- Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (N-Q)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-10523

 

Nuveen Virginia Dividend Advantage Municipal Fund 2

(Exact name of registrant as specified in charter)

 

Nuveen Investments

        333 West Wacker Drive, Chicago, Illinois 60606         

(Address of principal executive offices) (Zip code)

 

Kevin J. McCarthy

Vice President and Secretary

        333 West Wacker Drive, Chicago, Illinois 60606         

(Name and address of agent for service)

 

Registrant's telephone number, including area code:         312-917-7700        

 

Date of fiscal year end:             5/31          

 

Date of reporting period:          8/31/11         

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

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Item 1. Schedule of Investments

 

		Portfolio of Investments (Unaudited)
		Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB)
		August 31, 2011
Principal			Optional Call
Amount (000)		Description (1)	Provisions (2)	Ratings (3)	Value
		Consumer Staples – 3.8% (2.5% of Total Investments)
$ 12,000		Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Bonds, Series 2005A,	5/15 at 11.19	BBB–	$    390,240
		0.000%, 5/15/50
3,100		Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset Backed Bonds,	6/17 at 100.00	Baa3	1,868,091
		Series 2007B1, 5.000%, 6/01/47
1,430		Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds,	6/17 at 100.00	BB–	881,352
		Series 2007B-2, 0.000%, 6/01/46
16,530		Total Consumer Staples			3,139,683
		Education and Civic Organizations – 8.2% (5.4% of Total Investments)
1,000		Fairfax County Economic Development Authority, Virginia, Revenue Bonds, National Wildlife	3/12 at 100.00	A3	1,002,790
		Federation, Series 1999, 5.375%, 9/01/29 – NPFG Insured
280		Lexington Industrial Development Authority, Virginia, Educational Facilities Revenue Bonds,	6/19 at 100.00	Aa2	300,899
		VMI Development Board Project, Series 2006C, 5.000%, 12/01/36
1,000		Prince William County Industrial Development Authority, Virginia, Educational Facilities	10/13 at 101.00	A2	1,016,930
		Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33
950		Prince William County Industrial Development Authority, Virginia, Student Housing Revenue Bonds,	9/21 at 100.00	A	960,374
		George Mason University Foundation Prince William Housing LLC Project, Series 2011A,
		5.125%, 9/01/41
1,500		Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing	12/12 at 101.00	BBB–	1,502,220
		Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series
		2002, 5.375%, 12/01/21
2,000		Winchester Industrial Development Authority, Virginia, Educational Facilities First Mortgage	11/11 at 100.00	Baa1	2,004,720
		Revenue Bonds, Shenandoah University, Series 1998, 5.250%, 10/01/28 – NPFG Insured
6,730		Total Education and Civic Organizations			6,787,933
		Energy – 1.0% (0.7% of Total Investments)
1,000		Virgin Islands Public Finance Authority, Revenue Bonds, Refinery Project Hovensa LLC, Series 2007,	1/15 at 100.00	Ba2	846,150
		4.700%, 7/01/22 (Alternative Minimum Tax)
		Health Care – 33.0% (21.8% of Total Investments)
1,500		Albemarle County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Martha	10/12 at 100.00	A3	1,503,375
		Jefferson Hospital, Series 2002, 5.250%, 10/01/35
2,000		Arlington County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Virginia	7/20 at 100.00	A2	2,037,040
		Hospital Center Arlington Health System, Refunding Series 2010, 5.000%, 7/01/31
895		Charlotte County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Halifax	9/17 at 100.00	A–	897,757
		Regional Hospital Incorporated, Series 2007, 5.000%, 9/01/27
685		Chesterfield County Economic Development Authority, Virginia, Revenue Bonds, Bon Secours	11/20 at 100.00	AA+	696,289
		Health, Series 2010C-2, 5.000%, 11/01/42 – AGC Insured
1,070		Fairfax County Industrial Development Authority, Virginia, Healthcare Revenue Bonds, Inova	5/19 at 100.00	AA+	1,232,041
		Health System, Series 2009, Trust 11733, 14.657%, 11/15/29 (IF)
