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

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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT COMPANY

Investment Company Act file number:  811-1530

Name of Registrant: Vanguard Explorer Fund

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

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

Date of fiscal year end: October 31

Date of reporting period: January 31, 2012

Item 1: Schedule of Investments

 

Vanguard Explorer Fund

Schedule of Investments
As of January 31, 2012

      Market
      Value
    Shares ($000)
Common Stocks (98.0%)1    
Consumer Discretionary (15.0%)    
* Life Time Fitness Inc. 1,346,145 66,150
* Cheesecake Factory Inc. 1,679,651 49,684
* Urban Outfitters Inc. 1,865,245 49,429
* CarMax Inc. 1,406,070 42,787
*,^ Liz Claiborne Inc.  4,430,420 41,203
  Lennar Corp. Class A 1,865,940 40,099
  Aaron's Inc. 1,440,190 38,323
* LKQ Corp. 1,124,655 36,664
* MGM Resorts International 2,788,850 36,394
* GameStop Corp. Class A 1,544,945 36,090
* Express Inc. 1,663,650 36,001
* PulteGroup Inc. 4,791,915 35,700
* AMC Networks Inc. Class A 762,500 32,605
  Gentex Corp. 1,150,390 30,911
* Bally Technologies Inc. 727,485 30,714
  Tractor Supply Co. 357,525 28,877
  DSW Inc. Class A 569,900 28,478
* Steven Madden Ltd. 676,975 27,851
* DreamWorks Animation SKG Inc. Class A 1,537,640 27,293
  Williams-Sonoma Inc. 723,259 25,936
* TRW Automotive Holdings Corp. 686,131 25,744
  DeVry Inc. 679,195 25,646
* Dana Holding Corp. 1,677,500 24,911
  Texas Roadhouse Inc. Class A 1,482,060 22,468
* Live Nation Entertainment Inc. 2,179,380 22,404
  Service Corp. International 2,002,130 22,224
* Sally Beauty Holdings Inc. 1,068,465 22,032
* Buffalo Wild Wings Inc. 327,500 21,798
* Steiner Leisure Ltd. 439,211 21,688
* Dunkin' Brands Group Inc. 768,365 21,245
  Belo Corp. Class A 2,758,200 20,493
  Cinemark Holdings Inc. 1,026,350 20,240
* Pier 1 Imports Inc. 1,227,278 19,084
  Men's Wearhouse Inc. 511,600 17,645
* Select Comfort Corp. 667,600 16,743
* American Public Education Inc. 415,350 16,697
* Coinstar Inc. 329,271 16,375
* O'Reilly Automotive Inc. 178,500 14,550
  Tiffany & Co. 213,000 13,589
* Crocs Inc. 704,185 13,394
  Brunswick Corp. 536,295 11,445
* ANN Inc. 467,071 11,331
  Group 1 Automotive Inc. 207,991 11,094
* Genesco Inc. 175,775 10,735
* Hibbett Sports Inc. 216,371 10,371
* K12 Inc. 461,490 10,333
* WMS Industries Inc. 464,494 10,168
* Carter's Inc. 227,900 9,554
* JOS A Bank Clothiers Inc. 200,000 9,550

 

 

