Vanguard Growth and Income Fund - Vanguard Advisors
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Vanguard ®
Vanguard ® Growth and Income Fund
Product Summary Vanguard Style View : Large Blend
U.S. large-cap equity diversified across growth and value styles. Portfolio of large- and mid-capitalization stocks diversified across
investment styles.
Seeks a total return greater than that of the S&P 500 Index.
Investment style
Quantitatively managed. Value Blend Growth
Reflects aggregate characteristics and risks of the S&P 500 Index.
Market capitalization
Large
Mid
Small
Central tendency
Expected range of fund holdings
Quarterly Commentary
The human toll of COVID-19 further mounted during the second
quarter of 2021 amid fresh outbreaks of the virus and new
People and Process
variants. The global economy nevertheless continued to rebound
sharply if unevenly. Countries that have better succeeded in
Vanguard Growth and Income Fund seeks a total return greater
containing the virus—whether through vaccinations, lockdowns, or
than that of the S&P 500 Index by investing in U.S. large- and
both—tended to fare the best. With the reopening of economies
mid-capitalization stocks. The funds three investment advisors
and pent-up demand boosting corporate profits, global stocks
manage independent subportfolios. Although each advisor uses a
finished the quarter significantly higher. U.S. stocks outperformed
different process to select securities, each is committed to using
other developed markets as a whole as well as emerging markets.
computer models to select a broadly diversified group of stocks
For the quarter, U.S. stocks returned 8.24%, as measured by the that, as a whole, have investment characteristics similar to the
Russell 3000 Index. Small-capitalization stocks, as measured by S&P 500 Index, but are expected to provide a higher total return
the Russell 2000 Index (+4.29%), trailed large-caps, as measured than that of the index.
by the Russell 1000 Index (+8.54%). Growth stocks outperformed
value, with the Russell 3000 Growth Index (+11.38%) leading the
D. E. Shaw Investment Management, L.L.C.
Russell 3000 Value Index (+5.16%).
For the quarter, Vanguard Growth and Income Fund The firm employs quantitative models that seek to capture
underperformed its benchmark, the Standard & Poor’s 500 Index predominantly “bottom-up” stock-specific return opportunities
(+8.55%), and outperformed the average return of its peer funds while aiming to control overall portfolio risk and characteristics,
(+8.00%). The fund’s three advisors use quantitative models to such as size, sector weights, and style, to be similar to those of
determine the portfolio’s composition, while focusing primarily on the benchmark. The advisor continually seeks to enhance the
adding value through stock-specific characteristics and investment diversified set of models used to identify stock pricing
factors. Good selection in industrials (+4%) and utilities (+0%) inefficiencies, given its belief that market inefficiencies typically
helped performance. An overweight allocation to Fortinet (+29%) are arbitraged away over time. The price forecasts generated by
and an underweight allocation to Boeing (-6%) were among the these models, along with estimates of various forms of risk and
biggest contributors. Poor selection in health care (+8%) and the costs of transacting, are considered by an optimizer in order to
consumer staples (+4%) hurt results. Underweight allocations to construct a portfolio with the highest expected risk-adjusted
NVIDIA (+50%) and PayPal (+20%) were among the biggest return, net of trading costs, relative to that of the S&P 500 Index.
detractors.
For the 12 months ended June 30, the fund outpaced its Firm Description
benchmark (+40.79%) and peer average (+39.52%). Good
selection in information technology (+42%) and utilities (+16%) D. E. Shaw Investment Management, L.L.C., New York, New
contributed significantly. The fund’s largest individual contributors York, is a privately owned investment management firm founded
included overweight positions in QUALCOMM (+60%) and in 2005. The firm is a pioneer in the field of computational finance
Synchrony Financial (+126%). Poor selection in consumer staples and quantitative investment strategies. The firm has advised
(+23%) and industrials (+51%) hurt results. Underweight Vanguard Growth and Income Fund since 2011.
allocations to Deere (+128%) and Charles Schwab (+119%) were
the biggest detractors.
Note: Company returns may differ if a security was held in the
portfolio for less than the full period.
As of June 30, 2021Vanguard Growth and Income Fund
Investment Manager Biographies Hal W. Reynolds, CFA, Chief Investment Officer and Principal.
Portfolio manager. Advised the fund since 2011. Worked in
Philip Kearns, Managing Director. Portfolio manager. Advised the investment management since 1982. B.A., University of Virginia.
fund since 2014. Worked in investment management since 1993. M.B.A., University of Pittsburgh.
