N-Q 1 a19-5122_1nq.htm N-Q

 

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:

Anne E. Robinson, Esquire

P.O. Box 876

Valley Forge, PA 19482

 

 

Date of fiscal year end: October 31

 

 

Date of reporting period: January 31, 2019

 

 

Item 1: Schedule of Investments

 

 

Vanguard Explorer Fund

 

 

 

Schedule of Investments (unaudited)

As of January 31, 2019

 

 

 

Shares

 

Market
Value
($000)

Common Stocks (97.1%)1

 

 

 

Communication Services (3.8%)

 

 

 

*

Live Nation Entertainment Inc.

1,857,169

 

99,377

 

Cinemark Holdings Inc.

2,173,036

 

88,921

 

New York Times Co. Class A

2,758,778

 

70,928

*

Yelp Inc. Class A

1,095,772

 

39,908

*

TrueCar Inc.

3,874,598

 

36,344

*

Vonage Holdings Corp.

3,246,371

 

29,574

^

Lions Gate Entertainment Corp. Class A

1,545,000

 

28,382

*

Take-Two Interactive Software Inc.

245,503

 

25,913

*

ANGI Homeservices Inc. Class A

1,250,411

 

21,257

^

Match Group Inc.

377,147

 

20,174

 

National CineMedia Inc.

2,481,152

 

17,145

 

World Wrestling Entertainment Inc. Class A

190,975

 

15,725

*

Electronic Arts Inc.

156,843

 

14,467

*

Glu Mobile Inc.

1,479,213

 

14,407

*

Boingo Wireless Inc.

545,371

 

13,154

*

TripAdvisor Inc.

196,828

 

11,294

 

Shenandoah Telecommunications Co.

72,141

 

3,436

*

TechTarget Inc.

223,256

 

3,237

*

Care.com Inc.

113,460

 

2,697

*

MSG Networks Inc.

56,187

 

1,259

*

Liberty TripAdvisor Holdings Inc. Class A

66,719

 

1,111

 

 

 

 

558,710

Consumer Discretionary (14.8%)

 

 

 

*

Burlington Stores Inc.

726,272

 

124,708

*

MercadoLibre Inc.

257,892

 

93,873

 

Carter’s Inc.

1,032,453

 

85,590

*

Skechers U.S.A. Inc. Class A

2,879,226

 

78,229

*

GrubHub Inc.

914,224

 

73,504

*

Under Armour Inc.

3,756,957

 

71,157

*

Deckers Outdoor Corp.

527,788

 

67,794

*

Etsy Inc.

1,126,433

 

61,560

 

Acushnet Holdings Corp.

2,498,068

 

57,431

*

Grand Canyon Education Inc.

602,204

 

55,969

*

TRI Pointe Group Inc.

4,118,093

 

55,388

*

Houghton Mifflin Harcourt Co.

5,271,418

 

55,192

 

La-Z-Boy Inc.

1,784,066

 

52,844

 

Tenneco Inc. Class A

1,483,901

 

51,462

 

Monro Inc.

680,000

 

48,729

 

Hyatt Hotels Corp. Class A

697,000

 

48,727

 

Children’s Place Inc.

451,816

 

43,718

 

Hanesbrands Inc.

2,862,030

 

42,902

^

Cheesecake Factory Inc.

949,243

 

42,602

*

Sally Beauty Holdings Inc.

2,448,230

 

42,158

*

Chipotle Mexican Grill Inc. Class A

75,093

 

39,770

 

Advance Auto Parts Inc.

244,000

 

38,845

*,^

Carvana Co. Class A

1,010,000

 

37,521

 

Skyline Champion Corp.

1,998,100

 

36,086

 

Core-Mark Holding Co. Inc.

1,280,723

 

35,707

 

 

*

Lululemon Athletica Inc.

240,959

 

35,616

*

Ulta Beauty Inc.

110,445

 

32,241

 

Polaris Industries Inc.

375,944

 

31,534

 

Chico’s FAS Inc.

5,289,553

 

30,679

*

Ollie’s Bargain Outlet Holdings Inc.

392,115

 

30,652

 

Domino’s Pizza Inc.

107,669

 

30,549

 

Aaron’s Inc.

601,521

 

30,112

 

Shutterstock Inc.

732,266

 

29,298

 

Wingstop Inc.

433,943

 

28,488

*

ServiceMaster Global Holdings Inc.

660,856

 

25,767

*

frontdoor Inc.

837,752

 

24,898

*

Bright Horizons Family Solutions Inc.

183,988

 

21,304

 

PulteGroup Inc.

648,463

 

18,034

*

Crocs Inc.

605,641

 

17,394

*

Stamps.com Inc.

91,131

 

16,958

 

Ross Stores Inc.

175,690

 

16,185

 

Wolverine World Wide Inc.

459,323

 

15,759

 

Bloomin’ Brands Inc.

814,026

 

15,002

 

Expedia Group Inc.

118,134

 

14,087

 

Lear Corp.

88,911

 

13,686

*

Planet Fitness Inc. Class A

233,478

 

13,523

*

LKQ Corp.

515,098

 

13,506

^

Brinker International Inc.

331,773

 

13,443

*,^

RH

97,135

 

13,198

 

BJ’s Restaurants Inc.

257,034

 

12,808

 

American Eagle Outfitters Inc.

606,305

 

12,805

 

H&R Block Inc.

534,145

 

12,600

 

Churchill Downs Inc.

