N-Q 1 explorerfund_final.htm explorerfund_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, 2014
 
Item 1: Schedule of Investments

 


Vanguard Explorer Fund

Schedule of Investments
As of July 31, 2014

      Market
      Value
    Shares ($000)
Common Stocks (97.3%)1    
Consumer Discretionary (16.6%)    
* Urban Outfitters Inc. 2,458,815 87,853
* LKQ Corp. 2,461,560 64,382
* Crocs Inc. 3,876,300 61,517
* Imax Corp. 2,287,437 60,137
  Churchill Downs Inc. 652,778 56,465
* Life Time Fitness Inc. 1,370,335 53,923
* Ulta Salon Cosmetics & Fragrance Inc. 551,480 50,918
* CarMax Inc. 1,000,505 48,835
* Tumi Holdings Inc. 2,179,561 45,945
* Tenneco Inc. 685,807 43,686
  Service Corp. International 2,038,105 42,800
  Tractor Supply Co. 670,655 41,695
* Live Nation Entertainment Inc. 1,694,295 39,325
* HomeAway Inc. 1,109,646 38,527
  Dana Holding Corp. 1,714,740 38,376
  Wolverine World Wide Inc. 1,560,053 37,847
  Texas Roadhouse Inc. Class A 1,508,690 37,536
*,^ Conn's Inc. 926,740 37,070
  DSW Inc. Class A 1,375,208 36,567
* Five Below Inc. 985,753 36,098
  Cheesecake Factory Inc. 809,758 34,722
  HSN Inc. 603,480 33,729
  Signet Jewelers Ltd. 305,826 31,130
* Standard Pacific Corp. 4,079,700 30,761
  Lennar Corp. Class A 837,615 30,347
  New York Times Co. Class A 2,369,436 29,594
*,2 Denny's Corp. 4,291,881 29,399
* DreamWorks Animation SKG Inc. Class A 1,448,640 28,973
* Cabela's Inc. 483,600 28,223
* Buffalo Wild Wings Inc. 193,766 28,158
* Dorman Products Inc. 635,695 27,576
* Jarden Corp. 482,400 26,966
* Under Armour Inc. Class A 397,875 26,558
  National CineMedia Inc. 1,566,637 25,160
  Brunswick Corp. 602,110 24,283
  Dick's Sporting Goods Inc. 562,765 23,934
* Deckers Outdoor Corp. 267,500 23,676
* Steven Madden Ltd. 676,392 21,543
  Hanesbrands Inc. 210,600 20,578
  Movado Group Inc. 479,522 19,627
  Six Flags Entertainment Corp. 489,332 18,702
* Vitamin Shoppe Inc. 420,150 17,919
  Monro Muffler Brake Inc. 349,220 17,737
* Del Frisco's Restaurant Group Inc. 789,538 16,833
* Krispy Kreme Doughnuts Inc. 1,093,556 16,742
* Ascena Retail Group Inc. 969,100 15,564
  Brinker International Inc. 346,909 15,555
  Carter's Inc. 192,794 14,760
* Grand Canyon Education Inc. 297,015 12,772

 

 

* Gentherm Inc. 302,723 12,669
  Ryland Group Inc. 376,577 12,088
  Abercrombie & Fitch Co. 305,000 11,999
* Francesca's Holdings Corp. 933,200 11,926
* BJ's Restaurants Inc. 338,610 11,604
* Sally Beauty Holdings Inc. 444,500 11,535
* Discovery Communications Inc. 135,400 11,387
  Ross Stores Inc. 171,500 11,045
  Sotheby's 275,340 10,917
*,^ Outerwall Inc. 194,421 10,697
* Hibbett Sports Inc. 201,946 10,079
  Callaway Golf Co. 1,291,800 9,818
  Cinemark Holdings Inc. 295,100 9,679
  Vail Resorts Inc. 126,992 9,588
  Capella Education Co. 149,768 9,579
* Bloomin' Brands Inc. 484,135 9,484
* Bravo Brio Restaurant Group Inc. 601,000 8,955
* Chuy's Holdings Inc. 306,442 8,780
* iRobot Corp. 269,466 8,723
* Sonic Corp. 410,955 8,486
* Cumulus Media Inc. Class A 1,605,948 8,319
* Tesla Motors Inc. 31,539 7,043
* Vince Holding Corp. 205,200 6,934
* Express Inc. 374,400 5,826
* Shutterfly Inc. 117,300 5,785
  PetSmart Inc. 80,873 5,511
  Dunkin' Brands Group Inc. 122,197 5,237
* Zulily Inc. Class A 142,515 4,934
  Pier 1 Imports Inc. 320,271 4,823
*,^ SodaStream International Ltd. 127,000 4,191
* Liberty Ventures Class A 58,000 4,011
  Cablevision Systems Corp. Class A 198,600 3,817
  Domino's Pizza Inc. 51,942 3,740
* ServiceMaster Global Holdings Inc. 208,501 3,663
  Polaris Industries Inc. 22,400 3,305
* Skechers U.S.A. Inc. Class A 61,300 3,198
* Starz 111,000 3,165
* Popeyes Louisiana Kitchen Inc. 72,833 2,935
  Brown Shoe Co. Inc. 100,900 2,844
  Lions Gate Entertainment Corp. 91,287 2,812
  Nutrisystem Inc. 162,800 2,613
* Murphy USA Inc. 52,700 2,604
* Tower International Inc. 82,000 2,583
* Barnes & Noble Inc. 123,900 2,580
* Asbury Automotive Group Inc. 36,100 2,438
* Strayer Education Inc. 46,300 2,399
*,^ GoPro Inc. Class A 50,000 2,399
*,^ Smith & Wesson Holding Corp. 193,500 2,390
* Red Robin Gourmet Burgers Inc. 36,600 2,356
  Jack in the Box Inc. 40,800 2,333
^ Buckle Inc. 49,400 2,198
  Dillard's Inc. Class A 17,200 2,051
  La-Z-Boy Inc. 97,000 2,041
  GNC Holdings Inc. Class A 54,600 1,791
  Goodyear Tire & Rubber Co. 66,300 1,669
  Tupperware Brands Corp. 21,000 1,528
* Genesco Inc. 19,723 1,504

