N-Q 1 morgangrowth_final.htm morgangrowth_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:   811-01685

 

Name of Registrant:   Vanguard Morgan Growth Fund

 

Address of Registrant:

P.O. Box 2600
Valley Forge, PA 19482

 

Name and address of agent for service:

Anne E. Robinson, Esquire
P.O. Box 876
Valley Forge, PA 19482

 

Date of fiscal year end:   September 30

 

Date of reporting period:   December 31, 2016

 

Item 1: Schedule of Investments

 


Vanguard Morgan Growth Fund

Schedule of Investments (unaudited)

As of December 31, 2016

      Market
      Value
    Shares ($000)
Common Stocks (99.9%)1    
Consumer Discretionary (17.4%)    
* Amazon.com Inc. 418,870 314,098
  Home Depot Inc. 1,024,304 137,339
  Comcast Corp. Class A 1,885,014 130,160
* Priceline Group Inc. 85,833 125,836
* Netflix Inc. 863,623 106,916
  Ross Stores Inc. 1,124,795 73,787
* O'Reilly Automotive Inc. 216,246 60,205
  Starbucks Corp. 1,046,489 58,101
  Industria de Diseno Textil SA ADR 3,407,336 57,822
  adidas AG 351,658 55,463
  Omnicom Group Inc. 616,503 52,471
  Marriott International Inc. Class A 611,544 50,562
  Dollar General Corp. 661,142 48,971
  Scripps Networks Interactive Inc. Class A 601,396 42,922
  Las Vegas Sands Corp. 753,202 40,228
*,^ Tesla Motors Inc. 165,922 35,456
* Discovery Communications Inc. Class A 1,288,808 35,326
  Aramark 961,298 34,338
  TJX Cos. Inc. 421,750 31,686
  Brunswick Corp. 503,106 27,439
  Expedia Inc. 236,413 26,781
  NIKE Inc. Class B 512,378 26,044
  Wyndham Worldwide Corp. 289,679 22,123
* MGM Resorts International 754,987 21,766
* Ulta Salon Cosmetics & Fragrance Inc. 85,080 21,690
* LKQ Corp. 703,456 21,561
  Walt Disney Co. 162,182 16,903
  Viacom Inc. Class B 446,878 15,685
* Dollar Tree Inc. 182,221 14,064
*,^ IMAX Corp. 342,647 10,759
  Texas Roadhouse Inc. Class A 217,440 10,489
^ Sirius XM Holdings Inc. 2,261,219 10,062
  Whirlpool Corp. 53,093 9,651
  Foot Locker Inc. 132,747 9,410
* Bright Horizons Family Solutions Inc. 133,859 9,373
* Liberty Global plc Class A 300,822 9,202
  Carnival Corp. 173,449 9,030
  Domino's Pizza Inc. 55,852 8,894
* Michael Kors Holdings Ltd. 202,410 8,700
  Target Corp. 119,896 8,660
^ Nordstrom Inc. 170,487 8,171
* Liberty Media Corp-Liberty SiriusXM Class A 235,967 8,146
  Lear Corp. 60,267 7,978
* Urban Outfitters Inc. 251,881 7,174
* Michaels Cos. Inc. 334,990 6,851
* Hyatt Hotels Corp. Class A 118,308 6,538
  Royal Caribbean Cruises Ltd. 68,793 5,644
  DR Horton Inc. 197,284 5,392
  CBS Corp. Class B 73,431 4,672

 

 

