Vanguard Performance Profile WINTER 2008

Transcription

1 Vanguard Performance Profile WINTER 2008 Average Annual Total Returns for Fund Ticker Expense Since No. Vanguard Fund Name (Inception Date) Symbol Fees Ratio 1 Year 5 Years 10 Years Inception GROWTH AND INCOME FUNDS Index Investor Shares (8/31/1976) VFINX Index Admiral Shares (11/13/2000) VFIAX 328 Capital Value (12/17/2001) VCVLX 82 Convertible Securities (6/17/1986) VCVSX R3 608 Diversified Equity (6/10/2005) VDEQX 602 Dividend Appreciation Index Investor Shares (4/27/2006) VDAIX 920 Dividend Appreciation ETF (4/21/2006) VIG 57 Dividend Growth (5/15/1992) VDIGX 65 Equity Income Investor Shares (3/21/1988) VEIPX 565 Equity Income Admiral Shares (8/13/2001) VEIRX 93 Growth and Income Investor Shares (12/10/1986) VQNPX 593 Growth and Income Admiral Shares (5/14/2001) VGIAX 623 High Dividend Yield Index Investor Shares (11/16/2006) VHDYX 923 High Dividend Yield ETF (11/10/2006) VYM 307 Large-Cap Index Investor Shares (1/30/2004) VLACX 5307 Large-Cap Index Admiral Shares (2/2/2004) VLCAX 961 Large-Cap ETF (1/27/2004) VV 634 Market Neutral Investor Shares (11/11/1998) VMNFX R3 835 Mid-Cap Value Index Investor Shares (8/24/2006) VMVIX 935 Mid-Cap Value ETF (8/17/2006) VOE 1220 PRIMECAP Core (12/9/2004) VPCCX R3 123 REIT Index Investor Shares (5/13/1996) VGSIX R REIT Index Admiral Shares (11/12/2001) VGSLX R3 986 REIT ETF (9/23/2004) VNQ 934 Selected Value (2/15/1996) VASVX R3 101 Tax-Managed Growth & Income Investor Shares (9/6/1994) VTGIX R Tax-Managed Growth & Income Admiral Shares (11/12/2001) VTGLX R5 85 Total Stock Market Index Investor Shares (4/27/1992) VTSMX 0.18% 5.39% 12.69% 5.83% 12.01% * FEE CODES R1 0.5% purchase fee and 0.5% redemption fee. R2 2% redemption fee on shares held less than 2 months. R3 1% redemption fee on shares held less than 1 year. R4 2% redemption fee on shares held less than 1 year. R5 1% redemption fee on shares held less than 5 years. R6 0.25% purchase fee and 2% redemption fee on shares held less than 2 months. COMPARATIVE INDEXES S&P 500 Index 5.49% 12.83% 5.91% Dow Jones Wilshire 4500 Index Dow Jones Wilshire 5000 Index Russell 2000 Index MSCI EAFE Index Lehman U.S. Aggregate Bond Index Lehman Municipal Bond Index Citigroup 3-Month T-Bill Index * Excluding the effect attributable to dividend expenses on short sales, total annual operating expense ratio would be 0.50%. The performance data shown represent past performance. Past performance and especially short-term past performance is no 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 Some funds assess purchase, redemption, and/or account maintenance fees. The performance data shown do not reflect deduction of these fees. If they did, performance would be lower. Details on these fees and adjusted performance figures can be found in the Fee-Adjusted Returns section.