 

 

  Williams-Sonoma Inc. 22,100 1,482
  Sturm Ruger & Co. Inc. 28,550 1,426
* Orbitz Worldwide Inc. 142,600 1,262
* Multimedia Games Holding Co. Inc. 48,600 1,172
  Columbia Sportswear Co. 14,900 1,114
  Ruth's Hospitality Group Inc. 90,100 1,023
* Kirkland's Inc. 54,100 1,018
* Visteon Corp. 10,600 1,012
* Markit Ltd. 39,760 1,006
* Universal Electronics Inc. 19,600 934
* Michaels Cos. Inc. 59,898 903
  Foot Locker Inc. 13,500 642
  AMC Entertainment Holdings Inc. 25,900 586
* Global Sources Ltd. 27,500 203
* Martha Stewart Living Omnimedia Inc. Class A 38,700 175
* Radio One Inc. 33,300 146
* ANN Inc. 3,271 120
      2,003,855
Consumer Staples (2.1%)    
* United Natural Foods Inc. 831,444 48,739
^ Herbalife Ltd. 806,588 42,265
  Ingredion Inc. 520,845 38,350
  Glanbia plc 1,347,697 20,734
  PriceSmart Inc. 236,575 19,470
* Boulder Brands Inc. 1,153,757 13,095
* TreeHouse Foods Inc. 155,800 11,451
  Sanderson Farms Inc. 123,824 11,279
  Inter Parfums Inc. 394,275 10,303
* Natural Grocers by Vitamin Cottage Inc. 367,400 8,333
* Annie's Inc. 258,200 7,534
* Rite Aid Corp. 487,400 3,261
* Sprouts Farmers Market Inc. 93,600 2,856
  Keurig Green Mountain Inc. 22,400 2,672
* Pilgrim's Pride Corp. 92,886 2,597
  Casey's General Stores Inc. 31,771 2,102
* Omega Protein Corp. 49,800 698
* SUPERVALU Inc. 69,000 633
      246,372
Energy (5.6%)    
* Dresser-Rand Group Inc. 802,379 47,750
  Energen Corp. 548,420 44,768
^ Core Laboratories NV 301,283 44,117
  Superior Energy Services Inc. 1,299,852 43,675
  Trican Well Service Ltd. 2,887,800 41,688
  Western Refining Inc. 950,580 38,936
  Cabot Oil & Gas Corp. 959,435 31,613
* RSP Permian Inc. 1,061,200 31,358
* Paramount Resources Ltd. Class A 540,500 27,651
* Bonanza Creek Energy Inc. 491,560 27,557
* Gulfport Energy Corp. 492,233 26,290
* Atwood Oceanics Inc. 533,525 25,689
  Alon USA Energy Inc. 1,855,992 23,850
* Carrizo Oil & Gas Inc. 333,650 20,489
*,^ Halcon Resources Corp. 3,191,625 18,990
* Southwestern Energy Co. 458,200 18,594
* Dril-Quip Inc. 140,065 14,114

 

 