MDC Partners Inc. Class A 727,077 9,510
* Lululemon Athletica Inc. 150,000 9,470
* Ulta Salon Cosmetics & Fragrance Inc. 124,197 9,466
* ITT Educational Services Inc. 138,704 9,136
Bebe Stores Inc. 1,002,450 8,781
* BJ's Restaurants Inc. 175,000 8,755
* GNC Holdings Inc. 309,527 8,515
Monro Muffler Brake Inc. 198,125 8,309
* Fossil Inc. 86,600 8,231
* SodaStream International Ltd. 210,000 8,020
Wolverine World Wide Inc. 199,218 7,787
Weight Watchers International Inc. 93,300 7,103
* Tempur-Pedic International Inc. 98,465 6,569
DR Horton Inc. 409,729 5,703
* Modine Manufacturing Co. 456,500 4,994
* Pandora Media Inc. 319,900 4,219
Heico Corporation 75,658 4,207
* Zagg Inc. 389,400 3,886
PetSmart Inc. 70,495 3,752
Polaris Industries Inc. 50,358 3,243
Chico's FAS Inc. 264,500 3,026
* Capella Education Co. 69,600 2,946
* Cost Plus Inc. 189,757 2,571
Brinker International Inc. 95,999 2,482
* Goodyear Tire & Rubber Co. 189,400 2,462
* Peet's Coffee & Tea Inc. 40,100 2,439
Ameristar Casinos Inc. 110,800 2,167
Foot Locker Inc. 80,200 2,104
* Sirius XM Radio Inc. 985,100 2,059
* Domino's Pizza Inc. 62,542 2,042
Finish Line Inc. Class A 89,956 1,903
Sinclair Broadcast Group Inc. Class A 143,800 1,766
Harman International Industries Inc. 40,100 1,692
* Warnaco Group Inc. 27,552 1,605
Regal Entertainment Group Class A 126,800 1,579
* Red Robin Gourmet Burgers Inc. 50,578 1,553
Hillenbrand Inc. 65,600 1,538
* Conn's Inc. 88,697 1,029
Dick's Sporting Goods Inc. 20,000 824
Leggett & Platt Inc. 33,300 715
Sotheby's 9,082 305
* Tenneco Inc. 6,777 218
* Vitamin Shoppe Inc. 4,600 197
* Krispy Kreme Doughnuts Inc. Warrants Exp. 03/02/2012 8,183 —
    1,413,618
Consumer Staples (2.5%)    
* Smithfield Foods Inc. 1,693,950 37,826
Herbalife Ltd. 560,693 32,453
* United Natural Foods Inc. 598,194 26,351
Pricesmart Inc. 357,690 23,840
Nu Skin Enterprises Inc. Class A 471,357 23,544
* Cott Corp. 3,131,764 22,016
* Green Mountain Coffee Roasters Inc. 345,400 18,424
* Monster Beverage Corp. 125,300 13,095
McCormick & Co. Inc. 223,900 11,316
* Boston Beer Co. Inc. Class A 80,653 8,069
Casey's General Stores Inc. 150,000 7,641

 

 

Diamond Foods Inc. 100,000 3,634
B&G Foods Inc. Class A 89,640 2,031
* Rite Aid Corp. 1,249,900 1,738
Church & Dwight Co. Inc. 27,800 1,261
Lancaster Colony Corp. 8,220 571
Vector Group Ltd. 22,470 391
    234,201
Energy (6.4%)    
* Key Energy Services Inc. 2,693,975 39,009
Core Laboratories NV 321,475 34,150
* Superior Energy Services Inc. 1,175,330 33,509
* Atwood Oceanics Inc. 713,441 32,804
Tidewater Inc. 602,995 32,471
* Rosetta Resources Inc. 672,600 32,278
* ION Geophysical Corp. 3,632,823 26,992
* Carrizo Oil & Gas Inc. 1,103,580 26,806
* SandRidge Energy Inc. 3,338,565 25,974
* Tetra Technologies Inc. 2,285,416 21,346
* Kodiak Oil & Gas Corp. 2,236,363 20,284
* Whiting Petroleum Corp. 397,550 19,913
* Clean Energy Fuels Corp. 1,318,620 19,727
Cabot Oil & Gas Corp. 515,600 16,448
* Comstock Resources Inc. 1,339,030 16,122
* Pioneer Drilling Co. 1,798,750 16,045
* Quicksilver Resources Inc. 3,063,600 15,349
* McDermott International Inc. 1,068,590 12,994
Oceaneering International Inc. 263,540 12,805
* Southwestern Energy Co. 397,625 12,382
Niko Resources Ltd. 240,475 11,747
* Complete Production Services Inc. 328,700 11,077
* Gulfport Energy Corp. 330,525 10,864
Berry Petroleum Co. Class A 235,450 10,598
* Tesco Corp. 737,897 10,242
* Oasis Petroleum Inc. 271,350 9,155
RPC Inc. 535,679 8,169
* Rex Energy Corp. 828,092 7,834
* Hornbeck Offshore Services Inc. 197,023 6,441
SM Energy Co. 82,672 6,000
* Newpark Resources Inc. 542,095 4,413
* Oil States International Inc. 51,700 4,120
* Basic Energy Services Inc. 213,600 3,847
Helmerich & Payne Inc. 56,600 3,493
HollyFrontier Corp. 110,746 3,249
* Energy XXI Bermuda Ltd. 91,800 3,014
* Mitcham Industries Inc. 130,190 2,859
CARBO Ceramics Inc. 25,700 2,499
* CVR Energy Inc. 93,500 2,332
Golar LNG Ltd. 55,100 2,259
* Stone Energy Corp. 78,900 2,213
Western Refining Inc. 118,100 1,952
* Clayton Williams Energy Inc. 23,032 1,875
W&T Offshore Inc. 82,328 1,779
Patterson-UTI Energy Inc. 68,800 1,298
* Cloud Peak Energy Inc. 14,313 271
    601,008

 

 

