Share Classes1 | ||||
Fund2 | Investor | Admiral | Institutional | ETF |
Vanguard Dividend Appreciation Index Fund | — | VDADX | — | VIG |
Vanguard Dividend Growth Fund | VDIGX | — | — | — |
Vanguard Energy Fund | VGENX | VGELX | — | — |
Vanguard Global Capital Cycles Fund3 | VGPMX | — | — | — |
Vanguard Global ESG Select Stock Fund | VEIGX | VESGX | — | — |
Vanguard Health Care Fund | VGHCX | VGHAX | — | — |
Vanguard Real Estate Index Fund4 | VGSIX | VGSLX | VGSNX | VNQ |
1 | Individually, a class; collectively, the classes. |
2 | Individually, a Fund; collectively, the Funds. |
3 | Prior to September 26, 2018, the Fund was named Vanguard Precious Metals and Mining Fund. |
4 | Prior to May 25, 2018, the Fund was named Vanguard REIT Index Fund. |
Vanguard Fund | Capital Contribution to Vanguard |
Percentage
of Fund’s Average Net Assets |
Percent
of Vanguard Funds’ Contribution |
Dividend Appreciation Index Fund | $2,286,000 | Less than 0.01% | 0.91% |
Dividend Growth Fund | 1,843,000 | Less than 0.01 | 0.74 |
Energy Fund | 300,000 | Less than 0.01 | 0.12 |
Global Capital Cycles Fund | 57,000 | Less than 0.01 | 0.02 |
Global ESG Select Stock Fund | 4,000 | Less than 0.01 | Less than 0.01 |
Health Care Fund | 2,115,000 | Less than 0.01 | 0.85 |
Real Estate Index Fund | 2,738,000 | Less than 0.01 | 1.10 |
■ | Conducting or publishing Vanguard-generated research and analysis concerning the funds, other investments, the financial markets, or the economy. |
■ | Providing views, opinions, advice, or commentary concerning the funds, other investments, the financial markets, or the economy. |
■ | Providing analytical, statistical, performance, or other information concerning the funds, other investments, the financial markets, or the economy. |
■ | Providing administrative services in connection with investments in the funds or other investments, including, but not limited to, shareholder services, recordkeeping services, and educational services. |
■ | Providing products or services that assist investors or financial service providers (as defined below) in the investment decision-making process. |
■ | Providing promotional discounts, commission-free trading, fee waivers, and other benefits to clients of Vanguard Brokerage Services® who maintain qualifying investments in the funds. |
Annual Shared Fund Operating Expenses (Shared Expenses Deducted From Fund Assets) | |||
Vanguard Fund | 2018 | 2019 | 2020 |
Vanguard Dividend Appreciation Index Fund | |||
Management and Administrative Expenses | 0.07% | 0.06% | 0.06% |
Marketing and Distribution Expenses | Less than 0.01 | Less than 0.01 | Less than 0.01 |
Vanguard Dividend Growth Fund | |||
Management and Administrative Expenses | 0.12% | 0.13% | 0.13% |
Marketing and Distribution Expenses | 0.01 | 0.01 | 0.01 |
Vanguard Energy Fund | |||
Management and Administrative Expenses | 0.15% | 0.15% | 0.17% |
Marketing and Distribution Expenses | 0.01 | 0.01 | 0.01 |
Vanguard Global Capital Cycles Fund | |||
Management and Administrative Expenses | 0.20% | 0.20% | 0.21% |
Marketing and Distribution Expenses | 0.02 | 0.02 | 0.01 |
Vanguard Global ESG Select Stock Fund | |||
Management and Administrative Expenses | — | — | 0.14% |
Marketing and Distribution Expenses | — | — | Less than 0.01 |
Vanguard Health Care Fund | |||
Management and Administrative Expenses | 0.14% | 0.14% | 0.14% |
Marketing and Distribution Expenses | 0.01 | 0.01 | Less than 0.01 |
Vanguard Real Estate Index Fund | |||
Management and Administrative Expenses | 0.11% | 0.11% | 0.11% |
Marketing and Distribution Expenses | 0.01 | 0.01 | 0.01 |
Name, Year of Birth | Position(s) Held With Funds |
Vanguard Funds’ Trustee/ Officer Since |
Principal
Occupation(s) During the Past Five Years, Outside Directorships, and Other Experience |
Number
of Vanguard Funds Overseen by Trustee/Officer |
Interested Trustee1 | ||||
Mortimer
J. Buckley (1969) |