* Kodiak Oil & Gas Corp. 829,323 12,888
  Oceaneering International Inc. 188,100 12,774
* Rex Energy Corp. 914,179 12,607
* Basic Energy Services Inc. 495,959 11,898
* Athlon Energy Inc. 228,000 10,866
* RigNet Inc. 162,549 9,041
  RPC Inc. 400,150 9,003
* Oasis Petroleum Inc. 167,400 8,948
* Forum Energy Technologies Inc. 258,200 8,595
* Penn Virginia Corp. 635,069 8,269
  Range Resources Corp. 98,900 7,476
* Oil States International Inc. 93,800 5,749
* Key Energy Services Inc. 812,784 4,990
  SM Energy Co. 53,200 4,178
*,^ CHC Group Ltd. 539,134 3,882
* REX American Resources Corp. 34,400 2,902
* Kosmos Energy Ltd. 276,300 2,661
* Matrix Service Co. 70,400 1,890
* Alpha Natural Resources Inc. 526,200 1,784
* Abraxas Petroleum Corp. 289,200 1,475
* Clayton Williams Energy Inc. 13,800 1,468
  World Fuel Services Corp. 34,118 1,465
* Transocean Partners LLC 37,900 921
*,^ Pacific Ethanol Inc. 32,900 587
* Quicksilver Resources Inc. 146,000 274
      673,720
Financials (8.4%)    
  NASDAQ OMX Group Inc. 1,801,327 75,998
* Affiliated Managers Group Inc. 349,006 69,539
  PacWest Bancorp 1,123,943 46,835
  International Bancshares Corp. 1,687,297 42,773
  Pebblebrook Hotel Trust 1,154,059 42,008
  Zions Bancorporation 1,442,580 41,575
  Assured Guaranty Ltd. 1,690,600 37,734
  Redwood Trust Inc. 1,935,840 36,742
  Douglas Emmett Inc. 1,150,100 32,766
* Encore Capital Group Inc. 755,218 32,082
  Financial Engines Inc. 811,063 31,591
* MSCI Inc. Class A 681,000 30,815
*,2 eHealth Inc. 1,456,325 30,146
  Primerica Inc. 633,200 29,178
  Solar Capital Ltd. 1,433,800 28,246
  Och-Ziff Capital Management Group LLC Class A 2,055,576 27,976
  First Industrial Realty Trust Inc. 1,488,835 26,873
  Synovus Financial Corp. 1,125,053 26,495
* WisdomTree Investments Inc. 2,518,356 25,838
  MFA Financial Inc. 2,584,725 21,040
  Radian Group Inc. 1,559,441 19,743
* MGIC Investment Corp. 2,548,000 18,830
* Portfolio Recovery Associates Inc. 306,400 18,065
  HFF Inc. Class A 519,422 17,640
  STAG Industrial Inc. 720,900 16,465
* Signature Bank 140,237 16,042
^ Cohen & Steers Inc. 345,352 14,336
  PrivateBancorp Inc. 455,697 13,124
  Evercore Partners Inc. Class A 230,880 12,597
* SVB Financial Group 111,500 12,156

 

 

Jones Lang LaSalle Inc. 92,561 11,450
LPL Financial Holdings Inc. 228,086 10,830
American Equity Investment Life Holding Co. 477,729 10,577
* Hilltop Holdings Inc. 405,100 8,305
Intercontinental Exchange Inc. 43,200 8,304
First Horizon National Corp. 682,975 8,045
Lexington Realty Trust 641,080 7,013
Cardinal Financial Corp. 347,919 6,144
Bank of the Ozarks Inc. 182,469 5,615
East West Bancorp Inc. 163,300 5,562
Lazard Ltd. Class A 86,900 4,545
* Cowen Group Inc. Class A 878,013 3,512
Waddell & Reed Financial Inc. Class A 62,100 3,278
* Credit Acceptance Corp. 21,535 2,449
Universal Insurance Holdings Inc. 200,300 2,416
* World Acceptance Corp. 28,076 2,276
Nelnet Inc. Class A 49,676 2,048
* Howard Hughes Corp. 13,900 2,021
* Strategic Hotels & Resorts Inc. 158,500 1,809
Omega Healthcare Investors Inc. 46,400 1,695
Ryman Hospitality Properties Inc. 32,600 1,557
Columbia Property Trust Inc. 57,800 1,474
Extra Space Storage Inc. 28,000 1,448
Apartment Investment & Management Co. Class A 36,100 1,234
DuPont Fabros Technology Inc. 33,200 910
Fidelity & Guaranty Life 36,100 780
* Geo Group Inc. 21,800 750
Sovran Self Storage Inc. 9,600 737
* Realogy Holdings Corp. 17,700 651
GAMCO Investors Inc. 6,800 521
* BofI Holding Inc. 5,900 440
Montpelier Re Holdings Ltd. 9,200 272
* Western Alliance Bancorp 11,200 256
Universal Health Realty Income Trust 5,000 210
Federal Realty Investment Trust 900 110
    1,014,492
Health Care (16.3%)    
Cooper Cos. Inc. 631,727 101,632
West Pharmaceutical Services Inc. 2,473,195 100,783
* Salix Pharmaceuticals Ltd. 522,241 68,889
* Bruker Corp. 2,892,280 65,742
* Alkermes plc 1,428,832 61,097
* Globus Medical Inc. 2,460,027 54,859
* Akorn Inc. 1,613,873 54,759
Kindred Healthcare Inc. 2,246,219 53,685
Universal Health Services Inc. Class B 426,170 45,430
* LifePoint Hospitals Inc. 609,940 43,745
* Charles River Laboratories International Inc. 788,270 42,732
^ ResMed Inc. 818,109 42,329
* ICON plc 778,723 40,338
* Hospira Inc. 708,100 39,278
* Allscripts Healthcare Solutions Inc. 2,394,800 38,125
* ABIOMED Inc. 1,468,700 37,599
* Insulet Corp. 1,048,885 37,068
* Cyberonics Inc. 621,549 36,964
* WellCare Health Plans Inc. 579,910 36,175
* athenahealth Inc. 275,558 34,279

 

 

