N-Q 1 explorer_final.htm VANGUARD EXPLORER FUND explorer_final.htm - Generated by SEC Publisher for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT COMPANY

Investment Company Act file number: 811-1530

Name of Registrant: Vanguard Explorer Fund

Address of Registrant:
P.O. Box 2600
Valley Forge, PA 19482

Name and address of agent for service:
Heidi Stam, Esquire
P.O. Box 876
Valley Forge, PA 19482

Date of fiscal year end: October 31st

Date of reporting period: July 31, 2011

Item 1: Schedule of Investments

 

Vanguard Explorer Fund

Schedule of Investments
As of July 31, 2011

      Market 
      Value 
    Shares  ($000) 
Common Stocks (97.8%)1     
Consumer Discretionary (12.8%)     
*  MGM Resorts International  3,959,710  59,831 
*  Life Time Fitness Inc.  1,346,145  56,215 
  Cinemark Holdings Inc.  2,789,580  54,369 
  Express Inc.  1,950,515  43,770 
  DeVry Inc.  679,195  42,205 
  Gentex Corp.  1,423,455  40,341 
*  Cheesecake Factory Inc.  1,300,303  37,488 
*  CarMax Inc.  1,136,270  36,327 
*  LKQ Corp.  1,455,520  35,762 
*,^,2 Liz Claiborne Inc.  5,334,410  34,140 
*  DreamWorks Animation SKG Inc. Class A  1,525,530  33,348 
  Texas Roadhouse Inc. Class A  1,988,053  32,843 
  Aaron's Inc.  1,296,290  32,679 
  Tractor Supply Co.  488,980  32,234 
*  Steven Madden Ltd.  829,717  31,612 
*  Bally Technologies Inc.  774,420  30,535 
*  Pier 1 Imports Inc.  2,750,418  30,227 
  Lennar Corp. Class A  1,545,000  27,331 
  Williams-Sonoma Inc.  733,159  27,142 
*  DSW Inc. Class A  467,550  24,771 
*  O'Reilly Automotive Inc.  411,011  24,455 
*  Live Nation Entertainment Inc.  2,179,380  24,191 
*  GameStop Corp. Class A  931,445  21,963 
*  Buffalo Wild Wings Inc.  336,050  21,349 
*  Coinstar Inc.  432,771  21,145 
  Service Corp. International  2,002,130  20,962 
*  Fossil Inc.  154,502  19,416 
*  Steiner Leisure Ltd.  395,000  19,205 
*  Pulte Group Inc.  2,659,200  18,269 
*  Gaylord Entertainment Co.  619,074  18,164 
*  Pinnacle Entertainment Inc.  1,253,412  18,087 
*  CROCS Inc.  534,435  16,744 
  MDC Partners Inc. Class A  726,327  14,505 
*  G-III Apparel Group Ltd.  452,947  13,982 
*  American Public Education Inc.  289,150  13,177 
*  SodaStream International Ltd.  175,000  12,836 
*  Domino's Pizza Inc.  472,981  12,709 
*  Tempur-Pedic International Inc.  160,165  11,533 
*  WMS Industries Inc.  417,694  11,516 
  Monro Muffler Brake Inc.  311,125  11,126 
*  Lululemon Athletica Inc.  160,000  9,686 
*  Ulta Salon Cosmetics & Fragrance Inc.  152,048  9,584 
  Men's Wearhouse Inc.  288,900  9,473 
*  K12 Inc.  276,758  8,878 
  Bebe Stores Inc.  1,103,350  8,176 
*  ITT Educational Services Inc.  93,304  7,993 
  Chico's FAS Inc.  525,050  7,923 
*  Select Comfort Corp.  464,700  7,816 
*  JOS A Bank Clothiers Inc.  150,000  7,696 

 

 

