,606,950 | 33,826 |
| * Quidel Corp. | 1,632,123 | 33,801 |
| * Allergan plc | 100,140 | 33,161 |
| * Sirona Dental Systems Inc. | 306,305 | 31,788 |
| * Mallinckrodt plc | 251,730 | 31,204 |
| * QIAGEN NV | 1,051,000 | 29,407 |
| * Bio-Rad Laboratories Inc. Class A | 180,240 | 27,169 |
| * Medidata Solutions Inc. | 412,110 | 22,172 |
| * Envision Healthcare Holdings Inc. | 487,038 | 21,819 |
| * Spectranetics Corp. | 1,264,192 | 21,618 |
| * Illumina Inc. | 97,400 | 21,360 |
| * Tetraphase Pharmaceuticals Inc. | 435,900 | 20,727 |
| * NuVasive Inc. | 369,510 | 20,327 |
| * INC Research Holdings Inc. Class A | 400,181 | 20,021 |
| * Anacor Pharmaceuticals Inc. | 132,956 | 19,836 |
| * Portola Pharmaceuticals Inc. Class A | 396,200 | 19,588 |
| * Hologic Inc. | 454,500 | 18,934 |
| * Cardiovascular Systems Inc. | 625,000 | 18,650 |
| * Nektar Therapeutics | 1,374,300 | 17,330 |
| * AMAG Pharmaceuticals Inc. | 268,729 | 17,172 |
| * Masimo Corp. | 408,581 | 17,030 |
| * Receptos Inc. | 74,000 | 16,862 |
| * Neogen Corp. | 284,050 | 16,529 |
| * NxStage Medical Inc. | 1,156,732 | 16,518 |
| * AMN Healthcare Services Inc. | 555,832 | 16,358 |
| * Catalent Inc. | 476,185 | 16,228 |
| * Sucampo Pharmaceuticals Inc. Class A | 744,500 | 16,223 |
| * IDEXX Laboratories Inc. | 220,800 | 16,059 |
| * athenahealth Inc. | 112,657 | 15,767 |
| * LDR Holding Corp. | 342,936 | 15,590 |
| * Cerner Corp. | 205,700 | 14,753 |
| * Brookdale Senior Living Inc. | 438,111 | 14,515 |
| * Molina Healthcare Inc. | 192,375 | 14,511 |
| * Zeltiq Aesthetics Inc. | 416,890 | 14,320 |
| CONMED Corp. | 249,297 | 14,140 |
| * VCA Inc. | 212,164 | 13,054 |
| * Cempra Inc. | 309,000 | 12,935 |
| * Luminex Corp. | 743,030 | 12,802 |
| * Sage Therapeutics Inc. | 185,291 | 12,666 |
| * HealthEquity Inc. | 345,625 | 11,634 |
| * Horizon Pharma plc | 279,530 | 10,301 |
| * Evolent Health Inc. Class A | 479,450 | 10,227 |
| * | Cambrex Corp. | 206,140 | 10,152 |
| * | Esperion Therapeutics Inc. | 160,000 | 9,920 |
| * | IPC Healthcare Inc. | 174,070 | 9,652 |
| * | Prestige Brands Holdings Inc. | 201,798 | 9,610 |
| * | Omnicell Inc. | 252,953 | 9,238 |
| * | Acceleron Pharma Inc. | 322,000 | 9,222 |
| *,^ Exact Sciences Corp. | 380,143 | 9,150 | |
| * | Isis Pharmaceuticals Inc. | 164,135 | 9,016 |
| * | LHC Group Inc. | 203,430 | 8,196 |
| * | Endologix Inc. | 544,707 | 7,768 |
| * | TESARO Inc. | 132,378 | 7,678 |
| * | Pacira Pharmaceuticals Inc. | 111,629 | 7,414 |
| * | HMS Holdings Corp. | 614,655 | 7,081 |
| * | Cynosure Inc. Class A | 182,300 | 7,073 |
| * | PTC Therapeutics Inc. | 130,900 | 6,703 |
| *,^ Accuray Inc. | 1,049,631 | 6,697 | |
| * | Enanta Pharmaceuticals Inc. | 129,000 | 6,534 |
| * | Zafgen Inc. | 154,597 | 5,870 |
| * | Inovalon Holdings Inc. Class A | 235,500 | 5,690 |
| * | Adeptus Health Inc. Class A | 51,583 | 5,668 |
| * | Intuitive Surgical Inc. | 10,500 | 5,598 |
| * | Mettler-Toledo International Inc. | 16,309 | 5,506 |
| * | AAC Holdings Inc. | 139,500 | 5,302 |
| * | Centene Corp. | 71,400 | 5,007 |
| * | United Therapeutics Corp. | 29,200 | 4,945 |
| *,^ Myriad Genetics Inc. | 140,900 | 4,807 | |
| * | Inogen Inc. | 106,788 | 4,748 |
| * | PAREXEL International Corp. | 58,900 | 4,062 |