134,550

 

12,376

*

Urban Outfitters Inc.

359,947

 

11,626

 

Dick’s Sporting Goods Inc.

309,267

 

10,920

*

Weight Watchers International Inc.

335,108

 

10,723

*

Five Below Inc.

85,514

 

10,581

*

Chegg Inc.

260,026

 

9,158

 

Tailored Brands Inc.

660,038

 

8,336

 

Wendy’s Co.

456,417

 

7,905

*

Boot Barn Holdings Inc.

330,830

 

7,751

 

Dine Brands Global Inc.

93,752

 

7,150

*

Penn National Gaming Inc.

258,657

 

6,270

*

SeaWorld Entertainment Inc.

238,510

 

6,213

*

Fossil Group Inc.

321,676

 

5,456

 

Nordstrom Inc.

117,486

 

5,452

 

Ruth’s Hospitality Group Inc.

231,639

 

5,351

*

NVR Inc.

1,889

 

5,025

*

Zumiez Inc.

171,866

 

4,367

*

MasterCraft Boat Holdings Inc.

199,385

 

4,353

 

Movado Group Inc.

126,261

 

4,034

*

Helen of Troy Ltd.

30,783

 

3,572

 

Extended Stay America Inc.

176,950

 

3,026

*

ZAGG Inc.

264,135

 

2,964

^

PetMed Express Inc.

120,038

 

2,842

*

Shake Shack Inc. Class A

53,073

 

2,535

 

Tilly’s Inc. Class A

207,349

 

2,511

 

Callaway Golf Co.

153,815

 

2,506

*

Fox Factory Holding Corp.

36,958

 

2,193

*

Malibu Boats Inc. Class A

47,885

 

1,942

*

Visteon Corp.

23,355

 

1,796

 

Red Rock Resorts Inc. Class A

66,966

 

1,700

 

 

 

Service Corp. International

34,111

 

1,464

*

Taylor Morrison Home Corp. Class A

77,005

 

1,455

*

Career Education Corp.

111,245

 

1,436

*

Conn’s Inc.

62,214

 

1,303

 

International Game Technology plc

77,428

 

1,267

*

At Home Group Inc.

42,078

 

927

*

YETI Holdings Inc.

30,950

 

526

 

 

 

 

2,190,604

Consumer Staples (2.5%)

 

 

 

*

Performance Food Group Co.

2,115,290

 

72,258

 

Nu Skin Enterprises Inc. Class A

842,179

 

55,289

*

Post Holdings Inc.

547,584

 

50,827

 

Casey’s General Stores Inc.

328,194

 

42,232

 

Calavo Growers Inc.

382,015

 

31,081

*

Monster Beverage Corp.

473,203

 

27,086

 

Sanderson Farms Inc.

199,283

 

24,532

 

MGP Ingredients Inc.

327,488

 

23,511

 

Medifast Inc.

88,536

 

11,265

*

BJ’s Wholesale Club Holdings Inc.

346,695

 

9,122

 

Cal-Maine Foods Inc.

168,592

 

7,111

*

Herbalife Nutrition Ltd.

89,110

 

5,320

*

Boston Beer Co. Inc. Class A

15,517

 

3,866

 

Lamb Weston Holdings Inc.

51,039

 

3,690

 

Lancaster Colony Corp.

16,784

 

2,670

*

USANA Health Sciences Inc.

17,176

 

2,011

*

US Foods Holding Corp.

38,791

 

1,308

 

 

 

 

373,179

Energy (1.4%)

 

 

 

*,^

Jagged Peak Energy Inc.

4,243,618

 

44,685

 

Delek US Holdings Inc.

1,327,502

 

43,157

*

Apergy Corp.

781,753

 

26,283

 

Cabot Oil & Gas Corp.

876,691

 

21,873

 

Core Laboratories NV

282,190

 

19,037

*

Carrizo Oil & Gas Inc.

847,719

 

10,410

*

RigNet Inc.

665,780

 

8,895

*

Callon Petroleum Co.

1,051,287

 

8,557

 

Range Resources Corp.

717,792

 

7,917

*

Renewable Energy Group Inc.

229,803

 

6,641

*

Denbury Resources Inc.

2,516,379

 

5,108

*

ProPetro Holding Corp.

261,139

 

4,267

 

Mammoth Energy Services Inc.

119,621

 

2,647

*

CONSOL Energy Inc.

57,656

 

2,049

*

W&T Offshore Inc.

252,712

 

1,274

*

Laredo Petroleum Inc.

292,818

 

1,113

*

Abraxas Petroleum Corp.

932,093

 

1,109

 

 

 

 

215,022

Financials (6.7%)

 

 

 

*

SVB Financial Group

404,509

 

94,404

 

Assured Guaranty Ltd.

1,682,439

 

68,240

 

Voya Financial Inc.

1,368,071

 

63,520

 

Assurant Inc.

652,181

 

62,864

*

MGIC Investment Corp.

4,808,540

 

60,011

 

Sterling Bancorp

3,092,926

 

59,508

 

LPL Financial Holdings Inc.

841,236

 

59,198

 

Synovus Financial Corp.

1,668,450

 

59,096

 

Nasdaq Inc.

633,599

 

55,782

 

 

 

Redwood Trust Inc.

3,113,939

 

50,228

 

BOK Financial Corp.

578,553

 

48,084

*

Texas Capital Bancshares Inc.

777,048

 

45,279

 

MarketAxess Holdings Inc.

