|
Investor
Shares |
Admiral
Shares |
Sales
Charge (Load) Imposed on Purchases |
|
|
Purchase
Fee |
|
|
Sales
Charge (Load) Imposed on Reinvested Dividends |
|
|
Redemption
Fee |
|
|
Account
Service Fee Per Year
(for
certain fund account balances below $10,000) |
$ |
$ |
|
Investor
Shares |
Admiral
Shares |
Management
Fees |
|
|
12b-1
Distribution Fee |
|
|
Other
Expenses |
|
|
Total Annual
Fund Operating Expenses |
|
|
|
1
Year |
3
Years |
5
Years |
10
Years |
Investor
Shares |
$ |
$ |
$ |
$ |
Admiral
Shares |
$ |
$ |
$ |
$ |
|
Total
Return |
Quarter |
|
|
|
|
- |
|
|
1
Year |
5
Years |
10
Years |
Vanguard
Equity Income Fund Investor Shares |
|
|
|
Return Before
Taxes |
|
|
|
Return After
Taxes on Distributions |
|
|
|
Return After
Taxes on Distributions and Sale of Fund Shares |
|
|
|
Vanguard
Equity Income Fund Admiral Shares |
|
|
|
Return Before
Taxes |
|
|
|
FTSE
High Dividend Yield Index
(reflects no
deduction for fees, expenses, or taxes) |
|
|
|
Dow
Jones U.S. Total Stock Market Float Adjusted Index
(reflects no
deduction for fees, expenses, or taxes) |
|
|
|
Plain
Talk About Fund Expenses |
All
mutual funds have operating expenses. These expenses, which are
deducted
from a fund’s gross income, are expressed as a percentage of the
net
assets of the fund. Assuming that operating expenses remain as stated
in the
Fees and Expenses section, Vanguard Equity Income Fund’s expense
ratios
would be as follows: for Investor Shares, 0.28%, or $2.80 per $1,000
of
average net assets; for Admiral Shares, 0.19%, or $1.90 per $1,000 of
average
net assets. The average expense ratio for equity income funds in
2020 was
1.08%, or $10.80 per $1,000 of average net assets (derived from
data
provided by Lipper, a Thomson Reuters Company, which reports on the
mutual
fund industry). |
Plain
Talk About Costs of Investing |
Costs
are an important consideration in choosing a mutual fund. That is
because
you, as a shareholder, pay a proportionate share of the costs of
operating
a fund and any transaction costs incurred when the fund buys or
sells
securities. These costs can erode a substantial portion of the gross
income
or the capital appreciation a fund achieves. Even seemingly small
differences
in expenses can, over time, have a dramatic effect on a
fund’s
performance. |
Plain
Talk About Growth Funds and Value Funds |
Growth
investing and value investing are two styles employed by stock-fund
managers.
Growth funds generally invest in stocks of companies believed to
have
above-average potential for growth in revenue, earnings, cash flow, or
other
similar criteria. These stocks typically have low dividend yields, if any,
and
above-average prices in relation to measures such as earnings and book
value.
Value funds typically invest in stocks whose prices are below average
in
relation to those measures; these stocks often have above-average
dividend
yields. Value stocks also may remain undervalued by the market for
long
periods of time. Growth and value stocks have historically produced
similar
long-term returns, though each category has periods when it
outperforms
the other. |
Plain
Talk About Derivatives |
Derivatives
can take many forms. Some forms of derivatives—such as
exchange-traded
futures and options on securities, commodities, or
indexes—have
been trading on regulated exchanges for decades. These
types
of derivatives are standardized contracts that can easily be bought and
sold
and whose market values are determined and published daily. On the
other
hand, non-exchange-traded derivatives—such as certain swap
agreements
and foreign currency exchange forward contracts—tend to be
more
specialized or complex and may be more difficult to accurately
value.
|
Plain
Talk About Vanguard’s Unique Corporate Structure |
The
Vanguard Group is owned jointly by the funds it oversees and thus
indirectly
by the shareholders in those funds. Most other mutual funds are
operated
by management companies that are owned by third parties—either
public
or private stockholders—and not by the funds they
serve. |
Plain
Talk About Distributions |
As
a shareholder, you are entitled to your portion of a fund’s income from
interest
and dividends as well as capital gains from the fund’s sale of
investments.
Income consists of both the dividends that the fund earns from
any
stock holdings and the interest it receives from any money market and
bond
investments. Capital gains are realized whenever the fund sells
securities
for higher prices than it paid for them. These capital gains are
either
short-term or long-term, depending on whether the fund held the
securities
for one year or less or for more than one
year. |
Plain
Talk About Buying a Dividend |
Unless
you are a tax-exempt investor or investing through a tax-advantaged
account
(such as an IRA or an employer-sponsored retirement or savings
plan),
you should consider avoiding a purchase of fund shares shortly before
the
fund makes a distribution, because doing so can cost you money in
taxes.