Chairman of the Board, Chief Executive Officer, and President | January 2018 | Chairman of the board (2019–present) of Vanguard and of each of the investment companies served by Vanguard; chief executive officer (2018– present) of Vanguard; chief executive officer, president, and trustee (2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Chairman of the board (2011–2017) and trustee (2009–2017) of the Children’s Hospital of Philadelphia; and trustee (2018–present) and vice chair (2019–present) of The Shipley School. | 213 |
1 Mr. Buckley is considered an “interested person” as defined in the 1940 Act because he is an officer of the Trust. | ||||
Independent Trustees | ||||
Emerson
U. Fullwood (1948) |
Trustee | January 2008 | Executive chief staff and marketing officer for North America and corporate vice president (retired 2008) of Xerox Corporation (document management products and services). Former president of the Worldwide Channels Group, Latin America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Director of SPX FLOW, Inc. (multi-industry manufacturing). Director of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, and Roberts Wesleyan College. Trustee of the University of Rochester. | 213 |
Amy
Gutmann (1949) |
Trustee | June 2006 | President (2004–present) of the University of Pennsylvania. Christopher H. Browne Distinguished Professor of Political Science, School of Arts and Sciences, and professor of communication, Annenberg School for Communication, with secondary faculty appointments in the Department of Philosophy, School of Arts and Sciences, and at the Graduate School of Education, University of Pennsylvania. | 213 |
F.
Joseph Loughrey (1949) |
Trustee | October 2009 | President and chief operating officer (retired 2009) and vice chairman of the board (2008–2009) of Cummins Inc. (industrial machinery). Chairman of the board of Hillenbrand, Inc. (specialized consumer services) and the Lumina Foundation. Director of the V Foundation. Member of the advisory council for the College of Arts and Letters and chair of the advisory board to the Kellogg Institute for International Studies, both at the University of Notre Dame. | 213 |
Mark
Loughridge (1953) |
Lead Independent Trustee | March 2012 | Senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM’s Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth. | 213 |
Name, Year of Birth | Position(s) Held With Funds |
Vanguard Funds’ Trustee/ Officer Since |
Principal
Occupation(s) During the Past Five Years, Outside Directorships, and Other Experience |
Number
of Vanguard Funds Overseen by Trustee/Officer |
Scott
C. Malpass (1962) |
Trustee | March 2012 | Chief investment officer (1989–present) and vice president (1996–present) of the University of Notre Dame. Assistant professor of finance at the Mendoza College of Business, University of Notre Dame, and member of the Notre Dame 403(b) Investment Committee. Member of the board of TIFF Advisory Services, Inc. Member of the board of Catholic Investment Services, Inc. (investment advisors) and the board of superintendence of the Institute for the Works of Religion. | 213 |
Deanna
Mulligan (1963) |
Trustee | January 2018 | Chief executive officer (2011–present) of The Guardian Life Insurance Company of America. President (2010–2019), chief operating officer (2010–2011), and executive vice president (2008–2010) of Individual Life and Disability of The Guardian Life Insurance Company of America. Member of the board of The Guardian Life Insurance Company of America, the American Council of Life Insurers, and the Economic Club of New York. Trustee of the Partnership for New York City (business leadership), the Chief Executives for Corporate Purpose, the NewYork-Presbyterian Hospital, Catalyst, and the Bruce Museum (arts and science). Member of the Advisory Council for the Stanford Graduate School of Business. | 213 |
André
F. Perold (1952) |
