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: 811-01530

Name of Registrant: Vanguard Explorer Fund

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

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

Date of fiscal year end: October 31

Date of reporting period: July 31, 2012

Item 1: Schedule of Investments

 

Vanguard Explorer Fund

Schedule of Investments
As of July 31, 2012

    Market
    Value
  Shares ($000)
Common Stocks (97.8%)1    
Consumer Discretionary (16.1%)    
* Urban Outfitters Inc. 2,104,625 64,296
* Life Time Fitness Inc. 1,346,145 61,128
* PulteGroup Inc. 3,742,155 42,286
* CarMax Inc. 1,406,070 39,131
Lennar Corp. Class A 1,282,895 37,473
Aaron's Inc. 1,271,390 37,290
DSW Inc. Class A 600,550 35,505
* Fifth & Pacific Cos. Inc. 3,149,390 34,895
* Cheesecake Factory Inc. 1,032,036 34,594
Texas Roadhouse Inc. Class A 1,954,325 33,829
Tractor Supply Co. 357,525 32,488
Brunswick Corp. 1,416,285 31,144
* TRW Automotive Holdings Corp. 749,265 29,446
Gentex Corp. 1,815,620 29,068
* Steven Madden Ltd. 705,000 28,503
* Sally Beauty Holdings Inc. 1,073,291 28,356
* LKQ Corp. 777,695 27,476
* Crocs Inc. 1,713,985 26,310
* DreamWorks Animation SKG Inc. Class A 1,361,240 26,136
Churchill Downs Inc. 470,250 26,024
Service Corp. International 2,002,130 25,727
HSN Inc. 601,200 25,467
* ANN Inc. 879,171 23,808
* MGM Resorts International 2,468,930 23,504
Dana Holding Corp. 1,767,100 23,290
Cinemark Holdings Inc. 958,496 22,410
Tiffany & Co. 404,200 22,203
Dunkin' Brands Group Inc. 680,225 20,597
* Express Inc. 1,262,685 20,329
* Live Nation Entertainment Inc. 2,179,380 19,440
* Steiner Leisure Ltd. 449,500 18,744
* Coinstar Inc. 389,321 18,489
* Tumi Holdings Inc. 989,320 17,857
* Carter's Inc. 335,700 17,010
^ GameStop Corp. Class A 981,192 15,719
* Buffalo Wild Wings Inc. 210,000 15,244
Ulta Salon Cosmetics & Fragrance Inc. 159,197 13,513
DeVry Inc. 679,195 13,333
Pier 1 Imports Inc. 791,791 13,057
* AMC Networks Inc. Class A 296,600 12,861
DR Horton Inc. 702,219 12,380
* Denny's Corp. 2,826,500 12,324
* Deckers Outdoor Corp. 289,800 12,088
Chico's FAS Inc. 787,100 12,058
* Hibbett Sports Inc. 193,496 11,759
Men's Wearhouse Inc. 396,043 10,792
Group 1 Automotive Inc. 195,521 10,509
* Select Comfort Corp. 384,419 9,999
* Pandora Media Inc. 983,200 9,704

 

 