| * | Quintiles Transnational Holdings Inc. | 51,600 | 3,959 |
| *,^ Keryx Biopharmaceuticals Inc. | 479,549 | 3,827 | |
| * | Natus Medical Inc. | 79,300 | 3,581 |
| * | Flamel Technologies SA ADR | 140,500 | 3,361 |
| * | Chimerix Inc. | 62,454 | 3,356 |
| * | Charles River Laboratories International Inc. | 42,700 | 3,314 |
| * | Intersect ENT Inc. | 110,898 | 3,290 |
| * | Depomed Inc. | 104,300 | 3,285 |
| Ensign Group Inc. | 59,200 | 3,026 | |
| *,^ OvaScience Inc. | 102,843 | 2,931 | |
| * | Neurocrine Biosciences Inc. | 57,840 | 2,899 |
| * | ICU Medical Inc. | 28,300 | 2,828 |
| * | PRA Health Sciences Inc. | 67,300 | 2,826 |
| * | Revance Therapeutics Inc. | 90,755 | 2,816 |
| * | Dyax Corp. | 113,649 | 2,797 |
| *,^ Juno Therapeutics Inc. | 56,754 | 2,776 | |
| * | Novadaq Technologies Inc. | 236,810 | 2,716 |
| *,^ Merrimack Pharmaceuticals Inc. | 265,400 | 2,681 | |
| * | Incyte Corp. | 25,700 | 2,680 |
| * | Atara Biotherapeutics Inc. | 46,696 | 2,622 |
| * | Affymetrix Inc. | 235,100 | 2,577 |
| * | Merge Healthcare Inc. | 466,300 | 2,560 |
| * | Lannett Co. Inc. | 38,600 | 2,301 |
| * | Prothena Corp. plc | 33,894 | 2,236 |
| * | Repligen Corp. | 63,573 | 2,226 |
| Quality Systems Inc. | 173,100 | 2,207 | |
| *,^ Sequenom Inc. | 767,556 | 2,164 | |
| * | DexCom Inc. | 24,089 | 2,039 |
| Hill-Rom Holdings Inc. | 35,100 | 1,967 | |
| * Array BioPharma Inc. | 331,600 | 1,927 |
| * Infinity Pharmaceuticals Inc. | 216,000 | 1,888 |
| AbbVie Inc. | 26,289 | 1,840 |
| Phibro Animal Health Corp. Class A | 34,700 | 1,363 |
| * Sagent Pharmaceuticals Inc. | 46,300 | 1,138 |
| * NewLink Genetics Corp. | 18,800 | 980 |
| * VWR Corp. | 30,300 | 812 |
| * CTI BioPharma Corp. | 425,400 | 787 |
| * Cytokinetics Inc. | 88,400 | 565 |
| * Alliance HealthCare Services Inc. | 23,500 | 352 |
| * Veeva Systems Inc. Class A | 11,900 | 320 |
| * RTI Surgical Inc. | 43,200 | 314 |
| * Genesis Healthcare Inc. | 38,900 | 238 |
| PDL BioPharma Inc. | 32,600 | 190 |
| 2,418,167 | ||
| Industrials (17.3%) | ||
| * Advisory Board Co. | 1,502,542 | 90,002 |
| * Hub Group Inc. Class A | 1,632,070 | 68,759 |
| * Clean Harbors Inc. | 1,345,505 | 66,629 |
| ManpowerGroup Inc. | 695,640 | 62,942 |
| * WageWorks Inc. | 1,222,310 | 61,054 |
| MSC Industrial Direct Co. Inc. Class A | 824,179 | 58,731 |
| Waste Connections Inc. | 1,113,130 | 55,801 |
| 2 John Bean Technologies Corp. | 1,488,503 | 54,256 |
| AO Smith Corp. | 692,600 | 49,743 |
| * Middleby Corp. | 378,716 | 46,468 |
| Acuity Brands Inc. | 220,825 | 44,428 |
| * Teledyne Technologies Inc. | 424,543 | 44,012 |
| * IHS Inc. Class A | 345,400 | 43,185 |
| AMETEK Inc. | 812,210 | 43,088 |
| Pentair plc | 688,910 | 41,893 |
| * JetBlue Airways Corp. | 1,812,670 | 41,655 |
| * Stericycle Inc. | 293,440 | 41,366 |
| * WESCO International Inc. | 661,204 | 40,571 |
| HEICO Corp. Class A | 881,572 | 39,988 |
| Owens Corning | 886,000 | 39,737 |
| Ryder System Inc. | 438,030 | 39,650 |
| Watts Water Technologies Inc. Class A | 695,669 | 38,582 |
| * On Assignment Inc. | 988,384 | 37,875 |
| Carlisle Cos. Inc. | 370,015 | 37,468 |
| EnerSys | 588,880 | 36,776 |
| * Swift Transportation Co. | 1,532,870 | 36,513 |