Trustee | December 2004 | George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and co-managing partner of HighVista Strategies LLC (private investment firm). Board of Advisors and investment committee member of the Museum of Fine Arts Boston. Board member (2018–present) of RIT Capital Partners (investment firm); investment committee member of Partners Health Care System. | 213 |
Sarah
Bloom Raskin (1961) |
Trustee | January 2018 | Deputy secretary (2014–2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of financial regulation for the State of Maryland. Member of the board of directors (2012–2014) of Neighborhood Reinvestment Corporation. Director (2017–present) of i(x) Investments, LLC; director (2017–present) of Reserve Trust. Rubenstein Fellow (2017–present) of Duke University; trustee (2017–present) of Amherst College; and trustee (2019–present) of Folger Shakespeare Library. | 213 |
Peter
F. Volanakis (1955) |
Trustee | July 2009 | President and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Chairman of the board of trustees of Colby-Sawyer College. Member of the board of Hypertherm Inc. (industrial cutting systems, software, and consumables). | 213 |
Name, Year of Birth | Position(s) Held With Funds |
Vanguard Funds’ Trustee/ Officer Since |
Principal
Occupation(s) During the Past Five Years, Outside Directorships, and Other Experience |
Number
of Vanguard Funds Overseen by Trustee/Officer |
Executive Officers | ||||
John
Bendl (1970) |
Chief Financial Officer | October 2019 | Principal of Vanguard. Chief financial officer (2019–present) of each of the investment companies served by Vanguard. Chief accounting officer, treasurer, and controller of Vanguard (2017–present). Partner (2003–2016) at KPMG (audit, tax, and advisory services). | 213 |
Glenn
Booraem (1967) |
Investment Stewardship Officer | February 2001 | Principal of Vanguard. Investment stewardship officer (2017–present), treasurer (2015–2017), controller (2010–2015), and assistant controller (2001–2010) of each of the investment companies served by Vanguard. | 213 |
Christine
M. Buchanan (1970) |
Treasurer | November 2017 | Principal of Vanguard. Treasurer (2017–present) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG (audit, tax, and advisory services). | 213 |
David
Cermak (1960) |
Finance Director | October 2019 | Principal of Vanguard. Finance director (2019–present) of each of the investment companies served by Vanguard. Managing director and head (2017–present) of Vanguard Investments Singapore. Managing director and head (2017–2019) of Vanguard Investments Hong Kong. Representative director and head (2014–2017) of Vanguard Investments Japan. | 213 |
Thomas
J. Higgins (1957) |
Finance Director | July 1998 | Principal of Vanguard. Finance director (2019–present), chief financial officer (2008–2019), and treasurer (1998–2008) of each of the investment companies served by Vanguard. | 213 |
Peter
Mahoney (1974) |
Controller | May 2015 | Principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008– 2014) at Vanguard. | 213 |
Anne
E. Robinson (1970) |
Secretary | September 2016 | General counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express. | 213 |
Michael
Rollings (1963) |
Finance Director | February 2017 | Finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group. | 213 |
John
E. Schadl (1972) |
Chief Compliance Officer | March 2019 | Principal of Vanguard. Chief compliance officer (2019–present) of Vanguard and of each of the investment companies served by Vanguard. Assistant vice president (2019–present) of Vanguard Marketing Corporation. | 213 |
■ | Audit Committee: This committee oversees the accounting and financial reporting policies, the systems of internal controls, and the independent audits of each fund. The following independent trustees serve as members of the committee: Mr. Loughrey, Mr. Loughridge, Ms. Raskin, and Mr. Volanakis. The committee held six meetings during the Trust’s fiscal year ended January 31, 2020. |
