N-Q 1 quantitativefundsfinal.htm

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: 811-4526

Name of Registrant: Vanguard Quantitative Funds

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

Registrant’s telephone number, including area code: (610) 669-1000


Date of fiscal year end: September 30

Date of reporting period: December 31, 2005

Item 1: Schedule of Investments




Vanguard Growth & Income Fund
Schedule of Investments
December 31, 2005



Shares Market
Value
($000)

Common Stocks (98.4%)

       Consumer Discretionary (10.1%)    
       News Corp., Class A 9,109,000  141,645 
       Home Depot, Inc. 2,899,200  117,360 
       Lowe's Cos., Inc. 1,466,000  97,724 
       KB HOME 1,274,900  92,634 
       Black & Decker Corp. 649,600  56,489 
       Harley-Davidson, Inc. 980,200  50,470 
       Time Warner, Inc. 2,778,900  48,464 
    *^ The Goodyear Tire & Rubber Co. 2,407,900  41,849 
       Darden Restaurants Inc. 751,200  29,207 
       Federated Department Stores, Inc. 357,500  23,713 
       Dollar General Corp. 1,036,000  19,756 
     * AutoNation, Inc. 829,300  18,021 
       D. R. Horton, Inc. 214,000  7,646 

            744,978 

       Consumer Staples (7.5%)
       The Coca-Cola Co. 2,927,300  117,999 
       General Mills, Inc. 2,203,000  108,652 
       Wal-Mart Stores, Inc. 1,837,100  85,976 
       Kimberly-Clark Corp. 1,440,900  85,950 
       PepsiCo, Inc. 1,285,300  75,936 
       The Pepsi Bottling Group, Inc. 1,141,000  32,644 
       Safeway, Inc. 968,600  22,917 
       Brown-Forman Corp. Class B 129,800  8,998 
       ConAgra Foods, Inc. 416,000  8,436 
       The Clorox Co. 80,700  4,591 

            552,099 

       Energy (9.9%)
       ExxonMobil Corp. 5,878,536  330,197 
       ConocoPhillips Co. 2,539,600  147,754 
     * Nabors Industries, Inc. 1,245,400  94,339 
       Chevron Corp. 1,660,800  94,284 
       Anadarko Petroleum Corp. 291,400  27,610 
       Occidental Petroleum Corp. 151,300  12,086 
       Sunoco, Inc. 148,300  11,624 
       Burlington Resources, Inc. 112,400  9,689 

            727,583 

       Financial (22.0%)
       Bank of America Corp. 4,936,060  227,799 
       Lehman Brothers Holdings, Inc. 1,138,200  145,883 
       Prudential Financial, Inc. 1,720,700  125,938 
       Wachovia Corp. 2,360,550  124,779 
       Washington Mutual, Inc. 2,753,544  119,779 
       MetLife, Inc. 1,987,400  97,383 
       SunTrust Banks, Inc. 1,150,700  83,725 
       Wells Fargo & Co. 1,312,900  82,490 
       Countrywide Financial Corp. 2,078,100  71,050 
       U.S. Bancorp 2,083,200  62,267 
       American International Group, Inc. 835,458  57,003 
       Capital One Financial Corp. 602,900  52,091 
       Citigroup, Inc. 937,100  45,477 
       MBNA Corp. 1,655,700  44,952 
       MGIC Investment Corp. 635,000  41,796 
       SLM Corp. 738,300  40,673 
       Bear Stearns Co., Inc. 344,100  39,754 
       Cincinnati Financial Corp. 754,308  33,702 
       Merrill Lynch &Co., Inc. 409,300  27,722 
       National City Corp. 805,300  27,034 
       Franklin Resources Corp. 227,900  21,425 
       BB&T Corp. 440,900  18,478 
       The Goldman Sachs Group, Inc. 122,100  15,593 
       Charles Schwab Corp. 438,700  6,436 
       SAFECO Corp. 51,600  2,915 

            1,616,144 

       Health Care (13.5%)
       Johnson & Johnson 3,843,500  230,994 
     * Gilead Sciences, Inc. 2,444,500  128,654 
       Becton, Dickinson & Co. 2,104,500  126,438 
       Merck & Co., Inc. 3,545,900  112,795 
       Aetna Inc. 1,107,000  104,401 
       Pfizer Inc. 4,224,727  98,521 
     * Amgen, Inc. 685,500  54,058 
       CIGNA Corp. 437,600  48,880 
     * Caremark Rx, Inc. 862,300  44,658 
     * Express Scripts Inc. 380,700  31,903 
     * Hospira, Inc. 187,700  8,030 
     * King Pharmaceuticals, Inc. 389,400  6,589 