| Landstar System Inc. | 501,680 | 36,136 |
| GATX Corp. | 670,400 | 35,558 |
| Curtiss-Wright Corp. | 523,700 | 35,282 |
| * Trex Co. Inc. | 731,145 | 33,172 |
| * Armstrong World Industries Inc. | 531,205 | 31,076 |
| * RBC Bearings Inc. | 407,194 | 27,587 |
| H&E Equipment Services Inc. | 1,513,349 | 27,149 |
| Kennametal Inc. | 843,963 | 26,745 |
| * Generac Holdings Inc. | 760,750 | 26,680 |
| Equifax Inc. | 235,175 | 24,018 |
| CEB Inc. | 311,463 | 23,833 |
| Aircastle Ltd. | 925,500 | 22,277 |
| * Proto Labs Inc. | 287,736 | 21,687 |
| Watsco Inc. | 167,780 | 21,516 |
| * Quanta Services Inc. | 778,920 | 21,514 |
| * TrueBlue Inc. | 803,525 | 20,699 |
| * TASER International Inc. | 754,986 | 20,551 |
| ^ Greenbrier Cos. Inc. | 410,674 | 18,788 |
| Donaldson Co. Inc. | 554,620 | 18,635 |
| Mobile Mini Inc. | 451,401 | 16,761 |
| * Verisk Analytics Inc. Class A | 211,200 | 16,497 |
| * DXP Enterprises Inc. | 440,506 | 16,167 |
| Flowserve Corp. | 342,870 | 16,111 |
| * United Rentals Inc. | 233,376 | 15,634 |
| Forward Air Corp. | 315,673 | 15,326 |
| Tennant Co. | 241,670 | 14,454 |
| Kaman Corp. | 350,827 | 13,847 |
| * Old Dominion Freight Line Inc. | 186,645 | 13,653 |
| * Genesee & Wyoming Inc. Class A | 183,030 | 13,035 |
| Herman Miller Inc. | 439,544 | 12,325 |
| * Saia Inc. | 273,268 | 11,865 |
| * NCI Building Systems Inc. | 858,372 | 11,116 |
| Woodward Inc. | 208,539 | 10,293 |
| Albany International Corp. | 275,600 | 10,258 |
| Robert Half International Inc. | 180,557 | 9,936 |
| * Rush Enterprises Inc. Class A | 370,675 | 9,449 |
| * Hawaiian Holdings Inc. | 419,732 | 9,117 |
| Heartland Express Inc. | 426,227 | 9,091 |
| * UTi Worldwide Inc. | 1,034,499 | 8,690 |
| * Astronics Corp. | 138,080 | 8,561 |
| Apogee Enterprises Inc. | 144,978 | 8,000 |
| * Kirby Corp. | 92,864 | 6,724 |
| Knight Transportation Inc. | 237,580 | 6,424 |
| * TriNet Group Inc. | 236,527 | 6,358 |
| Celadon Group Inc. | 280,868 | 6,095 |
| Alaska Air Group Inc. | 76,748 | 5,814 |
| * Sensata Technologies Holding NV | 113,264 | 5,813 |
| * Roadrunner Transportation Systems Inc. | 221,439 | 5,797 |
| * CAI International Inc. | 408,960 | 5,750 |
| Ritchie Bros Auctioneers Inc. | 210,795 | 5,696 |
| Exponent Inc. | 115,544 | 5,141 |
| * FTI Consulting Inc. | 123,525 | 5,055 |
| JB Hunt Transport Services Inc. | 59,500 | 5,005 |
| KAR Auction Services Inc. | 123,165 | 4,795 |
| * Spirit AeroSystems Holdings Inc. Class A | 84,900 | 4,780 |
| Cintas Corp. | 55,700 | 4,762 |
| * Echo Global Logistics Inc. | 134,500 | 4,344 |
| Lennox International Inc. | 34,000 | 4,014 |
| Huntington Ingalls Industries Inc. | 33,700 | 3,957 |
| Deluxe Corp. | 49,209 | 3,171 |
| Korn/Ferry International | 91,500 | 3,063 |
| Allegion plc | 47,900 | 3,028 |
| * Meritor Inc. | 201,200 | 2,833 |
| Pitney Bowes Inc. | 131,300 | 2,747 |
| Allison Transmission Holdings Inc. | 93,100 | 2,717 |
| Lincoln Electric Holdings Inc. | 44,300 | 2,682 |
| * American Woodmark Corp. | 39,800 | 2,617 |
| * Dycom Industries Inc. | 39,600 | 2,616 |
| Expeditors International of Washington Inc. | 52,901 | 2,479 |
| Douglas Dynamics Inc. | 94,900 | 1,947 |
| Matson Inc. | 42,600 | 1,765 |
| * Wabash National Corp. | 115,900 | 1,592 |