3,000		Fauquier County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Fauquier	10/12 at 102.00	BBB+	3,057,240
		Hospital, Series 2002, 5.250%, 10/01/25 – RAAI Insured
1,000		Fredericksburg Economic Development Authority, Virginia, Hospital Facilities Revenue Bonds,	No Opt. Call	A3	1,108,870
		MediCorp Health System, Series 2007, 5.250%, 6/15/23
675		Fredericksburg Industrial Development Authority, Virginia, Revenue Bonds, MediCorp Health	6/12 at 100.00	A3	675,749
		System, Series 2002B, 5.125%, 6/15/33
1,500		Harrisonburg Industrial Development Authority, Virginia, Hospital Facilities Revenue Bonds,	8/16 at 100.00	Baa1	1,473,945
		Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 – AMBAC Insured
960		Henrico County Economic Development Authority, Virginia, Revenue Bonds, Bon Secours Health	11/12 at 100.00	A–	962,237
		System Inc., Series 2002A, 5.600%, 11/15/30
1,155		Manassas Industrial Development Authority, Virginia, Hospital Revenue Bonds, Prince William	4/13 at 100.00	A3	1,159,816
		Hospital, Series 2002, 5.250%, 4/01/33
1,200		Norton Industrial Development Authority, Virginia, Hospital Revenue Refunding and Improvement	12/11 at 101.00	N/R	1,148,808
		Bonds, Norton Community Hospital, Series 2001, 6.000%, 12/01/22 – ACA Insured
3,915		Roanoke Industrial Development Authority, Virginia, Hospital Revenue Bonds, Carilion Health	7/12 at 100.00	A+	4,033,194
		System, Series 2002A, 5.500%, 7/01/20 – NPFG Insured
		Stafford County Economic Development Authority, Virginia, Hospital Facilities Revenue Bonds,
		MediCorp Health System, Series 2006:
1,250		5.250%, 6/15/25	6/16 at 100.00	A3	1,286,475
655		5.250%, 6/15/31	6/16 at 100.00	A3	659,631
1,095		5.250%, 6/15/37	6/16 at 100.00	A3	1,073,680
1,250		Virginia Small Business Finance Authority, Healthcare Facilities Revenue Bonds, Sentara Healthcare,	5/20 at 100.00	AA	1,285,325
		Refunding Series 2010, 5.000%, 11/01/40
1,430		Virginia Small Business Financing Authority, Wellmont Health System Project Revenue Bonds,	9/17 at 100.00	BBB+	1,312,526
		Series 2007A, 5.250%, 9/01/37
720		Winchester Industrial Development Authority, Virginia, Hospital Revenue Bonds Valley Health	1/19 at 100.00	A+	742,831
		System Obligated Group, Series 2009E, 5.625%, 1/01/44
715		Winchester Industrial Development Authority, Virginia, Hospital Revenue Bonds, Winchester	1/17 at 100.00	A+	740,218
		Medical Center, Series 2007, 5.125%, 1/01/31
340		Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Aurora Health Care, Inc.,	4/20 at 100.00	A3	343,560
		Series 2010A, 5.625%, 4/15/39
27,010		Total Health Care			27,430,607
		Housing/Multifamily – 1.1% (0.7% of Total Investments)
200		Virginia Housing Development Authority, Rental Housing Bonds, Series 2010A, 5.000%, 4/01/45	10/19 at 100.00	AA+	202,512
175		Virginia Housing Development Authority, Rental Housing Bonds, Series 2010C, 4.550%, 8/01/32	2/20 at 100.00	AA+	176,236
500		Waynesboro Redevelopment and Housing Authority, Virginia, Multifamily Housing Revenue Bonds,	No Opt. Call	AA+	504,510
		Epworth Manor, GNMA Collateralized Series 2010, 5.000%, 10/20/51
875		Total Housing/Multifamily			883,258
		Housing/Single Family – 10.7% (7.1% of Total Investments)
4,965		Virginia Housing Development Authority, Commonwealth Mortgage Bonds, Series 2001H-1, 5.350%,	1/12 at 100.00	AAA	4,967,681
		7/01/31 – NPFG Insured
500		Virginia Housing Development Authority, Commonwealth Mortgage Bonds, Series 2005C-2, 4.750%,	1/15 at 100.00	AAA	492,450
		10/01/32 (Alternative Minimum Tax)
920		Virginia Housing Development Authority, Commonwealth Mortgage Bonds, Series 2006, 4.800%,	7/15 at 100.00	AAA	913,946
		7/01/29 (Alternative Minimum Tax)
2,600		Virginia Housing Development Authority, Commonwealth Mortgage Bonds, Series 2007B, 4.750%,	7/16 at 100.00	AAA	2,560,948
		7/01/32 (Alternative Minimum Tax)
8,985		Total Housing/Single Family			8,935,025
		Long-Term Care – 12.1% (8.0% of Total Investments)
1,300		Albemarle County Industrial Development Authority, Virginia, Residential Care Facilities Mortgage	1/17 at 100.00	N/R	1,148,251
		Revenue Bonds, Westminster-Cantebury of the Blue Ridge, Series 2007, 5.000%, 1/01/31