PVH Corp. 42,289 3,816
Twenty-First Century Fox Inc. 71,786 1,956
Lowe's Cos. Inc. 27,196 1,934
* Liberty Media Corp-Liberty SiriusXM Class C 51,985 1,763
* Panera Bread Co. Class A 6,715 1,377
* Charter Communications Inc. Class A 2,800 806
    1,882,191
Consumer Staples (4.0%)    
PepsiCo Inc. 1,316,621 137,758
Costco Wholesale Corp. 363,940 58,270
Hershey Co. 352,338 36,442
Colgate-Palmolive Co. 525,640 34,398
Walgreens Boots Alliance Inc. 246,716 20,418
Mondelez International Inc. Class A 442,762 19,628
CVS Health Corp. 181,306 14,307
Altria Group Inc. 205,633 13,905
* Blue Buffalo Pet Products Inc. 534,811 12,857
Tyson Foods Inc. Class A 188,610 11,633
BRF SA ADR 757,254 11,177
Wal-Mart Stores Inc. 156,988 10,851
Ingredion Inc. 78,444 9,802
Brown-Forman Corp. Class B 203,405 9,137
* Monster Beverage Corp. 193,939 8,599
^ Pilgrim's Pride Corp. 445,704 8,464
* Edgewell Personal Care Co. 70,253 5,128
Kimberly-Clark Corp. 38,885 4,438
Spectrum Brands Holdings Inc. 19,071 2,333
* Herbalife Ltd. 42,231 2,033
Kroger Co. 42,416 1,464
    433,042
Energy (4.0%)    
Schlumberger Ltd. 688,597 57,808
Chevron Corp. 487,017 57,322
Baker Hughes Inc. 863,137 56,078
BP plc ADR 1,429,784 53,445
Pioneer Natural Resources Co. 280,157 50,448
* Concho Resources Inc. 307,468 40,770
EOG Resources Inc. 225,695 22,818
* Carrizo Oil & Gas Inc. 459,828 17,174
Devon Energy Corp. 267,632 12,223
Halliburton Co. 219,056 11,849
Cimarex Energy Co. 81,330 11,053
* Chesapeake Energy Corp. 1,402,011 9,842
* Newfield Exploration Co. 237,243 9,608
* Energen Corp. 158,655 9,150
* Southwestern Energy Co. 781,791 8,459
Apache Corp. 63,736 4,045
* FMC Technologies Inc. 82,881 2,945
    435,037
Financials (5.7%)    
Bank of America Corp. 2,609,043 57,660
American International Group Inc. 853,914 55,769
Intercontinental Exchange Inc. 966,745 54,544
JPMorgan Chase & Co. 569,682 49,158
Goldman Sachs Group Inc. 197,142 47,206
Morgan Stanley 1,020,294 43,107

 

 

Citigroup Inc. 599,648 35,637
Aon plc 297,953 33,231
Raymond James Financial Inc. 431,877 29,916
Nasdaq Inc. 376,438 25,266
* Signature Bank 159,912 24,019
* E*TRADE Financial Corp. 668,714 23,171
* Berkshire Hathaway Inc. Class B 139,828 22,789
FactSet Research Systems Inc. 114,435 18,702
Willis Towers Watson plc 148,203 18,122
Webster Financial Corp. 232,378 12,613
S&P Global Inc. 111,603 12,002
Moody's Corp. 110,244 10,393
Marsh & McLennan Cos. Inc. 143,326 9,687
MSCI Inc. Class A 122,225 9,629
^ WisdomTree Investments Inc. 591,065 6,584
Ameriprise Financial Inc. 45,257 5,021
SEI Investments Co. 77,426 3,822
Popular Inc. 35,413 1,552
    609,600
Health Care (14.2%)    
Bristol-Myers Squibb Co. 2,639,955 154,279
Amgen Inc. 843,651 123,350
* BioMarin Pharmaceutical Inc. 858,837 71,146
* Allergan plc 332,442 69,816
Gilead Sciences Inc. 929,999 66,597
* Celgene Corp. 565,325 65,436
CR Bard Inc. 278,957 62,671
Aetna Inc. 491,485 60,949
Johnson & Johnson 508,258 58,556
* Alexion Pharmaceuticals Inc. 463,800 56,746
Zoetis Inc. 827,217 44,281
Shire plc ADR 255,978 43,614
Merck & Co. Inc. 684,885 40,319
* HCA Holdings Inc. 531,591 39,348
Cooper Cos. Inc. 214,301 37,488
Cardinal Health Inc. 459,051 33,038
Becton Dickinson and Co. 196,457 32,523
* Incyte Corp. 308,777 30,961
UnitedHealth Group Inc. 189,192 30,278
Medtronic plc 409,205 29,148
Danaher Corp. 343,579 26,744
* Align Technology Inc. 273,546 26,296
* ICON plc 314,169 23,626
STERIS plc 330,270 22,257
* Illumina Inc. 165,644 21,209
* Varian Medical Systems Inc. 225,118 20,211
Anthem Inc. 136,875 19,679
Teleflex Inc. 113,286 18,256
* Express Scripts Holding Co. 219,152 15,076
* Edwards Lifesciences Corp. 159,695 14,963
* Vertex Pharmaceuticals Inc. 189,018 13,925
Eli Lilly & Co. 165,266 12,155
* PAREXEL International Corp. 176,839 11,622
* Alkermes plc 194,888 10,832
* Hologic Inc. 268,435 10,770
Baxter International Inc. 237,071 10,512
* Mettler-Toledo International Inc. 24,652 10,318