Exchange-Traded Funds (2.1%)    
^ iShares Russell 2000 Index Fund 924,660 73,113
2 Vanguard Small-Cap ETF 865,083 64,457
^,2 Vanguard Small-Cap Growth ETF  713,200 58,390
      195,960
Financials (6.2%)    
*,3 HFF Inc. Class A 3,097,740 43,709
  Cash America International Inc. 843,648 37,002
* NASDAQ OMX Group Inc. 1,409,877 34,937
  East West Bancorp Inc. 1,489,200 32,703
* Affiliated Managers Group Inc. 318,875 32,050
  National Penn Bancshares Inc. 3,652,313 31,739
  International Bancshares Corp. 1,568,125 30,139
* LPL Investment Holdings Inc. 908,492 29,844
* National Financial Partners Corp. 1,876,647 28,900
  MFA Financial Inc. 3,464,025 25,426
  Regions Financial Corp. 4,742,700 24,757
  Zions Bancorporation 1,389,400 23,398
  Och-Ziff Capital Management Group LLC Class A 2,286,000 22,700
* Signature Bank 382,625 22,250
  Evercore Partners Inc. Class A 771,600 21,751
  PS Business Parks Inc. 320,443 19,912
*,3 eHealth Inc. 1,226,720 19,848
  Jefferies Group Inc. 983,713 14,962
  Protective Life Corp. 554,397 13,866
  Cardinal Financial Corp. 1,089,662 12,215
  Essex Property Trust Inc. 82,300 11,851
  Alterra Capital Holdings Ltd. 264,390 6,390
  MB Financial Inc. 276,532 5,019
  First Midwest Bancorp Inc. 356,472 3,878
  Digital Realty Trust Inc. 41,065 2,910
* First Republic Bank 82,474 2,473
* World Acceptance Corp. 31,476 2,006
  Nelnet Inc. Class A 78,076 1,925
  Validus Holdings Ltd. 59,580 1,911
  QC Holdings Inc. 566,930 1,882
* Credit Acceptance Corp. 22,103 1,866
* Ezcorp Inc. Class A 61,629 1,653
  Home Properties Inc. 26,600 1,585
  Rayonier Inc. 32,327 1,478
  Bank of the Ozarks Inc. 50,250 1,407
* First Cash Financial Services Inc. 34,561 1,391
  Omega Healthcare Investors Inc. 64,300 1,340
  Highwoods Properties Inc. 39,800 1,317
  Camden Property Trust 19,000 1,226
  CBL & Associates Properties Inc. 68,300 1,186
  Extra Space Storage Inc. 42,300 1,113
  National Health Investors Inc. 22,200 1,075
  Federal Realty Investment Trust 10,800 1,020
  Potlatch Corp. 30,737 938
  Advance America Cash Advance Centers Inc. 71,900 566
  Erie Indemnity Co. Class A 5,900 452
* Investors Bancorp Inc. 14,300 211
  Amtrust Financial Services Inc. 5,400 140
      582,317

 

 

Health Care (18.2%)    
  Cooper Cos. Inc. 1,273,738 91,887
* Salix Pharmaceuticals Ltd. 1,571,965 75,769
* Bruker Corp. 5,059,725 71,848
* Alkermes plc 3,176,235 59,745
* Coventry Health Care Inc. 1,791,685 53,876
* Elan Corp. plc ADR 3,864,288 52,593
* Gen-Probe Inc. 771,975 51,668
  Universal Health Services Inc. Class B 982,600 40,572
* Health Management Associates Inc. Class A 6,310,187 40,448
* Cubist Pharmaceuticals Inc. 878,480 35,860
* Henry Schein Inc. 451,150 31,982
* BioMarin Pharmaceutical Inc. 889,700 31,736
* ResMed Inc. 1,087,250 31,563
* Kindred Healthcare Inc. 2,558,619 31,394
* Seattle Genetics Inc. 1,637,664 31,001
* Allscripts Healthcare Solutions Inc. 1,569,095 30,001
* Volcano Corp. 1,050,820 29,476
* Bio-Rad Laboratories Inc. Class A 283,810 28,824
* Watson Pharmaceuticals Inc. 489,195 28,682
* Questcor Pharmaceuticals Inc. 806,574 28,577
* Mettler-Toledo International Inc. 161,359 28,319
  DENTSPLY International Inc. 746,350 28,167
* Regeneron Pharmaceuticals Inc. 309,480 28,119
* Luminex Corp. 1,422,590 28,025
* ICON plc ADR 1,418,395 27,673
* Alexion Pharmaceuticals Inc. 350,750 26,924
* Onyx Pharmaceuticals Inc. 644,500 26,386
  West Pharmaceutical Services Inc. 648,450 26,249
* Insulet Corp. 1,344,490 26,177
* Edwards Lifesciences Corp. 310,200 25,644
* WellCare Health Plans Inc. 421,715 25,202
* Jazz Pharmaceuticals plc 515,100 23,952
  Quality Systems Inc. 582,750 23,636
* Amylin Pharmaceuticals Inc. 1,569,258 22,331
* Health Net Inc. 577,810 21,807
* MWI Veterinary Supply Inc. 272,963 21,430
*,^ Incyte Corp. Ltd.  1,198,205 21,208
* PAREXEL International Corp. 862,550 20,787
* Brookdale Senior Living Inc. Class A 1,114,950 19,623
* ABIOMED Inc. 1,039,813 19,247
* AMERIGROUP Corp. 266,564 18,129
* QIAGEN NV 1,097,600 17,759
* SXC Health Solutions Corp. 247,642 15,616
* Momenta Pharmaceuticals Inc. 945,290 14,832
  Hikma Pharmaceuticals plc 1,300,350 14,731
* Exelixis Inc. 2,729,945 14,523
* Akorn Inc. 1,258,585 14,423
* WuXi PharmaTech Cayman Inc. ADR 1,027,450 13,953
  Patterson Cos. Inc. 415,800 13,393
* Nektar Therapeutics 2,137,500 13,359
* Warner Chilcott plc Class A 777,600 13,118
* Cyberonics Inc. 372,055 12,092
  Hill-Rom Holdings Inc. 359,600 11,870
* Immunogen Inc. 823,400 11,626
* IPC The Hospitalist Co. Inc. 338,700 11,411
* Align Technology Inc. 478,000 11,262