650		Chesterfield County Health Center Commission, Virginia, Mortgage Revenue Bonds, Lucy Corr	12/15 at 100.00	N/R	531,005
		Village, Series 2005, 5.625%, 12/01/39
1,815		Fairfax County Economic Development Authority, Virginia, Residential Care Facilities Mortgage	10/17 at 100.00	N/R	1,692,705
		Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/37
500		Fairfax County Economic Development Authority, Virginia, Retirement Center Revenue Bonds,	10/16 at 100.00	A–	496,260
		Greenspring Village, Series 2006A, 4.750%, 10/01/26
1,605		Henrico County Economic Development Authority, Virginia, Residential Care Facility Revenue Bonds,	No Opt. Call	BBB	1,450,952
		Westminster Canterbury of Richmond, Series 2006, 5.000%, 10/01/35
1,800		Industrial Development Authority of the County of Prince William, Virginia, Residential Care Facility	1/17 at 100.00	N/R	1,102,788
		Revenue Bonds, Westminster at Lake, First Mortgage, Series 2006, 5.125%, 1/01/26
1,350		James City County Industrial Development Authority, Virginia, Residential Care Facility First	3/12 at 101.00	N/R	1,326,942
		Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23
970		Roanoke Industrial Development Authority, Virginia, Residential Revenue Bonds, Virginia Lutheran	12/16 at 100.00	N/R	770,238
		Homes Incorporated, Series 2006, 5.000%, 12/01/39
650		Suffolk Industrial Development Authority, Virginia, Retirement Facilities First Mortgage Revenue	9/16 at 100.00	N/R	555,627
		Bonds, Lake Prince Center, Series 2006, 5.300%, 9/01/31
650		Virginia Beach Development Authority, Virginia, Residential Care Facility Mortgage Revenue Bonds,	11/15 at 100.00	N/R	642,298
		Westminster Canterbury on Chesapeake Bay, Series 2005, 5.000%, 11/01/22
325		Winchester Industrial Development Authority, Virginia, Residential Care Facility Revenue Bonds,	1/15 at 100.00	N/R	325,666
		Westminster-Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27
11,615		Total Long-Term Care			10,042,732
		Materials – 0.7% (0.5% of Total Investments)
165		Bedford County Industrial Development Authority, Virginia, Industrial Development Revenue	2/12 at 100.00	Ba2	159,440
		Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative
		Minimum Tax)
460		Goochland County Industrial Development Authority, Virginia, Industrial Development Revenue	12/11 at 100.00	Ba2	439,884
		Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25
		(Alternative Minimum Tax)
625		Total Materials			599,324
		Tax Obligation/General – 10.5% (6.9% of Total Investments)
1,750		Chesapeake, Virginia, General Obligation Bonds, Series 2001, 5.500%, 12/01/16	12/11 at 100.00	AA+	1,772,453
1,000		Loudoun County, Virginia, General Obligation Bonds, Series 2006B, 5.000%, 12/01/25	12/16 at 100.00	AAA	1,098,830
95		Loudoun County, Virginia, General Obligation Public Improvement Bonds, Series 2002A, 5/01/22	5/12 at 100.00	AAA	97,538
1,200		Portsmouth, Virginia, General Obligation Bonds, Refunding Series 2010D, 5.000%, 7/15/34	7/20 at 100.00	AA	1,290,228
1,280		Roanoke, Virginia, General Obligation Public Improvement Bonds, Series 2002B, 5.000%, 10/01/15 –	10/12 at 101.00	AA	1,336,000
		FGIC Insured (Alternative Minimum Tax)
2,900		Virginia Beach, Virginia, General Obligation Bonds, Series 2008, 5.000%, 10/01/27 (UB)	10/17 at 100.00	AAA	3,173,818
8,225		Total Tax Obligation/General			8,768,867
		Tax Obligation/Limited – 22.5% (14.8% of Total Investments)
100		Bell Creek Community Development Authority, Virginia, Special Assessment Bonds, Series 2003A,	3/13 at 101.00	N/R	99,555
		6.750%, 3/01/22
		Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf
		Course Project, Series 2005A:
210		5.250%, 7/15/25 – ACA Insured	7/15 at 100.00	N/R	174,426
165		5.500%, 7/15/35 – ACA Insured	7/15 at 100.00	N/R	132,432
800		Fairfax County Economic Development Authority, Virginia, Lease Revenue Bonds, Joint Public Uses	5/16 at 100.00	AA+	911,608
		Community Project, Series 2006, 5.000%, 5/15/18
1,900		Greater Richmond Convention Center Authority, Virginia, Hotel Tax Revenue Bonds, Series 2005,	6/15 at 100.00	A	1,933,630
		5.000%, 6/15/30 – NPFG Insured