148,121

 

31,812

 

FirstCash Inc.

377,986

 

31,157

 

WisdomTree Investments Inc.

4,472,944

 

29,969

*

Green Dot Corp. Class A

331,637

 

24,548

 

Primerica Inc.

162,506

 

18,261

*

PRA Group Inc.

587,036

 

17,323

*

Credit Acceptance Corp.

34,560

 

13,756

 

MSCI Inc. Class A

79,054

 

13,460

 

Universal Insurance Holdings Inc.

320,680

 

12,096

*

Essent Group Ltd.

275,743

 

10,961

 

Walker & Dunlop Inc.

223,420

 

10,740

 

Bank OZK

274,557

 

8,330

 

Bank of NT Butterfield & Son Ltd.

221,755

 

7,772

 

Greenhill & Co. Inc.

276,688

 

6,934

*

Enova International Inc.

195,333

 

4,502

 

East West Bancorp Inc.

83,376

 

4,195

*

Blucora Inc.

137,400

 

4,055

*

OneMain Holdings Inc.

130,859

 

3,911

^

First Financial Bankshares Inc.

62,869

 

3,841

*

Regional Management Corp.

104,227

 

2,864

 

LegacyTexas Financial Group Inc.

55,112

 

2,196

 

Solar Capital Ltd.

90,488

 

1,856

 

Kemper Corp.

23,057

 

1,733

 

Cadence BanCorp Class A

25,291

 

474

 

 

 

 

992,960

Health Care (18.4%)

 

 

 

*

ICON plc

1,219,109

 

170,529

*

Insulet Corp.

1,695,083

 

137,624

*

Medidata Solutions Inc.

1,535,059

 

108,928

*

Mettler-Toledo International Inc.

118,065

 

75,344

*

Amedisys Inc.

572,866

 

75,137

 

Hill-Rom Holdings Inc.

697,652

 

69,779

*

Haemonetics Corp.

682,851

 

67,541

*

DexCom Inc.

442,182

 

62,361

*

LHC Group Inc.

563,500

 

59,579

*

BioMarin Pharmaceutical Inc.

601,000

 

59,000

*

Molina Healthcare Inc.

442,681

 

58,868

*

Penumbra Inc.

390,676

 

56,847

*

Globus Medical Inc.

1,230,133

 

55,418

*

athenahealth Inc.

371,360

 

50,037

*

Integra LifeSciences Holdings Corp.

983,017

 

46,556

*

IDEXX Laboratories Inc.

195,506

 

41,600

*

PRA Health Sciences Inc.

382,249

 

40,507

*

Seattle Genetics Inc.

510,105

 

38,987

*

Omnicell Inc.

579,100

 

37,717

*

Ultragenyx Pharmaceutical Inc.

740,000

 

36,497

*

Syneos Health Inc.

663,327

 

33,856

*

Illumina Inc.

120,739

 

33,782

 

STERIS plc

291,622

 

33,262

*

ABIOMED Inc.

94,021

 

33,008

*

Bluebird Bio Inc.

246,900

 

32,944

*

Veeva Systems Inc. Class A

286,396

 

31,234

*

Intuitive Surgical Inc.

59,631

 

31,225

*

Premier Inc. Class A

778,000

 

30,957

 

 

*

Pacira Pharmaceuticals Inc.

758,087

 

30,839

*

Blueprint Medicines Corp.

408,700

 

29,463

*,^

Ligand Pharmaceuticals Inc.

244,702

 

28,899

*

Arena Pharmaceuticals Inc.

612,048

 

28,136

*,^

CRISPR Therapeutics AG

866,824

 

28,111

*

Neogen Corp.

428,303

 

26,088

*

HealthEquity Inc.

408,000

 

25,435

*

Avanos Medical Inc.

550,800

 

25,089

*

Repligen Corp.

412,603

 

23,523

*

BioTelemetry Inc.

325,873

 

23,404

 

ResMed Inc.

244,259

 

23,246

*

MEDNAX Inc.

636,201

 

22,973

*

Hologic Inc.

514,640

 

22,850

 

Cooper Cos. Inc.

77,766

 

21,678

 

Encompass Health Corp.

321,933

 

21,518

*

Cambrex Corp.

465,000

 

20,297

*

Teladoc Health Inc.

312,265

 

20,047

*

HMS Holdings Corp.

650,658

 

19,513

*

Charles River Laboratories International Inc.

158,321

 

19,504

*

Ionis Pharmaceuticals Inc.

333,092

 

19,319

*

Nevro Corp.

397,280

 

19,292

*

Cerner Corp.

340,984

 

18,723

 

Chemed Corp.

61,390

 

18,291

*

Prestige Consumer Healthcare Inc.

629,560

 

17,577

*

Exact Sciences Corp.

195,019

 

17,567

*

Quidel Corp.

296,986

 

17,234

*

Emergent BioSolutions Inc.

273,358

 

17,055

*

NuVasive Inc.

339,672

 

17,031

*

Medpace Holdings Inc.

261,944

 

16,869

*

Masimo Corp.

130,770

 

16,266

*

Exelixis Inc.

626,731

 

14,772

*

Genomic Health Inc.

192,629

 

14,603

*

Catalent Inc.

395,022

 

14,588

*

Inogen Inc.

95,841

 

14,492

 

Bruker Corp.

405,702

 

14,224

*

Acadia Healthcare Co. Inc.