 

 

* United Therapeutics Corp. 71,585 10,267
McKesson Corp. 72,934 10,244
* Quintiles IMS Holdings Inc. 131,945 10,034
* QIAGEN NV 333,464 9,344
Agilent Technologies Inc. 192,298 8,761
PerkinElmer Inc. 139,707 7,286
Universal Health Services Inc. Class B 67,765 7,209
AmerisourceBergen Corp. Class A 82,560 6,455
* DexCom Inc. 99,474 5,939
* IDEXX Laboratories Inc. 47,428 5,562
* Biogen Inc. 11,669 3,309
* Charles River Laboratories International Inc. 42,000 3,200
Abbott Laboratories 26,019 999
Thermo Fisher Scientific Inc. 5,825 822
    1,528,426
Industrials (9.5%)    
Parker-Hannifin Corp. 616,894 86,365
Honeywell International Inc. 613,143 71,033
Boeing Co. 426,854 66,453
TransDigm Group Inc. 233,898 58,231
* IHS Markit Ltd. 1,435,896 50,845
Cummins Inc. 334,987 45,783
Rockwell Automation Inc. 328,747 44,184
Cintas Corp. 373,137 43,120
Caterpillar Inc. 464,500 43,078
CH Robinson Worldwide Inc. 539,142 39,498
Equifax Inc. 312,416 36,937
* HD Supply Holdings Inc. 743,688 31,614
Waste Connections Inc. 360,045 28,296
Dover Corp. 376,779 28,232
Emerson Electric Co. 457,928 25,529
Experian plc 1,292,088 25,017
AO Smith Corp. 519,465 24,597
* Verisk Analytics Inc. Class A 292,265 23,723
Fortive Corp. 437,358 23,455
KAR Auction Services Inc. 545,994 23,270
* United Continental Holdings Inc. 278,781 20,318
* Beacon Roofing Supply Inc. 436,294 20,100
Woodward Inc. 224,955 15,533
JB Hunt Transport Services Inc. 148,755 14,440
Ingersoll-Rand plc 155,752 11,688
Alaska Air Group Inc. 123,537 10,961
Huntington Ingalls Industries Inc. 57,860 10,657
* United Rentals Inc. 99,954 10,553
Spirit AeroSystems Holdings Inc. Class A 175,384 10,234
Masco Corp. 301,598 9,536
Lennox International Inc. 60,961 9,337
* JetBlue Airways Corp. 413,764 9,277
Delta Air Lines Inc. 185,676 9,133
Owens Corning 176,093 9,079
Stanley Black & Decker Inc. 77,886 8,933
Wabtec Corp. 92,430 7,673
Union Pacific Corp. 44,500 4,614
* Hertz Global Holdings Inc. 191,597 4,131
United Parcel Service Inc. Class B 35,029 4,016
Expeditors International of Washington Inc. 70,046 3,710
3M Co. 14,509 2,591

 

 