* Cepheid 847,000 31,881
* Hologic Inc. 1,183,000 30,841
* Mettler-Toledo International Inc. 117,459 30,203
* Actavis plc 135,995 29,138
* Nektar Therapeutics 2,478,300 26,146
* Align Technology Inc. 465,535 25,237
* Covance Inc. 290,820 24,406
* TESARO Inc. 838,808 24,124
* Bio-Rad Laboratories Inc. Class A 209,240 24,060
* Team Health Holdings Inc. 420,900 23,802
* Alnylam Pharmaceuticals Inc. 422,043 22,811
*,^ Exact Sciences Corp. 1,407,230 21,967
* Medidata Solutions Inc. 454,377 20,374
* QIAGEN NV 827,000 20,204
* Wright Medical Group Inc. 643,239 19,825
* Catamaran Corp. 435,057 19,791
* Acadia Healthcare Co. Inc. 413,587 19,712
* Brookdale Senior Living Inc. 551,360 19,105
* CareFusion Corp. 422,408 18,497
  PerkinElmer Inc. 388,997 17,979
* Illumina Inc. 112,300 17,958
* Capital Senior Living Corp. 717,695 17,684
* Vertex Pharmaceuticals Inc. 194,100 17,257
* IPC The Hospitalist Co. Inc. 339,495 16,696
* Tornier NV 772,512 16,014
* Luminex Corp. 811,260 14,765
* Spectranetics Corp. 573,497 14,710
* Neogen Corp. 331,850 14,489
* Hyperion Therapeutics Inc. 600,440 13,672
* PTC Therapeutics Inc. 484,000 12,787
* Cerner Corp. 226,900 12,525
* Auxilium Pharmaceuticals Inc. 625,000 12,512
* IDEXX Laboratories Inc. 94,000 11,701
* Air Methods Corp. 231,839 11,650
* PharMerica Corp. 406,585 10,974
* Molina Healthcare Inc. 265,800 10,858
* WuXi PharmaTech Cayman Inc. ADR 338,658 10,434
  Trinity Biotech plc ADR 415,577 9,654
* NuVasive Inc. 254,600 9,517
* Prestige Brands Holdings Inc. 306,015 9,425
* HMS Holdings Corp. 490,455 9,029
* Thoratec Corp. 274,800 8,931
* Sarepta Therapeutics Inc. 403,660 8,614
* Horizon Pharma Inc. 969,200 8,238
* Alexion Pharmaceuticals Inc. 51,262 8,150
* Jazz Pharmaceuticals plc 44,407 6,205
* NPS Pharmaceuticals Inc. 219,820 6,142
* Cardiovascular Systems Inc. 222,000 5,994
* Incyte Corp. 116,490 5,541
*,^ Insys Therapeutics Inc. 203,028 5,488
*,^ TherapeuticsMD Inc. 1,167,856 5,419
* Endologix Inc. 351,328 4,971
* Cubist Pharmaceuticals Inc. 81,400 4,957
* Ligand Pharmaceuticals Inc. 95,000 4,671
* Lannett Co. Inc. 137,435 4,619
* DexCom Inc. 105,816 3,987
* United Therapeutics Corp. 42,700 3,883

 

 

* Pacira Pharmaceuticals Inc. 41,829 3,848
* HealthEquity Inc. 217,100 3,821
* Centene Corp. 51,400 3,705
* PAREXEL International Corp. 66,400 3,556
* MacroGenics Inc. 175,120 3,555
* Quintiles Transnational Holdings Inc. 57,100 3,136
* Quidel Corp. 130,390 3,112
* Aratana Therapeutics Inc. 267,205 3,081
* Zeltiq Aesthetics Inc. 145,090 2,937
* Medivation Inc. 39,446 2,928
* Seattle Genetics Inc. 82,500 2,904
  PDL BioPharma Inc. 309,500 2,903
* Natus Medical Inc. 96,600 2,779
* Revance Therapeutics Inc. 89,409 2,743
* Synageva BioPharma Corp. 39,071 2,673
* Novadaq Technologies Inc. 167,344 2,567
* Neurocrine Biosciences Inc. 186,812 2,537
* Anika Therapeutics Inc. 59,600 2,507
* Isis Pharmaceuticals Inc. 80,500 2,495
* Clovis Oncology Inc. 66,472 2,423
* CorVel Corp. 56,075 2,259
* MedAssets Inc. 102,900 2,186
* Providence Service Corp. 52,400 2,076
* Alliance HealthCare Services Inc. 63,200 1,804
* XOMA Corp. 453,730 1,760
* Myriad Genetics Inc. 48,400 1,747
*,^ CytRx Corp. 451,302 1,471
* Prothena Corp. plc 80,994 1,406
  Questcor Pharmaceuticals Inc. 14,524 1,307
* Cara Therapeutics Inc. 68,200 870
* Depomed Inc. 71,600 712
* ZIOPHARM Oncology Inc. 200,000 626
* ARIAD Pharmaceuticals Inc. 107,700 620
  Chemed Corp. 6,006 612
* Cytokinetics Inc. 133,100 563
* Dyax Corp. 54,400 512
* Halozyme Therapeutics Inc. 49,200 479
* Sagent Pharmaceuticals Inc. 18,600 474
  HealthSouth Corp. 12,200 468
* Synergy Pharmaceuticals Inc. 125,100 457
*,^ Dendreon Corp. 209,700 434
*,^ Galena Biopharma Inc. 124,482 354
* Concert Pharmaceuticals Inc. 26,100 213
* BioCryst Pharmaceuticals Inc. 15,300 192
* Progenics Pharmaceuticals Inc. 33,846 162
* Addus HomeCare Corp. 6,200 137
      1,959,843
Industrials (16.1%)    
* Armstrong World Industries Inc. 1,454,705 70,815
  MSC Industrial Direct Co. Inc. Class A 762,758 65,056
* IHS Inc. Class A 475,945 62,525
  Waste Connections Inc. 1,204,910 57,040
* WESCO International Inc. 648,098 50,869
  Pentair plc 767,725 49,188
  AO Smith Corp. 1,006,015 46,981
* JetBlue Airways Corp. 4,219,650 45,235
  Chicago Bridge & Iron Co. NV 748,705 44,413