2 Average Annual Total Returns for Fund Ticker Expense Since No. Vanguard Fund Name (Inception Date) Symbol Fees Ratio 1 Year 5 Years 10 Years Inception 585 Total Stock Market Index Admiral Shares (11/13/2000) VTSAX 970 Total Stock Market ETF (5/24/2001) VTI 124 U.S. Value (6/29/2000) VUVLX 6 Value Index Investor Shares (11/2/1992) VIVAX 506 Value Index Admiral Shares (11/13/2000) VVIAX 966 Value ETF (1/26/2004) VTV 22 Windsor Investor Shares (10/23/1958) VWNDX 5022 Windsor Admiral Shares (11/12/2001) VWNEX 73 Windsor II Investor Shares (6/24/1985) VWNFX 573 Windsor II Admiral Shares (5/14/2001) VWNAX GROWTH FUNDS 98 Extended Market Index Investor Shares (12/21/1987) VEXMX 598 Extended Market Index Admiral Shares (11/13/2000) VEXAX 965 Extended Market ETF (12/27/2001) VXF 213 FTSE Social Index (5/31/2000) VFTSX 9 Growth Index Investor Shares (11/2/1992) VIGRX 509 Growth Index Admiral Shares (11/13/2000) VIGAX 967 Growth ETF (1/26/2004) VUG 832 Mid-Cap Growth Index Investor Shares (8/24/2006) VMGIX 932 Mid-Cap Growth ETF (8/17/2006) VOT 859 Mid-Cap Index Investor Shares (5/21/1998) VIMSX 5859 Mid-Cap Index Admiral Shares (11/12/2001) VIMAX 939 Mid-Cap ETF (1/26/2004) VO 26 Morgan Growth Investor Shares (12/31/1968) VMRGX 526 Morgan Growth Admiral Shares (5/14/2001) VMRAX 59 PRIMECAP Investor Shares (11/1/1984) VPMCX R3 559 PRIMECAP Admiral Shares (11/12/2001) VPMAX R3 114 Strategic Equity (8/14/1995) VSEQX 102 Tax-Managed Capital Appreciation Investor Shares (9/6/1994) VMCAX R Tax-Managed Capital Appreciation Admiral Shares (11/12/2001) VTCLX R5 23 U.S. Growth Investor Shares (1/6/1959) VWUSX 523 U.S. Growth Admiral Shares (8/13/2001) VWUAX AGGRESSIVE GROWTH FUNDS 111 Capital Opportunity Investor Shares (8/14/1995) VHCOX R Capital Opportunity Admiral Shares (11/12/2001) VHCAX R Consumer Discretionary Index Admiral Shares (7/14/2005) VCDAX R4 954 Consumer Discretionary ETF (1/26/2004) VCR 5484 Consumer Staples Index Admiral Shares (1/30/2004) VCSAX R4 955 Consumer Staples ETF (1/26/2004) VDC 51 Energy Investor Shares (5/23/1984) VGENX R3 551 Energy Admiral Shares (11/12/2001) VGELX R Energy Index Admiral Shares (10/7/2004) VENAX R4 951 Energy ETF (9/23/2004) VDE 24 Explorer Investor Shares (12/11/1967) VEXPX 5024 Explorer Admiral Shares (11/12/2001) VEXRX 0.09% 5.57% 13.89% 3.92% % % 4.33% 17.49% 7.58% 11.89% % 10.58% 20.53% 17.69% 14.30%

3 Average Annual Total Returns for Fund Ticker Expense Since No. Vanguard Fund Name (Inception Date) Symbol Fees Ratio 1 Year 5 Years 10 Years Inception 5486 Financials Index Admiral Shares (2/4/2004) VFAIX R4 957 Financials ETF (1/16/2004) VFH 544 Growth Equity (3/11/1992) VGEQX 52 Health Care Investor Shares (5/23/1984) VGHCX R3 552 Health Care Admiral Shares (11/12/2001) VGHAX R Health Care Index Admiral Shares (2/5/2004) VHCIX R4 956 Health Care ETF (1/26/2004) VHT 5482 Industrials Index Admiral Shares (5/8/2006) VINAX R4 953 Industrials ETF (9/23/2004) VIS 5487 Information Technology Index Admiral Shares (3/25/2004) VITAX R4 958 Information Technology ETF (1/26/2004) VGT 5481 Materials Index Admiral Shares (2/11/2004) VMIAX R4 952 Materials ETF (1/26/2004) VAW 301 Mid-Cap Growth (12/31/1997) VMGRX 53 Precious Metals & Mining (5/23/1984) VGPMX R3 861 Small-Cap Growth Index Investor Shares (5/21/1998) VISGX 938 Small-Cap Growth ETF (1/26/2004) VBK 48 Small-Cap Index Investor Shares (10/3/1960) NAESX 548 Small-Cap Index Admiral Shares (11/13/2000) VSMAX 969 Small-Cap ETF (1/26/2004) VB 860 Small-Cap Value Index Investor Shares (5/21/1998) VISVX 937 Small-Cap Value ETF (1/26/2004) VBR 615 Strategic Small-Cap Equity (4/24/2006) VSTCX 116 Tax-Managed