| ITT Corp. | 38,700 | 1,471 | |
| * | Virgin America Inc. | 42,600 | 1,420 |
| * | Power Solutions International Inc. | 33,200 | 1,377 |
| * | Aerojet Rocketdyne Holdings Inc. | 53,700 | 1,257 |
| General Cable Corp. | 68,200 | 1,113 | |
| Argan Inc. | 27,300 | 1,061 | |
| * | Spirit Airlines Inc. | 17,100 | 1,023 |
| Primoris Services Corp. | 51,300 | 931 | |
| * | PAM Transportation Services Inc. | 17,400 | 915 |
| * | Avis Budget Group Inc. | 17,200 | 747 |
| Quanex Building Products Corp. | 36,800 | 739 | |
| * | Hudson Technologies Inc. | 190,507 | 648 |
| Comfort Systems USA Inc. | 20,900 | 578 | |
| Griffon Corp. | 25,500 | 440 | |
| * | Lydall Inc. | 12,400 | 368 |
| HNI Corp. | 5,800 | 288 | |
| * | Blount International Inc. | 31,300 | 262 |
| * | Enphase Energy Inc. | 43,700 | 258 |
| Heidrick & Struggles International Inc. | 6,800 | 149 | |
| * | Moog Inc. Class A | 2,200 | 147 |
| 2,169,034 | |||
| Information Technology (21.5%) | |||
| * | Alliance Data Systems Corp. | 335,573 | 92,296 |
| * | Demandware Inc. | 1,176,635 | 88,907 |
| * | Cadence Design Systems Inc. | 4,154,913 | 87,129 |
| * | Ultimate Software Group Inc. | 463,799 | 85,436 |
| * | Cardtronics Inc. | 2,221,724 | 82,359 |
| * | Euronet Worldwide Inc. | 805,416 | 55,171 |
| * | Ciena Corp. | 2,024,940 | 51,535 |
| * | Proofpoint Inc. | 695,054 | 44,970 |
| * | WNS Holdings Ltd. ADR | 1,459,252 | 43,500 |
| * | WEX Inc. | 425,270 | 43,395 |
| * | Electronics For Imaging Inc. | 920,715 | 42,077 |
| * | ON Semiconductor Corp. | 3,866,460 | 41,062 |
| * | SPS Commerce Inc. | 567,617 | 40,954 |
| * | Entegris Inc. | 2,743,916 | 40,651 |
| Teradyne Inc. | 2,076,455 | 39,993 | |
| * | TiVo Inc. | 3,919,990 | 39,043 |
| * | CoStar Group Inc. | 193,402 | 38,930 |
| Belden Inc. | 650,080 | 38,504 | |
| Atmel Corp. | 4,393,655 | 36,379 | |
| * | F5 Networks Inc. | 268,435 | 36,008 |
| * | VeriFone Systems Inc. | 1,104,110 | 35,530 |
| * | First Solar Inc. | 794,568 | 35,199 |
| *,^ SunPower Corp. Class A | 1,275,310 | 34,472 | |
| * | Red Hat Inc. | 433,100 | 34,250 |
| SS&C Technologies Holdings Inc. | 502,136 | 34,160 | |
| * | Acxiom Corp. | 1,835,750 | 32,878 |
| * | Microsemi Corp. | 928,170 | 30,574 |
| Convergys Corp. | 1,209,321 | 30,366 | |
| * | Infoblox Inc. | 1,246,700 | 29,297 |
| Power Integrations Inc. | 755,010 | 29,264 | |
| * | Palo Alto Networks Inc. | 156,964 | 29,169 |
| * | PTC Inc. | 787,259 | 28,617 |
| * | Pandora Media Inc. | 1,615,100 | 28,297 |
| * | Finisar Corp. | 1,585,435 | 27,602 |
| * | Dealertrack Technologies Inc. | 441,149 | 27,382 |
| * | Manhattan Associates Inc. | 415,576 | 26,938 |
| * | Ruckus Wireless Inc. | 2,090,800 | 25,780 |
| * | Infinera Corp. | 1,062,516 | 25,437 |
| Cognex Corp. | 549,785 | 24,889 | |
| * | Integrated Device Technology Inc. | 1,265,999 | 24,193 |
| * | Cavium Inc. | 345,559 | 23,429 |
| * | Gigamon Inc. | 865,685 | 23,270 |
| *,^ Stratasys Ltd. | 753,175 | 23,145 | |
| FLIR Systems Inc. | 736,255 | 22,669 | |
| j2 Global Inc. | 318,857 | 22,448 | |
| * | Radware Ltd. | 1,085,500 | 20,668 |
| * | Qlik Technologies Inc. | 488,400 | 19,761 |
| Heartland Payment Systems Inc. | 310,807 | 19,363 | |