B.Ec., Australian National University. M.S. and Ph.D., University of
Rochester. Vanguard Quantitative Equity Group
Los Angeles Capital Management LLC The firm employs a multifactor model that evaluates stocks on
growth, valuation, quality, management decision–making, and
The firm employs a quantitative model that seeks to emphasize market sentiment in order to forecast individual stocks relative
stocks with characteristics that investors are currently seeking performance. To improve differentiation among stocks, each
and to underweight stocks with characteristics that investors are component of the model incorporates multiple variables. The
currently avoiding. The firm believes these investor risk advisor optimizes the portfolio in order to maintain
preferences change over time, so its model dynamically adapts to benchmark-level exposure to common risk factors, such as market
reflect these changes. Although the advisor aims to keep its capitalization and industry weight. The resulting portfolio will have
overall portfolio characteristics similar to those of the S&P 500 characteristics similar to those of the S&P 500 Index.
Index, certain factors such as size, sector weights, and style often
may differ from the S&P 500 Index in a risk-controlled manner. Firm Description
Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is
Firm Description among the world’s largest equity and fixed income managers. As
chief investment officer, Gregory Davis, CFA, oversees
Founded in 2002, Los Angeles Capital Management LLC, Los Vanguard’s Equity Index, Quantitative Equity, and Fixed Income
Angeles, California, is an employee-owned investment advisory Groups. Launched in 1975, The Vanguard Group, Malvern,
firm offering risk-controlled active equity portfolio applications. The Pennsylvania, is among the world's largest equity and fixed
firm has advised Vanguard Growth and Income Fund since 2011. income managers. As chief investment officer, Gregory Davis,
CFA, oversees Vanguard's Equity Index, Quantitative Equity, and
Investment Manager Biographies Fixed Income Groups. John Ameriks, Ph.D., Principal of and head
of Vanguard's Quantitative Equity Group, is responsible for all
Thomas D. Stevens, CFA, Chairman and Principal. Portfolio active equity funds managed by the Investment Management
manager. Advised the fund since 2011. Worked in investment Group. The Quantitative Equity Group manages Vanguard active
management since 1976. B.B.A., University of Wisconsin. M.B.A., equity mutual funds using a quantitative investment approach. The
University of Wisconsin. group has advised Vanguard Growth and Income Fund since 2011.
Investment Manager Biographies
Binbin Guo, Principal, Head of the Alpha Equity U.S. Investment
Team. Portfolio manager. Advised the fund since 2010. Worked in
investment management since 1998. B.S. and M.S., Tsinghua
University. Ph.D. and M.Phil., Yale University.
Cesar Orosco, CFA. Senior portfolio manager. Advised the fund
since 2021. Worked in investment management since 2004. B.S.,
Universidad de Lima. Ph.D., University of Pennsylvania.
Investment Advisors
Fund Assets Managed
% $ Million
Los Angeles Capital Management LLC 33 4,260
Vanguard Quantitative Equity Group 33 4,264
D. E. Shaw Investment Management, 32 4,248
L.L.C.
Cash investments 2 321
Total 100 13,093
As of June 30, 2021Vanguard Growth and Income Fund
Total Returns
Expense Year
Ratio Quarter to Date 1 Year 3 Years 5 Years 10 Years
Growth and Income Fund
Investor Shares (12/10/1986) 0.32% 8.37% 15.84% 41.37% 17.97% 17.06% 14.74%
Admiral Shares (5/14/2001) 0.22 8.38 15.89 41.52 18.08 17.18 14.86
S&P 500 Index — 8.55 15.25 40.79 18.67 17.65 14.84
Large-Cap Core Funds Average — 8.00 14.93 39.52 17.02 16.12 13.02
The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will
fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than
the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.
Figures for periods of less than one year are cumulative returns. All other figures represent average annual returns. Performance figures include the
reinvestment of all dividends and any capital gains distributions. All returns are net of expenses.
Note: Average fund returns are derived from data provided by Lipper, a Thomson Reuters Company. Admiral class shareholders are required to maintain
specific minimum balances and meet other special criteria.
