Vanguard FTSE Europe ETF

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1 Vanguard Product Summary Seeks to track the performance of the Developed All Cap Index. Targets an common stocks. Diversified across developed markets. Employs a passively managed, full-replication strategy. The fund remains fully invested. Low expenses minimize net tracking error. Vanguard Style View : Stock Index portfolio of an equities diversified across investment styles. