PRIMECAP Core Fund (VPCCX)

Closed to new investors.

Indexed to MSCI US Prime Market 750 Index

  Fact sheet (03/31/2014)

Summary of this fund

Vanguard PRIMECAP Core Fund seeks to provide long-term capital appreciation.

Investment approach

  • Multi-cap equity, investing in a broad spectrum of stocks covering both growth and value stocks and a range of industries.
  • Seeks long-term capital appreciation.
  • Invests in out-of-favor companies at attractive valuations.
  • Fundamental, research-driven stock selection process.
  • Four managers develop separate subportfolios.

About the benchmark

  • The MSCI US Prime Market 750 Index represents the universe of predominantly large-capitalization companies in the U.S. equity market.
  • The index is designed to accurately represent the large-cap U.S. equity market and deliver low turnover.

PRICE AND DISTRIBUTIONS

Price and distributions

as of 04/23/2014

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 $/%
$20.31
– $0.06 negative change   – 0.29%
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.

1.07% 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.

1.73%

KEY FUND FACTS

Key fund facts

Expense ratio
0.50% as of 01/27/2014
Lipper peer average
expense ratio
1.17% as of 12/31/2013
Designation
Domestic Large Blend
Inception on
12/09/2004
Net assets for
VPCCX
 
$6.5 billion as of 03/31/2014
Holdings 
139 as of 03/31/2014
Management style
Active
Benchmark
MSCI US Prime Market 750 Index (MZ2USLG)
Turnover rate 
 7.30%(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 multi-cap portfolio of growth and value stocks across industry sectors.



Expected range
Central tendency

About our styleboxes  

Objective

Vanguard PRIMECAP Core Fund seeks to provide long-term capital appreciation.

Investment approach

  • Multi-cap equity, investing in a broad spectrum of stocks covering both growth and value stocks and a range of industries.
  • Seeks long-term capital appreciation.
  • Invests in out-of-favor companies at attractive valuations.
  • Fundamental, research-driven stock selection process.
  • Four managers develop separate subportfolios.

About the benchmark

  • The MSCI US Prime Market 750 Index represents the universe of predominantly large-capitalization companies in the U.S. equity market.
  • The index is designed to accurately represent the large-cap U.S. equity market and deliver low turnover.

Total returns

as of 03/31/2014

View as:

as of 03/31/2014

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

12/09/2004

NAV 
5.20% 26.51% 21.54% 10.00%
Benchmark

MSCI US Prime Market 750 Index

*
1.94% 22.23% 21.46%

Note: Fee adjusted for mutual funds where applicable.

* Tracks the stocks of approximately 750 large- and mid-capitalization companies representing the vast majority of U.S. stock market capitalization.

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

PRIMECAP Management Company

Product management

Vanguard PRIMECAP Core Fund seeks to provide long-term capital appreciation through investments in companies at attractive valuation levels. The fund employs a fundamental, research-driven approach in seeking to identify companies with long-term potential overlooked by the market. The fund has the flexibility to invest across all industry sectors and market capitalizations. Each of six portfolio managers independently manages a portion of the fund, searching out stocks that offer a balance between reasonable valuations and attractive earnings-growth prospects.

Firm and manager details  

Sector weightings as of 03/31/2014

as of 03/31/2014
  Sector  VPCCX Benchmark

MSCI US Prime Market 750 Index

+/- Weight
Health Care 30.7% 13.0% 17.7%
Information Technology 27.1% 18.5% 8.6%
Industrials 16.3% 10.9% 5.4%
Consumer Discretionary 10.0% 12.7% – 2.7%
Financials 6.4% 16.5% – 10.1%
Materials 4.4% 3.7% 0.7%
Energy 3.8% 10.0% – 6.2%
Consumer Staples 1.2% 9.1% – 7.9%
Utilities 0.1% 3.1% – 3.0%
Telecommunication Services 0.0% 2.5% – 2.5%
Other 0.0% 0.0% 0.0%
0%
35%
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 Roche Holding AG
2 Amgen Inc.
3 Biogen Idec Inc.
4 Eli Lilly & Co.
5 Southwest Airlines Co.
6 Google Inc.
7 Texas Instruments Inc.
8 Johnson & Johnson
9 Medtronic Inc.
10 Novartis AG
Top 10 equals 33.8% 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 VPCCX Benchmark

MSCI US Prime Market 750 Index

Number of stocks 139 762
Median market cap $60.7 billion $60.0 billion
P/E ratio 20.5x 19.2x
P/B ratio 3.3x 2.7x
Turnover rate 7.3% Fiscal year end 9/2013 N/A

Risk and volatility as of 03/31/2014

as of 03/31/2014
  VPCCX Benchmark

MSCI US Prime Market 750 Index

R-squared N/A 0.95
Beta N/A 0.95
Alpha 0.12 N/A
Standard deviation 12.45% 12.69%
Sharpe ratio 1.25 1.15

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.
  • Asset concentration risk: The chance that the fund’s performance may be hurt disproportionately by the poor performance of relatively few stocks. The fund tends to invest a high percentage of assets in its ten largest holdings.
  • Investment style risk: The chance that returns from large-capitalization stocks will trail returns from the overall stock market. Large-cap stocks tend to go through cycles of doing better—or worse—than other segments of the stock market or the stock market in general. These periods have, in the past, lasted for as long as several years.
  • 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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