| * | comScore Inc. | 329,516 | 19,277 |
| * | Mellanox Technologies Ltd. | 458,183 | 19,267 |
| * | Imperva Inc. | 290,400 | 19,079 |
| * | Constant Contact Inc. | 723,588 | 18,698 |
| * | Super Micro Computer Inc. | 691,502 | 18,442 |
| * | Fortinet Inc. | 378,800 | 18,084 |
| * | Arista Networks Inc. | 213,483 | 18,033 |
| Methode Electronics Inc. | 661,215 | 17,740 | |
| * | Inphi Corp. | 775,430 | 17,626 |
| * | Guidewire Software Inc. | 289,919 | 17,120 |
| * | Tyler Technologies Inc. | 121,900 | 17,010 |
| * | Silicon Laboratories Inc. | 376,688 | 16,947 |
| FactSet Research Systems Inc. | 98,650 | 16,342 | |
| * | Gartner Inc. | 183,179 | 16,224 |
| *,^ VASCO Data Security International Inc. | 785,311 | 16,012 | |
| Intersil Corp. Class A | 1,432,495 | 15,944 | |
| * | Aspen Technology Inc. | 356,085 | 15,803 |
| * | Zebra Technologies Corp. | 146,175 | 15,733 |
| * | M/A-COM Technology Solutions Holdings Inc. | 439,968 | 14,831 |
| Brooks Automation Inc. | 1,371,733 | 14,472 | |
| * | PROS Holdings Inc. | 656,900 | 14,366 |
| MAXIMUS Inc. | 205,714 | 14,032 | |
| * | Fleetmatics Group plc | 286,192 | 13,700 |
| * | Verint Systems Inc. | 234,190 | 13,635 |
| Cypress Semiconductor Corp. | 1,185,715 | 13,612 | |
| * | Bankrate Inc. | 1,491,275 | 13,600 |
| * | Syntel Inc. | 303,544 | 13,262 |
| MercadoLibre Inc. | 97,700 | 12,768 | |
| Monolithic Power Systems Inc. | 235,947 | 12,201 | |
| Solera Holdings Inc. | 329,598 | 12,060 | |
| * | Progress Software Corp. | 380,000 | 11,278 |
| * | LivePerson Inc. | 1,119,006 | 10,754 |
| * | SolarWinds Inc. | 269,290 | 10,742 |
| * | Trimble Navigation Ltd. | 452,507 | 10,453 |
| Littelfuse Inc. | 110,000 | 10,120 | |
| Microchip Technology Inc. | 222,000 | 9,510 | |
| * | Virtusa Corp. | 198,000 | 9,492 |
| * | Rackspace Hosting Inc. | 275,225 | 9,366 |
| * | HomeAway Inc. | 310,950 | 9,341 |
| * | Akamai Technologies Inc. | 118,958 | 9,125 |
| * | FireEye Inc. | 199,100 | 8,858 |
| *,^ InvenSense Inc. | 671,900 | 8,802 | |
| * | Tableau Software Inc. Class A | 84,000 | 8,798 |
| * | HubSpot Inc. | 152,700 | 8,238 |
| FEI Co. | 92,300 | 7,935 | |
| * | Envestnet Inc. | 175,100 | 7,930 |
| Information Services Group Inc. | 1,789,147 | 7,872 | |
| * | IPG Photonics Corp. | 85,229 | 7,860 |
| * | BroadSoft Inc. | 211,800 | 7,396 |
| * | LinkedIn Corp. Class A | 36,062 | 7,330 |
| * | EPAM Systems Inc. | 98,600 | 7,307 |
| * | Diodes Inc. | 323,485 | 7,178 |
| * | Nanometrics Inc. | 514,612 | 7,040 |
| * | Paylocity Holding Corp. | 172,213 | 6,186 |
| * | Semtech Corp. | 345,677 | 6,080 |
| * | II-VI Inc. | 342,766 | 5,827 |
| * | Synchronoss Technologies Inc. | 118,900 | 5,683 |
| * | Perficient Inc. | 350,000 | 5,680 |
| * | Yodlee Inc. | 433,923 | 5,450 |
| * | Cimpress NV | 82,572 | 5,328 |
| National Instruments Corp. | 183,000 | 5,300 | |
| * | ANSYS Inc. | 56,200 | 5,291 |
| * | ChannelAdvisor Corp. | 508,993 | 5,136 |
| *,^ Nimble Storage Inc. | 183,500 | 5,068 | |
| * | Qualys Inc. | 137,000 | 5,064 |
| * | Cvent Inc. | 177,575 | 4,780 |
| Broadridge Financial Solutions Inc. | 85,500 | 4,640 | |
| * | AVG Technologies NV | 155,972 | 4,483 |
| Jack Henry & Associates Inc. | 62,900 | 4,394 | |
| *,^ CyberArk Software Ltd. | 70,800 | 4,186 | |