 

 

* Teledyne Technologies Inc. 485,923 44,316
  EnerSys 685,735 43,496
  Manpowergroup Inc. 493,050 38,404
* Middleby Corp. 521,001 37,960
* Stericycle Inc. 317,190 37,317
* MRC Global Inc. 1,362,280 36,550
  AMETEK Inc. 730,365 35,561
  Watsco Inc. 386,110 34,584
* Advisory Board Co. 687,662 34,479
  Kennametal Inc. 790,271 33,413
  John Bean Technologies Corp. 1,280,743 33,363
* Quanta Services Inc. 936,965 31,379
  Acuity Brands Inc. 280,890 30,131
* Esterline Technologies Corp. 274,600 29,808
* AerCap Holdings NV 670,906 29,272
  RBC Bearings Inc. 527,194 29,249
* Moog Inc. Class A 434,738 28,701
  Flowserve Corp. 382,275 28,304
* United Rentals Inc. 253,836 26,881
* DXP Enterprises Inc. 368,606 26,182
* Swift Transportation Co. 1,261,300 25,794
  Herman Miller Inc. 835,649 24,434
* B/E Aerospace Inc. 285,727 24,327
* Clean Harbors Inc. 416,390 23,997
*,2 American Woodmark Corp. 798,759 23,484
  Robert Half International Inc. 479,527 23,329
* Trex Co. Inc. 798,370 22,474
  Carlisle Cos. Inc. 280,820 22,471
* Generac Holdings Inc. 485,685 21,079
* Saia Inc. 451,619 20,616
* Proto Labs Inc. 249,803 20,234
*,^ FuelCell Energy Inc. 8,126,300 20,153
  Watts Water Technologies Inc. Class A 342,025 19,995
  Corporate Executive Board Co. 311,831 19,355
* TriMas Corp. 595,133 18,854
* Genesee & Wyoming Inc. Class A 175,630 17,516
* Rush Enterprises Inc. Class A 491,496 17,315
* Huron Consulting Group Inc. 285,165 17,235
  Tennant Co. 229,573 16,747
* H&E Equipment Services Inc. 397,679 14,388
  Ryder System Inc. 163,785 14,107
  Kaman Corp. 350,827 14,037
* Copart Inc. 406,008 13,553
* Avis Budget Group Inc. 233,929 13,144
* Verisk Analytics Inc. Class A 218,200 13,101
* Sensata Technologies Holding NV 269,554 12,464
* Hexcel Corp. 333,750 12,432
  HEICO Corp. Class A 302,922 12,211
* WageWorks Inc. 290,639 12,131
  Universal Forest Products Inc. 276,215 12,093
  Mobile Mini Inc. 301,500 11,385
* NCI Building Systems Inc. 652,392 10,934
  Knight Transportation Inc. 434,380 10,408
  Exponent Inc. 142,322 10,116
  McGrath RentCorp 289,000 9,985
* Rexnord Corp. 335,731 9,035
  Columbus McKinnon Corp. 351,297 8,168

 

 

* Astronics Corp. 139,400 8,085
MSA Safety Inc. 152,873 7,916
KAR Auction Services Inc. 246,330 7,220
* CAI International Inc. 363,230 6,934
* Spirit Airlines Inc. 98,231 6,426
Towers Watson & Co. Class A 54,400 5,550
Ritchie Bros Auctioneers Inc. 228,309 5,530
Heartland Express Inc. 235,624 5,290
Woodward Inc. 103,177 5,155
* Kirby Corp. 42,701 4,973
* Orbital Sciences Corp. 193,500 4,967
* Roadrunner Transportation Systems Inc. 197,548 4,966
Expeditors International of Washington Inc. 114,871 4,960
* Polypore International Inc. 113,971 4,912
* Chart Industries Inc. 62,800 4,776
IDEX Corp. 54,150 4,106
Trinity Industries Inc. 93,300 4,072
Alaska Air Group Inc. 90,748 3,990
* WABCO Holdings Inc. 40,900 3,987
Copa Holdings SA Class A 24,600 3,736
Huntington Ingalls Industries Inc. 40,500 3,682
* Spirit AeroSystems Holdings Inc. Class A 111,300 3,625
Cintas Corp. 53,900 3,374
Pitney Bowes Inc. 123,800 3,350
Lincoln Electric Holdings Inc. 48,600 3,229
Greenbrier Cos. Inc. 48,400 3,119
Lennox International Inc. 36,100 3,080
Deluxe Corp. 55,909 3,076
ITT Corp. 64,800 2,979
Manitowoc Co. Inc. 109,100 2,898
* TriNet Group Inc. 116,019 2,715
* Power Solutions International Inc. 43,030 2,628
Steelcase Inc. Class A 147,179 2,222
RR Donnelley & Sons Co. 128,000 2,222
Mueller Water Products Inc. Class A 283,700 2,199
Altra Industrial Motion Corp. 61,500 1,928
* DigitalGlobe Inc. 70,300 1,838
Toro Co. 27,800 1,649
Hyster-Yale Materials Handling Inc. 19,200 1,538
* Korn/Ferry International 46,400 1,365
Harsco Corp. 34,000 859
AMERCO 2,000 526
Barrett Business Services Inc. 5,600 320
AAON Inc. 13,200 259
HNI Corp. 5,800 205
    1,937,009
Information Technology (22.8%)    
* Alliance Data Systems Corp. 401,648 105,348
* PTC Inc. 2,374,376 85,383
* Cadence Design Systems Inc. 4,723,377 79,494
* Ultimate Software Group Inc. 549,864 74,182
* Euronet Worldwide Inc. 1,416,332 70,873
* Bankrate Inc. 3,666,264 61,813
* TiVo Inc. 4,509,610 60,699
* Demandware Inc. 876,985 52,830
* Silicon Laboratories Inc. 1,264,700 51,511
Teradyne Inc. 2,802,320 51,058