Six Flags Entertainment Corp. 167,226 9,634
Monro Muffler Brake Inc. 289,680 9,580
* BJ's Restaurants Inc. 240,000 9,499
Sturm Ruger & Co. Inc. 189,633 9,374
* Hanesbrands Inc. 311,000 9,336
* Jos A Bank Clothiers Inc. 220,000 9,297
* American Public Education Inc. 367,200 9,220
Oxford Industries Inc. 208,000 8,994
* Genesco Inc. 128,640 8,519
bebe stores inc 1,305,400 7,832
GNC Holdings Inc. Class A 197,322 7,603
* SodaStream International Ltd. 190,000 7,412
* O'Reilly Automotive Inc. 86,100 7,382
Weight Watchers International Inc. 139,800 7,074
* Zagg Inc. 573,000 6,360
* WMS Industries Inc. 328,100 6,027
* Lululemon Athletica Inc. 100,000 5,648
* Aeropostale Inc. 267,480 5,275
* ITT Educational Services Inc. 110,000 4,270
Vail Resorts Inc. 85,518 4,245
* Fossil Inc. 59,200 4,244
* Toll Brothers Inc. 143,900 4,198
Polaris Industries Inc. 44,558 3,349
* Meritage Homes Corp. 94,500 3,317
* Peet's Coffee & Tea Inc. 40,100 3,024
Brinker International Inc. 82,399 2,671
* Goodyear Tire & Rubber Co. 210,000 2,405
* Capella Education Co. 80,400 2,132
* Papa John's International Inc. 41,600 2,122
Foot Locker Inc. 63,700 2,103
* Smith & Wesson Holding Corp. 207,000 2,091
Domino's Pizza Inc. 59,442 2,029
* Conn's Inc. 110,497 1,972
^ Buckle Inc. 50,800 1,964
Regal Entertainment Group Class A 141,100 1,950
PetSmart Inc. 28,045 1,854
Ameristar Casinos Inc. 109,000 1,839
Thor Industries Inc. 63,100 1,813
American Eagle Outfitters Inc. 85,400 1,778
Harman International Industries Inc. 40,100 1,618
Sinclair Broadcast Group Inc. Class A 143,800 1,467
* Tenneco Inc. 36,577 1,071
Cracker Barrel Old Country Store Inc. 13,300 833
* DineEquity Inc. 15,600 831
* Shuffle Master Inc. 55,800 815
* Multimedia Games Holding Co. Inc. 48,600 688
PVH Corp. 7,900 628
* Vitamin Shoppe Inc. 4,600 253
* Tempur-Pedic International Inc. 3,865 110
    1,397,343
Consumer Staples (2.6%)    
* United Natural Foods Inc. 598,194 32,482
Herbalife Ltd. 552,893 30,348
Casey's General Stores Inc. 473,310 28,129
* Smithfield Foods Inc. 1,499,610 27,743
* Monster Beverage Corp. 332,800 22,121
PriceSmart Inc. 297,090 21,396

 

 

McCormick & Co. Inc. 215,150 13,098
* Boston Beer Co. Inc. Class A 112,453 12,113
* Hain Celestial Group Inc. 213,695 11,901
* Susser Holdings Corp. 213,596 7,713
* Green Mountain Coffee Roasters Inc. 405,300 7,401
Diamond Foods Inc. 160,000 2,603
B&G Foods Inc. Class A 78,940 2,210
Church & Dwight Co. Inc. 27,800 1,602
Nu Skin Enterprises Inc. Class A 23,027 1,175
* Pilgrim's Pride Corp. 249,500 1,160
* Rite Aid Corp. 816,000 947
Harris Teeter Supermarkets Inc. 12,500 517
    224,659
Energy (6.1%)    
Cabot Oil & Gas Corp. 1,154,215 48,696
* Superior Energy Services Inc. 1,575,951 34,151
Core Laboratories NV 298,534 33,304
* Atwood Oceanics Inc. 684,325 30,473
* SemGroup Corp. Class A 883,540 29,784
* Carrizo Oil & Gas Inc. 1,010,980 25,487
* ION Geophysical Corp. 3,533,638 23,499
* Rosetta Resources Inc. 559,500 23,342
* SandRidge Energy Inc. 3,338,565 22,769
* Comstock Resources Inc. 1,210,530 19,586
* Rex Energy Corp. 1,522,980 19,311
* Whiting Petroleum Corp. 472,100 19,073
* Clean Energy Fuels Corp. 1,328,620 18,747
* Pioneer Energy Services Corp. 2,040,450 16,405
* Kodiak Oil & Gas Corp. 1,784,118 14,897
* TETRA Technologies Inc. 2,129,316 14,756
* Key Energy Services Inc. 1,837,236 14,716
Trican Well Service Ltd. 1,173,700 14,091
RPC Inc. 1,039,050 13,975
* Southwestern Energy Co. 397,625 13,221
Oceaneering International Inc. 246,100 12,721
* McDermott International Inc. 1,068,590 12,503
* Tesco Corp. 929,453 10,772
* Approach Resources Inc. 387,250 10,223
^ Niko Resources Ltd. 240,475 4,127
* Hornbeck Offshore Services Inc. 91,100 3,858
Energy XXI Bermuda Ltd. 122,500 3,820
* Oil States International Inc. 51,600 3,751
* Basic Energy Services Inc. 334,000 3,614
Western Refining Inc. 92,500 2,177
* Stone Energy Corp. 77,100 2,025
HollyFrontier Corp. 53,446 1,998
* Vaalco Energy Inc. 226,200 1,658
* Oasis Petroleum Inc. 56,400 1,477
* Mitcham Industries Inc. 81,200 1,435
* Gulfmark Offshore Inc. 31,600 1,136
* Rentech Inc. 521,825 1,038
* Contango Oil & Gas Co. 15,000 889
* Callon Petroleum Co. 75,000 373
* Clayton Williams Energy Inc. 5,832 241
* Cloud Peak Energy Inc. 14,313 237