| Brocade Communications Systems Inc. | 398,500 | 4,089 | |
| Blackbaud Inc. | 64,300 | 3,933 | |
| * | Blackhawk Network Holdings Inc. | 84,300 | 3,872 |
| *,^ Ambarella Inc. | 33,225 | 3,850 | |
| * | RealPage Inc. | 192,329 | 3,693 |
| CDW Corp. | 102,100 | 3,668 | |
| * | MicroStrategy Inc. Class A | 17,800 | 3,629 |
| Booz Allen Hamilton Holding Corp. Class A | 129,141 | 3,581 | |
| * | Allot Communications Ltd. | 685,200 | 3,570 |
| DST Systems Inc. | 31,896 | 3,481 | |
| Science Applications International Corp. | 64,000 | 3,436 | |
| * | PDF Solutions Inc. | 240,373 | 3,368 |
| * | ARRIS Group Inc. | 102,532 | 3,170 |
| Avnet Inc. | 70,000 | 2,921 | |
| Monotype Imaging Holdings Inc. | 116,800 | 2,912 | |
| * | FARO Technologies Inc. | 64,000 | 2,809 |
| Skyworks Solutions Inc. | 28,100 | 2,688 | |
| * | Plexus Corp. | 65,500 | 2,498 |
| * | Cree Inc. | 101,000 | 2,490 |
| Pegasystems Inc. | 91,400 | 2,476 | |
| * | Sykes Enterprises Inc. | 100,100 | 2,440 |
| CSG Systems International Inc. | 74,400 | 2,314 | |
| * | Glu Mobile Inc. | 364,000 | 2,135 |
| *,^ Advanced Micro Devices Inc. | 1,062,000 | 2,050 | |
| *,^ Care.com Inc. | 341,386 | 2,048 | |
| QAD Inc. Class A | 68,000 | 1,815 | |
| * | Quantum Corp. | 1,606,711 | 1,703 |
| * | Descartes Systems Group Inc. | 89,909 | 1,517 |
| * | Synaptics Inc. | 15,200 | 1,207 |
| * | Digimarc Corp. | 30,025 | 1,193 |
| * | OSI Systems Inc. | 15,000 | 1,053 |
| Diebold Inc. | 29,700 | 1,011 | |
| EarthLink Holdings Corp. | 118,300 | 868 | |
| * | Unisys Corp. | 41,300 | 655 |
| * | ePlus Inc. | 7,800 | 600 |
| * | Callidus Software Inc. | 30,904 | 513 |
| * | Advanced Energy Industries Inc. | 19,500 | 511 |
| * | Angie's List Inc. | 101,700 | 508 |
| TeleTech Holdings Inc. | 15,600 | 423 | |
| * | WebMD Health Corp. | 9,300 | 405 |
| Hackett Group Inc. | 28,500 | 365 | |
| * | Polycom Inc. | 28,800 | 328 |
| * | Barracuda Networks Inc. | 11,600 | 318 |
| * | ShoreTel Inc. | 33,600 | 238 |
| * | Guidance Software Inc. | 23,600 | 238 |
| * | Rapid7 Inc. | 10,000 | 230 |
| * | Lionbridge Technologies Inc. | 29,600 | 174 |
| * | Xcerra Corp. | 27,500 | 173 |
| * | GoDaddy Inc. Class A | 3,600 | 102 |
| 2,697,836 | |||
| Materials (4.2%) | |||
| Graphic Packaging Holding Co. | 4,113,414 | 62,113 | |
| PolyOne Corp. | 1,400,570 | 47,998 | |
| Smurfit Kappa Group plc | 1,325,320 | 39,818 | |
| Ashland Inc. | 336,465 | 38,465 | |
| Minerals Technologies Inc. | 561,370 | 36,349 | |
| RPC Group plc | 3,209,475 | 34,117 | |
| Steel Dynamics Inc. | 1,697,620 | 34,003 | |
| * | WR Grace & Co. | 316,690 | 31,964 |
| Methanex Corp. | 700,620 | 31,591 | |
| KapStone Paper and Packaging Corp. | 1,296,084 | 30,328 | |
| Sensient Technologies Corp. | 389,960 | 26,669 | |
| * | Constellium NV Class A | 1,685,065 | 18,704 |
| Balchem Corp. | 268,541 | 15,218 | |
| Quaker Chemical Corp. | 111,515 | 10,337 | |
| Eagle Materials Inc. | 131,734 | 10,162 | |
| Scotts Miracle-Gro Co. Class A | 156,575 | 9,456 | |
| Schweitzer-Mauduit International Inc. | 235,814 | 9,362 | |
| Airgas Inc. | 72,600 | 7,407 | |
| Sealed Air Corp. | 115,200 | 6,125 | |
| Valspar Corp. | 67,891 | 5,654 | |
| Avery Dennison Corp. | 57,200 | 3,481 | |