 

 

* Dealertrack Technologies Inc. 1,266,189 47,571
* Microsemi Corp. 1,879,800 45,078
* WNS Holdings Ltd. ADR 2,234,375 45,023
* Atmel Corp. 5,042,905 41,352
* CoStar Group Inc. 285,347 41,013
* Electronics For Imaging Inc. 895,255 39,454
* First Solar Inc. 615,678 38,855
  IAC/InterActiveCorp 575,264 38,658
* ON Semiconductor Corp. 4,496,820 38,493
* Aspen Technology Inc. 885,370 38,460
* Sapient Corp. 2,572,045 37,963
  Belden Inc. 558,465 37,920
* Verint Systems Inc. 782,470 36,729
* Informatica Corp. 1,127,445 35,763
* Pandora Media Inc. 1,414,691 35,537
* Mellanox Technologies Ltd. 838,211 34,911
* Finisar Corp. 1,761,395 34,752
* Concur Technologies Inc. 373,050 34,679
* Ruckus Wireless Inc. 2,680,200 34,601
* F5 Networks Inc. 302,495 34,058
  Convergys Corp. 1,753,011 33,991
* Constant Contact Inc. 1,045,100 32,534
* Red Hat Inc. 532,100 30,926
* WEX Inc. 276,100 29,797
* Aruba Networks Inc. 1,640,495 29,299
* Cardtronics Inc. 695,900 26,834
* Freescale Semiconductor Ltd. 1,279,200 25,610
* SunPower Corp. Class A 688,400 25,285
*,^ Ubiquiti Networks Inc. 637,724 24,380
* Proofpoint Inc. 687,819 24,259
  FactSet Research Systems Inc. 199,650 23,984
* SPS Commerce Inc. 448,974 23,953
  Heartland Payment Systems Inc. 499,669 23,734
  Monolithic Power Systems Inc. 570,890 23,543
  j2 Global Inc. 480,096 23,486
* SS&C Technologies Holdings Inc. 529,708 22,942
* Super Micro Computer Inc. 869,502 22,755
* Tyler Technologies Inc. 250,309 22,711
* Cognex Corp. 545,900 22,371
*,^ Stratasys Ltd. 215,449 21,661
* Syntel Inc. 248,652 21,476
* Ciena Corp. 1,065,820 20,815
* Cavium Inc. 443,832 20,705
* Acxiom Corp. 1,120,785 20,533
  Intersil Corp. Class A 1,574,795 20,205
  Power Integrations Inc. 371,960 20,023
* Radware Ltd. 1,209,700 19,827
* Web.com Group Inc. 726,179 19,280
* Fortinet Inc. 784,225 19,253
  Methode Electronics Inc. 583,622 18,664
* Gartner Inc. 262,871 17,986
* Akamai Technologies Inc. 294,831 17,401
* Palo Alto Networks Inc. 199,625 16,142
*,^ InvenSense Inc. 681,000 15,670
* Qlik Technologies Inc. 573,400 15,172
* Semtech Corp. 625,882 13,976
* Vistaprint NV 269,100 13,256

 

 

* Nanometrics Inc. 826,028 12,853
* PROS Holdings Inc. 484,600 12,415
* LinkedIn Corp. Class A 68,062 12,295
* SolarWinds Inc. 292,986 12,053
* Infoblox Inc. 961,600 11,655
  Brocade Communications Systems Inc. 1,210,600 11,150
* Synchronoss Technologies Inc. 264,089 10,672
* Conversant Inc. 451,860 10,560
*,^ 3D Systems Corp. 208,515 10,453
* Trimble Navigation Ltd. 334,730 10,343
  Microchip Technology Inc. 229,500 10,332
^ MercadoLibre Inc. 109,700 10,147
  MAXIMUS Inc. 241,289 9,980
  Littelfuse Inc. 110,000 9,561
* comScore Inc. 258,391 9,351
* Riverbed Technology Inc. 510,000 9,129
* LivePerson Inc. 772,020 9,094
*,^ Gigamon Inc. 774,945 8,943
  FLIR Systems Inc. 264,300 8,796
* IPG Photonics Corp. 125,500 8,452
  Blackbaud Inc. 227,015 8,334
* Diodes Inc. 323,485 8,249
* Progress Software Corp. 355,000 8,229
* Guidewire Software Inc. 202,200 8,189
*,^ Endurance International Group Holdings Inc. 566,630 7,723
* Interactive Intelligence Group Inc. 168,944 7,665
*,^ Allot Communications Ltd. 573,400 7,414
* WebMD Health Corp. 144,968 7,224
* EPAM Systems Inc. 186,300 7,202
* ANSYS Inc. 90,565 6,968
* NetScout Systems Inc. 159,844 6,798
* Imperva Inc. 283,400 6,283
  National Instruments Corp. 189,100 6,021
* Cornerstone OnDemand Inc. 134,600 5,632
* Virtusa Corp. 178,000 5,568
*,^ Care.com Inc. 576,757 5,473
* CalAmp Corp. 321,416 5,467
* Information Services Group Inc. 1,226,629 5,360
* FireEye Inc. 150,500 5,343
* Tableau Software Inc. Class A 79,400 5,161
  Solera Holdings Inc. 78,607 5,031
* II-VI Inc. 362,366 4,972
* Cree Inc. 104,400 4,931
  FEI Co. 59,800 4,581
* VeriFone Systems Inc. 136,300 4,567
* iGATE Corp. 121,305 4,328
* Entropic Communications Inc. 1,512,830 4,221
  Broadridge Financial Solutions Inc. 100,500 4,057
* ARRIS Group Inc. 114,700 3,919
  Jack Henry & Associates Inc. 62,900 3,670
* Move Inc. 250,900 3,663
* RF Micro Devices Inc. 318,130 3,550
*,^ Advanced Micro Devices Inc. 856,000 3,347
  CDW Corp. 108,100 3,339
  Booz Allen Hamilton Holding Corp. Class A 147,241 3,275
* CommScope Holding Co. Inc. 132,817 3,273
* RealPage Inc. 202,963 3,269