As of June 30, 2021Vanguard Growth and Income Fund
Quarterly Returns: Investor Shares
Year-End
Growth and S&P 500 Assets
Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Income Index (Millions)
2021 6.90% 8.37% — — — — $3,592
2020 -20.39 21.40 8.52% 12.46% 17.94% 18.40% 3,089
2019 13.28 3.68 1.50 8.77 29.66 31.49 3,062
2018 -0.72 3.58 8.08 -14.26 -4.71 -4.38 2,472
2017 5.26 2.50 4.85 6.67 20.68 21.83 2,931
2016 1.37 2.39 3.74 4.00 11.97 11.96 2,879
2015 1.51 -0.04 -5.79 6.61 1.92 1.38 2,802
2014 1.69 5.31 1.57 4.83 14.04 13.69 3,054
2013 10.52 3.13 5.08 10.70 32.59 32.39 3,055
2012 13.18 -2.63 6.30 -0.19 16.92 16.00 2,651
2011 6.19 0.24 -14.14 12.06 2.42 2.11 2,689
Quarterly Returns: Admiral Shares
Year-End
Growth and S&P 500 Assets
Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Income Index (Millions)
2021 6.92% 8.38% — — — — $9,500
2020 -20.37 21.42 8.56% 12.49% 18.08% 18.40% 9,149
2019 13.32 3.69 1.52 8.79 29.77 31.49 8,968
2018 -0.69 3.60 8.08 -14.22 -4.61 -4.38 7,275
2017 5.28 2.52 4.89 6.70 20.80 21.83 7,666
2016 1.38 2.44 3.75 4.06 12.12 11.96 4,097
2015 1.53 -0.01 -5.76 6.65 2.03 1.38 3,393
2014 1.72 5.34 1.60 4.86 14.16 13.69 3,078
2013 10.55 3.16 5.11 10.73 32.74 32.39 2,452
2012 13.23 -2.61 6.31 -0.16 17.05 16.00 1,627
2011 6.26 0.24 -14.11 12.08 2.54 2.11 1,325
Volatility Measures
R-Squared Beta
S&P 500 Index 1.00 1.02
DJ US Total Stock Mkt Float Adj Idx 0.99 0.97
R-squared and beta are calculated from trailing 36-month fund returns
relative to the associated benchmark.
As of June 30, 2021Vanguard Growth and Income Fund
Fund Facts Top 10 Largest Holdings
Investor Admiral
Shares Shares % of
Fund Number 0093 0593 Total Net Assets
Ticker VQNPX VGIAX Apple Inc. 6.2%
Newspaper Listing GroInc GroIncAdml Microsoft Corp. 5.7
CUSIP Number 921913109 921913208 Alphabet Inc. 4.5
Assets (millions) $3,592 $9,500 Amazon.com Inc. 3.5
(Total $13,092) Facebook Inc. 2.3
Inception 12/10/1986 5/14/2001 Berkshire Hathaway Inc. 1.5
Expense Ratio Tesla Inc. 1.5
(as of 1/2021) 0.32% 0.22%
Johnson & Johnson 1.5
NVIDIA Corp. 1.2
JPMorgan Chase & Co. 1.0
Equity Characteristics Total 28.9%
Growth and S&P 500 The holdings listed exclude any temporary cash investments and equity
Income Index index products.
Number of stocks 1,469 505
Median market cap $174.9 Billion $187.6 Billion
Average market cap $549.9 Billion $542.8 Billion
Price/earnings ratio 23.7x 26.9x
Price/book ratio 4.4x 4.4x
Return on equity 21.0% 20.7%
Earnings growth rate 19.2% 19.3%
Equity yield (dividend) 1.4% 1.3%
Foreign holdings 0.1% 0.0%
Short-term reserves 2.5% —
Turnover rate (fiscal year end) 58.3% —
Sector Diversification (% of Stocks)
Growth and S&P 500 Overweight/
Income Index Underweight
Communication Services 12.1% 11.1% 1.0
Consumer Discretionary 13.2 12.3 0.9
Consumer Staples 6.1 5.9 0.2
Energy 2.4 2.9 -0.5
Financials 10.7 11.3 -0.6
Health Care 12.9 13.0 -0.1
Industrials 8.3 8.5 -0.2
Information Technology 27.8 27.4 0.4
Materials 2.5 2.6 -0.1
Other 0.0 0.0 0.0
Real Estate 2.1 2.6 -0.5
Utilities 1.9 2.4 -0.5
Total 100.0% 100.0%
Sector categories are based on the Global Industry Classification Standard
(GICS), except for the Other category (if applicable), which includes
securities that have not been provided a GICS classification as of the effective
reporting period.
