Strategic Equity Fund (VSEQX)

Indexed to MSCI US Small + Mid Cap 2200 Index

  Fact sheet (12/31/2013)

Summary of this fund

Vanguard Strategic Equity Fund seeks to provide long-term capital appreciation.

Investment approach

  • Mid- and small-cap equity diversified across growth and value styles.
  • Seeks long-term capital appreciation.
  • Quantitative investment approach.

PRICE AND DISTRIBUTIONS

Price and distributions

as of 04/15/2014

NAV

The market value of a mutual fund's total assets, minus liabilities, divided by the number of shares outstanding. The value of a single share is called its share value or share price.

Change $/%
$30.53
$0.22 positive change   0.73%
SEC yield

A non-money market fund's SEC yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.



The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous seven days.

1.10% B

BASED ON HOLDINGS' YIELD TO MATURITY/DIVIDEND FOR LAST 30 DAYS OF PRIOR MONTH

Dividend yield

The annual rate of return on a share of stock, determined by dividing the annual dividend by its current share price. In a stock mutual fund, this figure represents the average dividend yield of the stocks held by the fund.

1.37%

KEY FUND FACTS

Key fund facts

Expense ratio
0.29% as of 01/28/2014
Lipper peer average
expense ratio
1.21% as of 12/31/2013
Designation
Domestic Mid-Cap Blend
Inception on
08/14/1995
Net assets for
VSEQX
 
$5.1 billion as of 03/31/2014
Holdings 
394 as of 03/31/2014
Management style
Active
Benchmark
MSCI US Small + Mid Cap 2200 Index
Turnover rate 
 63.80%(Fiscal year-end  09/30/2013)

Fees and minimums

Fees and minimums

Purchase fee:

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

None
Redemption fee:

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

None
Minimum investment:
$3,000

ETF Knowledge Center™   

STYLEBOX

Stylebox

Stock
Diversified across a universe of small- and mid-cap U.S. stocks.



Expected range
Central tendency

About our styleboxes  

Objective

Vanguard Strategic Equity Fund seeks to provide long-term capital appreciation.

Investment approach

  • Mid- and small-cap equity diversified across growth and value styles.
  • Seeks long-term capital appreciation.
  • Quantitative investment approach.

Total returns

as of 03/31/2014

View as:

as of 03/31/2014

View as:
40%
30
20
10
0%
 
 
 
 
 
  YTD 1 year 5 year 10 year Since inception

08/14/1995

NAV 
4.60% 30.15% 26.87% 8.81% 11.11%
Benchmark

Spliced Small and Mid Cap Index

*
3.07% 25.23% 26.01% 9.99%

Note: Fee adjusted for mutual funds where applicable.

* Russell 2800 Index through May 31, 2003; MSCI US Small + Mid Cap 2200 Index thereafter.

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.


People and process

Firms

Vanguard Equity Investment Group

Product management

Vanguard Strategic Equity Fund seeks long-term capital appreciation by investing in mid- and small-capitalization, domestic stocks, using a quantitative approach. Vanguard’s Equity Investment Group has developed proprietary stock valuation models to identify the most attractive stocks in the MSCI US Small + Mid Cap 2200 Index, a market-capitalization weighted composite of the MSCI US Small Cap 1750 Index and the MSCI US Mid Cap 450 Index. Individual stocks are selected based on variables that include improving fundamentals and attractive valuation. The relative-valuation component of the stock-screening process gives the fund a slight value tilt. The fund’s overall level of risk is expected to be comparable to a small- and mid-cap benchmark.

Firm and manager details  

Sector weightings as of 03/31/2014

as of 03/31/2014
  Sector  VSEQX Benchmark

MSCI US Small + Mid Cap 2200 Index

+/- Weight
Financials 20.0% 20.0% 0.0%
Information Technology 16.7% 15.9% 0.8%
Consumer Discretionary 14.7% 15.4% – 0.7%
Industrials 14.4% 15.3% – 0.9%
Health Care 11.0% 10.8% 0.2%
Energy 6.6% 6.9% – 0.3%
Materials 6.0% 6.1% – 0.1%
Consumer Staples 5.4% 4.6% 0.8%
Utilities 4.8% 4.2% 0.6%
Telecommunication Services 0.4% 0.8% – 0.4%
Other 0.0% 0.0% 0.0%
0%
20%
Total 100.0% 100.0%

Sector categories are based on the Global Industry Classification Standard system.

Top 10 holdings as of 03/31/2014

 as of 03/31/2014
Rank Holding
1 Western Digital Corp.
2 Tyson Foods Inc.
3 O'Reilly Automotive Inc.
4 Mylan Inc.
5 Helmerich & Payne Inc.
6 Alliance Data Systems Corp.
7 Ameren Corp.
8 Everest Re Group Ltd.
9 American Airlines Group Inc.
10 Comerica Inc.
Top 10 equals 9.7% of net assets

Portfolio holdings may exclude any temporary cash investments and equity index products.

Holdings policy for this fund  

Fundamentals

Stockas of 03/31/2014 VSEQX Benchmark

MSCI US Small + Mid Cap 2200 Index

Number of stocks 394 2,172
Median market cap $5.2 billion $5.8 billion
P/E ratio 19.5x 26.4x
P/B ratio 2.8x 2.5x
Turnover rate 63.8% Fiscal year end 9/2013 N/A

Risk and volatility as of 03/31/2014

as of 03/31/2014
  VSEQX Benchmark

Spliced Small and Mid Cap Index

R-squared N/A 0.98
Beta N/A 1.06
Alpha 0.16 N/A
Standard deviation 16.47% 15.47%
Sharpe ratio 1.04 0.92

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall stock market. The fund’s performance could be hurt by:

  • Stock market risk: The chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising stock prices and periods of falling stock prices.
  • Investment style risk: The chance that returns from small- and mid-capitalization stocks will trail returns from the overall stock market. Historically, small- and mid-cap stocks have been more volatile in price than the large-cap stocks that dominate the overall market, and they often perform quite differently. Small and mid-size companies tend to have greater stock volatility because, among other things, these companies are more sensitive to changing economic conditions.
  • Manager risk: The chance that poor security selection or focus on securities in a particular sector, category, or group of companies will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.



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