 

 

* E2open Inc. 201,187 3,255
  DST Systems Inc. 34,996 3,152
* Zebra Technologies Corp. 39,200 3,139
* Manhattan Associates Inc. 103,852 3,049
  Anixter International Inc. 31,931 2,745
* Take-Two Interactive Software Inc. 122,500 2,742
* ChannelAdvisor Corp. 119,357 2,737
* Plexus Corp. 65,500 2,576
* Envestnet Inc. 54,382 2,372
*,^ Glu Mobile Inc. 405,100 2,273
  Pegasystems Inc. 91,400 1,953
* AVG Technologies NV 110,000 1,870
* Benefitfocus Inc. 47,600 1,834
* Unisys Corp. 84,040 1,789
* Vantiv Inc. Class A 48,800 1,600
* Measurement Specialties Inc. 13,735 1,181
  CSG Systems International Inc. 44,500 1,159
* Maxwell Technologies Inc. 97,200 1,058
  Advent Software Inc. 26,200 850
* Perficient Inc. 50,000 849
* Aerohive Networks Inc. 98,100 824
* Blackhawk Network Holdings Inc. 26,500 751
* Lionbridge Technologies Inc. 128,600 737
* ShoreTel Inc. 117,900 729
* Synaptics Inc. 9,900 715
* Comverse Inc. 27,800 714
* MicroStrategy Inc. Class A 4,400 630
* Barracuda Networks Inc. 21,400 594
* Silicon Image Inc. 99,100 494
* Varonis Systems Inc. 16,302 344
* Ultra Clean Holdings Inc. 35,000 303
* MaxLinear Inc. 31,600 300
* Applied Micro Circuits Corp. 33,300 278
  QAD Inc. Class A 11,900 225
* Callidus Software Inc. 15,800 169
      2,749,020
Materials (6.3%)    
* Graphic Packaging Holding Co. 6,390,464 76,686
  PolyOne Corp. 1,474,515 55,958
  Ball Corp. 904,735 55,424
  Minerals Technologies Inc. 947,830 55,041
  Ashland Inc. 418,005 43,744
  Methanex Corp. 670,860 43,653
  Steel Dynamics Inc. 2,033,140 43,123
  Smurfit Kappa Group plc 1,954,421 42,340
* WR Grace & Co. 450,285 40,976
* KapStone Paper and Packaging Corp. 1,223,854 36,397
  Worthington Industries Inc. 942,470 36,049
  OM Group Inc. 1,051,300 29,720
* Constellium NV Class A 1,011,100 29,302
  Allegheny Technologies Inc. 699,810 26,348
  Carpenter Technology Corp. 420,860 22,785
  US Silica Holdings Inc. 360,220 20,252
  Schweitzer-Mauduit International Inc. 400,514 16,353
  Eagle Materials Inc. 172,182 15,638
  FMC Corp. 213,760 13,941
* Calgon Carbon Corp. 404,821 8,582

 

 

  Airgas Inc. 79,700 8,522
  Valspar Corp. 87,300 6,552
  Balchem Corp. 97,900 4,895
  Sealed Air Corp. 138,000 4,433
  Packaging Corp. of America 65,300 4,320
  Quaker Chemical Corp. 54,515 3,849
* Owens-Illinois Inc. 104,300 3,253
  Westlake Chemical Corp. 32,400 2,831
  Avery Dennison Corp. 57,200 2,700
  International Flavors & Fragrances Inc. 17,600 1,777
* Berry Plastics Group Inc. 72,500 1,761
* Ferro Corp. 115,600 1,450
* Stillwater Mining Co. 71,000 1,271
  NewMarket Corp. 3,273 1,267
  Cytec Industries Inc. 9,800 988
  Scotts Miracle-Gro Co. Class A 5,300 282
      762,463
Other (1.7%)    
^ iShares Russell 2000 ETF 1,228,720 136,499
3 Vanguard Small-Cap Growth ETF 463,200 55,917
*,4 Pure Storage Inc. Private Placement 437,384 6,878
*,4 Dropbox Private Placement 425,730 6,786
      206,080
Telecommunication Services (0.8%)    
* SBA Communications Corp. Class A 445,610 47,649
* Vonage Holdings Corp. 9,652,091 33,589
* 8x8 Inc. 590,259 4,769
  Inteliquent Inc. 191,600 2,033
* Level 3 Communications Inc. 37,200 1,636
* FairPoint Communications Inc. 109,400 1,597
  IDT Corp. Class B 38,000 593
      91,866
Utilities (0.6%)    
  ITC Holdings Corp. 1,137,620 41,068
^ NRG Yield Inc. Class A 567,092 29,631
  Otter Tail Corp. 14,274 399
      71,098
Total Common Stocks (Cost $9,205,981)   11,715,818