Sotheby's  170,483  7,220 
* Modine Manufacturing Co.  456,500  6,806 
* BJ's Restaurants Inc.  145,000  6,724 
* Peet's Coffee & Tea Inc.  106,894  6,243 
Group 1 Automotive Inc.  104,441  4,975 
* Capella Education Co.  106,900  4,570 
Strayer Education Inc.  36,000  4,379 
Interpublic Group of Cos. Inc.  378,972  3,718 
Tiffany & Co.  44,000  3,502 
Polaris Industries Inc.  28,229  3,347 
PetSmart Inc.  77,695  3,342 
* Signet Jewelers Ltd.  71,000  3,042 
* Carter's Inc.  90,000  3,015 
Weight Watchers International Inc.  36,600  2,825 
Foot Locker Inc.  126,300  2,744 
Brinker International Inc.  106,199  2,551 
John Wiley & Sons Inc. Class A  48,777  2,442 
* ANN Inc.  83,171  2,157 
* Sirius XM Radio Inc.  1,015,000  2,142 
Ameristar Casinos Inc.  96,100  2,133 
Finish Line Inc. Class A  98,956  2,108 
* Sally Beauty Holdings Inc.  121,437  2,089 
Autoliv Inc.  29,475  1,950 
* TRW Automotive Holdings Corp.  37,756  1,906 
* Teavana Holdings Inc.  53,940  1,521 
* Warnaco Group Inc.  27,552  1,469 
Sinclair Broadcast Group Inc. Class A  143,800  1,425 
Harman International Industries Inc.  30,100  1,252 
* Dunkin' Brands Group Inc.  28,600  827 
Brunswick Corp.  35,000  764 
* Dick's Sporting Goods Inc.  20,000  740 
* DineEquity Inc.  12,841  669 
* Tenneco Inc.  6,777  271 
* Krispy Kreme Doughnuts Inc. Warrants Exp. 03/02/2012  8,183  3 
    1,260,600 
Consumer Staples (3.3%)     
Herbalife Ltd.  1,041,908  58,055 
Pricesmart Inc.  743,340  43,500 
* Smithfield Foods Inc.  1,806,850  39,787 
Nu Skin Enterprises Inc. Class A  1,036,377  38,906 
* Fresh Market Inc.  1,059,700  37,651 
* Cott Corp.  3,264,279  27,061 
* United Natural Foods Inc.  598,194  24,975 
* Green Mountain Coffee Roasters Inc.  179,000  18,607 
* BJ's Wholesale Club Inc.  288,200  14,511 
* Boston Beer Co. Inc. Class A  115,953  10,453 
Diamond Foods Inc.  102,000  7,302 
B&G Foods Inc. Class A  110,140  2,069 
* Darling International Inc.  55,500  937 
* Pantry Inc.  35,570  634 
Lancaster Colony Corp.  8,220  494 
Vector Group Ltd.  21,400  375 
Coca-Cola Bottling Co. Consolidated  4,450  287 
    325,604 
Energy (8.3%)     
* Key Energy Services Inc.  2,414,000  47,049 
* Comstock Resources Inc.  1,428,270  45,562 

 

 

*  SandRidge Energy Inc.  3,948,597  45,488 
  Core Laboratories NV  367,741  39,966 
*  Brigham Exploration Co.  1,158,295  36,834 
*  Rosetta Resources Inc.  673,040  34,843 
*  Hornbeck Offshore Services Inc.  1,247,900  34,742 
*  Petrohawk Energy Corp.  872,170  33,308 
*  Atwood Oceanics Inc.  669,191  31,251 
*  ION Geophysical Corp.  2,810,900  28,503 
*  Complete Production Services Inc.  710,390  27,620 
  Tidewater Inc.  507,005  27,551 
  Berry Petroleum Co. Class A  449,550  25,782 
*  Tetra Technologies Inc.  1,953,266  25,139 
*  Global Industries Ltd.  4,403,946  22,592 
*  Clean Energy Fuels Corp.  1,318,620  21,111 
*  Pioneer Drilling Co.  1,179,350  19,188 
*  Kodiak Oil & Gas Corp.  2,619,563  17,787 
*  Southwestern Energy Co.  397,625  17,718 
*  Tesco Corp.  829,297  17,631 
*  Alpha Natural Resources Inc.  409,440  17,487 
  RPC Inc.  718,329  16,967 
  Niko Resources Ltd.  240,475  16,492 
*  Forest Oil Corp.  622,500  16,185 
*  Newpark Resources Inc.  1,648,800  15,317 
  SM Energy Co.  173,317  13,059 
  Cabot Oil & Gas Corp.  172,900  12,808 
*  Energy XXI Bermuda Ltd.  385,350  12,643 
*  Carrizo Oil & Gas Inc.  325,350  12,494 
*  Rex Energy Corp.  1,043,710  11,554 
*  Basic Energy Services Inc.  318,000  10,300 
  Oceaneering International Inc.  219,940  9,501 
*  McDermott International Inc.  459,655  9,271 
  CARBO Ceramics Inc.  57,819  9,024 
*  Whiting Petroleum Corp.  85,400  5,004 
  HollyFrontier Corp.  44,773  3,375 
*  C&J Energy Services Inc.  100,900  3,078 
*  CVR Energy Inc.  110,100  2,956 
  Golar LNG Ltd.  67,900  2,589 
*  Stone Energy Corp.  78,900  2,561 
*  Western Refining Inc.  118,100  2,413 
  Arch Coal Inc.  87,940  2,251 
  Patterson-UTI Energy Inc.  68,800  2,238 
  W&T Offshore Inc.  82,328  2,231 
*  Mitcham Industries Inc.  102,800  1,867 
*  Clayton Williams Energy Inc.  23,032  1,528 
*  Cloud Peak Energy Inc.  14,313  319 
      815,177 
Exchange-Traded Funds (1.4%)     
^,3  Vanguard Small-Cap ETF  1,065,083  80,116 
^,3  Vanguard Small-Cap Growth ETF  713,200  58,889 
^  iShares Russell 2000 Index Fund  41,383  3,296 
      142,301 
Financials (7.3%)     
  Cash America International Inc.  924,948  51,760 
*  NASDAQ OMX Group Inc.  1,689,610  40,669 
*,2  HFF Inc. Class A  2,601,568  39,284 
*  Affiliated Managers Group Inc.  318,875  33,268 
  SEI Investments Co.  1,598,960  31,628 

