Vanguard Developed Markets Index Fund

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1 Vanguard Product Summary Seeks to track FTSE All Cap ex. International equity diversified across growth and value styles. markets in Canada and the major markets of Europe and the Pacific region. Passively managed, full-replication approach. Fund remains fully invested. Low expenses minimize net tracking error Vanguard Style View : Foreign Large Blend Diversified index portfolio of non-u.s. stocks representing the major foreign equity markets. Market capitalization Large Mid Small Market Dvlp Emrg Central tendency Expected range of fund holdings Quarterly Commentary During the third quarter ended September 30, global stock markets continued their upward trajectory. The United States, Europe, Asia, and the United Kingdom posted positive results. But emerging markets led the way, bolstered by strong earnings growth and a weaker U.S. dollar. Demand for bonds helped boost global fixed income returns even as investors flocked to equities. Accommodative monetary policies outside the United States also supported bond prices, although recent central bank actions suggested a bias toward less accommodation going forward. The ex returned 5.67% for the three months. The FTSE Global All Cap ex, which measures developing and emerging markets outside of the United States, returned 6.02%. Financials (+5.4%), industrials (+7.4%), and consumer goods (+5.1%) were the top contributors. Telecommunications (+1.6%) added the least. For the 12 months ended September 30, 2017, the ex returned 19.33%. As they did for the quarter, all sectors contributed to performance, led by financials (+27.6%), industrials (+25.3%), and consumer goods (+17.7%). People and Process Vanguard seeks to track the performance of the FTSE All Cap ex, a market-capitalization-weighted index that is made up of approximately 3,700 common stocks of large-, mid-, and small-cap companies located in Canada and the major markets of Europe and the Pacific region. The fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Vanguard s Equity Index Group uses proprietary software to implement trading decisions that accommodate cash flows and maintain close correlation with index characteristics. Vanguard s refined indexing process, combined with low management fees and efficient trading, has provided tight tracking net of expenses. Vanguard Equity Index Group Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world s largest equity and fixed income managers. As chief investment officer, Gregory Davis, CFA, oversees Vanguard s Equity Index, Quantitative Equity, and Fixed Income Groups. Joseph Brennan, CFA, Principal and global head of Vanguard's Equity Index Group, is responsible for all equity index funds. The Equity Index Group manages indexed equity portfolios covering U.S. and international markets. It has developed sophisticated portfolio construction methodologies and efficient trading strategies that seek to deliver returns that are highly correlated with target portfolio benchmarks. The group has advised Vanguard since Investment Manager Biographies Christine Franquin, Principal. Portfolio manager. Advised the fund since Worked in investment management since B.A., Universitaire Faculteiten Sint Ignatius, Antwerpen Belgium. J.D., University of Liege Belgium. Master of Science in Finance, Clark University, Massachusetts. Michelle Louie, CFA. Portfolio manager. Advised the fund since Worked in investment management since B.S., The American University. M.B.A., Georgia Institute of Technology. For institutional use only. Not for distribution to retail investors.

2 Vanguard Total Returns Quarter Year to Date 1 Year 3 Years 5 Years 10 Years Since Inception Investor (12/19/2013) 5.58% 20.97% 19.17% 5.76% 5.00% Admiral (8/17/1999) % 1.68% Institutional (1/4/2001) Institutional Plus (4/1/2014) ex 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: ex : MSCI EAFE Index through May 28, 2013; FTSE ex North America Index through December 20, 2015; FTSE All Cap ex US Transition Index through May 31, 2016; FTSE All Cap ex thereafter. Benchmark returns are adjusted for withholding taxes. Admiral class shareholders are required to maintain specific minimum balances and meet other special criteria. Institutional class shareholders are required to maintain a minimum balance of $5 million.

3 Vanguard Quarterly Returns: Investor ex % 6.34% 5.58% $ % 2.36% 2.29% , , Since inception of the share class, 7/20/2007. Quarterly Returns: Admiral ex % 6.39% 5.49% $13, % 2.45% 2.29% 9, , , , , , , , , ,915 Quarterly Returns: Institutional ex % 6.38% 5.56% $11, % 2.46% 2.29% 9, , ,