 

 

  Crosstex Energy Inc. 14,000 189
      530,545
Exchange-Traded Funds (1.8%)    
2 Vanguard Small-Cap ETF 865,083 65,124
^,2 Vanguard Small-Cap Growth ETF 713,200 58,946
^ iShares Russell 2000 Index Fund 421,805 33,048
      157,118
Financials (6.6%)    
* Affiliated Managers Group Inc. 318,875 35,583
*,3 HFF Inc. Class A 2,208,536 28,843
  East West Bancorp Inc. 1,318,410 28,741
*,3 eHealth Inc. 1,534,725 28,193
  International Bancshares Corp. 1,388,255 25,447
  Protective Life Corp. 906,847 25,310
* National Financial Partners Corp. 1,690,647 25,106
  National Penn Bancshares Inc. 2,808,393 24,826
  MFA Financial Inc. 3,066,525 24,778
  PS Business Parks Inc. 363,523 24,578
* Signature Bank 366,850 23,662
  Cash America International Inc. 587,700 22,521
  Zions Bancorporation 1,229,990 22,386
  NASDAQ OMX Group Inc. 965,777 21,923
  Wintrust Financial Corp. 572,571 21,019
  Och-Ziff Capital Management Group LLC Class A 2,611,100 18,930
  LPL Financial Holdings Inc. 634,780 17,787
* Financial Engines Inc. 919,200 17,253
  Cathay General Bancorp 969,410 15,695
  Cardinal Financial Corp. 1,136,522 14,547
* DFC Global Corp. 720,840 13,819
* Ocwen Financial Corp. 673,380 13,306
* WisdomTree Investments Inc. 1,729,866 11,573
  Essex Property Trust Inc. 73,300 11,534
  Jefferies Group Inc. 788,713 9,890
  Evercore Partners Inc. Class A 290,331 6,727
  KBW Inc. 231,109 3,723
  Tanger Factory Outlet Centers 87,911 2,831
  Walter Investment Management Corp. 115,900 2,622
* World Acceptance Corp. 30,876 2,201
* State Bank Financial Corp. 133,874 2,130
  Camden Property Trust 29,000 2,068
  Allied World Assurance Co. Holdings AG 27,400 2,067
  QC Holdings Inc. 566,930 1,990
  Nelnet Inc. Class A 78,076 1,836
* Credit Acceptance Corp. 18,135 1,738
  Omega Healthcare Investors Inc. 64,300 1,559
* First Cash Financial Services Inc. 38,861 1,558
  Apartment Investment & Management Co. Class A 53,600 1,470
  Montpelier Re Holdings Ltd. 71,100 1,440
  Home Properties Inc. 21,300 1,398
  Extra Space Storage Inc. 42,500 1,391
  Sovran Self Storage Inc. 21,300 1,216
  National Health Investors Inc. 21,400 1,149
  Regency Centers Corp. 21,400 1,024
  CBL & Associates Properties Inc. 43,800 864
  Digital Realty Trust Inc. 11,065 864
  Macerich Co. 14,200 829

 

 