509,162

 

13,931

*

Spark Therapeutics Inc.

288,598

 

13,801

*

Spectrum Pharmaceuticals Inc.

1,229,773

 

13,773

*

Tenet Healthcare Corp.

590,174

 

12,978

*

Align Technology Inc.

50,597

 

12,596

*

AxoGen Inc.

761,982

 

12,573

*

Atara Biotherapeutics Inc.

325,728

 

12,378

*

Heron Therapeutics Inc.

451,494

 

12,145

*

ICU Medical Inc.

48,242

 

12,003

*

Vanda Pharmaceuticals Inc.

433,263

 

11,754

*

Neurocrine Biosciences Inc.

124,901

 

11,019

*

Endo International plc

1,109,995

 

10,822

*

FibroGen Inc.

186,482

 

10,583

*

Alkermes plc

319,397

 

10,499

*

Acorda Therapeutics Inc.

608,637

 

10,122

*

Immunomedics Inc.

679,255

 

10,046

*

Revance Therapeutics Inc.

579,300

 

10,005

*

Tivity Health Inc.

440,312

 

9,801

*

Enanta Pharmaceuticals Inc.

120,395

 

9,563

*

Agios Pharmaceuticals Inc.

166,298

 

8,914

*

Integer Holdings Corp.

107,963

 

8,744

 

Ensign Group Inc.

188,969

 

8,233

 

 

*

Tandem Diabetes Care Inc.

187,297

 

8,144

*

STAAR Surgical Co.

201,482

 

7,199

*

Halozyme Therapeutics Inc.

432,814

 

7,003

*

Array BioPharma Inc.

354,736

 

6,623

*,^

Viking Therapeutics Inc.

792,146

 

6,464

*

Vericel Corp.

375,017

 

6,450

*

CareDx Inc.

218,998

 

6,139

*

Ironwood Pharmaceuticals Inc. Class A

407,137

 

5,562

*,^

DBV Technologies SA ADR

749,655

 

5,060

 

LeMaitre Vascular Inc.

205,549

 

4,900

*

BioCryst Pharmaceuticals Inc.

509,119

 

4,419

*

Myriad Genetics Inc.

156,116

 

4,401

*

ImmunoGen Inc.

823,076

 

4,321

*

Sangamo Therapeutics Inc.

344,267

 

4,025

*

Horizon Pharma plc

185,291

 

3,982

*

Assertio Therapeutics Inc.

790,433

 

3,525

*

Cytokinetics Inc.

492,604

 

3,463

*

MacroGenics Inc.

290,309

 

3,405

*

Natera Inc.

212,772

 

2,892

*

ArQule Inc.

742,210

 

2,746

*

REGENXBIO Inc.

60,749

 

2,671

*

CytomX Therapeutics Inc.

153,833

 

2,612

 

US Physical Therapy Inc.

22,945

 

2,430

*

Amphastar Pharmaceuticals Inc.

96,799

 

2,203

*

Novavax Inc.

845,786

 

1,979

*

Endologix Inc.

2,540,186

 

1,924

*

Tactile Systems Technology Inc.

28,587

 

1,903

*

AMN Healthcare Services Inc.

27,860

 

1,805

 

Luminex Corp.

61,241

 

1,708

*

Innoviva Inc.

97,824

 

1,673

*

Orthofix Medical Inc.

30,521

 

1,652

*

Select Medical Holdings Corp.

97,992

 

1,531

*

Voyager Therapeutics Inc.

138,543

 

1,453

*

Biohaven Pharmaceutical Holding Co. Ltd.

35,238

 

1,342

 

CONMED Corp.

17,987

 

1,265

*,^

Madrigal Pharmaceuticals Inc.

10,921

 

1,264

*

WellCare Health Plans Inc.

4,522

 

1,250

*,^

TransEnterix Inc.

427,039

 

1,162

*

Invitae Corp.

81,994

 

1,154

*

IntriCon Corp.

39,935

 

1,035

*

Esperion Therapeutics Inc.

20,996

 

975

*

Tabula Rasa HealthCare Inc.

15,991

 

964

*

Alder Biopharmaceuticals Inc.

60,254

 

848

*

Arbutus Biopharma Corp.

188,366

 

695

*

Zogenix Inc.

14,350

 

628

*

Arrowhead Pharmaceuticals Inc.

42,864

 

605

*

Supernus Pharmaceuticals Inc.

14,001

 

534

 

 

 

 

2,723,911

Industrials (17.9%)

 

 

 

*

TriNet Group Inc.

2,321,335

 

105,992

*

Kirby Corp.

1,404,335

 

105,199

*

Sensata Technologies Holding plc

1,935,774

 

91,949

 

Woodward Inc.

966,073

 

87,768

*

Trex Co. Inc.

1,205,100

 

84,068

*

Copart Inc.

1,448,000

 

73,312

 

John Bean Technologies Corp.

904,929

 

71,888

*

Chart Industries Inc.

925,671

 

69,148

 

 

*

AerCap Holdings NV

1,373,256

 

64,900

 

HEICO Corp. Class A

906,241

 

63,464

 

EnerSys

743,512

 

63,392

 

MSC Industrial Direct Co. Inc. Class A

750,229

 

62,637

 

AGCO Corp.

960,474

 

61,662

 

IDEX Corp.

430,849

 

59,397

 

Advanced Drainage Systems Inc.

2,138,455

 

54,531

 

Fortune Brands Home & Security Inc.