 

 

* Ardea Biosciences Inc. 572,640 10,416
* Cepheid Inc. 235,889 10,393
* Catalyst Health Solutions Inc. 186,739 10,226
* Air Methods Corp. 113,450 9,564
* Cadence Pharmaceuticals Inc. 2,168,394 9,042
Invacare Corp. 495,650 8,466
* Sirona Dental Systems Inc. 144,225 6,973
* Isis Pharmaceuticals Inc. 824,939 6,732
* NxStage Medical Inc. 334,304 5,997
* Tornier NV 207,287 4,374
* NPS Pharmaceuticals Inc. 521,795 4,007
* SonoSite Inc. 50,000 2,696
* Charles River Laboratories International Inc. 78,100 2,637
* United Therapeutics Corp. 51,374 2,527
* Sagent Pharmaceuticals Inc. 109,475 2,431
* Orthofix International NV 56,500 2,269
* Medicines Co. 109,554 2,204
* Molina Healthcare Inc. 65,950 2,019
* Team Health Holdings Inc. 94,700 1,951
Chemed Corp. 34,506 1,937
Perrigo Co. 18,092 1,730
Medicis Pharmaceutical Corp. Class A 47,800 1,582
* AVEO Pharmaceuticals Inc. 118,300 1,559
* Hi-Tech Pharmacal Co. Inc. 36,300 1,415
* Thoratec Corp. 47,200 1,388
* Centene Corp. 29,800 1,347
Atrion Corp. 4,000 978
Computer Programs & Systems Inc. 14,900 853
* Array Biopharma Inc. 266,145 732
* Covance Inc. 15,200 666
* IDEXX Laboratories Inc. 7,757 656
* Arthrocare Corp. 19,650 607
* Par Pharmaceutical Cos. Inc. 16,100 581
PDL BioPharma Inc. 84,500 540
* Spectrum Pharmaceuticals Inc. 31,000 436
* Genomic Health Inc. 12,692 352
* Select Medical Holdings Corp. 40,100 332
* Impax Laboratories Inc. 9,535 180
STERIS Corp. 2,903 87
    1,713,387
Industrials (16.8%)    
* Genesee & Wyoming Inc. Class A 1,059,172 65,775
Kennametal Inc. 1,483,827 63,968
* IHS Inc. Class A 576,140 51,553
Triumph Group Inc. 782,150 48,939
Belden Inc. 1,190,450 46,678
MSC Industrial Direct Co. Inc. Class A 606,005 46,068
Chicago Bridge & Iron Co. NV 1,041,661 44,354
* BE Aerospace Inc. 1,018,842 42,995
* US Airways Group Inc. 4,511,805 38,080
* Middleby Corp. 394,485 37,930
* RBC Bearings Inc. 836,394 37,872
* AerCap Holdings NV 2,641,014 32,986
* Teledyne Technologies Inc. 580,577 32,954
Progressive Waste Solutions Ltd. 1,448,405 32,821
* EnerSys 1,132,140 32,809
Pentair Inc. 870,680 32,058

 

 