4 Vanguard Quarterly Returns: Institutional Plus ex % 6.41% 5.55% $9, % 2.50% 2.29% 7, , ,918 2 Since inception of the share class, 4/1/2014. Fund Facts Investor Admiral Institutional Institutional Plus Fund Number Ticker VDVIX VTMGX VTMNX VDIPX VEA Newspaper Listing TxMInInv TxMIn TxMInist TxMInInPl VangEurpPacfc CUSIP Number 92206J J (millions) (Total $98,450) $970 $13,855 $11,270 $9,466 $62,888 Inception 12/19/2013 8/17/1999 1/4/2001 4/1/2014 7/20/2007 Expense Ratio (as of 4/2017) 0.17% 0.07% 0.06% 0.05% 0.07% ETF Equity Characteristics FTSE All Cap ex Number of stocks 3,870 3,790 Median market cap $29.1 Billion $29.1 Billion Price/earnings ratio 16.2x 16.2x Price/book ratio 1.7x 1.7x Return on equity 11.2% 11.2% Earnings growth rate 5.9% 5.9% Equity yield (dividend) 2.9% 2.9% Short-term reserves 0.0% Turnover rate (fiscal year end) 11.1% Volatility Measures R-Squared Beta ex FTSE Global All Cap ex R-squared and beta are calculated from trailing 36-month fund returns relative to the associated benchmark. Top 10 Largest Holdings % of Total Net Nestle SA 1.3% Royal Dutch Shell plc 1.3 Samsung Electronics Co. Ltd. 1.3 Novartis AG 1.0 HSBC Holdings plc 1.0 Roche Holding AG 1.0 Unilever 0.8 Toyota Motor Corp. 0.8 British American Tobacco plc 0.7 BP plc 0.6 Total 9.8% The holdings listed exclude any temporary cash investments and equity index products.

5 Vanguard Sector Diversification (% of Stocks) FTSE All Cap ex Overweight/ Underweight Basic Materials 8.0% 8.0% 0.0 Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Other Technology Telecommunications Utilities Total 100.0% 100.0% Sector categories are based on the Industry Classification Benchmark (ICB), except for the Other category (if applicable), which includes securities that have not been provided an ICB classification as of the effective reporting period.

6 Vanguard Country Diversification (% of Stocks) Europe Pacific United Kingdom 15.7% France 8.3 Germany 8.1 Switzerland 6.9 Netherlands 2.9 Spain 2.8 Sweden 2.8 Italy 2.4 Denmark 1.6 Belgium 1.1 Finland 1.0 Other 1.4 Subtotal 55.0 Japan 21.1% Australia 6.0 Korea 4.4 Hong Kong 3.2 Singapore 1.1 Other 0.3 Subtotal 36.1 North America Canada 8.4% Middle East Other 0.4% Other 0.1 Total 100.0%

7 Important information Visit our website, call , or contact your broker to obtain a product description and prospectus or if available, a summary prospectus for Vanguard ETF. Investment objectives, risks, charges, expenses, and other important information are contained in these documents; read and consider them carefully before investing. For more information about Vanguard funds, visit or call , to obtain a prospectus, or if available, a summary prospectus. Vanguard ETF are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy or sell Vanguard ETF in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. All investing is subject to risk, including the possible loss of the money you invest. Investments in bond funds and ETFs are subject to interest rate, credit, and inflation risk. London Stock Exchange Group companies includes FTSE International Limited ( FTSE ), Frank Russell Company ( Russell ), MTS Next Limited ( MTS ), and FTSE TMX Global Debt Capital Inc ( FTSE TMX ). All rights reserved. FTSE, Russell, MTS, FTSE TMX and FTSE Russell and other service marks and trademarks related to the FTSE or Russell indexes are trade marks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under licence. All information is provided for information purposes only. No responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of their licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the index or the fitness or suitability of the index for any particular purpose to which it might be put. 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. The index is a product of S&P Dow Jones Indices LLC ( SPDJI ), and has been licensed for use by Vanguard. 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Neither Bloomberg nor Barclays has passed on the legality or suitability of the products with respect to any person or entity. Bloomberg s only relationship to Vanguard and the products are the licensing of the Bloomberg Barclays Indices which are determined, composed and calculated by BISL without regard to Vanguard or the Vanguard Funds and ETFs or any owners or purchasers of the products. Bloomberg has no obligation to take the needs of the products or the owners of the products into consideration in determining, composing or calculating the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays is responsible for and has not participated in the determination of the timing of, prices at, or quantities of the products to be issued. Neither Bloomberg nor Barclays has any obligation or liability in connection with the administration, marketing or trading of the products. Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the Fund name refers to the approximate year (the target date) when an investor in the Fund would retire and leave the work force. The Fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in the Target Retirement Fund is not guaranteed at any time, including on or after the target date The Vanguard Group, Inc. All rights reserved. U.S. Pat. No. 8,180,695; 8,185,464; 6,879,964 B2; 7,337,138; 7,720,749; 7,925,573; 8,090,646 and 8,417,623. Vanguard Marketing Corporation, Distributor.