| Ball Corp. | 49,800 | 3,378 | |
| * | Chemtura Corp. | 117,200 | 3,215 |
| * | Berry Plastics Group Inc. | 95,300 | 3,103 |
| International Flavors & Fragrances Inc. | 17,600 | 2,034 | |
| * | Stillwater Mining Co. | 201,300 | 1,916 |
| * | Ferro Corp. | 115,600 | 1,606 |
| * | Trinseo SA | 61,200 | 1,491 |
| Silgan Holdings Inc. | 24,510 | 1,311 | |
| NewMarket Corp. | 2,773 | 1,103 | |
| * | Owens-Illinois Inc. | 29,100 | 621 |
| Materion Corp. | 8,700 | 266 | |
| 529,365 | |||
| Other (1.8%) | |||
| ^ | iShares Russell 2000 ETF | 1,213,339 | 149,192 |
| ^,3 Vanguard Small-Cap Growth ETF | 463,200 | 62,490 | |
| *,4 Dropbox Private Placement | 378,066 | 7,222 | |||
| *,4 Pure Storage Inc. Private Placement | 437,384 | 6,854 | |||
| 225,758 | |||||
| Telecommunication Services (0.8%) | |||||
| * | Vonage Holdings Corp. | 8,742,501 | 55,865 | ||
| * | SBA Communications Corp. Class A | 296,575 | 35,802 | ||
| Cogent Communications Holdings Inc. | 132,607 | 4,216 | |||
| Inteliquent Inc. | 107,200 | 1,951 | |||
| * | FairPoint Communications Inc. | 99,400 | 1,652 | ||
| * | Cincinnati Bell Inc. | 289,000 | 1,130 | ||
| 100,616 | |||||
| Utilities (0.4%) | |||||
| ITC Holdings Corp. | 1,223,630 | 41,334 | |||
| * | 8Point3 Energy Partners LP | 838,000 | 13,341 | ||
| American States Water Co. | 68,600 | 2,645 | |||
| 57,320 | |||||
| Total Common Stocks (Cost $9,429,863) | 12,043,950 | ||||
| Coupon | |||||
| Temporary Cash Investments (6.0%)1 | |||||
| Money Market Fund (5.5%) | |||||
| 5,6 Vanguard Market Liquidity Fund | 0.152% | 698,788,051 | 698,788 | ||
| Face | |||||
| Maturity | Amount | ||||
| Date | ($000) | ||||
| Repurchase Agreement (0.4%) | |||||
| Deutsche Bank Securities, Inc. | |||||
| (Dated 7/31/15, Repurchase Value | |||||
| $46,101,000, collateralized by U.S. | |||||
| Treasury Note/Bond 3.125%, 2/15/43, with | |||||
| a value of $47,022,000) | 0.170% | 8/3/15 | 46,100 | 46,100 | |
| U.S. Government and Agency Obligations (0.1%) | |||||
| 7,8 Federal Home Loan Bank Discount Notes | 0.093% | 10/2/15 | 1,000 | 1,000 | |
| 7,8 Federal Home Loan Bank Discount Notes | 0.095% | 10/7/15 | 4,000 | 3,999 | |
| 7,8 Federal Home Loan Bank Discount Notes | 0.095% | 10/21/15 | 3,900 | 3,899 | |
| 7,8 Federal Home Loan Bank Discount Notes | 0.100% | 10/23/15 | 800 | 800 | |
| 7,8 Federal Home Loan Bank Discount Notes | 0.114% | 10/28/15 | 800 | 800 | |
| 8,9 Freddie Mac Discount Notes | 0.060% | 8/17/15 | 1,000 | 1,000 | |
| 11,498 | |||||
| Total Temporary Cash Investments (Cost $756,386) | 756,386 | ||||
| Total Investments (101.8%) (Cost $10,186,249) | 12,800,336 | ||||
| Other Assets and Liabilities-Net (-1.8%)6 | (230,828) | ||||
| Net Assets (100%) | 12,569,508 | ||||
| * | Non-income-producing security. |
| ^ | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $213,178,000. |
| 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 97.8% and 4.0%, 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 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
| 4 | Restricted securities totaling $14,076,000, representing 0.1% of net assets. |
5 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by
Vanguard. Rate shown is the 7-day yield.