 

 

  Coupon      
Temporary Cash Investments (5.2%)1        
Money Market Fund (4.9%)        
5,6 Vanguard Market Liquidity Fund 0.118%   588,003,124 588,003
 
      Face  
    Maturity Amount  
    Date ($000)  
Repurchase Agreement (0.2%)        
Deutsche Bank Securities, Inc. (Dated        
7/31/14, Repurchase Value $30,500,000,        
collateralized by Federal Home Loan        
Mortgage Corp. 6.000%, 11/15/17, and        
Government National Mortgage Assn.        
3.500%-4.500%, 5/20/38-5/20/44, with a value        
of $31,110,000) 0.100% 8/1/14 30,500 30,500
 
U.S. Government and Agency Obligations (0.1%)        
7,8 Fannie Mae Discount Notes 0.080% 10/6/14 2,000 2,000
7,8 Fannie Mae Discount Notes 0.075% 10/15/14 100 100
8,9 Federal Home Loan Bank Discount Notes 0.065% 8/29/14 2,600 2,600
9 Federal Home Loan Bank Discount Notes 0.086% 9/12/14 250 250
8,9 Federal Home Loan Bank Discount Notes 0.085% 9/19/14 6,000 6,000
8,9 Federal Home Loan Bank Discount Notes 0.080% 9/24/14 100 100
        11,050
Total Temporary Cash Investments (Cost $629,552)       629,553
Total Investments (102.5%) (Cost $9,835,533)       12,345,371
Other Assets and Liabilities-Net (-2.5%)5       (305,375)
Net Assets (100%)       12,039,996

* Non-income-producing security.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $231,192,000.
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 98.7% and 3.8%, respectively, of net assets.
2 Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company.
3 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
4 Restricted security represents 0.1% of net assets.
5 Includes $246,260,000 of collateral received for securities on loan.
6 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
7 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.
8 Securities with a value of $8,400,000 have been segregated as initial margin for open futures contracts.
9 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

 

Explorer Fund

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

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

C. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.

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

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

The following table summarizes the market value of the fund's investments as of July 31, 2014, based on the inputs used to value them:

  Level 1 Level 2 Level 3
Investments ($000) ($000) ($000)
Common Stocks 11,639,080 63,074 13,664
Temporary Cash Investments 588,003 41,550 —

 

 

Explorer Fund

Futures Contracts—Liabilities1 4,134 — —
Total 12,231,217 104,624 13,664
1 Represents variation margin on the last day of the reporting period.

 

E. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund's performance and requires daily settlement of variation margin representing changes in the market value of each contract.

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

At July 31, 2014, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:

        ($000)
      Aggregate  
    Number of Settlement Unrealized
    Long (Short) Value Long Appreciation
Futures Contracts Expiration Contracts (Short)  (Depreciation)
E-mini Russell 2000 Index September 2014 1,244 138,917 (3,965)
E-mini S&P MidCap 400 Index September 2014 260 35,563 (1,108)
        (5,073)

 

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, 2013   from   July 31, 2014
  Market Purchases Securities Dividend Market
  Value at Cost Sold Income Value
  ($000) ($000) ($000) ($000) ($000)
American Woodmark Corp. NA1 8,343 1,419 — 23,484
Denny’s Corp. NA1 2,643 2,200 — 29,399

 

 

Explorer Fund

eHealth Inc. 63,502 15,428 21,736 — 30,146
Kindred Healthcare Inc. 44,737 — 20,509 973 NA2
TiVo Inc. 81,667 8,391 28,577 — NA2
WNS Holdings Ltd. ADR NA3 22,503 26,232 — NA3
Total 189,906     973 83,029

1 Not applicable—At October 31, 2013, the issuer was not an affiliated company of the fund.
2 Not applicable—At July 31, 2014, the security was still held, but the issuer was no longer an affiliated company of the fund.
3 Not applicable—At October 31, 2013, and July 31, 2014, the issuer was not an affiliated company of the fund, but it was affiliated during
the period.

G. At July 31, 2014, the cost of investment securities for tax purposes was $9,835,582,000. Net unrealized appreciation of investment securities for tax purposes was $2,509,789,000, consisting of unrealized gains of $2,889,114,000 on securities that had risen in value since their purchase and $379,325,000 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 18, 2014 

 

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 18, 2014  

 

  VANGUARD EXPLORER FUND
 
  /s/ THOMAS J. HIGGINS*
  THOMAS J. HIGGINS
  CHIEF FINANCIAL OFFICER
Date:  September 18, 2014 

 

* By:/s/ Heidi Stam
Heidi Stam, pursuant to a Power of Attorney filed on April 22, 2014 see file Number 2-17620,
Incorporated by Reference.