1,201,300

 

54,419

*

Middleby Corp.

410,470

 

48,279

 

Watts Water Technologies Inc. Class A

644,118

 

48,225

*

Spirit Airlines Inc.

800,881

 

47,108

 

Actuant Corp. Class A

2,045,019

 

46,810

*

Proto Labs Inc.

365,597

 

45,389

 

Kennametal Inc.

1,160,530

 

43,613

 

TransUnion

690,915

 

42,021

*

SPX FLOW Inc.

1,272,446

 

41,698

*

Clean Harbors Inc.

694,981

 

41,150

*

United Rentals Inc.

316,000

 

39,582

*

Teledyne Technologies Inc.

172,000

 

38,566

 

GATX Corp.

498,557

 

37,731

 

Heartland Express Inc.

1,879,932

 

37,617

*

CoStar Group Inc.

91,243

 

35,652

*

Masonite International Corp.

615,000

 

35,178

 

Multi-Color Corp.

724,747

 

33,737

*

XPO Logistics Inc.

545,538

 

33,158

*

Verisk Analytics Inc. Class A

268,691

 

31,547

 

Forward Air Corp.

521,813

 

30,542

 

ABM Industries Inc.

817,694

 

27,957

 

Allegion plc

321,658

 

27,618

*

MRC Global Inc.

1,721,000

 

26,882

 

Tennant Co.

422,220

 

24,797

*

Mercury Systems Inc.

411,366

 

24,118

 

Harris Corp.

155,695

 

23,849

 

Robert Half International Inc.

357,403

 

23,027

 

Allison Transmission Holdings Inc.

446,467

 

21,729

*

WABCO Holdings Inc.

190,000

 

21,704

 

Huntington Ingalls Industries Inc.

92,812

 

19,161

 

Spirit AeroSystems Holdings Inc. Class A

227,365

 

18,962

*

Generac Holdings Inc.

330,429

 

17,490

*

Aerojet Rocketdyne Holdings Inc.

438,712

 

17,316

*

Axon Enterprise Inc.

333,634

 

17,019

*

RBC Bearings Inc.

117,200

 

16,340

*

SiteOne Landscape Supply Inc.

300,691

 

16,027

 

Ritchie Bros Auctioneers Inc.

439,029

 

15,787

*

Beacon Roofing Supply Inc.

402,728

 

14,631

*

IHS Markit Ltd.

278,883

 

14,480

 

Rockwell Automation Inc.

84,841

 

14,382

*

HD Supply Holdings Inc.

338,386

 

14,192

*

Harsco Corp.

660,790

 

14,075

*

Aerovironment Inc.

171,270

 

13,301

*

Continental Building Products Inc.

504,823

 

13,297

*

Cimpress NV

156,855

 

13,046

 

JB Hunt Transport Services Inc.

115,890

 

12,405

 

BWX Technologies Inc.

258,378

 

11,994

 

Lennox International Inc.

49,694

 

11,394

^

Wabtec Corp.

164,226

 

11,358

*,^

Kornit Digital Ltd.

592,034

 

11,343

 

 

*

Evoqua Water Technologies Corp.

1,018,213

 

11,007

*

Atkore International Group Inc.

463,943

 

10,759

*

Meritor Inc.

494,907

 

10,235

 

Global Brass & Copper Holdings Inc.

311,671

 

9,425

 

Armstrong World Industries Inc.

130,261

 

8,863

 

EMCOR Group Inc.

132,925

 

8,671

 

ArcBest Corp.

224,255

 

8,436

 

Hillenbrand Inc.

197,318

 

8,366

 

Korn Ferry

180,673

 

8,239

*,^

Bloom Energy Corp. Class A

853,500

 

8,066

 

Insperity Inc.

65,577

 

6,996

*

TrueBlue Inc.

282,708

 

6,895

 

Graco Inc.

156,019

 

6,760

*

SP Plus Corp.

187,094

 

6,193

 

Simpson Manufacturing Co. Inc.

100,077

 

6,143

 

KAR Auction Services Inc.

115,229

 

5,993

 

Rush Enterprises Inc. Class A

150,068

 

5,740

*

Gardner Denver Holdings Inc.

202,670

 

5,000

*

Vicor Corp.

122,505

 

4,825

 

Comfort Systems USA Inc.

91,998

 

4,413

 

Kimball International Inc. Class B

289,346

 

4,088

*

Hub Group Inc. Class A

87,307

 

3,886

 

Barrett Business Services Inc.

56,874

 

3,563

 

Exponent Inc.

58,618

 

2,929

 

Cubic Corp.

41,512

 

2,668

 

MSA Safety Inc.

25,464

 

2,551

 

Albany International Corp.

32,349

 

2,221

*

Herc Holdings Inc.

58,482

 

2,167

*

ADT Inc.

246,779

 

1,782

 

Greenbrier Cos. Inc.

41,977

 

1,780

 

Covanta Holding Corp.

108,932

 

1,754

 

Kaman Corp.

27,283

 

1,613

*

Saia Inc.

26,365

 

1,581

 

HEICO Corp.

17,720

 

1,497

 

Schneider National Inc. Class B

61,700

 

1,310

 

Landstar System Inc.

12,704

 

1,290

*

Avis Budget Group Inc.

35,092

 

935

 

 

 

 

2,649,650

Information Technology (22.7%)

 

 

 

*

Fortinet Inc.

1,639,489

 

125,536

*

New Relic Inc.