 

 

  Redwood Trust Inc.  2,124,970  30,451 
  Mid-America Apartment Communities Inc.  429,500  30,404 
*  Signature Bank  475,844  28,151 
  MFA Financial Inc.  3,694,970  27,675 
  Allied World Assurance Co. Holdings AG  494,900  26,947 
  Lazard Ltd. Class A  772,230  25,947 
  Och-Ziff Capital Management Group LLC Class A  2,055,150  25,402 
  Evercore Partners Inc. Class A  851,500  24,208 
*  National Financial Partners Corp.  2,024,874  22,942 
*,^  First Republic Bank  799,300  22,636 
  MB Financial Inc.  1,097,175  22,152 
  International Bancshares Corp.  1,241,115  20,876 
  Bank of the Ozarks Inc.  377,575  19,615 
  American Assets Trust Inc.  884,273  19,445 
  Sabra Healthcare REIT Inc.  1,304,953  18,804 
  Jefferies Group Inc.  973,713  18,413 
*  LPL Investment Holdings Inc.  473,522  15,650 
  PS Business Parks Inc.  246,438  14,000 
  TCF Financial Corp.  1,030,100  13,103 
*  eHealth Inc.  748,600  9,694 
  Alterra Capital Holdings Ltd.  435,325  9,486 
  Platinum Underwriters Holdings Ltd.  270,997  9,309 
  Northwest Bancshares Inc.  674,400  8,288 
  Valley National Bancorp  579,310  7,618 
  Waddell & Reed Financial Inc. Class A  202,250  7,423 
*  Nara Bancorp Inc.  633,632  5,088 
  First Midwest Bancorp Inc.  413,127  4,925 
  Webster Financial Corp.  200,600  4,096 
  Rayonier Inc.  54,618  3,520 
  Cardinal Financial Corp.  279,440  2,998 
  QC Holdings Inc.  570,000  2,605 
*  Ezcorp Inc. Class A  75,229  2,504 
  CBL & Associates Properties Inc.  128,300  2,279 
*  Credit Acceptance Corp.  28,553  2,265 
*  World Acceptance Corp.  33,976  2,165 
*  Arch Capital Group Ltd.  60,630  2,049 
*  CB Richard Ellis Group Inc. Class A  88,774  1,935 
  Nelnet Inc. Class A  91,976  1,854 
*  First Cash Financial Services Inc.  37,261  1,612 
  Potlatch Corp.  43,537  1,446 
  National Health Investors Inc.  26,900  1,224 
*  Netspend Holdings Inc.  144,000  1,136 
  Omega Healthcare Investors Inc.  48,400  951 
  Extra Space Storage Inc.  32,700  695 
  Getty Realty Corp.  28,841  669 
  Universal Health Realty Income Trust  15,900  655 
  Apartment Investment & Management Co.  20,000  546 
  Advance America Cash Advance Centers Inc.  71,900  507 
  JMP Group Inc.  58,309  428 
  Urstadt Biddle Properties Inc. Class A  22,400  397 
  Validus Holdings Ltd.  13,980  372 
  Amtrust Financial Services Inc.  11,200  260 
  Erie Indemnity Co. Class A  3,000  221 
*  Investors Bancorp Inc.  14,300  198 
  Digital Realty Trust Inc.  2,565  157 
*  Strategic Hotels & Resorts Inc.  15,500  105 
      725,110 

 

 