  Highwoods Properties Inc. 21,200 718
  Federal Realty Investment Trust 6,300 685
  Rayonier Inc. 10,927 521
  GAMCO Investors Inc. 8,000 358
  Federated Investors Inc. Class B 15,000 302
* Taylor Capital Group Inc. 11,300 197
* Strategic Hotels & Resorts Inc. 32,200 195
  Amtrust Financial Services Inc. 5,400 161
      575,082
Health Care (19.6%)    
  Cooper Cos. Inc. 1,264,839 95,192
* Salix Pharmaceuticals Ltd. 1,292,270 57,919
  Coventry Health Care Inc. 1,676,465 55,877
* Alkermes plc 2,892,835 53,778
* Bruker Corp. 4,284,363 50,641
* Amylin Pharmaceuticals Inc. 1,633,778 50,304
*,^ Seattle Genetics Inc. 1,819,104 47,588
* Onyx Pharmaceuticals Inc. 590,900 44,300
* ResMed Inc. 1,295,899 40,899
  Universal Health Services Inc. Class B 1,038,075 40,568
* Covance Inc. 860,480 40,391
* Elan Corp. plc ADR 3,489,508 40,304
* Regeneron Pharmaceuticals Inc. 290,680 39,140
* Health Management Associates Inc. Class A 5,741,285 37,778
* ICON plc ADR 1,381,095 33,326
* BioMarin Pharmaceutical Inc. 820,200 32,226
  West Pharmaceutical Services Inc. 629,150 31,319
* Henry Schein Inc. 415,950 31,117
* Insulet Corp. 1,581,370 30,932
* Volcano Corp. 1,168,430 30,905
* Edwards Lifesciences Corp. 286,400 28,984
* Vertex Pharmaceuticals Inc. 589,500 28,597
*,3 Kindred Healthcare Inc. 2,999,439 28,405
*,^ Questcor Pharmaceuticals Inc. 751,802 27,719
* IPC The Hospitalist Co. Inc. 603,514 25,951
* Alexion Pharmaceuticals Inc. 242,200 25,395
  DENTSPLY International Inc. 688,950 25,036
* Align Technology Inc. 730,798 24,818
* Mettler-Toledo International Inc. 154,859 23,972
* Watson Pharmaceuticals Inc. 306,835 23,881
* PAREXEL International Corp. 864,950 23,803
* Cubist Pharmaceuticals Inc. 549,280 23,652
* Luminex Corp. 1,370,590 23,478
* Bio-Rad Laboratories Inc. Class A 242,640 23,344
* ABIOMED Inc. 959,000 21,625
* Jazz Pharmaceuticals plc 395,403 19,007
* Nektar Therapeutics 2,222,800 18,938
* Incyte Corp. Ltd. 733,080 18,320
* QIAGEN NV 1,016,700 17,904
* Catamaran Corp. 210,192 17,763
* Brookdale Senior Living Inc. Class A 1,073,450 17,669
* Thoratec Corp. 495,732 17,009
* Optimer Pharmaceuticals Inc. 1,174,200 16,040
* Centene Corp. 418,839 15,933
* Gen-Probe Inc. 191,065 15,799
* Exelixis Inc. 2,288,277 14,302
  Patterson Cos. Inc. 415,800 14,179

 

 

* WellCare Health Plans Inc. 213,825 13,860
* Allscripts Healthcare Solutions Inc. 1,498,200 13,783
* WuXi PharmaTech Cayman Inc. ADR 989,650 13,380
*,^ AVEO Pharmaceuticals Inc. 970,500 12,713
* Immunogen Inc. 786,800 12,699
* Momenta Pharmaceuticals Inc. 880,690 12,523
* Air Methods Corp. 108,700 11,852
* Akorn Inc. 837,265 11,445
* Cyberonics Inc. 262,388 11,361
* Tornier NV 504,357 11,005
* Warner Chilcott plc Class A 606,900 10,317
* MWI Veterinary Supply Inc. 100,741 9,176
* Isis Pharmaceuticals Inc. 756,339 9,167
* Cepheid Inc. 241,889 7,750
* Sirona Dental Systems Inc. 158,195 6,839
* Greenway Medical Technologies 383,710 5,253
  Invacare Corp. 363,550 5,122
* NxStage Medical Inc. 316,321 4,761
* ICU Medical Inc. 75,305 4,016
* NuVasive Inc. 190,150 3,972
* Acadia Healthcare Co. Inc. 208,200 3,360
* Dynavax Technologies Corp. 719,960 2,779
* Pharmacyclics Inc. 50,400 2,682
* ViroPharma Inc. 115,295 2,503
* Medicines Co. 94,754 2,373
  Quality Systems Inc. 142,136 2,297
* Charles River Laboratories International Inc. 66,600 2,266
* Team Health Holdings Inc. 84,200 2,248
* Array BioPharma Inc. 431,545 2,218
  Chemed Corp. 34,506 2,166
* Orthofix International NV 50,800 2,083
  Perrigo Co. 16,392 1,869
* Trinity Biotech plc ADR 142,664 1,799
* Molina Healthcare Inc. 73,250 1,788
* Auxilium Pharmaceuticals Inc. 64,700 1,743
* Select Medical Holdings Corp. 138,900 1,479
  PDL BioPharma Inc. 214,300 1,455
* Affymax Inc. 78,226 1,270
* Hi-Tech Pharmacal Co. Inc. 36,300 1,247
* Acorda Therapeutics Inc. 49,800 1,199
* Infinity Pharmaceuticals Inc. 52,400 915
* Omnicell Inc. 61,700 805
* ArthroCare Corp. 19,650 581
* Genomic Health Inc. 12,692 426
* Par Pharmaceutical Cos. Inc. 8,300 415
* Anika Therapeutics Inc. 32,900 400
* Impax Laboratories Inc. 9,535 212
      1,701,599
Industrials (16.0%)    
  Triumph Group Inc. 1,069,200 66,857
* IHS Inc. Class A 576,140 63,531
  MSC Industrial Direct Co. Inc. Class A 799,002 54,915
  Kennametal Inc. 1,388,680 51,242
* EnerSys Inc. 1,132,140 38,663
* Middleby Corp. 394,485 38,628
  Pentair Inc. 870,680 38,162
* RBC Bearings Inc. 725,433 33,979