* Copart Inc. 42,248 2,341
Lockheed Martin Corp. 8,956 2,238
    1,030,353
Information Technology (40.1%)    
Apple Inc. 4,793,790 555,217
* Alphabet Inc. Class C 491,765 379,554
Microsoft Corp. 5,891,367 366,090
* Facebook Inc. Class A 2,506,902 288,419
Visa Inc. Class A 2,496,934 194,811
Oracle Corp. 3,299,051 126,849
QUALCOMM Inc. 1,776,396 115,821
* Alibaba Group Holding Ltd. ADR 1,286,097 112,932
* Alphabet Inc. Class A 139,948 110,902
Mastercard Inc. Class A 902,524 93,186
Texas Instruments Inc. 1,181,813 86,237
NVIDIA Corp. 753,958 80,477
* Vantiv Inc. Class A 1,345,655 80,228
* Electronic Arts Inc. 939,645 74,006
Linear Technology Corp. 1,151,032 71,767
* Check Point Software Technologies Ltd. 839,496 70,904
* eBay Inc. 2,152,884 63,919
* salesforce.com Inc. 915,187 62,654
Tencent Holdings Ltd. 2,509,814 60,856
Global Payments Inc. 868,809 60,304
* PayPal Holdings Inc. 1,428,561 56,385
* F5 Networks Inc. 387,598 56,093
* Adobe Systems Inc. 544,640 56,071
Jack Henry & Associates Inc. 629,585 55,895
* Red Hat Inc. 799,658 55,736
Maxim Integrated Products Inc. 1,437,995 55,463
* Gartner Inc. 505,579 51,099
Alliance Data Systems Corp. 200,776 45,877
CDK Global Inc. 761,047 45,427
Paychex Inc. 699,874 42,608
* Cadence Design Systems Inc. 1,594,279 40,208
* Workday Inc. Class A 588,744 38,910
Cisco Systems Inc. 1,280,268 38,690
Intuit Inc. 317,133 36,347
* Yandex NV Class A 1,731,018 34,845
* Mobileye NV 891,653 33,990
* Euronet Worldwide Inc. 448,442 32,481
Xilinx Inc. 532,966 32,175
* Fiserv Inc. 299,277 31,807
Amdocs Ltd. 486,779 28,355
* Palo Alto Networks Inc. 219,481 27,446
Lam Research Corp. 242,830 25,674
* Splunk Inc. 450,132 23,024
* Qorvo Inc. 415,434 21,906
* Cirrus Logic Inc. 368,209 20,819
Accenture plc Class A 171,714 20,113
Activision Blizzard Inc. 546,145 19,721
* Baidu Inc. ADR 109,652 18,028
* Flex Ltd. 1,248,723 17,944
Computer Sciences Corp. 288,719 17,156
* Universal Display Corp. 296,092 16,670
Amphenol Corp. Class A 246,370 16,556
Analog Devices Inc. 215,594 15,656

 

 

  Applied Materials Inc. 454,784 14,676
* Genpact Ltd. 480,899 11,705
* Citrix Systems Inc. 125,790 11,234
* Advanced Micro Devices Inc. 937,951 10,636
* Integrated Device Technology Inc. 449,907 10,600
  CDW Corp. 197,825 10,305
*,^ VMware Inc. Class A 122,683 9,659
* First Data Corp. Class A 639,721 9,078
* Teradata Corp. 312,997 8,504
* GoDaddy Inc. Class A 239,840 8,382
* Fortinet Inc. 270,994 8,162
* Synopsys Inc. 136,291 8,022
  Broadridge Financial Solutions Inc. 107,009 7,095
  SS&C Technologies Holdings Inc. 207,667 5,939
*,^ Nutanix Inc. 145,830 3,873
  Broadcom Ltd. 12,989 2,296
* Black Knight Financial Services Inc. Class A 28,868 1,091
* Autodesk Inc. 12,377 916
      4,326,481
Materials (2.7%)    
^ Rio Tinto plc ADR 1,543,712 59,371
  Nucor Corp. 836,822 49,808
  Sherwin-Williams Co. 130,545 35,083
  Martin Marietta Materials Inc. 102,249 22,651
  Eagle Materials Inc. 228,378 22,502
  Vulcan Materials Co. 170,075 21,285
* Berry Plastics Group Inc. 400,300 19,507
  Ball Corp. 138,452 10,393
* Crown Holdings Inc. 188,446 9,907
  FMC Corp. 170,183 9,625
  Steel Dynamics Inc. 245,298 8,728
  CF Industries Holdings Inc. 256,323 8,069
* Freeport-McMoRan Inc. 490,051 6,464
  WR Grace & Co. 55,035 3,722
  Packaging Corp. of America 25,312 2,147
      289,262
Other (1.0%)    
^,2 Vanguard Growth ETF 974,900 108,682
 