Small-Cap (3/25/1999) VTMSX R Telecommunication Services Index Admiral Shares (3/11/2005) VTCAX R4 959 Telecommunication Services ETF (9/23/2004) VOX 5489 Utilities Index Admiral Shares (4/28/2004) VUIAX R4 960 Utilities ETF (1/26/2004) VPU INTERNATIONAL FUNDS 227 Developed Markets Index (5/8/2000) VDMIX R2 533 Emerging Markets Stock Index Investor Shares (5/4/1994) VEIEX R Emerging Markets Stock Index Admiral Shares (6/23/2006) VEMAX R1 964 Emerging Markets ETF (3/4/2005) VWO 936 Europe Pacific ETF (7/20/2007) VEA 79 European Stock Index Investor Shares (6/18/1990) VEURX R2 579 European Stock Index Admiral Shares (8/13/2001) VEUSX R2 963 European ETF (3/4/2005) VGK 0.26% 17.47% 3.72% % 5.28% % 10.99% 21.48% 6.37% % 11.32%

4 Average Annual Total Returns for Fund Ticker Expense Since No. Vanguard Fund Name (Inception Date) Symbol Fees Ratio 1 Year 5 Years 10 Years Inception 770 FTSE All-World ex-us Index Investor Shares (3/8/2007) VFWIX R6 991 FTSE All-World ex-us ETF (3/2/2007) VEU 129 Global Equity (8/14/1995) VHGEX 126 International Explorer (11/4/1996) VINEX R2 81 International Growth Investor Shares (9/30/1981) VWIGX R2 581 International Growth Admiral Shares (8/13/2001) VWILX R2 46 International Value (5/16/1983) VTRIX R2 72 Pacific Stock Index Investor Shares (6/18/1990) VPACX R2 572 Pacific Stock Index Admiral Shares (8/13/2001) VPADX R2 962 Pacific ETF (3/4/2005) VPL 127 Tax-Managed International (8/17/1999) VTMGX R5 113 Total International Stock Index (4/29/1996) VGTSX R2 BALANCED FUNDS 78 Asset Allocation Investor Shares (11/3/1988) VAAPX 578 Asset Allocation Admiral Shares (8/13/2001) VAARX 2 Balanced Index Investor Shares (11/9/1992) VBINX 502 Balanced Index Admiral Shares (11/13/2000) VBIAX 724 LifeStrategy Conservative Growth (9/30/1994) VSCGX 122 LifeStrategy Growth (9/30/1994) VASGX 723 LifeStrategy Income (9/30/1994) VASIX 914 LifeStrategy Moderate Growth (9/30/1994) VSMGX 56 STAR (3/29/1985) VGSTX 302 Target Retirement 2005 (10/27/2003) VTOVX 681 Target Retirement 2010 (6/7/2006) VTENX 303 Target Retirement 2015 (10/27/2003) VTXVX 682 Target Retirement 2020 (6/7/2006) VTWNX 304 Target Retirement 2025 (10/27/2003) VTTVX 695 Target Retirement 2030 (6/7/2006) VTHRX 305 Target Retirement 2035 (10/27/2003) VTTHX 696 Target Retirement 2040 (6/7/2006) VFORX 306 Target Retirement 2045 (10/27/2003) VTIVX 699 Target Retirement 2050 (6/7/2006) VFIFX 308 Target Retirement Income (10/27/2003) VTINX 103 Tax-Managed Balanced (9/6/1994) VTMFX R5 27 Wellesley Income Investor Shares (7/1/1970) VWINX 527 Wellesley Income Admiral Shares (5/14/2001) VWIAX 21 Wellington Investor Shares (7/1/1929) VWELX 521 Wellington Admiral Shares (5/14/2001) VWENX 0.40% 16.08% % 21.77% 12.84% % 6.58% 12.77% 7.30% 11.30% Average Annual Total Returns for 30-Day Fund Ticker Expense Since Current No. Vanguard Fund Name (Inception Date) Symbol Fees Ratio 1 Year 5 Years 10 Years Inception Yield* BOND FUNDS 36 GNMA Investor Shares** (6/27/1980) VFIIX 536 GNMA Admiral Shares** (2/12/2001) VFIJX 29 High-Yield Corporate Investor Shares (12/27/1978) VWEHX R3 529 High-Yield Corporate Admiral Shares (11/12/2001) VWEAX R3 119 Inflation-Protected Securities Investor Shares (6/29/2000) VIPSX 5119 Inflation-Protected Securities Admiral Shares (6/10/2005) VAIPX 314 Intermediate-Term Bond Index Investor Shares (3/1/1994) VBIIX 5314 Intermediate-Term Bond Index Admiral Shares (11/12/2001) VBILX 925 Intermediate-Term Bond ETF (4/3/2007) BIV 0.21% 7.01% 4.25% 5.76% 8.50% 5.03% * 30-day yield for bond funds as of December 31, **The U.S. government backs the fund s underlying investments but not its shares net asset value.