■ | Compensation Committee: This committee oversees the compensation programs established by each fund for the benefit of its trustees. All independent trustees serve as members of the committee. The committee held one meeting during the Trust’s fiscal year ended January 31, 2020. |
■ | Investment Committees: These committees assist the board in its oversight of investment advisors to the funds and in the review and evaluation of materials relating to the board’s consideration of investment advisory agreements with the funds. Each trustee serves on one of two investment committees. Each investment committee held four meetings during the Trust’s fiscal year ended January 31, 2020. |
■ | Nominating Committee: This committee nominates candidates for election to the board of trustees of each fund. The committee also has the authority to recommend the removal of any trustee. All independent trustees serve as members of the committee. The committee held one meeting during the Trust’s fiscal year ended January 31, 2020. |
■ | The independent trustees receive an annual fee for their service to the funds, which is subject to reduction based on absences from scheduled board meetings. |
■ | The independent trustees are reimbursed for the travel and other expenses that they incur in attending board meetings. |
■ | Upon retirement (after attaining age 65 and completing five years of service), the independent trustees who began their service prior to January 1, 2001, receive a retirement benefit under a separate account arrangement. As of January 1, 2001, the opening balance of each eligible trustee’s separate account was generally equal to the net present value of the benefits he or she had accrued under the trustees’ former retirement plan. Each eligible trustee’s separate account will be credited annually with interest at a rate of 7.5% until the trustee receives his or her final distribution. Those independent trustees who began their service on or after January 1, 2001, are not eligible to participate in the plan. |
Trustee | Aggregate Compensation From the Funds1 |
Pension
or Retirement Benefits Accrued as Part of the Funds’ Expenses1 |
Accrued
Annual Retirement Benefit at January 1, 20202 |
Total
Compensation From All Vanguard Funds Paid to Trustees3 |
Mortimer J. Buckley | — | — | — | — |
Emerson U. Fullwood | $17,001 | — | — | $287,500 |
Amy Gutmann | 17,001 | — | — | 287,500 |
JoAnn Heffernan Heisen4 | — | $338 | $9,329 | — |
F. Joseph Loughrey | 18,184 | — | — | 307,500 |
Mark Loughridge | 21,138 | — | — | 357,500 |
Scott C. Malpass | 17,001 | — | — | 287,500 |
Deanna Mulligan | 17,001 | — | — | 287,500 |
André F. Perold | 17,001 | — | — | 287,500 |
Sarah Bloom Raskin | 18,184 | — | — | 307,500 |
Peter F. Volanakis | 18,184 | — | — | 307,500 |
1 | The amounts shown in this column are based on the Trust’s fiscal year ended January 31, 2020. Each Fund within the Trust is responsible for a proportionate share of these amounts. |
2 | Each trustee is eligible to receive retirement benefits only after completing at least 5 years (60 consecutive months) of service as a trustee for the Vanguard funds. The annual retirement benefit will be paid in monthly installments, beginning with the month following the trustee’s retirement from service, and will cease after 10 years of payments (120 monthly installments). Trustees who began their service on or after January 1, 2001, are not eligible to participate in the retirement benefit plan. |
3 | The amounts reported in this column reflect the total compensation paid to each trustee for his or her service as trustee of 213 Vanguard funds for the 2019 calendar year. |
4 | Ms. Heisen retired from service effective December 31, 2018. |
Vanguard Fund | Trustee | Dollar
Range of Fund Shares Owned by Trustee |
Aggregate
Dollar Range of Vanguard Fund Shares Owned by Trustee |
Vanguard Dividend Appreciation Index Fund | Mortimer J. Buckley | — | Over $100,000 |
Emerson U. Fullwood | — | Over $100,000 | |
Amy Gutmann | — | Over $100,000 | |