Health Care (17.7%)     
  Cooper Cos. Inc.  1,007,538  77,067 
*  Coventry Health Care Inc.  2,246,710  71,895 
*  Elan Corp. plc ADR  6,174,153  68,286 
*  Regeneron Pharmaceuticals Inc.  1,151,981  61,124 
*  Alkermes Inc.  3,483,420  60,054 
*  Bruker Corp.  3,380,125  58,206 
*  Salix Pharmaceuticals Ltd.  1,374,990  53,322 
*  Seattle Genetics Inc.  2,307,324  39,294 
*  Brookdale Senior Living Inc. Class A  1,661,840  35,547 
*  ICON plc ADR  1,549,795  34,607 
*  Health Management Associates Inc. Class A  3,593,262  34,136 
*  Cubist Pharmaceuticals Inc.  990,900  33,661 
*  ResMed Inc.  1,087,250  32,933 
*  Bio-Rad Laboratories Inc. Class A  289,510  31,557 
*  Henry Schein Inc.  460,250  30,588 
  PerkinElmer Inc.  1,207,050  29,524 
  DENTSPLY International Inc.  761,150  28,840 
*  Allscripts Healthcare Solutions Inc.  1,569,095  28,479 
  West Pharmaceutical Services Inc.  648,450  28,447 
*  BioMarin Pharmaceutical Inc.  907,600  28,344 
*  Incyte Corp. Ltd.  1,531,420  26,708 
*  Insulet Corp.  1,307,200  25,700 
*  Mettler-Toledo International Inc.  165,459  25,615 
*  ABIOMED Inc.  1,526,400  25,201 
*  SXC Health Solutions Corp.  397,644  25,103 
*  Jazz Pharmaceuticals Inc.  613,700  24,836 
  Quality Systems Inc.  271,543  24,808 
*  Volcano Corp.  779,640  24,488 
  Pharmaceutical Product Development Inc.  836,450  24,115 
*  Healthspring Inc.  573,800  23,549 
*  Edwards Lifesciences Corp.  316,300  22,568 
*  Kindred Healthcare Inc.  1,194,564  22,506 
*  IPC The Hospitalist Co. Inc.  496,345  22,450 
*  Onyx Pharmaceuticals Inc.  658,300  21,711 
*  Alexion Pharmaceuticals Inc.  380,350  21,604 
*  Sirona Dental Systems Inc.  418,753  21,181 
*  Hospira Inc.  404,645  20,685 
*,^  Cadence Pharmaceuticals Inc.  2,197,319  19,007 
*  QIAGEN NV  1,118,500  18,947 
*  Questcor Pharmaceuticals Inc.  582,616  18,090 
*  Parexel International Corp.  881,050  18,088 
*  Covance Inc.  310,857  17,797 
  Invacare Corp.  566,849  16,994 
*,^  Momenta Pharmaceuticals Inc.  957,900  16,916 
  Warner Chilcott plc Class A  777,600  16,345 
*  WuXi PharmaTech Cayman Inc. ADR  1,027,450  16,008 
*  MWI Veterinary Supply Inc.  171,493  15,273 
  Hikma Pharmaceuticals plc  1,300,350  14,564 
*  Targacept Inc.  700,851  14,325 
*  Vanguard Health Systems Inc.  826,100  14,325 
*  Nektar Therapeutics  2,183,400  14,061 
*  Align Technology Inc.  617,850  13,587 
*  Amylin Pharmaceuticals Inc.  1,119,650  13,335 
*  Luminex Corp.  644,460  13,115 
*  Ardea Biosciences Inc.  553,900  12,961 
*  Catalyst Health Solutions Inc.  196,364  12,868 
  Patterson Cos. Inc.  415,800  12,823 

 

 

*  ExamWorks Group Inc.  572,016  12,516 
*  Exelixis Inc.  1,508,910  11,619 
*  Immunogen Inc.  841,100  11,380 
*  Isis Pharmaceuticals Inc.  1,283,499  11,089 
*  Cyberonics Inc.  405,325  11,000 
*  Skilled Healthcare Group Inc.  1,194,898  10,515 
*  NxStage Medical Inc.  571,454  10,515 
*  Par Pharmaceutical Cos. Inc.  310,000  10,041 
*  Akorn Inc.  1,433,885  9,937 
*  AMN Healthcare Services Inc.  1,172,945  9,454 
*  NPS Pharmaceuticals Inc.  904,545  8,738 
*  Cepheid Inc.  214,114  8,085 
*  Caliper Life Sciences Inc.  680,691  5,548 
*  ISTA Pharmaceuticals Inc.  1,033,279  5,135 
  STERIS Corp.  70,203  2,456 
  Chemed Corp.  38,106  2,317 
*  Charles River Laboratories International Inc.  57,400  2,270 
*  AVEO Pharmaceuticals Inc.  118,300  2,261 
*  WellCare Health Plans Inc.  51,400  2,254 
*  Team Health Holdings Inc.  101,500  2,234 
*  AMERIGROUP Corp.  38,264  2,104 
  Perrigo Co.  22,692  2,049 
*  Sunrise Senior Living Inc.  220,310  1,943 
*  Medicines Co.  129,454  1,939 
*  Neurocrine Biosciences Inc.  217,222  1,679 
*  Depomed Inc.  168,682  1,275 
*  Impax Laboratories Inc.  58,535  1,240 
*  Molina Healthcare Inc.  49,750  1,127 
*  Kinetic Concepts Inc.  14,900  997 
*  United Therapeutics Corp.  12,374  710 
*,^  PharmAthene Inc.  266,700  707 
*  IDEXX Laboratories Inc.  7,757  643 
  Lincare Holdings Inc.  23,210  594 
*  Array Biopharma Inc.  266,145  564 
*  Arqule Inc.  85,101  477 
*  Arthrocare Corp.  13,000  430 
*  Genomic Health Inc.  12,692  341 
      1,746,351 
Industrials (16.3%)     
*,2  Beacon Roofing Supply Inc.  2,525,836  54,002 
  Kennametal Inc.  1,330,327  52,455 
  Belden Inc.  1,389,055  51,187 
*  Genesee & Wyoming Inc. Class A  916,960  50,469 
  Chicago Bridge & Iron Co. NV  1,007,261  41,550 
*  BE Aerospace Inc.  1,018,842  40,550 
  MSC Industrial Direct Co. Class A  606,005  37,439 
*  EnerSys  1,132,140  36,206 
*  Teledyne Technologies Inc.  638,510  34,626 
*  Corrections Corp. of America  1,576,185  33,825 
*  Middleby Corp.  394,485  33,326 
*  IHS Inc. Class A  450,607  33,205 
  Pentair Inc.  870,680  32,050 
*  Kansas City Southern  530,680  31,496 
  Con-way Inc.  803,630  29,429 
  Lennox International Inc.  760,630  28,128 
  Manpower Inc.  550,200  27,796 
*  Swift Transportation Co.  2,430,740  27,565 