5 Average Annual Total Returns for 30-Day Fund Ticker Expense Since Current No. Vanguard Fund Name (Inception Date) Symbol Fees Ratio 1 Year 5 Years 10 Years Inception Yield* 71 Intermediate-Term Investment-Grade Investor Shares (11/1/1993) VFICX 571 Intermediate-Term Investment-Grade Admiral Shares (2/12/2001) VFIDX 35 Intermediate-Term Treasury Investor Shares** (10/28/1991) VFITX 535 Intermediate-Term Treasury Admiral Shares** (2/12/2001) VFIUX 522 Long-Term Bond Index (3/1/1994) VBLTX 927 Long-Term Bond ETF (4/3/2007) Expense Expen BLV Ratio se 28 Long-Term Investment-Grade Investor Shares (7/9/1973) VWESX 568 Long-Term Investment-Grade Admiral Shares (2/12/2001) VWETX 83 Long-Term Treasury Investor Shares** (5/19/1986) VUSTX 583 Long-Term Treasury Admiral Shares** (2/12/2001) VUSUX 132 Short-Term Bond Index Investor Shares (3/1/1994) VBISX 5132 Short-Term Bond Index Admiral Shares (11/12/2001) VBIRX 924 Short-Term Bond ETF (4/3/2007) BSV 39 Short-Term Investment-Grade Investor Shares (10/29/1982) VFSTX 539 Short-Term Investment-Grade Admiral Shares (2/12/2001) VFSUX 49 Short-Term Federal Investor Shares** (12/31/1987) VSGBX 549 Short-Term Federal Admiral Shares** (2/12/2001) VSGDX 32 Short-Term Treasury Investor Shares** (10/28/1991) VFISX 532 Short-Term Treasury Admiral Shares** (2/13/2001) VFIRX 84 Total Bond Market Index Investor Shares (12/11/1986) VBMFX 584 Total Bond Market Index Admiral Shares (11/12/2001) VBTLX 928 Total Bond Market ETF (4/3/2007) BND Year to Date 0.21% 6.14% 4.70% 6.01% 6.18% 5.23% Average Annual Total Returns for 30-Day Fund Ticker Expense Since Current No. Vanguard Fund Name (Inception Date) Symbol Fees Ratio 1 Year 5 Years 10 Years Inception Yield* TAX-EXEMPT INCOME FUNDS 100 CA Intermediate-Term Tax-Exempt Investor Shares (3/4/1994) VCAIX 5100 CA Intermediate-Term Tax-Exempt Admiral Shares (11/12/2001) VCADX 75 CA Long-Term Tax-Exempt Investor Shares (4/7/1986) VCITX 575 CA Long-Term Tax-Exempt Admiral Shares (11/12/2001) VCLAX 18 FL Long-Term Tax-Exempt Investor Shares (9/1/1992) VFLTX 518 FL Long-Term Tax-Exempt Admiral Shares (11/12/2001) VFLRX 44 High-Yield Tax-Exempt Investor Shares (12/27/1978) VWAHX 5044 High-Yield Tax-Exempt Admiral Shares (11/12/2001) VWALX 58 Insured Long-Term Tax-Exempt Investor Shares (9/30/1984) VILPX 558 Insured Long-Term Tax-Exempt Admiral Shares (2/12/2001) VILQX 42 Intermediate-Term Tax-Exempt Investor Shares (9/1/1977) VWITX 542 Intermediate-Term Tax-Exempt Admiral Shares (2/12/2001) VWIUX 31 Limited-Term Tax-Exempt Investor Shares (8/31/1987) VMLTX 531 Limited-Term Tax-Exempt Admiral Shares (2/12/2001) VMLUX 43 Long-Term Tax-Exempt Investor Shares (9/1/1977) VWLTX 543 Long-Term Tax-Exempt Admiral Shares (2/12/2001) VWLUX 168 MA Tax-Exempt (12/9/1998) VMATX 14 NJ Long-Term Tax-Exempt Investor Shares (2/3/1988) VNJTX 514 NJ Long-Term Tax-Exempt Admiral Shares (5/14/2001) VNJUX 76 NY Long-Term Tax-Exempt Investor Shares (4/7/1986) VNYTX 576 NY Long-Term Tax-Exempt Admiral Shares (5/14/2001) VNYUX 97 OH Long-Term Tax-Exempt (6/18/1990) VOHIX 77 PA Long-Term Tax-Exempt Investor Shares (4/7/1986) VPAIX 577 PA Long-Term Tax-Exempt Admiral Shares (5/14/2001) VPALX 41 Short-Term Tax-Exempt Investor Shares (9/1/1977) VWSTX 541 Short-Term Tax-Exempt Admiral Shares (2/12/2001) VWSUX 0.16% 3.02% 3.22% 4.57% 5.26% 3.72% * 30-day yield for bond funds as of December 31, **The U.S. government backs the fund s underlying investments but not its shares net asset value.