F. Joseph Loughrey | Over $100,000 | Over $100,000 | |
Mark Loughridge | — | Over $100,000 | |
Scott C. Malpass | — | Over $100,000 | |
Deanna Mulligan | — | Over $100,000 | |
André F. Perold | — | Over $100,000 | |
Sarah Bloom Raskin | Over $100,000 | Over $100,000 | |
Peter F. Volanakis | Over $100,000 | Over $100,000 | |
Vanguard Fund | Trustee | Dollar
Range of Fund Shares Owned by Trustee |
Aggregate
Dollar Range of Vanguard Fund Shares Owned by Trustee |
Vanguard Dividend Growth Fund | Mortimer J. Buckley | — | Over $100,000 |
Emerson U. Fullwood | — | Over $100,000 | |
Amy Gutmann | — | Over $100,000 | |
F. Joseph Loughrey | — | Over $100,000 | |
Mark Loughridge | — | Over $100,000 | |
Scott C. Malpass | — | Over $100,000 | |
Deanna Mulligan | Over $100,000 | Over $100,000 | |
André F. Perold | — | Over $100,000 | |
Sarah Bloom Raskin | — | Over $100,000 | |
Peter F. Volanakis | Over $100,000 | Over $100,000 | |
Vanguard Energy Fund | Mortimer J. Buckley | — | Over $100,000 |
Emerson U. Fullwood | — | Over $100,000 | |
Amy Gutmann | — | Over $100,000 | |
F. Joseph Loughrey | — | Over $100,000 | |
Mark Loughridge | — | Over $100,000 | |
Scott C. Malpass | — | Over $100,000 | |
Deanna Mulligan | — | Over $100,000 | |
André F. Perold | — | Over $100,000 | |
Sarah Bloom Raskin | — | Over $100,000 | |
Peter F. Volanakis | — | Over $100,000 | |
Vanguard Global Capital Cycles Fund | Mortimer J. Buckley | — | Over $100,000 |
Emerson U. Fullwood | — | Over $100,000 | |
Amy Gutmann | — | Over $100,000 | |
F. Joseph Loughrey | — | Over $100,000 | |
Mark Loughridge | — | Over $100,000 | |
Scott C. Malpass | — | Over $100,000 | |
Deanna Mulligan | — | Over $100,000 | |
André F. Perold | — | Over $100,000 | |
Sarah Bloom Raskin | — | Over $100,000 | |
Peter F. Volanakis | — | Over $100,000 | |
Vanguard Global ESG Select Stock Fund | Mortimer J. Buckley | Over $100,000 | Over $100,000 |
Emerson U. Fullwood | — | Over $100,000 | |
Amy Gutmann | — | Over $100,000 | |
F. Joseph Loughrey | — | Over $100,000 | |
Mark Loughridge | — | Over $100,000 | |
Scott C. Malpass | — | Over $100,000 | |
Deanna Mulligan | — | Over $100,000 | |
André F. Perold | — | Over $100,000 | |
Sarah Bloom Raskin | — | Over $100,000 | |
Peter F. Volanakis | — | Over $100,000 | |
Vanguard Fund | Trustee | Dollar
Range of Fund Shares Owned by Trustee |
Aggregate
Dollar Range of Vanguard Fund Shares Owned by Trustee |
Vanguard Health Care Fund | Mortimer J. Buckley | Over $100,000 | Over $100,000 |
Emerson U. Fullwood | Over $100,000 | Over $100,000 | |
Amy Gutmann | — | Over $100,000 | |
F. Joseph Loughrey | — | Over $100,000 | |
Mark Loughridge | — | Over $100,000 | |
Scott C. Malpass | — | Over $100,000 | |
Deanna Mulligan | — | Over $100,000 | |
André F. Perold | — | Over $100,000 | |
Sarah Bloom Raskin | — | Over $100,000 | |
Peter F. Volanakis | — | Over $100,000 | |
Vanguard Real Estate Index Fund | Mortimer J. Buckley | — | Over $100,000 |
Emerson U. Fullwood | — | Over $100,000 | |
Amy Gutmann | — | Over $100,000 | |
F. Joseph Loughrey | — | Over $100,000 | |
Mark Loughridge | — | Over $100,000 | |
Scott C. Malpass | — | Over $100,000 | |
Deanna Mulligan | — | Over $100,000 | |
André F. Perold | — | Over $100,000 | |
Sarah Bloom Raskin | $1 – $10,000 | Over $100,000 | |
Peter F. Volanakis | — | Over $100,000 |
Fund | Share Class | Owner and Address | Percentage of Ownership |
Vanguard Dividend Appreciation Index Fund | Admiral Shares | CHARLES SCHWAB & CO INC SAN FRANCISCO, CA | 5.54% |
NATIONAL FINANCIAL SERVICES CORPORATION JERSEY CITY, NJ | 10.41% | ||
Vanguard Dividend Growth Fund | Investor Shares | CHARLES SCHWAB & CO INC SAN FRANCISCO, CA | 11.06% |
NATIONAL FINANCIAL SERVICES CORPORATION JERSEY CITY, NJ | 14.45% | ||
Vanguard Energy Fund | Investor Shares | CHARLES SCHWAB & CO INC SAN FRANCISCO, CA | 9.85% |
NATIONAL FINANCIAL SERVICES CORPORATION JERSEY CITY, NJ | 7.23% | ||
Admiral Shares | NATIONAL FINANCIAL SERVICES CORPORATION JERSEY CITY, NJ | 6.16% | |