1,018,894

 

103,571

*

2U Inc.

1,716,843

 

97,602

*

Cornerstone OnDemand Inc.

1,690,901

 

96,956

*

Cadence Design Systems Inc.

2,003,188

 

96,213

*,2

Cardtronics plc Class A

2,999,182

 

81,188

*

First Solar Inc.

1,540,510

 

77,934

*

Tableau Software Inc. Class A

579,708

 

74,110

*

GoDaddy Inc. Class A

1,077,377

 

73,940

 

Entegris Inc.

2,211,488

 

73,090

*

Five9 Inc.

1,216,667

 

62,208

 

LogMeIn Inc.

654,608

 

60,892

 

Teradyne Inc.

1,598,012

 

57,512

*

Trimble Inc.

1,494,208

 

56,272

*

Arrow Electronics Inc.

725,889

 

55,131

 

CDW Corp.

661,171

 

55,056

*

Itron Inc.

977,184

 

53,384

*

Zendesk Inc.

784,617

 

52,985

 

 

*

HubSpot Inc.

334,446

 

52,946

 

Power Integrations Inc.

800,661

 

52,844

*

Wix.com Ltd.

471,400

 

51,548

*

Euronet Worldwide Inc.

440,630

 

50,677

*

Cloudera Inc.

3,688,075

 

49,789

*

DocuSign Inc. Class A

970,680

 

48,000

 

MAXIMUS Inc.

671,660

 

47,103

*

ON Semiconductor Corp.

2,236,847

 

44,826

*

Ciena Corp.

1,132,676

 

43,144

*

Trade Desk Inc. Class A

302,115

 

43,106

*

ServiceNow Inc.

189,870

 

41,775

*

Tower Semiconductor Ltd.

2,694,462

 

40,121

*

Aspen Technology Inc.

404,797

 

39,115

*

CyberArk Software Ltd.

430,373

 

37,770

*

RealPage Inc.

676,286

 

37,716

*

Advanced Micro Devices Inc.

1,492,505

 

36,432

*

Square Inc.

504,648

 

36,007

 

Jack Henry & Associates Inc.

246,894

 

32,973

*

Acacia Communications Inc.

736,107

 

32,028

*

Carbonite Inc.

1,114,050

 

31,906

 

Monolithic Power Systems Inc.

251,980

 

31,891

*

Proofpoint Inc.

306,169

 

31,189

 

SS&C Technologies Holdings Inc.

603,161

 

31,057

 

j2 Global Inc.

399,094

 

29,996

 

MKS Instruments Inc.

361,710

 

29,526

*

Inphi Corp.

748,000

 

29,501

*

WEX Inc.

179,649

 

28,983

 

FLIR Systems Inc.

587,080

 

28,696

*

SolarWinds Corp.

1,629,429

 

28,596

*

Ultimate Software Group Inc.

103,366

 

28,226

*,^

Ambarella Inc.

731,599

 

27,801

*

IPG Photonics Corp.

198,242

 

26,366

*

Zebra Technologies Corp.

151,533

 

26,306

*

Semtech Corp.

535,802

 

26,019

*

Envestnet Inc.

468,792

 

25,432

*

Manhattan Associates Inc.

516,975

 

25,213

 

Belden Inc.

467,612

 

25,069

^

Microchip Technology Inc.

305,587

 

24,560

 

Presidio Inc.

1,535,901

 

24,467

 

Booz Allen Hamilton Holding Corp. Class A

460,117

 

22,606

*

Guidewire Software Inc.

256,681

 

22,249

*

Shopify Inc. Class A

128,913

 

21,718

 

Switch Inc.

2,453,795

 

20,465

 

Cognex Corp.

445,909

 

20,289

*

PTC Inc.

235,300

 

19,951

*

Gartner Inc.

142,690

 

19,390

*

Q2 Holdings Inc.

312,751

 

18,587

*

Qualys Inc.

210,820

 

18,242

*

Tyler Technologies Inc.

95,855

 

18,135

 

Alliance Data Systems Corp.

102,000

 

18,114

*

Silicon Laboratories Inc.

234,892

 

17,969

*

Workiva Inc.

414,273

 

17,358

 

Sabre Corp.

754,776

 

17,345

*

Palo Alto Networks Inc.

74,950

 

16,101

*

Box Inc.

758,510

 

15,868

*

Atlassian Corp. plc Class A

157,528

 

15,501

 

Science Applications International Corp.

218,975

 

14,702

 

 

 

National Instruments Corp.

308,157

 

13,627

*

Twilio Inc. Class A

121,289

 

13,502

 

Broadridge Financial Solutions Inc.

132,554

 

13,365

*

ANSYS Inc.

80,683

 

13,260

*

FireEye Inc.

748,646

 

13,236

*,^

3D Systems Corp.

1,026,791

 

13,102

*

RingCentral Inc. Class A

134,954

 

12,475

*

Unisys Corp.

878,518

 

11,491

*

Synaptics Inc.

280,447

 

11,162

*

PROS Holdings Inc.

322,573

 

11,161

*

8x8 Inc.

588,129

 

10,357

*

ChannelAdvisor Corp.

815,033

 

8,762

 

Cabot Microelectronics Corp.

74,663

 

7,607

*

Diodes Inc.

212,438

 

7,144

*

SMART Global Holdings Inc.

285,501

 

7,083

*

Nutanix Inc.

137,732

 

7,056

*

A10 Networks Inc.