 

 

*  Orbital Sciences Corp.  1,588,100  27,506 
*  AerCap Holdings NV  2,214,126  27,278 
  Knight Transportation Inc.  1,677,025  26,396 
*  Meritor Inc.  1,919,220  25,909 
  Triumph Group Inc.  470,400  25,326 
*  Navistar International Corp.  489,610  25,122 
  Armstrong World Industries Inc.  633,630  25,028 
*  Kforce Inc.  1,777,246  24,490 
  United Stationers Inc.  762,800  24,478 
*  RBC Bearings Inc.  638,144  24,230 
  Trinity Industries Inc.  797,740  23,765 
  Flowserve Corp.  228,905  22,749 
*  Huron Consulting Group Inc.  699,000  22,627 
*  Rush Enterprises Inc. Class A  1,104,676  22,082 
*  II-VI Inc.  857,200  21,456 
*  Clean Harbors Inc.  399,344  21,065 
  AMETEK Inc.  487,620  20,724 
*  GeoEye Inc.  510,203  20,388 
  Progressive Waste Solutions Ltd.  904,200  20,372 
  UTi Worldwide Inc.  1,152,235  18,632 
*  HUB Group Inc. Class A  520,612  18,471 
  Gardner Denver Inc.  216,282  18,447 
*,^  A123 Systems Inc.  3,507,300  17,992 
  Landstar System Inc.  396,530  17,784 
  Robbins & Myers Inc.  363,313  17,526 
  ABM Industries Inc.  737,700  16,598 
*  Atlas Air Worldwide Holdings Inc.  304,982  15,978 
*  AGCO Corp.  331,250  15,708 
*  Chart Industries Inc.  290,505  15,414 
*  SFN Group Inc.  1,106,229  15,399 
  Titan International Inc.  600,100  15,165 
*  TrueBlue Inc.  1,002,310  15,045 
*  Advisory Board Co.  273,158  14,625 
  Applied Industrial Technologies Inc.  457,847  14,614 
*  Stericycle Inc.  174,815  14,356 
*  United Rentals Inc.  597,221  13,742 
*  General Cable Corp.  340,040  13,523 
  Interface Inc. Class A  820,950  13,152 
  Woodward Inc.  378,300  13,051 
*  Altra Holdings Inc.  575,609  12,802 
*  DigitalGlobe Inc.  469,890  12,274 
  Watsco Inc.  198,960  11,774 
  TAL International Group Inc.  367,238  11,362 
  Donaldson Co. Inc.  183,380  10,156 
*  CAI International Inc.  478,500  8,398 
*  Exponent Inc.  195,022  8,154 
*  Korn/Ferry International  370,400  7,978 
  HEICO Corp.  107,358  5,611 
  HEICO Corp. Class A  140,913  5,214 
*  Flow International Corp.  1,260,468  4,298 
  Robert Half International Inc.  155,000  4,244 
*  Moog Inc. Class A  96,831  3,965 
*  Polypore International Inc.  52,100  3,543 
  Waste Connections Inc.  95,708  3,086 
*  H&E Equipment Services Inc.  254,600  3,055 
*  WABCO Holdings Inc.  48,094  3,032 
  Heartland Express Inc.  191,860  2,939 
  Timken Co.  60,973  2,663 

 

 