            995,921 

       Industrials (10.6%)
       General Electric Co. 4,981,600  174,605 
       General Dynamics Corp. 977,100  111,438 
       CSX Corp. 1,401,400  71,149 
       Norfolk Southern Corp. 1,358,900  60,919 
       Northrop Grumman Corp. 929,500  55,872 
       PACCAR, Inc. 683,300  47,305 
       Lockheed Martin Corp. 742,600  47,252 
       3M Co. 591,600  45,849 
       Cendant Corp. 2,594,100  44,748 
       Cummins Inc. 396,700  35,596 
       Avery Dennison Corp. 433,500  23,960 
       R.R. Donnelley & Sons Co. 592,300  20,263 
       Illinois Tool Works, Inc. 199,200  17,528 
       Ingersoll-Rand Co. 252,200  10,181 
       Waste Management, Inc. 198,700  6,031 
       United Technologies Corp. 86,900  4,859 
       Robert Half International, Inc. 111,300  4,217 

            781,772 

       Information Technology (15.7%)
       Intel Corp. 8,313,300  207,500 
       International Business Machines Corp. 2,228,500  183,183 
       Motorola, Inc. 6,827,331  154,229 
     * EMC Corp. 9,547,300  130,034 
       Microsoft Corp. 3,069,626  80,271 
     * Apple Computer, Inc. 905,600  65,104 
       National Semiconductor Corp. 2,297,000  59,676 
     * NCR Corp. 1,441,400  48,921 
     * Network Appliance, Inc. 1,673,400  45,182 
     * Compuware Corp. 4,681,700  41,995 
       Texas Instruments, Inc. 1,192,800  38,253 
     * Fiserv, Inc. 739,100  31,981 
     * Jabil Circuit, Inc. 795,700  29,513 
       Hewlett-Packard Co. 649,600  18,598 
     * NVIDIA Corp. 388,300  14,196 
     * Corning, Inc. 465,200  9,146 

            1,157,782 

       Materials (3.3%)
       Phelps Dodge Corp. 642,600  92,451 
       Rohm & Haas Co. 1,267,500  61,372 
       Freeport-McMoRan Copper & Gold, Inc. Cla 724,600  38,983 
       Nucor Corp. 544,100  36,302 
       Dow Chemical Co. 252,400  11,060 

            240,168 

       Telecommunication Services (2.1%)
       AT&T Inc. 3,597,000  88,090 
       Verizon Communications Inc. 1,248,800  37,614 
       CenturyTel, Inc. 732,200  24,280 

            149,984 

       Utilities (3.7%)
       Edison International 2,562,300  111,742 
       Duke Energy Corp. 3,102,900  85,175 
       TXU Corp. 777,800  39,038 
       Constellation Energy Group, Inc. 656,600  37,820 

            273,775 


       Total Common Stocks
        (Cost $6,007,033)    7,240,206 

       Temporary Cash Investments (1.4%)

       Money Market Fund (1.3%)
    ** Vanguard Market Liquidity Fund, 4.274% 99,990,883  99,991 

         Face  
         Amount  
         ($000) 

       U.S. Government Obligation (0.1%)      
       U.S. Treasury Bill
    (1)3.811%, 3/16/06 4,905  4,866 

       Total Temporary Cash Investments
        (Cost $104,858)    104,857 

       Total Investments (99.8%)
        (Cost $6,111,891)    7,345,063 

       Other Assets and Liabilities--Net (0.2%)    11,655 

       Net Assets (100%)    7,356,718 



*Non-income-producing security.
^Part of security position is on loan to broker/dealers.
**Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard.
Rate shown is the 7-day yield.
(1)Securities with a value of $4,866,000 have been segregated as initial margin for open futures contracts.

Investment Securities: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4:00 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 materially affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. 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.

At December 31, 2005, the cost of investment securities for tax purposes was $6,111,891,000. Net unrealized appreciation of investment securities for tax purposes was $1,233,172,000, consisting of unrealized gains of $1,302,793,000 on securities that had risen in value since their purchase and $69,621,000 in unrealized losses on securities that had fallen in value since their purchase.

Futures Contracts: 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 99.6% and 0.2%, respectively, of net assets. Futures contracts are valued at their quoted daily settlement prices.

At December 31, 2005, the aggregate settlement value of open futures contracts expiring in March 2006, and the related unrealized appreciation (depreciation) were:



($000)
Futures Contracts Number
of
Long Contracts
Aggregate
Settlement
Value
Unrealized
Appreciation
(Depreciation)

S&P 500 Index 289  90,659  (1,801)


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


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.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

VANGUARD QUANTITATIVE FUNDS

BY: (signature)
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER

Date: February 16, 2006

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 QUANTITATIVE FUNDS

BY: (signature)
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER

Date: February 16, 2006

VANGUARD QUANTITATIVE FUNDS

BY: (signature)
(HEIDI STAM)
THOMAS J. HIGGINS*
TREASURER

Date: February 16, 2006

*By Power of Attorney. See File Number 2-31333, filed on January 23, 2006. Incorporated by Reference.