Knight Transportation Inc. 1,727,025 30,413
* Armstrong World Industries Inc. 593,995 27,740
* JetBlue Airways Corp. 4,613,600 27,359
* Esterline Technologies Corp. 436,600 26,698
Manpower Inc. 659,960 26,471
* Corrections Corp. of America 1,103,510 25,966
* United Rentals Inc. 668,311 25,556
Flowserve Corp. 228,905 25,218
* Beacon Roofing Supply Inc. 1,068,500 24,426
Con-way Inc. 753,410 23,913
AMETEK Inc. 489,220 22,993
Snap-on Inc. 404,110 22,836
* Huron Consulting Group Inc. 605,430 22,692
* Rush Enterprises Inc. Class A 951,651 21,897
* Moog Inc. Class A 499,506 21,289
* Navistar International Corp. 489,610 21,195
Landstar System Inc. 396,530 20,283
United Stationers Inc. 617,800 19,973
* WESCO International Inc. 316,086 19,875
* Clean Harbors Inc. 312,110 19,803
* Advisory Board Co. 255,758 19,509
Lennox International Inc. 536,165 19,409
* TrueBlue Inc. 1,060,010 17,501
UTi Worldwide Inc. 1,152,235 17,157
* AGCO Corp. 331,250 16,871
* Meritor Inc. 2,622,767 16,471
Woodward Inc. 378,300 15,881
Corporate Executive Board Co. 399,630 15,717
ABM Industries Inc. 722,200 15,672
* Chart Industries Inc. 275,405 15,357
* Stericycle Inc. 174,815 14,688
Titan International Inc. 600,100 14,486
* Alaska Air Group Inc. 183,012 13,933
TAL International Group Inc. 405,838 13,518
* Polypore International Inc. 305,250 11,624
* Old Dominion Freight Line Inc. 255,175 10,876
Robbins & Myers Inc. 215,623 10,471
* General Cable Corp. 334,740 10,330
Robert Half International Inc. 346,100 9,583
* II-VI Inc. 410,850 9,454
* Trimas Corp. 434,802 9,422
* Exponent Inc. 184,422 9,009
Watsco Inc. 124,800 8,607
* CAI International Inc. 478,500 8,335
Graco Inc. 161,600 7,430
* MasTec Inc. 364,800 5,943
* DigitalGlobe Inc. 343,400 5,388
* GeoEye Inc. 244,700 5,361
* Korn/Ferry International 293,885 4,829
HEICO Corp. Class A 83,588 3,222
Gardner Denver Inc. 38,132 2,845
* Furmanite Corp. 356,200 2,746
* Greenbrier Cos. Inc. 121,700 2,708
* Copart Inc. 56,400 2,653
Toro Co. 40,335 2,557
* WABCO Holdings Inc. 48,094 2,494
Interface Inc. Class A 182,350 2,423

 

 

* Atlas Air Worldwide Holdings Inc. 49,800 2,372
  Copa Holdings SA Class A 34,400 2,344
  Deluxe Corp. 89,409 2,286
  Applied Industrial Technologies Inc. 58,697 2,265
  Hubbell Inc. Class B 29,800 2,144
  Healthcare Services Group Inc. 114,465 2,139
* Sauer-Danfoss Inc. 41,808 2,107
* Generac Holdings Inc. 71,900 2,089
  Towers Watson & Co. Class A 33,800 2,021
  Aircastle Ltd. 135,900 1,916
  KBR Inc. 59,509 1,913
  Heartland Express Inc. 125,070 1,854
  Cubic Corp. 38,422 1,777
* Mobile Mini Inc. 83,400 1,735
  Steelcase Inc. Class A 167,879 1,462
* Avis Budget Group Inc. 95,000 1,363
* Kansas City Southern 17,700 1,215
  Actuant Corp. Class A 40,693 1,032
  Covanta Holding Corp. 66,700 953
* Consolidated Graphics Inc. 18,400 935
* Colfax Corp. 28,700 871
* Coleman Cable Inc. 80,700 866
* Portfolio Recovery Associates Inc. 13,000 844
  Primoris Services Corp. 52,900 842
  Textainer Group Holdings Ltd. 25,574 808
* ICF International Inc. 27,700 785
  Intersections Inc. 59,600 732
* Dollar Thrifty Automotive Group Inc. 8,400 619
  Knoll Inc. 36,000 575
  Standex International Corp. 10,600 425
  Werner Enterprises Inc. 16,252 425
* Hertz Global Holdings Inc. 21,700 295
  Donaldson Co. Inc. 3,000 217
      1,583,142
Information Technology (23.8%)    
* Alliance Data Systems Corp. 868,105 96,186
  Sapient Corp. 6,165,303 79,532
* VeriFone Systems Inc. 1,761,003 75,195
*,3 TiVo Inc.  6,204,120 64,399
* Teradyne Inc. 3,536,920 57,829
* Parametric Technology Corp. 2,292,571 57,704
* Ariba Inc. 2,026,247 55,317
  MKS Instruments Inc. 1,703,370 51,357
* Microsemi Corp. 2,546,065 50,361
* MICROS Systems Inc. 894,821 44,482
* Rovi Corp. 1,352,920 43,415
  Jabil Circuit Inc. 1,819,975 41,241
* ValueClick Inc. 2,157,585 37,628
  IAC/InterActiveCorp 854,675 36,811
* F5 Networks Inc. 302,495 36,221
  Syntel Inc. 765,522 35,918
* Trimble Navigation Ltd. 758,335 35,513
* Convergys Corp. 2,652,845 35,309
* Silicon Laboratories Inc. 741,370 32,502
* Riverbed Technology Inc. 1,330,500 31,852
* Cadence Design Systems Inc. 2,925,700 30,895
* NICE Systems Ltd. ADR 854,318 30,721