 

 

* Genesee & Wyoming Inc. Class A 538,853 33,441
* B/E Aerospace Inc. 821,507 32,228
* Teledyne Technologies Inc. 513,967 32,020
  Belden Inc. 981,140 31,524
  Progressive Waste Solutions Ltd. 1,448,405 28,968
*,^ Polypore International Inc. 752,780 27,973
  Manpower Inc. 785,090 27,933
  Knight Transportation Inc. 1,795,625 27,527
* AerCap Holdings NV 2,426,316 27,514
  Flowserve Corp. 228,905 27,464
* Beacon Roofing Supply Inc. 1,029,450 27,291
  Chicago Bridge & Iron Co. NV 750,451 26,821
  Waste Connections Inc. 805,100 24,773
* Huron Consulting Group Inc. 734,090 24,724
  Towers Watson & Co. Class A 419,470 24,593
  AMETEK Inc. 742,380 23,014
  Lennox International Inc. 524,246 22,894
  Snap-on Inc. 336,240 22,790
* Esterline Technologies Corp. 386,500 22,695
  Con-way Inc. 606,840 21,616
* Moog Inc. Class A 580,825 21,136
* Hub Group Inc. Class A 668,800 19,897
  Landstar System Inc. 396,530 19,593
* Stericycle Inc. 174,815 16,232
* WESCO International Inc. 283,596 15,799
  Armstrong World Industries Inc. 408,435 15,786
* Trimas Corp. 717,540 15,599
  UTi Worldwide Inc. 1,152,235 15,267
  Corrections Corp. of America 474,760 14,755
* TrueBlue Inc. 928,100 14,126
* Rush Enterprises Inc. Class A 850,571 13,737
  TAL International Group Inc. 391,388 13,366
  Graco Inc. 291,150 13,358
* Atlas Air Worldwide Holdings Inc. 282,050 12,794
* CAI International Inc. 576,096 11,914
* Mobile Mini Inc. 824,600 11,808
* US Airways Group Inc. 1,021,155 11,702
* Old Dominion Freight Line Inc. 274,720 11,648
* Chart Industries Inc. 174,485 11,317
* Clean Harbors Inc. 185,741 11,245
* Rexnord Corp. 576,380 11,182
* Avis Budget Group Inc. 749,254 10,767
  Titan International Inc. 488,234 10,092
* Dycom Industries Inc. 552,672 9,628
* II-VI Inc. 547,000 9,540
* Colfax Corp. 328,090 9,495
* Hexcel Corp. 378,500 8,815
  Woodward Inc. 244,688 8,214
* Exponent Inc. 147,522 7,625
* DigitalGlobe Inc. 361,800 7,044
  Gardner Denver Inc. 120,000 6,838
* Advisory Board Co. 127,000 5,714
* Team Inc. 177,045 5,513
  Robbins & Myers Inc. 108,073 4,954
* Greenbrier Cos. Inc. 262,800 4,284
* MasTec Inc. 244,900 3,909
  Watsco Inc. 48,700 3,309

 

 