As of June 30, 2021Vanguard Growth and Income Fund
3 month attribution
Portfolio Benchmark Attribution
Avg. 3 mo. Contrib. Avg. 3 mo. Contrib. Alloc. Select Total
weight return Return weight return Return effect effect effect
Industrials 8.1 5.6 0.4 8.8 4.5 0.4 0.0 0.1 0.1
Information Technology 26.4 11.9 3.1 26.7 11.6 3.1 0.0 0.1 0.1
Materials 2.7 8.5 0.2 2.7 5.0 0.1 0.0 0.1 0.1
Utilities 1.9 2.0 0.0 2.6 -0.4 0.0 0.1 0.0 0.1
Communication Services 11.5 10.4 1.2 11.1 10.7 1.2 0.0 0.0 0.0
Consumer Discretionary 12.5 7.1 0.9 12.3 6.9 0.9 0.0 0.0 0.0
Energy 2.4 12.6 0.3 2.8 11.3 0.3 0.0 0.0 0.0
Real Estate 2.0 11.8 0.2 2.5 13.1 0.3 0.0 0.0 0.0
Consumer Staples 6.5 2.8 0.2 6.0 3.8 0.2 0.0 -0.1 -0.1
Financials 11.2 7.7 0.9 11.6 8.4 1.0 0.0 -0.1 -0.1
Cash 2.5 0.0 0.0 0.0 0.0 0.0 -0.2 0.0 -0.2
Health Care 12.4 6.7 0.8 12.9 8.4 1.1 0.0 -0.2 -0.2
Total 100.0 8.3 8.3 100.0 8.5 8.5 -0.2 0.0 -0.3
12 month attribution
Portfolio Benchmark Attribution
Avg. 12 mo. Contrib. Avg. 12 mo. Contrib. Alloc. Select Total
weight return Return weight return Return effect effect effect
Information Technology 27.4 45.9 12.3 27.3 42.4 11.5 0.0 0.8 0.8
Utilities 2.0 24.3 0.6 2.8 15.8 0.6 0.2 0.2 0.3
Consumer Discretionary 12.3 39.1 4.7 12.0 37.1 4.5 -0.1 0.2 0.2
Materials 2.5 62.9 1.4 2.7 48.5 1.3 0.0 0.3 0.2
Financials 10.2 64.0 5.9 10.6 61.8 5.9 0.0 0.2 0.1
Health Care 13.6 28.3 4.2 13.6 27.9 4.0 0.0 0.1 0.1
Real Estate 2.0 35.5 0.6 2.6 31.8 0.8 0.0 0.1 0.1
Communication Services 10.6 49.7 5.0 11.0 48.4 5.1 -0.1 0.1 0.0
Energy 2.1 55.0 0.9 2.5 49.4 1.1 -0.1 0.1 0.0
Industrials 8.1 44.9 3.7 8.5 51.2 4.2 0.0 -0.5 -0.4
Consumer Staples 7.4 18.7 1.6 6.5 23.3 1.7 -0.1 -0.3 -0.5
Cash 1.7 0.1 0.0 0.0 0.0 0.0 -0.7 0.0 -0.7
Total 100.0 41.0 41.0 100.0 40.8 40.8 -0.9 1.1 0.2
The portfolio attribution data shown above is provided by FactSet based on information provided by Vanguard about the fund's daily portfolio holdings as of
the market close. Because the fund buys and sells stocks throughout the trading day and not necessarily at the market close, the attribution data shown
above is an estimate and may not precisely reflect actual attribution information. Information noted above does not reflect fair-value adjustments to prices of
foreign securities held in the portfolio.
Top contributors—3 month Top detractors—3 month
3 mo. Total Ending Bench 3 mo. Total Ending Bench
return effect weight weight return effect weight weight
Fortinet Inc. 29.2 0.1 0.3 0.1 Altria Group Inc. -5.1 0.0 0.6 0.2
Fiserv Inc. -3.3 0.0 0.0 0.2 HP Inc. -4.3 0.0 0.5 0.1
Synchrony Financial 19.9 0.0 0.4 0.1 Intuitive Surgical Inc. 24.5 0.0 0.0 0.3
NextEra Energy Inc. -2.0 0.0 0.0 0.4 NVIDIA Corporation 49.9 -0.1 1.2 1.4
Boeing Company -6.0 0.0 0.1 0.4 PayPal Holdings Inc. 20.0 -0.1 0.4 0.9
As of June 30, 2021Vanguard Growth and Income Fund
Top contributors—12 month Top detractors—12 month
12 mo. Total Ending Bench 12 mo. Total Ending Bench
return effect weight weight return effect weight weight
Synchrony Financial 125.5 0.2 0.4 0.1 Merck & Co. Inc. 8.9 -0.1 0.8 0.5
QUALCOMM Incorporated 59.8 0.2 1.0 0.4 Charles Schwab Corporation 33.0 -0.1 0.0 0.3
Tesla Inc. 195.3 0.2 1.5 1.4 Chevron Corporation 24.1 -0.1 0.2 0.6
Apple Inc. 51.1 0.1 6.2 5.9 Citrix Systems Inc. -19.8 -0.1 0.0 0.0
Wells Fargo & Company 79.4 0.1 0.5 0.5 Deere & Company 128.0 -0.2 0.3 0.3
As of June 30, 2021Vanguard Growth and Income Fund
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© 2021 The Vanguard Group, Inc. All rights reserved. Managed Payout Fund U.S. Patent Nos. 8,180,695; 8,185,464; and 8,571,963. Vanguard ETFs U.S. Patent Nos.
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