 

 

  j2 Global Inc. 1,136,950 30,652
* Take-Two Interactive Software Inc. 1,852,355 28,897
* ON Semiconductor Corp. 3,304,750 28,751
* Atmel Corp. 2,834,865 27,527
* Netlogic Microsystems Inc. 548,187 27,300
* FEI Co. 597,770 26,338
  Power Integrations Inc. 728,615 26,223
* SolarWinds Inc. 811,050 25,637
* Celestica Inc. 2,935,742 24,983
* Ultimate Software Group Inc. 368,929 24,604
* Euronet Worldwide Inc. 1,337,530 24,557
* Polycom Inc. 1,214,055 24,220
* TeleTech Holdings Inc. 1,396,880 23,691
  Factset Research Systems Inc. 265,950 23,489
* Informatica Corp. 547,438 23,157
* SuccessFactors Inc. 571,930 22,763
  ADTRAN Inc. 652,935 22,611
* Concur Technologies Inc. 423,660 22,179
* Cardtronics Inc. 865,432 22,112
* WebMD Health Corp. 771,991 21,647
* CACI International Inc. Class A 363,200 21,316
* Red Hat Inc. 440,000 20,403
  Maxim Integrated Products Inc. 757,050 20,319
  Heartland Payment Systems Inc. 845,927 20,302
* Nuance Communications Inc. 679,670 19,384
  Black Box Corp. 626,200 19,362
* Acme Packet Inc. 633,346 18,513
* RADWARE Ltd. 569,900 17,940
* Nanometrics Inc. 879,492 17,810
* Acxiom Corp. 1,275,000 17,493
* Genpact Ltd. 1,188,665 17,390
* Progress Software Corp. 701,700 16,371
* FleetCor Technologies Inc. 467,928 15,905
* RF Micro Devices Inc. 3,127,315 15,605
* LogMeIn Inc. 379,450 15,113
  Avago Technologies Ltd. 422,630 14,344
* Synchronoss Technologies Inc. 428,850 14,332
* Sourcefire Inc. 450,826 13,985
*,^ KIT Digital Inc.  1,283,315 13,898
* Ciena Corp. 922,000 13,415
* Entropic Communications Inc. 2,219,500 12,962
  Jack Henry & Associates Inc. 369,750 12,645
* Cymer Inc. 252,140 12,554
* Kenexa Corp. 519,432 12,477
* CommVault Systems Inc. 262,900 12,356
  National Instruments Corp. 455,850 12,267
  MercadoLibre Inc. 128,150 11,200
* Salesforce.com Inc. 95,440 11,147
* BroadSoft Inc. 388,550 10,833
  Cypress Semiconductor Corp. 624,487 10,738
* Gartner Inc. 278,097 10,543
* Liquidity Services Inc. 300,200 10,360
  FLIR Systems Inc. 371,140 9,557
* QLIK Technologies Inc. 327,700 9,241
*,^ SunPower Corp. Class A 1,301,236 8,913
* Aspen Technology Inc. 465,000 8,375
* DealerTrack Holdings Inc. 300,000 8,199

 

 