Dun & Bradstreet Corp. 37,100 2,975
Toro Co. 68,270 2,567
* Copart Inc. 105,900 2,516
Lincoln Electric Holdings Inc. 62,500 2,492
Copa Holdings SA Class A 30,500 2,365
Deluxe Corp. 81,709 2,314
Applied Industrial Technologies Inc. 58,697 2,181
* United Rentals Inc. 73,300 2,119
Hubbell Inc. Class B 24,500 2,016
* Thermon Group Holdings Inc. 91,461 1,965
* Alaska Air Group Inc. 55,924 1,949
* USG Corp. 118,800 1,929
Actuant Corp. Class A 66,493 1,892
JB Hunt Transport Services Inc. 33,000 1,816
Generac Holdings Inc. 71,900 1,641
Aircastle Ltd. 135,900 1,608
Steelcase Inc. Class A 167,879 1,439
* Dollar Thrifty Automotive Group Inc. 18,700 1,391
Covanta Holding Corp. 66,700 1,146
* JetBlue Airways Corp. 190,000 1,047
Sauer-Danfoss Inc. 26,808 970
Textainer Group Holdings Ltd. 25,574 962
Mine Safety Appliances Co. 26,700 916
* H&E Equipment Services Inc. 44,100 623
Mueller Industries Inc. 13,700 584
Standex International Corp. 10,600 453
Equifax Inc. 7,500 351
Robert Half International Inc. 11,800 319
Timken Co. 6,900 250
Donaldson Co. Inc. 6,000 205
* Furmanite Corp. 40,009 179
Mueller Water Products Inc. Class A 19,700 70
* Republic Airways Holdings Inc. 13,400 61
    1,387,093
Information Technology (22.7%)    
* Alliance Data Systems Corp. 693,193 90,115
* VeriFone Systems Inc. 2,164,615 78,554
* Cadence Design Systems Inc. 6,099,560 74,537
Sapient Corp. 5,572,040 55,498
* Teradyne Inc. 3,531,920 51,955
* Microsemi Corp. 2,594,990 50,239
* TiVo Inc. 5,752,160 49,986
* Ultimate Software Group Inc. 479,019 42,858
* Parametric Technology Corp. 1,900,581 40,939
Syntel Inc. 660,952 38,421
FEI Co. 789,920 37,687
Convergys Corp. 2,348,485 34,617
IAC/InterActiveCorp 655,135 34,467
MKS Instruments Inc. 1,268,710 33,494
Jabil Circuit Inc. 1,509,965 32,766
* ON Semiconductor Corp. 4,565,265 31,683
* Silicon Laboratories Inc. 844,070 31,188
j2 Global Inc. 1,004,943 30,078
* F5 Networks Inc. 302,495 28,247
* MICROS Systems Inc. 581,856 27,778
* NCR Corp. 1,175,874 27,421
* Bankrate Inc. 1,644,830 26,235

 

 

* ValueClick Inc. 1,615,085 25,373
* Red Hat Inc. 450,400 24,168
* SolarWinds Inc. 452,331 24,150
* Ciena Corp. 1,506,220 24,145
* RADWARE Ltd. 789,715 23,873
* Cardtronics Inc. 767,922 23,813
  Heartland Payment Systems Inc. 749,315 23,753
* JDS Uniphase Corp. 2,387,120 23,489
* Riverbed Technology Inc. 1,331,200 23,482
* Rovi Corp. 1,748,520 23,395
  FactSet Research Systems Inc. 248,600 23,110
* Trimble Navigation Ltd. 521,885 23,099
* NICE Systems Ltd. ADR 631,945 22,750
* Acxiom Corp. 1,275,000 21,382
* Concur Technologies Inc. 316,435 21,372
* Euronet Worldwide Inc. 1,117,230 20,423
  Cypress Semiconductor Corp. 1,816,440 19,418
* Finisar Corp. 1,536,400 19,097
*,^ Jive Software Inc. 949,396 19,016
  Power Integrations Inc. 527,731 18,597
* Sourcefire Inc. 340,900 17,403
* CACI International Inc. Class A 291,500 16,455
* Constant Contact Inc. 944,900 15,846
* Super Micro Computer Inc. 1,266,045 15,712
  Avago Technologies Ltd. 422,630 15,637
* Universal Display Corp. 483,045 15,342
* Volterra Semiconductor Corp. 660,189 15,171
* Liquidity Services Inc. 327,112 14,956
* Aspen Technology Inc. 619,705 14,489
* BroadSoft Inc. 584,050 14,338
  ADTRAN Inc. 652,935 14,090
* Nuance Communications Inc. 679,670 13,831
* Salesforce.com Inc. 111,140 13,821
* FleetCor Technologies Inc. 373,118 13,776
  Fair Isaac Corp. 313,800 13,584
* Atmel Corp. 2,251,615 13,194
* Nanometrics Inc. 819,392 12,447
* Manhattan Associates Inc. 257,336 12,015
* Standard Microsystems Corp. 322,700 11,911
  MercadoLibre Inc. 177,686 11,871
  National Instruments Corp. 440,741 11,389
* Progress Software Corp. 571,700 11,114
* Kenexa Corp. 462,514 11,012
* Entropic Communications Inc. 1,741,400 10,448
* Aruba Networks Inc. 730,505 10,359
* RF Micro Devices Inc. 2,454,540 9,524
* WNS Holdings Ltd. ADR 984,681 9,512
* Acme Packet Inc. 595,996 9,447
* CommVault Systems Inc. 188,818 9,161
* Hittite Microwave Corp. 177,030 8,970
* DealerTrack Holdings Inc. 300,000 8,751
* NETGEAR Inc. 244,300 8,460
* Informatica Corp. 274,472 8,100
* IPG Photonics Corp. 127,000 6,582
* QLIK Technologies Inc. 321,900 6,438
* Akamai Technologies Inc. 177,977 6,261
* Diodes Inc. 317,775 6,019