This is known as “buying a dividend.” For example: On December 15,
you
invest $5,000, buying 250 shares for $20 each. If the fund pays a
distribution
of $1 per share on December 16, its share price will drop to $19
(not
counting market change). You still have only $5,000 (250 shares x $19 =
$4,750
in share value, plus 250 shares x $1 = $250 in distributions), but you
owe
tax
on the $250 distribution you received—even if you reinvest it in
more
shares. To avoid buying a dividend, check a fund’s distribution schedule
before
you invest. |
|
Year Ended September
30, | ||||
For a Share
Outstanding Throughout Each Period |
2021 |
2020 |
2019 |
2018 |
2017 |
Net
Asset Value, Beginning of Period |
$33.75 |
$36.51 |
$37.98 |
$35.64 |
$31.69 |
Investment
Operations |
|
|
|
|
|
Net
Investment Income1
|
1.041 |
1.000 |
1.002 |
.965 |
.908 |
Net
Realized and Unrealized Gain (Loss) on Investments |
9.232 |
(2.067) |
.972 |
2.764 |
4.292 |
Total from
Investment Operations |
10.273 |
(1.067) |
1.974 |
3.729 |
5.200 |
Distributions |
|
|
|
|
|
Dividends
from Net Investment Income |
(1.012) |
(1.034) |
(.997) |
(.943) |
(.912) |
Distributions
from Realized Capital Gains |
(.061) |
(.659) |
(2.447) |
(.446) |
(.338) |
Total
Distributions |
(1.073) |
(1.693) |
(3.444) |
(1.389) |
(1.250) |
Net
Asset Value, End of Period |
$42.95 |
$33.75 |
$36.51 |
$37.98 |
$35.64 |
Total
Return2
|
30.66% |
-2.87% |
6.43% |
10.58% |
16.68% |
Ratios/Supplemental
Data |
|
|
|
|
|
Net Assets,
End of Period (Millions) |
$5,285 |
$4,482 |
$5,478 |
$5,751 |
$6,002 |
Ratio of
Total Expenses to Average Net Assets3
|
0.28% |
0.28% |
0.27% |
0.27% |
0.26% |
Ratio of
Net Investment Income to Average Net Assets |
2.56% |
2.89% |
2.84% |
2.60% |
2.70% |
Portfolio
Turnover Rate |
29% |
35% |
32% |
37% |
28% |
|
|
1 |
Calculated
based on average shares outstanding. |
2 |
Total returns
do not include account service fees that may have applied in the periods
shown. Fund prospectuses
provide
information about any applicable account service
fees. |
3 |
Includes
performance-based investment advisory fee increases (decreases) of 0.01%,
0.01%, 0.01%, (0.00%), and
(0.01%). |
|
Year Ended September
30, | ||||
For a Share
Outstanding Throughout Each Period |
2021 |
2020 |
2019 |
2018 |
2017 |
Net
Asset Value, Beginning of Period |
$70.73 |
$76.52 |
$79.61 |
$74.69 |
$66.43 |
Investment
Operations |
|
|
|
|
|
Net
Investment Income1
|
2.262 |
2.159 |
2.167 |
2.099 |
1.968 |
Net
Realized and Unrealized Gain (Loss) on Investments |
19.342 |
(4.331) |
2.028 |
5.806 |
8.977 |
Total from
Investment Operations |
21.604 |
(2.172) |
4.195 |
7.905 |
10.945 |
Distributions |
|
|
|
|
|
Dividends
from Net Investment Income |
(2.196) |
(2.236) |
(2.156) |
(2.048) |
(1.977) |
Distributions
from Realized Capital Gains |
(.128) |
(1.382) |
(5.129) |
(.937) |
(.708) |
Total
Distributions |
(2.324) |
(3.618) |
(7.285) |
(2.985) |
(2.685) |
Net
Asset Value, End of Period |
$90.01 |
$70.73 |
$76.52 |
$79.61 |
$74.69 |
Total
Return2
|
30.77% |
-2.77% |
6.51% |
10.70% |
16.75% |
Ratios/Supplemental
Data |
|
|
|
|
|
Net Assets,
End of Period (Millions) |
$43,422 |
$30,816 |
$30,972 |
$27,625 |
$23,373 |
Ratio of
Total Expenses to Average Net Assets3
|
0.19% |
0.19% |
0.18% |
0.18% |
0.17% |
Ratio of
Net Investment Income to Average Net Assets |
2.64% |
2.98% |
2.93% |
2.69% |
2.79% |
Portfolio
Turnover Rate |
29% |
35% |
32% |
37% |
28% |
|
|
1 |
Calculated
based on average shares outstanding. |
2 |
Total returns
do not include account service fees that may have applied in the periods
shown. Fund prospectuses
provide
information about any applicable account service
fees. |
3 |
Includes
performance-based investment advisory fee increases (decreases) of 0.01%,
0.01%, 0.01%, (0.00%), and
(0.01%). |
Web |
|
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the most complete source of Vanguard news
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most account transactions
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hours a day, 7 days a week |
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companies |
|
Inception
Date |
Newspaper
Abbreviation |
Vanguard
Fund
Number |
CUSIP
Number |
Equity
Income Fund |
|
|
|
|
Investor
Shares |
3/21/1988 |
Eqlnc |
65 |
921921102 |
Admiral
Shares |
8/13/2001 |
EqlncAdml |
565 |
921921300 |