1,415		Loudoun County Industrial Development Authority, Virginia, Lease Revenue Refunding Bonds,	3/13 at 100.00	AA+	1,493,193
		Public Facility Project, Series 2003, 5.000%, 3/01/19
285		Montgomery County Industrial Development Authority, Virginia, Public Facility Lease Revnue	2/18 at 100.00	AA–	301,228
		Bonds, Public Projects Series 2008, 5.000%, 2/01/29
1,300		Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%,	No Opt. Call	Baa1	1,246,570
		7/01/31 – AMBAC Insured
2,000		Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005A, 0.000%,	No Opt. Call	BBB+	640,720
		7/01/29 – AMBAC Insured
400		Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding Bonds,	7/12 at 100.00	Baa1	394,264
		Series 2002D, 5.250%, 7/01/27
		Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate
		Series 2009A:
1,000		5.750%, 8/01/37	8/19 at 100.00	A+	1,036,260
1,100		6.000%, 8/01/42	8/19 at 100.00	A+	1,164,504
1,625		Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series	2/20 at 100.00	A+	1,648,416
		2010A, 5.500%, 8/01/42
1,000		Spotsylvania County Industrial Development Authority, Virginia, Lease Revenue Bonds, School	8/13 at 100.00	N/R	1,055,260
		Facilities, Series 2003B, 5.125%, 8/01/23 – AMBAC Insured
1,000		Stafford County and Staunton Industrial Development Authority, Virginia, Revenue Bonds, Virginia	8/16 at 100.00	A+	1,069,420
		Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%,
		8/01/23 – NPFG Insured
1,610		Stafford County Economic Development Authority, Virginia, Lease Revenue Bonds, Public Facility	4/18 at 100.00	AA+	1,676,783
		Projects, Series 2008, 5.000%, 4/01/33 – AGC Insured (UB)
1,000		Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Subordinate	10/20 at 100.00	Baa2	994,760
		Lien Series 2010B, 5.250%, 10/01/29
535		Virginia College Building Authority, Educational Facilities Revenue Bonds, 21st Century	2/19 at 100.00	AA+	714,840
		College Program, Series 2009, Trust 09-3B, 12.723%, 2/01/27 (IF) (4)
535		Virginia College Building Authority, Educational Facilities Revenue Bonds, 21st Century College	2/19 at 100.00	AA+	703,718
		Program, Series 2009, Trust 09-4B, 12.824%, 2/01/28 (IF) (4)
663		Virginia Gateway Community Development Authority, Prince William County, Special Assessment	3/13 at 102.00	N/R	654,858
		Bonds, Series 2003, 6.375%, 3/01/30
570		Virginia Public School Authority, School Financing Bonds, 1997 Resolution, Series 2005C,	8/15 at 100.00	AA+	654,086
		5.000%, 8/01/17
19,213		Total Tax Obligation/Limited			18,700,531
		Transportation – 9.5% (6.3% of Total Investments)
		Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, Capital
		Appriciation Series 2009B-2:
5,850		0.000%, 10/01/34 – AGC Insured	No Opt. Call	AA+	1,425,879
4,290		0.000%, 10/01/39 – AGC Insured	No Opt. Call	AA+	741,355
1,000		Metropolitan Washington D.C. Airports Authority, Airport System Revenue Bonds, Series 2002A,	10/12 at 100.00	AA–	1,035,940
		5.125%, 10/01/26 – FGIC Insured (Alternative Minimum Tax)
175		Metropolitan Washington D.C. Airports Authority, Airport System Revenue Bonds, Series 2010A,	10/20 at 100.00	AA–	183,388
		5.000%, 10/01/35
2,200		Metropolitan Washington D.C. Airports Authority, Virginia, Dulles Toll Road Revenue Bonds,	10/28 at 100.00	BBB+	1,377,222
		Dulles Metrorail Capital Appreciation, Series 2010B, 0.000%, 10/01/44
1,500		Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 5.000%, 2/01/23 – NPFG Insured	2/15 at 100.00	Baa1	1,535,610
745		Virginia Port Authority, Port Facilities Revenue Refunding Bonds Series 2010, 5.000%, 7/01/40	7/19 at 100.00	Aa3	772,558
825		Virginia Port Authority, Revenue Bonds, Port Authority Facilities, Series 2006, 5.000%,	7/13 at 100.00	Aa3	817,988
		7/01/36 – FGIC Insured (Alternative Minimum Tax)
16,585		Total Transportation			7,889,940
		U.S. Guaranteed – 21.8% (14.4% of Total Investments) (5)
165		Albemarle County Industrial Development Authority, Virginia, Residential Care Facility Revenue	1/12 at 100.00	N/R (5)	168,226
		Bonds, Westminster Canterbury of the Blue Ridge First Mortgage, Series 2001, 6.200%, 1/01/31
		(Pre-refunded 1/01/12)