6 Average Annual Total Returns for for Periods Ended December 31, 31, Day Fund Ticker Expense Since Current No. Vanguard Fund Name (Inception Date) Symbol Fees Ratio 1 Year 5 Years 10 Years Inception Yield* MONEY MARKET FUNDS (TAXABLE AND TAX-EXEMPT) 11 Admiral Treasury Money Market** (12/14/1992) VUSXX 33 Federal Money Market (7/13/1981) VMFXX 30 Prime Money Market (6/4/1975) VMMXX 50 Treasury Money Market** (3/9/1983) VMPXX 62 CA Tax-Exempt Money Market (6/1/1987) VCTXX 95 NJ Tax-Exempt Money Market (2/3/1988) VNJXX 163 NY Tax-Exempt Money Market (9/3/1997) VYFXX 96 OH Tax-Exempt Money Market (6/18/1990) VOHXX 63 PA Tax-Exempt Money Market (6/13/1988) VPTXX 45 Tax-Exempt Money Market (6/10/1980) VMSXX 0.10% 4.78% 2.91% 3.62% 3.96% 3.85% After-Tax Returns. The after-tax returns are shown in two ways: (1) assuming that an investor owned the fund during the entire period and paid taxes on the fund s distributions, and (2) assuming that an investor paid taxes on the fund s distributions and sold all shares at the end of each period. If a fund incurs a loss, which generates a tax benefit, the postliquidation after-tax return may exceed the fund s other return figures. These after-tax performance data reflect the deduction of a 1% redemption fee on shares held less than five years. Standardized Average Annual Total Returns as of December 31, 2007 Fund Expense Since No. Vanguard Fund Name (Inception Date) Ratio 1 Year 5 Years 10 Years Inception VANGUARD TAX-MANAGED FUNDS 103 Tax-Managed Balanced (9/6/1994) and Sale of Fund Shares 102 Tax-Managed Capital Appreciation Investor Shares (9/6/1994) and Sale of Fund Shares 5102 Tax-Managed Capital Appreciation Admiral Shares (11/12/2001) and Sale of Fund Shares 101 Tax-Managed Growth & Income Investor Shares (9/6/1994) and Sale of Fund Shares 5101 Tax-Managed Growth & Income Admiral Shares (11/12/2001) and Sale of Fund Shares 127 Tax-Managed International (8/17/1999) and Sale of Fund Shares 116 Tax-Managed Small-Cap (3/25/1999) and Sale of Fund Shares 0.12% % 8.55% 6.15% 8.37% After-tax returns are calculated using the highest individual federal income tax rates in effect at the time of each distribution; they do not reflect the impact of state and local taxes. Your after-tax return depends on your individual tax situation and, therefore, may differ from the return presented here. In addition, the after-tax returns for Vanguard funds reflect the reduced tax rates on ordinary income, qualified dividend income, and short-term and long-term capital gains that went into effect in If you own fund or exchange-traded fund (ETF) shares in a tax-deferred account such as an individual retirement account or 401(k) plan, this information does not apply to your investment because these accounts are not subject to current taxes. After-tax returns for most funds are calculated using the tax liability implied by each fund s declared distributions. However, the exact tax characteristics of many distributions are not known until after the close of the calendar year. For Vanguard Tax-Managed Balanced Fund and Vanguard REIT Index Fund, conservative estimates are used based on fund history until final amounts become available. After-tax total returns are available for many of the Vanguard funds on our website, Vanguard.com. * 7-day yield for money market funds (as of December 31, 2007). The money market yields listed more closely reflect the current earnings of the fund or portfolio than the average annual total returns shown. **The U.S. government backs the fund s underlying investments but not its shares net asset value. Performance figures assume the reinvestment of dividends and capital gains distributions; the figures are pre-tax and net of expenses, and all are unaudited. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency; although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund.