  Copa Holdings SA Class A  37,600  2,467 
*  Hertz Global Holdings Inc.  172,800  2,431 
*  Trimas Corp.  96,677  2,317 
  Toro Co.  41,235  2,220 
  KBR Inc.  59,509  2,121 
  Deluxe Corp.  89,409  2,105 
  Towers Watson & Co. Class A  34,400  2,104 
*  Consolidated Graphics Inc.  39,249  2,025 
*  Sauer-Danfoss Inc.  41,808  1,986 
*  Alaska Air Group Inc.  32,162  1,966 
  Hubbell Inc. Class B  32,400  1,927 
  Cubic Corp.  38,422  1,865 
  Healthcare Services Group Inc.  116,965  1,835 
  Watts Water Technologies Inc. Class A  50,688  1,700 
  Steelcase Inc. Class A  167,879  1,667 
  Textainer Group Holdings Ltd.  61,574  1,598 
*  Avis Budget Group Inc.  95,000  1,435 
  Nordson Corp.  21,182  1,081 
  Actuant Corp. Class A  40,693  1,006 
*  Old Dominion Freight Line Inc.  24,175  896 
  Intersections Inc.  34,500  670 
*  JetBlue Airways Corp.  131,000  627 
*  Coleman Cable Inc.  41,600  548 
*  DXP Enterprises Inc.  18,582  505 
  Werner Enterprises Inc.  16,252  383 
  Ryder System Inc.  5,792  326 
*  Trex Co. Inc.  14,990  316 
*  WESCO International Inc.  4,861  246 
      1,606,438 
Information Technology (24.7%)     
*  Alliance Data Systems Corp.  1,038,905  102,166 
*  Ariba Inc.  2,498,047  82,610 
*  VeriFone Systems Inc.  2,011,485  79,192 
*  Sapient Corp.  5,285,850  73,579 
*  Microsemi Corp.  3,067,655  60,893 
*,2  TiVo Inc.  6,217,960  58,449 
*  Netlogic Microsystems Inc.  1,686,044  58,253 
*  Teradyne Inc.  3,692,314  49,809 
  MKS Instruments Inc.  1,960,050  48,903 
*  Parametric Technology Corp.  2,250,995  46,798 
*  Cadence Design Systems Inc.  4,325,950  44,687 
*  Polycom Inc.  1,630,615  44,076 
*  Rovi Corp.  802,260  42,496 
*  MICROS Systems Inc.  862,571  42,240 
*  IAC/InterActiveCorp  963,126  39,864 
*  Trimble Navigation Ltd.  992,920  35,328 
*  ON Semiconductor Corp.  4,013,699  34,879 
  Power Integrations Inc.  963,465  34,193 
*  j2 Global Communications Inc.  1,246,450  33,330 
*  ValueClick Inc.  1,845,030  33,321 
  Syntel Inc.  599,188  32,937 
  Jabil Circuit Inc.  1,788,220  32,742 
*  Informatica Corp.  629,138  32,168 
*  NICE Systems Ltd. ADR  898,403  32,091 
*,2  S1 Corp.  3,338,000  31,377 
*  LSI Corp.  4,099,530  30,173 
*  CommVault Systems Inc.  773,370  29,945 

 

 

* Convergys Corp.  2,405,330  29,922 
* Cardtronics Inc.  1,280,952  29,436 
* Atmel Corp.  2,359,101  28,545 
* F5 Networks Inc.  302,495  28,277 
* Genpact Ltd.  1,702,720  28,095 
Littelfuse Inc.  549,250  28,061 
* WebMD Health Corp.  788,591  27,798 
Factset Research Systems Inc.  299,394  27,571 
* Celestica Inc.  3,129,252  27,475 
Maxim Integrated Products Inc.  1,119,120  25,695 
* QLogic Corp.  1,687,480  25,599 
* Cree Inc.  773,200  25,407 
Cypress Semiconductor Corp.  1,171,882  24,117 
* Nuance Communications Inc.  1,163,280  23,277 
* Euronet Worldwide Inc.  1,337,530  22,952 
Avago Technologies Ltd.  651,770  21,919 
* Progress Software Corp.  905,400  21,820 
* TeleTech Holdings Inc.  1,092,000  21,611 
ADTRAN Inc.  652,935  21,606 
* CACI International Inc. Class A  363,200  21,458 
* Digital River Inc.  826,635  21,079 
* RightNow Technologies Inc.  598,750  20,322 
* SunPower Corp. Class B  1,318,591  19,990 
* FEI Co.  596,320  19,702 
* SuccessFactors Inc.  723,738  19,541 
* Concur Technologies Inc.  423,660  19,251 
* SolarWinds Inc.  883,600  19,006 
* Varian Semiconductor Equipment Associates Inc.  310,380  18,852 
Black Box Corp.  626,200  17,840 
* Acxiom Corp.  1,275,000  17,519 
* RADWARE Ltd.  524,900  17,400 
* RF Micro Devices Inc.  2,575,640  17,386 
* Riverbed Technology Inc.  598,000  17,121 
* Red Hat Inc.  362,800  15,267 
* Synchronoss Technologies Inc.  518,602  15,169 
* MicroStrategy Inc. Class A  92,900  14,805 
* Fortinet Inc.  717,260  14,575 
National Instruments Corp.  547,838  14,156 
* Silicon Laboratories Inc.  399,220  14,136 
* Entropic Communications Inc.  2,114,300  14,124 
* Salesforce.com Inc.  93,440  13,522 
Heartland Payment Systems Inc.  602,302  12,672 
* Cymer Inc.  280,240  12,339 
* Hittite Microwave Corp.  210,250  11,772 
* Travelzoo Inc.  220,750  11,656 
* FleetCor Technologies Inc.  389,727  11,552 
* Constant Contact Inc.  608,000  11,509 
* VistaPrint NV  419,550  11,202 
* Sourcefire Inc.  450,726  11,079 
* comScore Inc.  503,557  10,983 
* Acme Packet Inc.  182,735  10,767 
FLIR Systems Inc.  371,140  10,192 
* KIT Digital Inc.  863,725  10,062 
* QLIK Technologies Inc.  307,650  9,325 
* LogMeIn Inc.  262,200  9,321 
* Omnivision Technologies Inc.  310,709  9,085 
* Gartner Inc.  245,547  9,063 
* DealerTrack Holdings Inc.  365,000  8,464 