Real Estate (0.9%)    
  Public Storage 181,621 40,592
  Macerich Co. 135,099 9,570
  Brixmor Property Group Inc. 361,660 8,832
  Communications Sales & Leasing Inc. 317,596 8,070
  Crown Castle International Corp. 84,670 7,347
  Prologis Inc. 89,327 4,716
  Regency Centers Corp. 61,212 4,220
  Equity LifeStyle Properties Inc. 55,842 4,026
  Duke Realty Corp. 125,789 3,341
  Simon Property Group Inc. 8,273 1,470
      92,184
Telecommunication Services (0.4%)    
* SBA Communications Corp. Class A 181,523 18,744
  Cogent Communications Holdings Inc. 316,654 13,094
*,^ Sprint Corp. 727,533 6,126

 

 

* T-Mobile US Inc.     53,313 3,066
          41,030
Total Common Stocks (Cost $7,958,254)       10,776,288
    Coupon      
Temporary Cash Investments (1.1%)1        
Money Market Fund (0.9%)        
3,4 Vanguard Market Liquidity Fund 0.823%   1,066,307 106,641
 
        Face  
      Maturity Amount  
      Date ($000)  
Repurchase Agreement (0.1%)        
  Bank of America Securities, LLC        
  (Dated 12/30/16, Repurchase Value        
  $5,900,000, collateralized by Government        
  National Mortgage Assn. 4.372%-4.410%,        
  12/20/66, with a value of $6,018,000) 0.480% 1/3/17 5,900 5,900
 
U.S. Government and Agency Obligations (0.1%)      
  United States Treasury Bill 0.314% 1/5/17 1,700 1,700
  United States Treasury Bill 0.320% 1/26/17 2,300 2,299
5 United States Treasury Bill 0.462%-0.478% 2/9/17 600 600
5 United States Treasury Bill 0.454% 4/20/17 2,100 2,097
          6,696
Total Temporary Cash Investments (Cost $119,234)     119,237
Total Investments (101.0%) (Cost $8,077,488)       10,895,525
Other Assets and Liabilities-Net (-1.0%)4       (104,759)
Net Assets (100%)       10,790,766

* Non-income-producing security.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $79,136,000.
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 99.9% and 1.1%, respectively, of net assets.
2 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
3 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by
Vanguard. Rate shown is the 7-day yield.
4 Includes $83,179,000 of collateral received for securities on loan.
5 Securities with a value of $949,000 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. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset

 

value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.

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

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

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 December 31, 2016, based on the inputs used to value them:

  Level 1 Level 2 Level 3
Investments ($000) ($000) ($000)
Common Stocks 10,634,952 141,336 —
Temporary Cash Investments 106,641 12,596 —
Futures Contracts—Liabilities1 (77) — —
Total 10,741,516 153,932 —

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 settlement values 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 December 31, 2016, 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 S&P 500 Index March 2017 41 4,584 (34)

 

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

F. At December 31, 2016, the cost of investment securities for tax purposes was $8,077,488,000. Net unrealized appreciation of investment securities for tax purposes was $2,818,037,000, consisting of unrealized gains of $2,940,151,000 on securities that had risen in value since their purchase and $122,114,000 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 MORGAN GROWTH FUND
 
By: /s/ F. WILLIAM MCNABB III*
  F. WILLIAM MCNABB III
  CHIEF EXECUTIVE OFFICER
 
Date: February 16, 2017  

 

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 MORGAN GROWTH FUND

 

By:

 /s/ F. WILLIAM MCNABB III*
  F. WILLIAM MCNABB III
  CHIEF EXECUTIVE OFFICER
Date:  February 16, 2017  

 

 

 VANGUARD MORGAN GROWTH FUND

 

By:

 /s/ THOMAS J. HIGGINS*
  THOMAS J. HIGGINS
  CHIEF FINANCIAL OFFICER
Date:  February 16, 2017  

 

*By: /s/ Anne E. Robinson
Anne E. Robinson, pursuant to a Power of Attorney filed on October 4, 2016, see File
Number 33-32548, Incorporated by Reference.