7 Standardized Average Average Annual Annual Total Total Returns For Returns as of December Periods 31, Ended 2007 June 30, 2007 Portfolio Fund Ticker Expense Year to Since 7- Or 30-Day Since No. Vanguard Portfolio Fund Name Name (Inception (Inception Date) Date) Symbol Fees Ratio 1 Year Date 5 Years 110 Year Years Inception 5 Years 10 Current Years Yield* Inception VANGUARD VARIABLE ANNUITY 69 Balanced (5/23/1991) 603 Capital Growth (5/1/2003) 145 Diversified Value (2/8/1999) 8 Equity Income (6/7/1993) 68 Equity Index (4/29/1991) 10 Growth (6/7/1993) 146 High Yield Bond (6/3/1996) 86 International (6/3/1994) 143 Mid-Cap Index (2/9/1999) 64 Money Market (5/2/1991) 147 REIT Index (2/9/1999) 144 Short-Term Investment-Grade (2/8/1999) 160 Small Company Growth (6/3/1996) 67 Total Bond Market Index (4/29/1991) 604 Total Stock Market Index (5/1/2003) VANGUARD FIXED ANNUITY 1250 Vanguard Fixed Annuity Single % 11.92% 8.03% 10.40% % Annual Effective Interest Rate as of 12/31/2007 (Subject to change) 4.00% Standardized Average Annual Total Returns as of December 31, 2007 Portfolio Expense Since No. Vanguard Portfolio Name (Inception Date) Ratio 1 Year 5 Years 10 Years Inception VANGUARD 529 COLLEGE SAVINGS PLAN Index (12/17/2002) 4509 Aggressive Growth (12/12/2002) 4512 Conservative Growth (12/16/2002) 4510 Growth (12/16/2002) 4517 Growth Index (12/17/2002) 4524 High Yield Bond (12/11/2002) 4513 Income (12/16/2002) 4523 Inflation-Protected Securities (12/11/2002) 4528 Interest Accumulation (10/15/2004) 4516 Mid-Cap Index (12/17/2002) 4511 Moderate Growth (12/11/2002) 4541 Morgan Growth (12/1/2006) 4519 Small-Cap Index (12/16/2002) 4543 STAR (12/1/2006) 4522 Total Bond Market Index (12/16/2002) 4520 Total International Stock Index (12/11/2002) 4514 Total Stock Market Index (12/11/2002) 4518 Value Index (12/11/2002) 4542 Windsor (12/1/2006) 0.50% 4.93% 11.88% 11.40% *30-day yield for bond funds and portfolios; 7-day yield for money market funds and portfolios (as of December 31, 2007). The money market yields listed more closely reflect the current earnings of the fund or portfolio than the average annual total returns shown. For more information about The Vanguard 529 College Savings Plan, call or visit to obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor and Underwriter. If you are not a Nevada taxpayer, consider before investing whether your or the designated beneficiary s home state offers any state tax or other benefits that are only available for investments in such state s qualified tuition program. The Vanguard 529 College Savings Plan is a Nevada Trust administered by the Board of Trustees of the College Savings Plans of Nevada, which is chaired by the State Treasurer. The Vanguard Group, Inc., serves as the Investment Manager and through its affiliate, Vanguard Marketing Corporation, markets and distributes the Plan. Upromise Investments, Inc., serves as Program Manager and has overall responsibility for the day-to-day operations, including effecting transactions. The Plan s portfolios, although they invest in Vanguard mutual funds, are not mutual funds. Investment returns are not guaranteed and you could lose money by investing in the Plan.