Vanguard Global ESG Select Stock Fund | Admiral Shares | CHARLES SCHWAB & CO INC SAN FRANCISCO, CA | 6.86% |
Vanguard Health Care Fund | Investor Shares | CHARLES SCHWAB & CO INC SAN FRANCISCO, CA | 14.27% |
NATIONAL FINANCIAL SERVICES CORPORATION JERSEY CITY, NJ | 9.58% |
Fund | Share Class | Owner and Address | Percentage of Ownership |
Vanguard Real Estate Index Fund | Admiral Shares | CHARLES SCHWAB & CO INC SAN FRANCISCO, CA | 7.30% |
NATIONAL FINANCIAL SERVICES CORPORATION JERSEY CITY, NJ | 5.07% | ||
Institutional Shares | CHARLES SCHWAB & CO INC SAN FRANCISCO, CA | 5.83% | |
FIDELITY INVESTMENTS INSTITUTIONAL OPERATIONS CO COVINGTON, KY | 9.16% | ||
NATIONAL FINANCIAL SERVICES CORPORATION JERSEY CITY, NJ | 7.80% | ||
TIAA, FSB SAINT LOUIS, MO | 8.68% | ||
Investor Shares | ASCENSUS TRUST COMPANY FARGO, ND | 19.25% | |
JOHNS HOPKINS UNIVERSITY 403(B) PLAN BALTIMORE, MD | 7.15% | ||
UNIVERSITY OF PENNSYLVANIA MATCHING PLAN PHILADELPHIA, PA | 7.80% |
Fund | Owner | Percentage of Ownership |
Vanguard Dividend Appreciation ETF | Charles Schwab & Co., Inc. | 15.42% |
Merrill Lynch, Pierce, Fenner & Smith Incorporated | 10.90% | |
Morgan Stanley DW Inc. | 5.47% | |
National Financial Services LLC | 12.05% | |
Pershing LLC | 5.14% | |
TD Ameritrade Clearing, Inc. | 6.25% | |
Vanguard Marketing Corporation | 7.14% | |
Vanguard Real Estate ETF | Charles Schwab & Co., Inc. | 15.18% |
JPMorgan Chase Bank, National Association | 6.54% | |
National Financial Services LLC | 11.54% | |
Pershing LLC | 5.32% | |
TD Ameritrade Clearing, Inc. | 8.61% | |
Vanguard Marketing Corporation | 6.00% |
■ | Wellington Management Company LLP (Wellington Management) provides investment advisory services to Vanguard Global Capital Cycles Fund, Vanguard Global ESG Select Stock Fund, Vanguard Dividend Growth Fund, and Vanguard Health Care Fund and for a portion of Vanguard Energy Fund. |
■ | Vanguard provides investment advisory services to Vanguard Dividend Appreciation Index Fund and Vanguard Real Estate Index Fund and for a portion of Vanguard Energy Fund. |
Vanguard Fund | 2018 | 2019 | 2020 |
Dividend Appreciation Index Fund | $3,298,000 | $3,755,000 | $3,563,000 |
Real Estate Index Fund | 4,269,000 | 4,486,000 | 4,147,000 |
Portfolio Manager | No.
of accounts |
Total assets | No.
of accounts with performance-based fees |
Total
assets in accounts with performance-based fees | |
Walter Nejman | Registered investment companies1 | 50 | $1.9T | 0 | 0 |
Other pooled investment vehicles | 2 | $2.5B | 0 | 0 | |
Other accounts | 1 | $1B | 0 | 0 | |
Gerard C. O’Reilly | Registered investment companies1 | 18 | $1.5T | 0 | 0 |
Other pooled investment vehicles | 1 | $464M | 0 | 0 | |
Other accounts | 0 | 0 | 0 | 0 |
1 | Includes Vanguard Dividend Appreciation Fund and Real Estate Index Fund which collectively held assets of $123 billion as of January 31, 2020. |
Portfolio Manager | No.
of accounts |
Total assets | No.
of accounts with performance-based fees |
Total
assets in accounts with performance-based fees | |
G. Thomas Levering | Registered investment companies1 | 14 | $7.1B | 1 | $6.2B |
Other pooled investment vehicles | 47 | $2.3B | 15 | $1.3B | |
Other accounts | 60 | $1.8B | 13 | $409M |
1 | Includes Vanguard Energy Fund which held assets of $6.2 billion as of January 31, 2020. |
Portfolio Manager | No.
of accounts |
Total assets | No.
of accounts with performance-based fees |
Total
assets in accounts with performance-based fees | |
James P. Stetler | Registered investment companies1 | 13 | $163B | 0 | 0 |
Other pooled investment vehicles | 2 | $259M | 0 | 0 | |
Other accounts | 0 | 0 | 0 | 0 | |
Binbin Guo | Registered investment companies1 | 13 | $163B | 0 | 0 |
Other pooled investment vehicles | 2 | $259M | 0 | 0 | |
Other accounts | 0 | 0 | 0 | 0 |
1 | Includes Vanguard Energy Fund which held assets of $6.2 billion as of January 31, 2020. |
Portfolio Manager | No.
of accounts |
Total assets | No.