1,026,019

 

6,967

*

Appfolio Inc.

109,874

 

6,956

*

Altair Engineering Inc. Class A

214,038

 

6,931

 

TTEC Holdings Inc.

199,046

 

6,654

*

Fair Isaac Corp.

27,829

 

6,267

*

ePlus Inc.

75,253

 

5,962

*

Pure Storage Inc. Class A

325,396

 

5,828

*

Nanometrics Inc.

158,975

 

4,863

*

SPS Commerce Inc.

52,494

 

4,654

 

EVERTEC Inc.

165,203

 

4,571

*

Benefitfocus Inc.

81,189

 

4,542

*

Control4 Corp.

226,793

 

4,506

*

Fitbit Inc. Class A

684,091

 

4,221

*

Insight Enterprises Inc.

86,641

 

3,979

^

Ubiquiti Networks Inc.

34,616

 

3,746

*

Sykes Enterprises Inc.

133,217

 

3,673

*

Cirrus Logic Inc.

97,854

 

3,635

 

Hackett Group Inc.

202,004

 

3,634

 

CSG Systems International Inc.

95,688

 

3,463

*

EPAM Systems Inc.

22,312

 

3,157

*

Varonis Systems Inc.

45,797

 

2,706

*

Okta Inc.

31,024

 

2,557

*

eGain Corp.

327,727

 

2,346

*

ShotSpotter Inc.

47,513

 

2,288

*

Alarm.com Holdings Inc.

35,172

 

2,213

*

Coupa Software Inc.

23,403

 

2,035

*

Virtusa Corp.

41,717

 

2,024

*

Immersion Corp.

206,403

 

1,959

*

Bottomline Technologies DE Inc.

36,385

 

1,879

*

Avid Technology Inc.

338,422

 

1,611

 

Cypress Semiconductor Corp.

104,757

 

1,453

*

Brightcove Inc.

180,316

 

1,446

*

Elastic NV

8,242

 

701

 

 

 

 

3,364,707

Materials (3.8%)

 

 

 

 

Carpenter Technology Corp.

1,357,409

 

64,151

 

Orion Engineered Carbons SA

1,977,115

 

54,549

*

Berry Global Group Inc.

1,072,000

 

52,796

*

Ferro Corp.

2,681,213

 

44,696

 

Methanex Corp.

769,313

 

41,981

*

Alcoa Corp.

1,385,700

 

41,128

 

 

 

 

Smurfit Kappa Group plc

1,215,089

 

35,163

 

Minerals Technologies Inc.

566,930

 

33,205

*

Summit Materials Inc. Class A

2,042,650

 

31,171

 

Graphic Packaging Holding Co.

2,375,035

 

28,667

 

Sealed Air Corp.

381,875

 

15,084

 

Balchem Corp.

169,035

 

14,033

 

Louisiana-Pacific Corp.

540,573

 

13,179

 

Ferroglobe plc

5,427,600

 

12,429

 

Chemours Co.

306,718

 

10,965

 

Boise Cascade Co.

359,432

 

9,874

 

Huntsman Corp.

424,399

 

9,324

 

Greif Inc. Class A

170,352

 

6,644

 

Steel Dynamics Inc.

172,175

 

6,300

*

Verso Corp.

198,832

 

4,905

 

Avery Dennison Corp.

46,065

 

4,811

 

WR Grace & Co.

63,872

 

4,535

 

Albemarle Corp.

44,453

 

3,589

*

Ingevity Corp.

32,552

 

3,062

 

Quaker Chemical Corp.

14,649

 

2,995

 

Royal Gold Inc.

32,659

 

2,853

 

Cleveland-Cliffs Inc.

253,001

 

2,710

 

Compass Minerals International Inc.

51,169

 

2,674

*,^

Livent Corp.

204,064

 

2,583

 

Tronox Ltd. Class A

262,912

 

2,303

*

AdvanSix Inc.

62,029

 

1,963

 

PolyOne Corp.

54,656

 

1,769

 

Trinseo SA

24,401

 

1,197

 

 

 

 

567,288

Other (1.4%)

 

 

 

^,3

Vanguard Small-Cap ETF

1,362,152

 

200,849

 

 

 

 

 

Real Estate (3.2%)

 

 

 

*

SBA Communications Corp. Class A

525,000

 

95,828

 

Jones Lang LaSalle Inc.

406,000

 

58,225

 

Hannon Armstrong Sustainable Infrastructure Capital Inc.

2,521,363

 

56,958

 

Life Storage Inc.

549,035

 

53,954

 

Douglas Emmett Inc.

1,420,811

 

53,749

 

Xenia Hotels & Resorts Inc.

2,380,371

 

44,680

 

PS Business Parks Inc.

282,281

 

40,984

 

Ryman Hospitality Properties Inc.

178,958

 

14,379

^

Omega Healthcare Investors Inc.

351,964

 

14,145

 

National Storage Affiliates Trust

362,755

 

10,556

 

National Health Investors Inc.

107,737

 

8,970

 

CubeSmart

273,365

 

8,461

 

Gaming and Leisure Properties Inc.

187,771

 

7,041

 

RMR Group Inc. Class A

47,506

 

3,136

 

EastGroup Properties Inc.

27,378

 

2,833

 

Taubman Centers Inc.

29,780

 

1,483

 

Lamar Advertising Co. Class A

19,670

 

1,464

 

Tanger Factory Outlet Centers Inc.