* Diodes Inc. 317,775 8,192
* Super Micro Computer Inc. 476,009 8,035
* Hittite Microwave Corp. 129,050 7,100
* Volterra Semiconductor Corp. 223,984 6,758
* Manhattan Associates Inc. 148,813 6,531
* Constant Contact Inc. 260,000 6,495
* Finisar Corp. 270,875 5,488
* comScore Inc. 228,832 5,069
* Interactive Intelligence Group Inc. 192,514 4,969
* Cavium Inc. 143,750 4,620
* Travelzoo Inc. 165,000 4,259
* IPG Photonics Corp. 65,800 3,474
* Perficient Inc. 304,200 3,386
* Monolithic Power Systems Inc. 200,000 3,278
* TIBCO Software Inc. 122,487 3,193
Global Payments Inc. 63,700 3,186
* Standard Microsystems Corp. 120,050 3,092
* Saba Software Inc. 288,875 2,871
* NCR Corp. 136,534 2,557
MAXIMUS Inc. 55,524 2,500
* LSI Corp. 325,000 2,460
Littelfuse Inc. 45,000 2,282
* Anixter International Inc. 34,431 2,256
* Freescale Semiconductor Holdings I Ltd. 138,700 2,215
Pegasystems Inc. 75,350 2,137
* Tyler Technologies Inc. 60,300 2,118
* Mitek Systems Inc. 235,395 2,062
* Lattice Semiconductor Corp. 302,440 2,057
* Brightpoint Inc. 174,055 2,040
* Booz Allen Hamilton Holding Corp. 115,441 2,032
* Synopsys Inc. 68,900 2,011
Fair Isaac Corp. 55,000 1,993
* Ixia 157,350 1,921
DST Systems Inc. 39,196 1,913
* Zebra Technologies Corp. 49,800 1,885
Intersil Corp. Class A 165,495 1,863
* Entegris Inc. 188,200 1,803
* PROS Holdings Inc. 110,000 1,784
* Mentor Graphics Corp. 125,360 1,739
OPNET 47,616 1,688
* Coherent Inc. 27,660 1,546
* Plexus Corp. 41,000 1,486
* ATMI Inc. 59,000 1,379
* ShoreTel Inc. 210,000 1,375
* Nova Measuring Instruments Ltd. 150,000 1,289
* Silicon Graphics International Corp. 85,800 1,170
* Netgear Inc. 26,650 1,061
* PMC - Sierra Inc. 160,000 1,040
* Websense Inc. 51,251 969
* Unisys Corp. 35,600 747
* Exar Corp. 101,200 676
* Stamps.com Inc. 15,500 481
* GT Advanced Technologies Inc. 42,000 362
* Magma Design Automation Inc. 19,069 137
* JDA Software Group Inc. 2,200 65
    2,238,388

 

 

Materials (5.3%)    
* WR Grace & Co. 800,075 42,836
Silgan Holdings Inc. 980,290 40,741
FMC Corp. 396,495 36,747
Albemarle Corp. 563,035 36,209
* Graphic Packaging Holding Co. 6,639,304 33,263
* Smurfit Kappa Group plc 3,831,103 32,027
Sensient Technologies Corp. 751,167 29,761
Ball Corp. 728,875 28,616
Minerals Technologies Inc. 450,600 28,591
Methanex Corp. 1,038,100 28,216
* KapStone Paper and Packaging Corp. 1,425,162 24,883
* Ferro Corp. 3,253,855 21,996
CF Industries Holdings Inc. 112,550 19,964
Schweitzer-Mauduit International Inc. 222,600 15,477
Schnitzer Steel Industries Inc. 323,250 14,103
Aptargroup Inc. 231,720 12,147
Balchem Corp. 237,150 8,974
* OM Group Inc. 314,212 8,525
* Intrepid Potash Inc. 270,400 6,460
* Crown Holdings Inc. 94,775 3,418
* Rockwood Holdings Inc. 61,895 3,126
NewMarket Corp. 12,473 2,696
Westlake Chemical Corp. 39,100 2,285
Eastman Chemical Co. 43,324 2,180
* Coeur d'Alene Mines Corp. 70,300 1,944
Worthington Industries Inc. 98,850 1,820
Hecla Mining Co. 292,700 1,540
Innophos Holdings Inc. 21,500 1,073
Myers Industries Inc. 76,900 1,023
Haynes International Inc. 16,650 1,012
Airgas Inc. 6,000 474
* Horsehead Holding Corp. 40,000 435
* Handy & Harman Ltd. 24,100 283
    492,845
Telecommunication Services (1.4%)    
* tw telecom inc Class A 1,891,985 38,123
* SBA Communications Corp. Class A 745,448 34,082
* Vonage Holdings Corp. 10,937,539 27,672
* AboveNet Inc. 242,569 16,119
* Cogent Communications Group Inc. 638,750 9,735
* Clearwire Corp. Class A 3,182,510 5,378
* Cincinnati Bell Inc. 143,800 496
* Level 3 Communications Inc. 23,300 432
Consolidated Communications Holdings Inc. 15,700 298
    132,335
Utilities (0.3%)    
IDACORP Inc. 720,530 30,370
Total Common Stocks (Cost $7,615,875)   9,217,571