1,000		Bristol, Virginia, General Obligation Utility System Revenue Bonds, Series 2002, 5.000%,	No Opt. Call	AA+ (5)	1,196,180
		11/01/24 – AGM Insured (ETM)
748		Broad Street Community Development Authority, Virginia, Revenue Bonds, Series 2003, 7.500%,	6/13 at 102.00	N/R (5)	848,210
		6/01/33 (Pre-refunded 6/01/13)
40		Henrico County Economic Development Authority, Virginia, Revenue Bonds, Bon Secours Health	11/12 at 100.00	A3 (5)	42,572
		System Inc., Series 2002A, 5.600%, 11/15/30 (Pre-refunded 11/15/12)
		Loudoun County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Loudoun
		Hospital Center, Series 2002A:
250		6.000%, 6/01/22 (Pre-refunded 6/01/12)	6/12 at 101.00	N/R (5)	262,935
600		6.100%, 6/01/32 (Pre-refunded 6/01/12)	6/12 at 101.00	N/R (5)	631,494
385		Loudoun County Industrial Development Authority, Virginia, Lease Revenue Refunding Bonds,	3/13 at 100.00	N/R (5)	412,212
		Public Facility Project, Series 2003, 5.000%, 3/01/19 (Pre-refunded 3/01/13)
1,000		Newport News, Virginia, General Obligation Bonds, Series 2003B, 5.000%, 11/01/22	11/13 at 100.00	Aa1 (5)	1,100,160
		(Pre-refunded 11/01/13)
1,100		Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding	7/12 at 100.00	Baa1 (5)	1,144,286
		Bonds, Series 2002D, 5.250%, 7/01/27 (Pre-refunded 7/01/12)
455		Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E,	2/12 at 100.00	Aaa	465,010
		5.500%, 8/01/29 (Pre-refunded 2/01/12)
		Roanoke, Virginia, General Obligation Public Improvement Bonds, Series 2002A:
1,950		5.000%, 10/01/18 (Pre-refunded 10/01/12)	10/12 at 101.00	AA (5)	2,071,251
2,435		5.000%, 10/01/19 (Pre-refunded 10/01/12)	10/12 at 101.00	AA (5)	2,586,408
1,000		Staunton, Virginia, General Obligation Bonds, Series 2004, 6.250%, 2/01/25 (Pre-refunded 2/01/14) –	2/14 at 101.00	Aa2 (5)	1,153,490
		AMBAC Insured
		Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds,
		Series 2005:
95		5.250%, 6/01/19 (Pre-refunded 6/01/12)	6/12 at 100.00	Aaa	98,524
2,700		5.500%, 6/01/26 (Pre-refunded 6/01/15)	6/15 at 100.00	Aaa	2,996,811
700		Virginia Beach Development Authority, Public Facilities Revenue Bonds, Series 2005A, 5.000%,	5/15 at 100.00	AA+ (5)	814,163
		5/01/22 (Pre-refunded 5/01/15)
600		Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 5.000%, 1/15/20	1/16 at 100.00	AAA	711,210
		(Pre-refunded 1/15/16)
1,420		Virginia Beach, Virginia, General Obligation Refunding and Public Improvement Bonds, Series 2002,	3/12 at 100.00	AAA	1,454,591
		5.000%, 3/01/21 (Pre-refunded 3/01/12)
16,643		Total U.S. Guaranteed			18,157,733
		Utilities – 2.4% (1.6% of Total Investments)
2,000		Mecklenburg County Industrial Development Authority, Virginia, Revenue Bonds, UAE Mecklenburg	10/12 at 100.00	Baa1	2,006,440
		Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
		Water and Sewer – 14.0% (9.3% of Total Investments)
805		Fairfax County Water Authority, Virginia, Water Revenue Refunding Bonds, Series 2002,	4/12 at 100.00	AAA	813,960
		5.000%, 4/01/27
		Henry County Public Service Authority, Virginia, Water and Sewerage Revenue Refunding Bonds,
		Series 2001:
1,000		5.500%, 11/15/17 – AGM Insured	No Opt. Call	AA+	1,181,690
3,000		5.500%, 11/15/19 – AGM Insured	No Opt. Call	AA+	3,569,670
		Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001:
1,080		5.000%, 11/01/18 – FGIC Insured	11/11 at 100.00	AA+	1,087,268
1,190		5.000%, 11/01/19 – FGIC Insured	11/11 at 100.00	AA+	1,198,009
1,525		5.000%, 11/01/24 – FGIC Insured	11/11 at 100.00	AA+	1,534,835
1,000		Virginia Beach, Virginia, Water and Sewer System Revenue Bonds, Series 2005, 5.000%, 10/01/30	10/15 at 100.00	AAA	1,099,759
990		Virginia State Resources Authority, Clean Water Revenue Bonds, Series 2007, Trust 3036,	No Opt. Call	AAA	1,197,473
		13.313%, 10/01/15 (IF)
10,590		Total Water and Sewer			11,682,664
$ 146,626		Total Investments (cost $124,462,920) – 151.3%			125,870,887
		Floating Rate Obligations – (3.6)%			(2,980,000)
		MuniFund Term Preferred Shares, at Liquidation Value – (51.9)% (6)			(43,200,000)
		Other Assets Less Liabilities – 4.2%			3,529,221
		Net Assets Applicable to Common Shares – 100%			$ 83,220,108