 

 

* Tyler Technologies Inc. 149,700 5,841
* LinkedIn Corp. Class A 56,200 5,769
* Interactive Intelligence Group Inc. 217,630 5,676
* Cavium Inc. 198,060 5,352
* Active Network Inc. 341,607 4,847
* comScore Inc. 300,427 4,627
* Skyworks Solutions Inc. 159,300 4,609
* Ubiquiti Networks Inc. 323,200 4,570
* Global Cash Access Holdings Inc. 689,300 4,453
Allot Communications Ltd. 177,300 4,358
* Polycom Inc. 476,535 4,165
* Dropbox Private Placement 445,203 4,030
* Cymer Inc. 70,040 4,007
* Monolithic Power Systems Inc. 200,000 3,876
* ACI Worldwide Inc. 84,095 3,701
* Audience Inc. 200,927 3,627
* Travelzoo Inc. 165,000 3,566
* Wright Express Corp. 54,460 3,506
* Ariba Inc. 77,800 3,457
* TIBCO Software Inc. 110,987 3,118
* Gartner Inc. 70,038 3,109
* LSI Corp. 425,000 2,933
* Saba Software Inc. 337,315 2,813
Lender Processing Services Inc. 100,100 2,469
MAXIMUS Inc. 47,824 2,415
Littelfuse Inc. 45,000 2,414
* Unisys Corp. 109,740 2,132
* PROS Holdings Inc. 150,000 2,091
* Zebra Technologies Corp. 58,800 2,031
Booz Allen Hamilton Holding Corp. 113,441 1,977
DST Systems Inc. 36,496 1,967
* Plexus Corp. 67,900 1,950
Anixter International Inc. 33,931 1,931
* Mentor Graphics Corp. 125,360 1,916
Intersil Corp. Class A 175,495 1,616
* Deltek Inc. 123,000 1,601
* Entegris Inc. 188,200 1,515
* Synopsys Inc. 45,000 1,363
* Synaptics Inc. 46,700 1,232
* Nova Measuring Instruments Ltd. 140,000 1,142
* ATMI Inc. 59,000 1,120
* Stamps.com Inc. 43,900 928
* Websense Inc. 51,251 769
* CalAmp Corp. 84,400 636
* Exar Corp. 71,200 527
* Cray Inc. 35,000 435
* Ultratech Inc. 13,578 432
* CSG Systems International Inc. 24,000 423
* Freescale Semiconductor Ltd. 35,600 380
Diebold Inc. 10,700 346
* Equinix Inc. 1,900 339
* LogMeIn Inc. 15,583 295
* AOL Inc. 9,100 290
* Zygo Corp. 14,400 257
* Multi-Fineline Electronix Inc. 8,800 230
    1,969,283

 

 

Materials (5.0%)    
* WR Grace & Co. 800,075 44,836
  Silgan Holdings Inc. 867,770 35,761
* Graphic Packaging Holding Co. 5,882,164 32,940
  Ball Corp. 780,185 32,425
  Albemarle Corp. 550,035 32,023
  Smurfit Kappa Group plc (London Shares) 3,463,582 25,865
* KapStone Paper and Packaging Corp. 1,536,542 25,829
  Minerals Technologies Inc. 398,930 25,508
  Methanex Corp. 918,990 25,337
  FMC Corp. 423,170 23,147
  CF Industries Holdings Inc. 103,150 20,193
  Schweitzer-Mauduit International Inc. 264,600 18,019
  Sensient Technologies Corp. 447,486 15,863
  Schnitzer Steel Industries Inc. 462,292 13,273
* Ferro Corp. 3,803,855 11,678
  PolyOne Corp. 744,560 10,967
* Intrepid Potash Inc. 356,542 8,322
  Noranda Aluminum Holding Corp. 900,000 5,607
* TPC Group Inc. 124,400 4,789
  Aptargroup Inc. 77,100 3,856
* OM Group Inc. 212,800 3,341
  NewMarket Corp. 11,173 2,569
  Rockwood Holdings Inc. 47,995 2,122
  Valspar Corp. 42,200 2,119
  Westlake Chemical Corp. 34,400 2,042
  Eastman Chemical Co. 37,974 1,985
  Airgas Inc. 23,200 1,840
  Myers Industries Inc. 76,900 1,264
* Coeur d'Alene Mines Corp. 57,400 936
  Haynes International Inc. 16,650 802
      435,258
Telecommunication Services (1.3%)    
* SBA Communications Corp. Class A 607,290 35,866
* tw telecom inc Class A 1,203,225 30,237
* Vonage Holdings Corp. 10,517,890 18,827
* Cogent Communications Group Inc. 970,017 17,916
* Clearwire Corp. Class A 2,206,810 2,516
*,^ magicJack VocalTec Ltd. 96,200 2,137
* Cincinnati Bell Inc. 143,800 554
      108,053
Utilities (0.0%)    
  American States Water Co. 8,900 362
 