 

 

* Super Micro Computer Inc.  576,900  8,129 
* Diodes Inc.  317,775  7,484 
* Kenexa Corp.  258,870  6,619 
Pegasystems Inc.  135,300  5,461 
* PMC - Sierra Inc.  700,750  4,898 
* Advent Software Inc.  206,511  4,797 
* Aviat Networks Inc.  1,217,135  4,710 
* Interactive Intelligence Group  119,431  4,540 
* Ancestry.com Inc.  124,429  4,431 
* TIBCO Software Inc.  124,587  3,244 
* Oclaro Inc.  655,578  3,081 
Global Payments Inc.  63,700  3,020 
* NCR Corp.  142,234  2,838 
* Aruba Networks Inc.  113,893  2,614 
MAXIMUS Inc.  61,624  2,381 
* Manhattan Associates Inc.  62,838  2,344 
* Monolithic Power Systems Inc.  170,000  2,293 
DST Systems Inc.  43,596  2,232 
* Lattice Semiconductor Corp.  357,040  2,214 
Anixter International Inc.  34,431  2,149 
* Booz Allen Hamilton Holding Corp.  109,741  1,996 
Intersil Corp. Class A  165,495  1,994 
* JDS Uniphase Corp.  149,495  1,966 
* Novellus Systems Inc.  62,529  1,941 
Opnet Technologies Inc.  56,366  1,934 
* Zebra Technologies Corp.  45,800  1,832 
* Take-Two Interactive Software Inc.  134,955  1,821 
* PROS Holdings Inc.  110,000  1,795 
* Brightpoint Inc.  174,055  1,582 
Daktronics Inc.  156,200  1,551 
* Coherent Inc.  32,160  1,545 
* Mentor Graphics Corp.  125,360  1,433 
* Silicon Image Inc.  244,313  1,400 
* Netscout Systems Inc.  88,294  1,346 
* Nova Measuring Instruments Ltd.  150,000  1,281 
* Websense Inc.  51,251  1,162 
Solera Holdings Inc.  20,513  1,146 
* Netgear Inc.  26,650  877 
* Entegris Inc.  98,200  842 
* Blue Coat Systems Inc.  40,000  806 
* Silicon Graphics International Corp.  55,700  795 
* Magma Design Automation Inc.  79,969  595 
* ShoreTel Inc.  60,000  511 
* Ultimate Software Group Inc.  7,494  408 
* Virtusa Corp.  15,000  295 
* Aspen Technology Inc.  12,900  200 
    2,431,479 
Materials (4.1%)     
Silgan Holdings Inc.  1,045,615  40,549 
* WR Grace & Co.  768,375  38,757 
Albemarle Corp.  563,035  37,487 
Ball Corp.  790,690  30,679 
* Graphic Packaging Holding Co.  6,119,600  30,292 
* Ferro Corp.  2,298,496  29,926 
Sensient Technologies Corp.  803,945  29,842 
Olin Corp.  1,133,360  23,699 
* Smurfit Kappa Group plc  2,278,640  23,381 

 

 

CF Industries Holdings Inc.  138,850  21,566 
Schnitzer Steel Industries Inc.  421,850  21,426 
* KapStone Paper and Packaging Corp.  1,105,851  17,240 
Balchem Corp.  291,500  12,759 
Aptargroup Inc.  236,120  12,054 
* OM Group Inc.  178,912  6,491 
Airgas Inc.  59,080  4,059 
* Crown Holdings Inc.  94,775  3,640 
* Rockwood Holdings Inc.  54,895  3,319 
Schweitzer-Mauduit International Inc.  55,000  3,086 
* Hecla Mining Co.  346,600  2,693 
NewMarket Corp.  14,873  2,439 
Worthington Industries Inc.  108,850  2,283 
Eastman Chemical Co.  21,662  2,092 
Westlake Chemical Corp.  39,000  2,018 
* Pilot Gold Inc.  592,361  1,433 
Ashland Inc.  18,422  1,128 
Innophos Holdings Inc.  16,300  786 
* Kraton Performance Polymers Inc.  17,500  632 
* Noranda Aluminum Holding Corp.  37,100  515 
* Horsehead Holding Corp.  40,000  447 
* Handy & Harman Ltd.  24,100  341 
* Solutia Inc.  15,606  335 
Rock-Tenn Co. Class A  4,499  277 
    407,671 
Telecommunication Services (1.3%)     
* Vonage Holdings Corp.  10,846,889  43,496 
* tw telecom inc Class A  1,977,680  39,059 
* SBA Communications Corp. Class A  597,390  22,802 
* Cogent Communications Group Inc.  769,250  11,593 
* Clearwire Corp. Class A  2,982,510  6,472 
* MetroPCS Communications Inc.  154,209  2,511 
USA Mobility Inc.  84,331  1,392 
    127,325 
Utilities (0.6%)     
IDACORP Inc.  768,600  30,137 
ITC Holdings Corp.  403,630  28,359 
Integrys Energy Group Inc.  26,133  1,312 
    59,808 
Total Common Stocks (Cost $7,826,896)    9,647,864 

