Vanguard Total Stock Market ETF

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1 Vanguard Product Summary Seeks to track the performance of the CRSP US Total Market. Large-, mid-, and small-cap equity diversified across growth and value styles. Employs a passively managed, index-sampling strategy. The fund remains fully invested. Low expenses minimize net tracking error. Vanguard Style View : Large Blend portfolio of large-, mid-, and small-capitalization stocks diversified across investment styles. Market capitalization Large Mid Small Investment style Value Blend Growth Central tendency Expected range of fund holdings Quarterly Commentary Global stock markets were resilient during the fourth quarter ended December 31, 2017, with emerging markets outperforming their developed-market counterparts (a trend that characterized much of 2017). In the United States, stocks hit record highs as investors welcomed tax reform legislation, strong corporate profits, low unemployment, and decent economic growth. The Federal Reserve also acknowledged the health of the economy, raising rates for a third time in December. Although expansionary monetary policies outside the United States supported bond prices during the year, central bank actions suggested a bias toward less accommodation in The CRSP US Total Market returned 6.34% for quarter. Technology (+8.8%), financials (+6.6%), and consumer services (+9.6%) were the top contributors. The sector with the smallest gain was utilities (+0.6%). For the 12-month period ended December 31, 2017, the index returned 21.19%. The largest contributors were technology (+37.1%), financials (+19.1%), and industrials (+24.3%). Oil and gas (-1.9%) and telecommunications (0.4%) detracted from performance. People and Process Vanguard seeks to track the investment performance of the CRSP US Total Market, which represents approximately 100% of the investable U.S. stock market and includes large-, mid-, small-, and micro-cap stocks regularly traded on the New York Stock Exchange and Nasdaq. The fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full in terms of key characteristics. These key characteristics include industry weightings and market capitalization, as well as certain financial measures such as price/earnings ratio and dividend yield. The experience and stability of Vanguard s Equity Group have permitted continuous refinement of techniques for reducing tracking error. The group uses proprietary software to implement trading decisions that accommodate cash flow 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 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, Quantitative Equity, and Fixed Income Groups. Joseph Brennan, CFA, Principal and global head of Vanguard's Equity Group, is responsible for all equity index funds. The Equity 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 Gerard C. O'Reilly, Principal. Portfolio manager. Advised the fund since Worked in investment management since B.S., Villanova University. Walter Nejman. Portfolio manager. Advised the fund since Worked in investment management since B.A., Arcadia University. M.B.A., Villanova University. For institutional use only. Not for distribution to retail investors.

2 Total Returns (5/24/2001) Quarter Year to Date 1 Year 3 Years 5 Years 10 Years Net Asset Value 6.33% 21.16% 21.16% 11.08% 15.55% 8.72% Market Price Spliced Market 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: Spliced Market : Dow Jones U.S. Market (formerly known as the Dow Jones Wilshire 5000 ) through April 22, 2005; MSCI US Broad Market through June 2, 2013; and CRSP US Total Market thereafter. Market price returns are calculated using the midpoint between the bid and offer price at the time NAV is calculated, typically 4 p.m., Eastern time.

3 Quarterly Returns Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Spliced Total Stock Market Year-End Assets (Millions) % 3.04% 4.55% 6.33% $91, % 12.68% 69, , , , , , , , , ,255 Recent Dividends and Distributions Ex-Dividend Date Income Total Dividend December 22, 2017 $0.67 $0.67 September 25, June 23, March 28, December 22, September 15, June 16, March 17, December 23, September 29, June 30, March 27, Volatility Measures R-Squared Beta Spliced Market DJ US Mkt Float Adj Idx R-squared and beta are calculated from trailing 36-month fund returns relative to the associated benchmark.

4 Fund Facts Fund Number 0970 Ticker Intra-day Ticker Benchmark Ticker VTI VTI.IV CRSPTMT CUSIP Number Assets (millions) $91,862 Inception 5/24/2001 Expense Ratio (as of 4/2017) 0.04% Equity Characteristics CRSP US Total Market Number of stocks 3,638 3,581 Median market cap $66.8 Billion $66.8 Billion Average market cap $161.9 Billion $161.8 Billion Price/earnings ratio 22.9x 22.9x Price/book ratio 3.0x 3.0x Return on equity 15.1% 15.1% Earnings growth rate 9.9% 9.9% Equity yield (dividend) 1.7% 1.7% Foreign holdings 0.1% 0.0% Short-term reserves 0.0% Turnover rate (fiscal year end) 4.1% Top 10 Largest Holdings % of Total Net Assets Apple Inc. 2.8% Microsoft Corp. 2.4 Alphabet Inc. 2.3 Amazon.com Inc. 1.7 Facebook Inc. 1.5 Berkshire Hathaway Inc. 1.4 Johnson & Johnson 1.4 JPMorgan Chase & Co. 1.3 Exxon Mobil Corp. 1.3 Bank of America Corp. 1.1 Total 17.2% The holdings listed exclude any temporary cash investments and equity index products. Sector Diversification (% of Stocks) CRSP US Total Market Overweight/ Underweight Basic Materials 2.7% 2.7% 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.

5 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 Shares. 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 Shares 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 Shares 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 Markets 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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Bloomberg and Barclays make no representation or warranty, express or implied, to the owners or purchasers of the products or any member of the public regarding the advisability of investing in securities generally or in the products particularly or the ability of the Bloomberg Barclays Indices to track general bond market performance. 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 products 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.