Total Common Stocks (Cost $7,326,834)   8,486,395

 

 

  Coupon      
Temporary Cash Investments (3.5%)1        
Money Market Fund (2.9%)        
4,5 Vanguard Market Liquidity Fund 0.155%   251,915,844 251,916
 
      Face Market
    Maturity Amount Value
    Date ($000) ($000)
Repurchase Agreement (0.3%)        
Deutsche Bank Securities, Inc.        
(Dated 7/31/12, Repurchase Value        
$27,500,000, collateralized by Government        
National Mortgage Assn. 3.000%-5.000%,        
12/20/26-9/20/41) 0.190% 8/1/12 27,500 27,500
 
U.S. Government and Agency Obligations (0.3%)      
6 Fannie Mae Discount Notes 0.150% 8/22/12 1,500 1,500
6,7 Fannie Mae Discount Notes 0.130 – 0.150% 9/26/12 11,000 10,997
6,7 Freddie Mac Discount Notes 0.170% 12/17/12 2,200 2,198
United States Treasury Note/Bond 3.875% 10/31/12 6,000 6,055
        20,750
Total Temporary Cash Investments (Cost $300,166)     300,166
Total Investments (101.3%) (Cost $7,627,000)       8,786,561
Other Assets and Liabilities-Net (-1.3%)5       (110,546)
Net Assets (100%)       8,676,015

* Non-income-producing security.
^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $53,394,000.
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 2.8%, 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 $55,563,000 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, as needed to maintain a positive net worth, in exchange for senior preferred stock.
7 Securities with a value of $5,148,000 have been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.

A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time.

 

Explorer Fund

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

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

The following table summarizes the market value of the fund's investments as of July 31, 2012, based on the inputs used to value them:
  Level 1 Level 2 Level 3
Investments ($000) ($000) ($000)
Common Stocks 8,456,500 25,865 4,030
Temporary Cash Investments 251,916 48,250 —
Futures Contracts—Liabilities1 (325) — —
Total 8,708,091 74,115 4,030
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).

 

Explorer Fund

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

        ($000)
    Number of Aggregate Unrealized
    Long (Short) Settlement Value Appreciation
Futures Contracts Expiration Contracts Long (Short) (Depreciation)
E-mini Russell 2000 Index September 2012 464 36,405 500
E-mini S&P MidCap 400 Index September 2012 270 25,342 794

 

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, 2011   from   July 31, 2012
  Market Purchases Securities Dividend Market
  Value at Cost Sold Income Value
  ($000) ($000) ($000) ($000) ($000)
eHealth Inc. NA1 12,133 104 — 28,193
HFF Inc. Class A 34,678 576 14,073 — 28,843
Kindred Healthcare Inc. NA1 6,323 2,846 — 28,405
TiVo Inc. 66,203 2,909 6,521 — NA2
  100,881     — 85,441

1 Not applicable — At October 31, 2011, the issuer was not an affiliated company of the fund.
2 Not applicable — At July 31, 2012, the security was still held, but the issuer was no longer an affiliated companyof the fund.

F. At July 31, 2012, the cost of investment securities for tax purposes was $7,627,000. Net unrealized appreciation of investment securities for tax purposes was $1,159,561,000, consisting of unrealized gains of $1,818,331,000 on securities that had risen in value since their purchase and $658,770,000 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 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: September 21, 2012  

 

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

 

* By:/s/ Heidi Stam

Heidi Stam, pursuant to a Power of Attorney filed on March 27, 2012 see file Number 2-11444, Incorporated by Reference.