8 Fee-Adjusted Returns. In accordance with SEC regulations, the returns presented below take into account certain fees that may apply to Vanguard funds. These fees are detailed in the chart below. For some funds, fees are levied on purchases or redemptions to offset the costs of buying and selling portfolio securities. For others, fees are assessed on redemptions made within certain time periods after a purchase to discourage short-term trading. All purchase 1 Year and 5 Years redemption 10 Years fees are paid directly to the fund to compensate long-term shareholders for the costs of trading activity. Note that one-year performance figures are not fee-adjusted for fees incurred on shares held less than one year. In addition, Vanguard index funds apply a $20 annual account service fee, which is not reflected in the figures, to all funds with balances below $10,000 in many types of accounts. If these fees were included, performance would be lower. Average Annual Total Returns for Fund Ticker No. Vanguard Fund Name (Inception Date) Symbol Fees GROWTH AND INCOME FUNDS 101 Tax-Managed Growth & Income Investor Shares (9/6/1994) VTGIX R Tax-Managed Growth & Income Admiral Shares (11/12/2001) VTGLX R5 GROWTH FUNDS 102 Tax-Managed Capital Appreciation Investor Shares (9/6/1994) VMCAX R Tax-Managed Capital Appreciation Admiral Shares (11/12/2001) VTCLX R5 AGGRESSIVE GROWTH FUNDS 116 Tax-Managed Small-Cap (3/25/1999) VTMSX R5 INTERNATIONAL FUNDS 533 Emerging Markets Stock Index Investor Shares (5/4/1994) VEIEX R Emerging Markets Stock Index Admiral Shares (6/23/2006) VEMAX R1 770 FTSE All-World ex-us Index Investor Shares (3/8/2007) VFWIX R6 127 Tax-Managed International (8/17/1999) VTMGX R5 BALANCED FUNDS 103 Tax-Managed Balanced (9/6/1994) VTMFX R5 Expense Since Ratio 1 Year 5 Years 10 Years Inception 0.15% 4.35% 12.75% 5.91% 10.84% Since-inception returns for less than one year are not annualized. Yield stated in real terms; not adjusted for projected inflation. Although the income from a municipal bond fund is exempt from federal tax, capital gains realized either through a fund s trading or from your redemption of shares are taxable. For some investors, a portion of the fund s income may be subject to state and local taxes, as well as the alternative minimum tax. Closed to new investor accounts. Performance figures since fund inception as listed next to fund name. Inception date is the date on which performance measurement began. Funds may have had subscription periods during which they were invested in short-term/money market instruments. Returns do not reflect these subscription periods. Vanguard ETFs are not redeemable with an Applicant Fund other than in Creation Unit aggregations. Instead, investors must buy or sell Vanguard ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor will incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. The total returns shown do not reflect any payments of brokerage commissions. Share prices for the Vanguard Variable Annuity are accumulation unit values that reflect the investment results of the respective portfolios as well as the reinvestment of all dividends and capital gains, reduced by daily mortality, expense risk, and administrative expense charges. The one-year, five-year, ten-year, and since-inception period returns, considered Standardized, are adjusted for the $25 annual fee charged on contracts valued at less than $25,000. With respect to contracts issued in New York State, performance figures shown are based on the actual performance of Vanguard Variable Insurance Fund as if the contracts were being offered in New York prior to their first New York offering date in November The Vanguard Variable Annuity is a flexible-premium variable annuity issued by Monumental Life Insurance Company, Cedar Rapids, Iowa (NAIC No ), Form No. VVAP U 1101 (in Florida, Form No. VVAP U 1101-FL, and in Oregon, Form No. VVAP U 1101-OR), without agent representation. This insurance policy is not available in all states and may vary by