of accounts with performance-based fees |
Total
assets in accounts with performance-based fees | |
Keith E. White | Registered investment companies1 | 2 | $1.4B | 1 | $1.2B |
Other pooled investment vehicles | 5 | $433M | 5 | $433M | |
Other accounts | 0 | 0 | 0 | 0 | |
Donald J. Kilbride | Registered investment companies2 | 10 | $55B | 1 | $43B |
Other pooled investment vehicles | 10 | $468M | 1 | $15.6M | |
Other accounts | 28 | $3.4B | 3 | $1.2B | |
Jean M. Hynes | Registered investment companies3 | 5 | $47B | 1 | $47B |
Other pooled investment vehicles | 24 | $5.9B | 11 | $2.1B | |
Other accounts | 6 | $2.8B | 2 | $2.1B | |
Mark D. Mandel | Registered investment companies4 | 1 | $107M | 1 | $107M |
Other pooled investment vehicles | 3 | $77M | 0 | 0 | |
Other accounts | 0 | 0 | 0 | 0 | |
Yolanda C. Courtines | Registered investment companies4 | 1 | $107M | 1 | $107M |
Other pooled investment vehicles | 3 | $77M | 0 | 0 | |
Other accounts | 0 | 0 | 0 | 0 |
1 | Includes Vanguard Global Capital Cycles Fund which held assets of $1.2 billion as of January 31, 2020. |
2 | Includes Vanguard Dividend Growth Fund which held assets of $43 billion as of January 31, 2020. |
3 | Includes Vanguard Health Care Fund which held assets of $47 billion as of January 31, 2020. |
4 | Includes Vanguard Global ESG Select Stock Fund which held assets of $107 million as of January 31, 2020. |
Vanguard Fund | Securities Lending Activities |
Dividend Appreciation Index Fund | |
Gross income from securities lending activities | $662,396 |
Fees paid to securities lending agent from a revenue split | $0 |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split | $1,380 |
Administrative fees not included in revenue split | $2,067 |
Indemnification fee not included in revenue split | $0 |
Rebate (paid to borrower) | $523,695 |
Other fees not included in revenue split (specify) | $0 |
Aggregate fees/compensation for securities lending activities | $527,142 |
Net income from securities lending activities | $135,254 |
Dividend Growth Fund | |
Gross income from securities lending activities | $1,758,772 |
Fees paid to securities lending agent from a revenue split | $0 |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split | $1,357 |
Administrative fees not included in revenue split | $14,863 |
Indemnification fee not included in revenue split | $0 |
Rebate (paid to borrower) | $407,401 |
Other fees not included in revenue split (specify) | $0 |
Aggregate fees/compensation for securities lending activities | $423,621 |
Net income from securities lending activities | $1,335,151 |
Energy Fund | |
Gross income from securities lending activities | $1,879,178 |
Fees paid to securities lending agent from a revenue split | $0 |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split | $4,034 |
Administrative fees not included in revenue split | $10,213 |
Indemnification fee not included in revenue split | $0 |
Rebate (paid to borrower) | $1,131,682 |
Other fees not included in revenue split (specify) | $0 |
Aggregate fees/compensation for securities lending activities | $1,145,929 |
Net income from securities lending activities | $733,249 |
Global Capital Cycles Fund | |
Gross income from securities lending activities | $360,098 |
Fees paid to securities lending agent from a revenue split | $0 |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split | $680 |
Administrative fees not included in revenue split | $2,196 |
Indemnification fee not included in revenue split | $0 |
Rebate (paid to borrower) | $189,049 |
Other fees not included in revenue split (specify) | $0 |
Aggregate fees/compensation for securities lending activities | $191,925 |
Net income from securities lending activities | $168,173 |
Vanguard Fund | Securities Lending Activities |
Health Care Fund | |
Gross income from securities lending activities | $11,680,901 |
Fees paid to securities lending agent from a revenue split | $0 |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split | $7,327 |
Administrative fees not included in revenue split | $96,626 |
Indemnification fee not included in revenue split | $0 |
Rebate (paid to borrower) | $2,327,028 |
Other fees not included in revenue split (specify) | $0 |
Aggregate fees/compensation for securities lending activities | $2,430,981 |
Net income from securities lending activities | $9,249,920 |
Real Estate Index Fund | |
Gross income from securities lending activities | $5,585,983 |
Fees paid to securities lending agent from a revenue split | $0 |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split | $9,150 |
Administrative fees not included in revenue split | $60,412 |
Indemnification fee not included in revenue split | $0 |
Rebate (paid to borrower) | $1,351,886 |
Other fees not included in revenue split (specify) | $0 |
Aggregate fees/compensation for securities lending activities | $1,421,448 |
Net income from securities lending activities | $4,164,535 |
Vanguard Fund | 2018 | 2019 | 2020 |
Dividend Appreciation Index Fund | $230,000 | $353,000 | $486,000 |
Dividend Growth Fund | 2,814,000 | 3,333,000 | 2,021,000 |