 

 

        Market 
        Value 
  Coupon    Shares  ($000) 
Temporary Cash Investments (3.4%)1         
Money Market Fund (3.2%)         
4,5 Vanguard Market Liquidity Fund  0.114%    312,401,000  312,401 
 
      Face  Market 
    Maturity  Amount  Value 
  Coupon  Date  ($000)  ($000) 
Repurchase Agreement (0.1%)         
Deutsche Bank Securities, Inc.         
(Dated 7/29/11, Repurchase Value         
$10,000,000, collateralized by Government         
National Mortgage Assn. 4.500%, 6/20/41)  0.200%  8/1/11  10,000  10,000 
 
U.S. Government and Agency Obligations (0.1%)       
6,7 Fannie Mae Discount Notes  0.050%–0.080%  10/3/11  1,050  1,050 
6,7 Fannie Mae Discount Notes  0.045%  10/5/11  5,500  5,498 
        6,548 
Total Temporary Cash Investments (Cost $328,951)      328,949 
Total Investments (101.2%) (Cost $8,155,847)        9,976,813 
Other Assets and Liabilities-Net (-1.2%)5        (114,845) 
Net Assets (100%)        9,861,968 

* Non-income-producing security.
^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $75,455,000.
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 98.5% and 2.7%, 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 $78,291,000 of collateral received for securities on loan.
6 The issuer operates under a congressional charter; its securities are not backed by the full faith and credit of the U.S. government.
7 Securities with a value of $5,848,000 have been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.
REIT—Real Estate Investment Trust.

A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been 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

 

Explorer Fund

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. 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 fund's investments as of July 31, 2011, based on the inputs used to value them:

  Level 1  Level 2  Level 3 
Investments  ($000)  ($000)  ($000) 
Common Stocks  9,609,919  37,945  — 
Temporary Cash Investments  312,401  16,548  — 
Futures Contracts—Assets1  51  —  — 
Futures Contracts—Liabilities1  (242)  —  — 
Total  9,922,129  54,493  — 
1 Represents variation margin on the last day of the reporting period.

 

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

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

At July 31, 2011, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:

 

Explorer Fund

        ($000) 
      Aggregate   
    Number of  Settlement  Unrealized 
    Long (Short)  Value  Appreciation 
Futures Contracts  Expiration  Contracts  Long (Short)  (Depreciation) 
E-mini Russell 2000 Index  September 2011  432  34,366  (1,506) 
E-mini S&P MidCap 400 Index  September 2011  320  30,134  (1,094) 

 

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

E. Certain of the fund's investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company. Transactions during the period in securities of these companies were as follows:

      Current Period Transactions   
      Proceeds     
  Oct. 31, 2010    from    July 31, 2011 
  Market  Purchases  Securities  Dividend  Market 
  Value  at Cost  Sold  Income  Value 
  ($000)  ($000)  ($000)  ($000)  ($000) 
ABIOMED Inc.  20,101  876  9,284  —  NA2 
Beacon Roofing Supply Inc.  38,932  28,584  27,611  —  54,002 
HFF Inc.  —  35,318  153  —  39,284 
Liz Claiborne Inc.  NA1  19,012  716  —  34,140 
S1 Corp.  NA1  8,612  —  —  31,377 
TiVo Inc.  NA1  15,896  11,822  —  58,449 
  59,033      —  217,252 

1 Not applicable — At October 31, 2010, the issuer was not an affiliated company of the fund.
2 Not applicable — At July 31, 2011, the security was still held, but the issuer was no longer an affiliated company of the fund.

F. At July 31, 2011, the cost of investment securities for tax purposes was $8,155,847,000. Net unrealized appreciation of investment securities for tax purposes was $1,820,966,000, consisting of unrealized gains of $2,175,448,000 on securities that had risen in value since their purchase and $354,482,000 in unrealized losses on securities that had fallen in value since their purchase.

 

Item 2: Controls and Procedures

(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

(b) Internal Control Over Financial Reporting. During the last fiscal quarter, there was no significant change in the Registrant’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3: Exhibits

(a) Certifications

  VANGUARD EXPLORER FUND
 
By:  /s/ F. WILLIAM MCNABB III* 
  F. WILLIAM MCNABB III 
  CHIEF EXECUTIVE OFFICER 
 
Date: September 22, 2011

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 22, 2011

  VANGUARD EXPLORER FUND
 
By:  /s/ THOMAS J. HIGGINS* 
  THOMAS J. HIGGINS 
  CHIEF FINANCIAL OFFICER 
 
Date: September 22, 2011

* By:/s/ Heidi Stam

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