state. In New York State only, the Vanguard Variable Annuity is issued by Transamerica Financial Life Insurance Company, Purchase, New York (NAIC No ), Form No. VVAPA U 1101, without agent representation. The Vanguard Group administers the contract for its issuers. Its variable annuity and investment costs rank among the lowest in the industry, according to Morningstar, Inc., December The Vanguard Group, Monumental Life Insurance Company, and Transamerica Financial Life Insurance Company do not provide tax advice. Investors are encouraged to consult a tax advisor for information on how annuity taxation applies to their individual situations. The Vanguard Fixed Annuity Single 5, single-premium deferred annuity, Policy Form , or applicable state variation, is issued by Lincoln Life & Annuity Company of New York, Syracuse, NY. The performance data shown reflect performance for the Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund, the predecessor of Vanguard Market Neutral Fund. Vanguard ETFs are not sponsored, endorsed, sold, or promoted by Lehman Brothers. Lehman makes no representation or warranty, express or implied, to the owners of Vanguard ETFs or any member of the public regarding the advisability of investing in securities generally or in Vanguard ETFs particularly or the ability of the Lehman Index to track general bond market performance. Lehman hereby expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect to the Lehman index and any data included therein. Lehman s only relationship to Vanguard and Vanguard ETFs is the licensing of the Lehman Index which is determined, composed, and calculated by Lehman without regard to Vanguard or the Vanguard ETFs. Lehman is not responsible for and has not participated in the determination of the timing of, prices of, or quantities of Vanguard ETFs to be issued. The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. For any such funds or securities, the prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with The Vanguard Group and any related funds. Russell is a trademark of The Frank Russell Company. S&P 500 and 500 are trademarks of The McGraw-Hill Companies, Inc., and have been licensed for use by The Vanguard Group, Inc. Vanguard mutual funds are not sponsored, endorsed, sold, or promoted by Standard & Poor s, and Standard & Poor s makes no representation regarding the advisability of investing in the funds. FTSE is a trademark jointly owned by the London Stock Exchange plc and The Financial Times Limited and is used by FTSE International Limited under license. FTSE International Limited does not sponsor, endorse, or promote the fund; is not in any way connected to it; and does not accept any liability in relation to its issue, operation, and trading. Vanguard, Vanguard Brokerage Services, Vanguard.com, Wellington, Admiral, Explorer, LifeStrategy, Morgan, STAR, Vanguard Tax-Managed Funds, Vanguard ETF, Vanguard ETFs, Wellesley, Windsor, and the ship logo are trademarks of The Vanguard Group, Inc. All other marks are the exclusive property of their respective owners. For more information, visit or call for Vanguard funds, for Vanguard annuity products, and for non-vanguard funds offered through Vanguard Brokerage Services, to obtain fund and variable annuity contract prospectuses. Visit our website, call , or contact your broker to obtain a product description and prospectus for Vanguard ETF Shares. Investment objectives, risks, charges, expenses, and other important information are contained in these documents; read and consider them carefully before investing The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. PPITV