32,250

 

734

 

Colony Capital Inc.

109,879

 

667

 

 

 

 

478,247

Utilities (0.5%)

 

 

 

 

Pattern Energy Group Inc. Class A

2,908,695

 

61,897

 

 

 

NRG Energy Inc.

272,633

 

11,154

 

 

 

 

73,051

Total Common Stocks (Cost $11,800,828)

 

14,388,178

 

 

 

 

Coupon

 

 

 

 

 

Temporary Cash Investments (4.3%)1

 

 

 

 

 

 

Money Market Fund (3.7%)

 

 

 

 

 

 

4,5

Vanguard Market Liquidity Fund

2.572%

 

 

5,540,108

 

554,011

 

 

 

 

 

 

 

 

 

 

 

Maturity
Date

 

Face
Amount
($000)

 

 

Repurchase Agreement (0.4%)

 

 

 

 

 

 

 

Deutsche Bank Securities, Inc.
(Dated 1/31/19, Repurchase Value $64,105,000, collateralized by U.S. Treasury Note/Bond 2.500%, 1/15/22, with a value of 65,382,000)

2.580%

2/1/19

 

64,100

 

64,100

 

 

 

 

 

 

 

 

U.S. Government and Agency Obligations (0.2%)

 

 

 

 

 

 

 

United States Treasury Bill

2.292%

2/21/19

 

2,000

 

1,998

 

United States Treasury Bill

2.302%

2/28/19

 

500

 

499

 

United States Treasury Bill

2.365%

3/21/19

 

200

 

199

 

United States Treasury Bill

2.423%-2.435%

4/11/19

 

3,350

 

3,335

6

United States Treasury Bill

2.479%

5/9/19

 

15,000

 

14,904

6

United States Treasury Bill

2.497%

5/23/19

 

500

 

 

496

 

 

 

 

 

 

 

 

21,431

Total Temporary Cash Investments (Cost $639,508)

 

 

 

 

 

639,542

Total Investments (101.4%) (Cost $12,440,336)

 

 

 

 

 

15,027,720

Other Assets and Liabilities-Net (-1.4%)5

 

 

 

 

 

(201,310)

Net Assets (100%)

 

 

 

 

 

14,826,410

 

*        Non-income-producing security.

^        Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $167,620,000.

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 98.8% and 2.6%, 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       Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

5       Includes $174,031,000 of collateral received for securities on loan.

6       Securities with a value of $12,340,000 have been segregated as initial margin for open futures contracts.

ADR—American Depositary Receipt.

 

 

Explorer Fund

 

 

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts

 

 

 

 

 

 

($000)

 

 

Expiration

Number of

Long (Short)

Contracts

Notional

Amount

Value and

Unrealized

Appreciation

(Depreciation)

Long Futures Contracts

 

 

 

 

E-mini Russell 2000 Index

March 2019

3,336

250,233

11,329

 

A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.

 

B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

 

C. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures

 

 

Explorer Fund

 

 

 

contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Schedule of Investments.

 

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Schedule of Investments. Fluctuations in the value of the contracts are recorded as an asset (liability).

 

D. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.

 

E. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

 

Level 1–Quoted prices in active markets for identical securities.

Level 2–Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3–Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.

 

 

Explorer Fund

 

 

 

The following table summarizes the market value of the fund’s investments as of January 31, 2019, based on the inputs used to value them:

 

Investments

Level 1

($000)

Level 2

($000)

Level 3

($000)

Common Stocks

14,353,015

35,163

—

Temporary Cash Investments

554,011

85,531

—

Futures Contracts—Assets1

1,953

—

—

Total

14,908,979

120,694

—

 

1 Represents variation margin on the last day of the reporting period.

 

 

F. Certain of the fund’s investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company 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

 

 

Oct. 31,

2018

Market

Value

($000)

Purchases

at Cost

($000)

Proceeds

from

Securities

Sold

($000)

Realized

Net Gain

(Loss)

($000)

Change in

Unrealized

App.(Dep.)

($000)

Income

($000)

Capital Gain

Distributions

Received

($000)

Jan. 31,

2019

Market

Value

($000)

Cardtronics plc Class A

79,452

2,217

—

—

(481)

—

—

81,188

Vanguard Market Liquidity Fund

726,044

NA1

NA1

(3)

(5)

2,882

—

554,011

Vanguard Small-Cap ETF

228,153

92,069

112,331

(22,173)

15,131

877

—

200,849

Vanguard Small-Cap Growth ETF

63,818

—

65,052

46,539

(45,305)

—

—

—

Total

1,097,467

 

 

24,363

(30,660)

3,759

—

836,048

 

1  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/ MORTIMER J. BUCKLEY*

 

MORTIMER J. BUCKLEY

 

CHIEF EXECUTIVE OFFICER

Date: March 19, 2019

 

 

 

 

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/ MORTIMER J. BUCKLEY*

 

MORTIMER J. BUCKLEY

 

CHIEF EXECUTIVE OFFICER

Date: March 19, 2019

 

 

 

 

VANGUARD EXPLORER FUND

 

 

 

 

By:

/s/ THOMAS J. HIGGINS*

 

THOMAS J. HIGGINS

 

CHIEF FINANCIAL OFFICER

Date: March 19, 2019

 

 

 

 

*By: /s/ Anne E. Robinson

Anne E. Robinson, pursuant to a Power of Attorney filed on January 18, 2018 see file Number 33-32216, Incorporated by Reference.