 

 

 

 

 

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Fair Value Measurements

 

Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:

 

Level 1 - Quoted prices in active markets for identical securities.

 

Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

 

Level 3 - Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

 

 

The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of August 31, 2011:

 

		Level 1				Level 2				Level 3				Total
Investments:
Municipal Bonds		$	—			$	125,870,887			$	—			$	125,870,887

 

 

During the period ended August 31, 2011, the Fund recognized no significant transfers to or from Level 1, Level 2 or Level 3.

 

Income Tax Information

 

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

 

At August 31, 2011, the cost of investments was $121,420,422.

 

Gross unrealized appreciation and gross unrealized depreciation of investments at August 31, 2011, were as follows:

 

Gross unrealized:
Appreciation	$ 5,172,109
Depreciation	(3,701,644)
Net unrealized appreciation (depreciation) of investments	$ 1,470,465

 

(1)	All percentages shown in the Portfolio of Investments are based on net assets applicable to Common
	shares unless otherwise noted.
(2)	Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption.
	There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities
	may be subject to periodic principal paydowns.
(3)	Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc.
	(“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB
	by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of
	these national rating agencies.
(4)	Investment, or portion of investment, has been pledged to collateralize the net payment obligations for
	investments in inverse floating rate transactions.
(5)	Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities,
	which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency
	securities are given an implied rating equal to the rating of such securities.
(6)	MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.3%.
N/R	Not rated.
(ETM)	Escrowed to maturity.
(IF)	Inverse floating rate investment.
(UB)	Underlying bond of an inverse floating rate trust reflected as a financing transaction.

 

 

 

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Item 2. Controls and Procedures.

a.

The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

 

b.

There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

 

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 CERT attached hereto.

 

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)   Nuveen Virginia Dividend Advantage Municipal Fund 2 

 

By (Signature and Title)     /s/ Kevin J. McCarthy                    

                                                   Kevin J. McCarthy

                                                   Vice President and Secretary

 

Date          October 28, 2011        

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)     /s/ Gifford R. Zimmerman                    

                                                    Gifford R. Zimmerman

                                                  Chief Administrative Officer (principal executive officer) 

 

Date          October 28, 2011        

 

By (Signature and Title)     /s/ Stephen D. Foy                              

                                                   Stephen D. Foy

                                                  Vice President and Controller (principal financial officer) 

 

Date          October 28, 2011