Energy Fund | 4,783,000 | 4,228,000 | 3,756,000 |
Global Capital Cycles Fund1 | 864,000 | 36,670,000 | 1,400,000 |
Global ESG Select Stock Fund | — | — | 23,000 |
Health Care Fund | 5,543,000 | 6,932,000 | 9,823,000 |
Real Estate Index Fund | 1,299,000 | 2,063,000 | 1,030,000 |
1 | The increase in brokerage commissions in 2019 was the result of increased trading related to the change in the Fund’s strategy. |
Vanguard Fund | Regular Broker or Dealer (or Parent) | Aggregate Holdings |
Vanguard Dividend Appreciation Index Fund | — | — |
Vanguard Dividend Growth Fund | Societe Generale | $140,900,000 |
Vanguard Energy Fund | Societe Generale | 28,300,000 |
Vanguard Global Capital Cycles Fund | Merrill Lynch, Pierce, Fenner & Smith Inc. | 47,244,000 |
UBS Securities LLC | 27,282,000 | |
Vanguard Global ESG Select Stock Fund | — | — |
Vanguard Health Care Fund | Barclays Capital Inc. | 152,800,000 |
BNP Paribas Securities Corp. | 77,700,000 | |
HSBC Securities (USA) Inc. | 85,800,000 | |
Merrill Lynch, Pierce, Fenner & Smith Inc. | 32,600,000 | |
Nomura Securities International Inc. | 79,200,000 | |
RBC Capital Markets | 40,700,000 | |
SCOTIA CAPITAL INC. | 194,900,000 | |
Wells Fargo Securities, LLC | 79,000,000 | |
Vanguard Real Estate Index Fund | — | — |
■ | The conversion process can take anywhere from several days to several weeks, depending on the broker. Vanguard generally will process conversion requests either on the day they are received or on the next business day. Vanguard imposes conversion blackout windows around the dates when an ETF Fund declares dividends. This is necessary to prevent a shareholder from collecting a dividend from both the conventional share class currently held and also from the ETF share class to which the shares will be converted. |
■ | During the conversion process, an investor will remain fully invested in the Fund‘s conventional shares, and the investment will increase or decrease in value in tandem with the NAV of those shares. |
■ | The conversion transaction is nontaxable except, if applicable, to the very limited extent previously described. |
■ | During the conversion process, an investor will be able to liquidate all or part of an investment by instructing Vanguard or the broker (depending on whether the shares are held in the investor’s account or the broker‘s omnibus account) to redeem the conventional shares. After the conversion process is complete, an investor will be able to liquidate all or part of an investment by instructing the broker to sell the ETF Shares. |
■ | The order is not in proper form. |
■ | The Deposit Securities delivered are not the same (in name or amount) as the published basket. |
■ | Acceptance of the Deposit Securities would have certain adverse tax consequences to the ETF Fund. |
■ | Acceptance of the fund deposit would, in the opinion of counsel, be unlawful. |
■ | Acceptance of the fund deposit would otherwise, at the discretion of the ETF Fund or Vanguard, have an adverse effect on the Fund or any of its shareholders. |
■ | Circumstances outside the control of the ETF Fund, the Trust, the transfer agent, the custodian, the Distributor, and Vanguard make it for all practical purposes impossible to process the order. Examples include, but are not limited to, natural disasters, public service disruptions, or utility problems such as fires, floods, extreme weather conditions, and power outages resulting in telephone, telecopy, and computer failures; market conditions or activities causing trading halts; systems failures involving computer or other information systems affecting the aforementioned parties as well as the DTC, the NSCC, the Federal Reserve, or any other participant in the purchase process; and similar extraordinary events. |
■ | The subject of the vote and whether, based on our knowledge and experience, we believe the topic is potentially material to the corporate governance and/or long-term performance of the company; |
■ | The Vanguard funds' individual and/or aggregate equity investment in a company, and whether we estimate that voting Vanguard funds' shares would affect the shareholder meeting outcome; and |
■ | The long-term impact to our fund shareholders, evaluating whether we believe the benefits of voting a company's shares would outweigh the benefits of stock lending revenues in a particular instance. |
■ | Generally, issues for which explicit proxy voting guidance is provided in the Guidelines (i.e., “For”, “Against”, “Abstain”) are reviewed by Investment Research and voted in accordance with the Guidelines. |
■ | Issues identified as “case-by-case” in the Guidelines are further reviewed by Investment Research. In certain circumstances, further input is needed, so the issues are forwarded to the relevant research analyst and/or portfolio manager(s) for their input. |
■ | Absent a material conflict of interest, the portfolio manager has the authority to decide the final vote. Different portfolio managers holding the same securities may arrive at different voting conclusions for their clients' proxies. |