 

 

        Market
        Value
  Coupon   Shares ($000)
Temporary Cash Investments (3.3%)1        
Money Market Fund (2.9%)        
4,5 Vanguard Market Liquidity Fund 0.096%   276,052,992 276,053
 
      Face  
    Maturity Amount  
    Date ($000)  
Repurchase Agreement (0.2%)        
Deutsche Bank Securities Inc.        
(Dated 1/31/12, Repurchase Value        
$16,400,000, collateralized by Federal        
National Mortgage Assn. 3.000%, 1/1/27) 0.240% 2/1/12 16,400 16,400
 
U.S. Government and Agency Obligations (0.2%)        
6,7 Fannie Mae Discount Notes 0.080% 2/22/12 50 50
7,8 Federal Home Loan Bank Discount Notes 0.025% 3/23/12 3,000 3,000
7,8 Federal Home Loan Bank Discount Notes 0.030% 4/9/12 100 100
6 Freddie Mac Discount Notes 0.040% 4/3/12 200 200
6,7 Freddie Mac Discount Notes 0.060% 4/27/12 10,000 9,999
        13,349
Total Temporary Cash Investments (Cost $305,802)       305,802
Total Investments (101.3%) (Cost $7,921,677)       9,523,373
Other Assets and Liabilities-Net (-1.3%)5       (120,336)
Net Assets (100%)       9,403,037

* Non-income-producing security.
^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $78,999,000.
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 98.6% and 2.7%, respectively, of net assets.
2 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
3 Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company.
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 $81,315,000 of collateral received for securities on loan.
6 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 in exchange for senior preferred stock.
7 Securities with a value of $13,149,000 have been segregated as initial margin for open futures contracts.
8 The issuer operates under a congressional charter; its securities are generally neither guaranteed by the U.S. Treasury nor backed by the full faith and credit of the U.S. government.
ADR—American Depositary Receipt.

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

 

Explorer Fund

procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value.

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

C. Repurchase Agreements: The fund may enter into repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. In the event of default or bankruptcy by the other party to the agreement, the fund may sell or retain the collateral; however such action may be subject to legal proceedings.

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

Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).

The following table summarizes the market value of the fund's investments as of January 31, 2012, based on the inputs used to value them:

  Level 1 Level 2 Level 3
Investments ($000) ($000) ($000)
Common Stocks 9,170,813 46,758 —
Temporary Cash Investments 276,053 29,749 —
Futures Contracts—Assets1 26 — —
Futures Contracts—Liabilities1 (2) — —
Total 9,446,890 76,507 —
1 Represents variation margin on the last day of the reporting period.    

 

 

Explorer Fund

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.

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 January 31, 2012, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:

        ($000)
      Aggregate  
    Number of Settlement Unrealized
    Long (Short) Value Appreciation
Futures Contracts Expiration  Contracts Long (Short)  (Depreciation)
E-mini Russell 2000 Index March 2012 371 29,354 3,037
E-mini S&P MidCap 400 Index March 2012 215 20,100 1,478

 

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

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

      Current Period Transactions  
      Proceeds    
  Oct. 31, 2011   from   Jan. 31, 2012
  Market Purchases Securities Dividend Market
  Value at Cost Sold Income Value
  ($000) ($000) ($000) ($000) ($000)
eHealth Inc. NA1 2,769 — — 19,848
HFF Inc. Class A 34,678 356 966 — 43,709
TiVo Inc. 66,203 1,450 421 — 64,399
  100,881     — 127,956
1 Not applicable — At October 31, 2011, the issuer was not an affiliated company of the fund.  

 

G. At January 31, 2012, the cost of investment securities for tax purposes was $7,921,677,000. Net unrealized appreciation of investment securities for tax purposes was $1,601,696,000, consisting of unrealized gains of $2,050,313,000 on securities that had risen in value since their purchase and $448,617,000 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: March 21, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

  VANGUARD EXPLORER FUND
 
By:  /s/ F. WILLIAM MCNABB III* 
  F. WILLIAM MCNABB III 
  CHIEF EXECUTIVE OFFICER 
 
Date: March 21, 2012:

  VANGUARD EXPLORER FUND
 
By:  /s/ THOMAS J. HIGGINS* 
  THOMAS J. HIGGINS 
  CHIEF FINANCIAL OFFICER 
 
Date: March 21, 2012

* By:/s/ Heidi Stam

Heidi Stam, pursuant to a Power of Attorney filed on November 28, 2011, see file Number 33-23444, Incorporated by Reference.