6 Includes $221,735,000 of collateral received for securities on loan.
7 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.
8 Securities with a value of $10,698,000 have been segregated as initial margin for open futures contracts.
9 The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations
have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as
needed to maintain a positive net worth, in exchange for senior preferred stock.
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, 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 portfolio enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the portfolio under 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. The portfolio further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty's default (including bankruptcy), the portfolio may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the portfolio. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.
Explorer Fund
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 July 31, 2015, based on the inputs used to value them:
| Level 1 | Level 2 | Level 3 | |
| Investments | ($000) | ($000) | ($000) |
| Common Stocks | 11,917,912 | 111,962 | 14,076 |
| Temporary Cash Investments | 698,788 | 57,598 | — |
| Futures Contracts—Assets1 | 803 | — | — |
| Futures Contracts—Liabilities1 | (15) | — | — |
| Total | 12,617,488 | 169,560 | 14,076 |
| 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 objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund's performance and requires daily settlement of variation margin representing changes in the market value of each contract.
Futures contracts are valued at their quoted daily settlement prices. The aggregate settlement values of the contracts are not recorded in the Schedule of Investments. Fluctuations in the value of the contracts are recorded as an asset (liability).
At July 31, 2015, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:
| ($000) | ||||
| Number of | Aggregate | Unrealized | ||
| Long (Short) | Settlement | Appreciation | ||
| Futures Contracts | Expiration | Contracts | Value Long | (Depreciation) |
| Explorer Fund | ||||
| (Short) | ||||
| E-mini Russell 2000 Index | September 2015 | 1,394 | 172,187 | (3,431) |
| E-mini S&P Mid-Cap 400 Index | September 2015 | 479 | 71,816 | (802) |
| E-mini S&P 500 Index | September 2015 | 23 | 2,413 | (4) |
| (4,237) | ||||
Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.
F. At July 31, 2015, the cost of investment securities for tax purposes was $10,186,249,000. Net unrealized appreciation of investment securities for tax purposes was $2,614,087,000, consisting of unrealized gains of $3,122,060,000 on securities that had risen in value since their purchase and $507,973,000 in unrealized losses on securities that had fallen in value since their purchase.
G. Certain of the fund's investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company or the issuer is another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows:
| Current Period Transactions | ||||||
| Proceeds | ||||||
| Oct. 31, 2014 | from | Capital Gain | July 31, 2015 | |||
| Market | Purchases | Securities | Distributions | Market | ||
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000)1 | ($000) | ($000) | ($000) | |
| American Woodmark Corp. | 32,677 | 1,969 | 41,334 | — | — | NA2 |
| eHealth Inc. | 36,335 | — | 1,891 | — | — | 22,459 |
| John Bean Technologies | NA3 | 9,376 | 2,745 | 407 | — | 54,256 |
| Corp. | ||||||
| Vanguard Market Liquidity | 453,977 | NA4 | NA4 | 403 | 698,788 | |
| Fund | ||||||
| Vanguard Small-Cap | 57,914 | — | — | 594 | — | 62,490 |
| Growth ETF | ||||||
| Total | 580,903 | 1,404 | — | 837,993 | ||
| 1 | Includes net realized gain (loss) on affiliated investment securities sold of $21,987,000 |
| 2 | Not applicable—at July 31, 2015, the security was still held, but the issuer was no longer an affiliated company of the fund. |
| 3 | Not applicable—at October 31, 2014, the issuer was not an affiliated company of the fund. |
| 4 | Not applicable—purchases and sales are for temporary cash investment purposes. |
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 17, 2015 | |
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 17, 2015 | |
| VANGUARD EXPLORER FUND | |
| /s/ THOMAS J. HIGGINS* | |
| THOMAS J. HIGGINS | |
| CHIEF FINANCIAL OFFICER | |
| Date: September 17, 2015 | |
* By:/s/ Heidi Stam
Heidi Stam, pursuant to a Power of Attorney filed on April 22, 2014 see file Number 2-17620, Incorporated by Reference.
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 17, 2015 |
/s/ F. William McNabb III |
|
|
F. William McNabb III |
|
|
Chief Executive Officer |
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 17, 2015 |
/s/ Thomas J Higgins |
|
|
Thomas J. Higgins |
|
|
Chief Financial Officer |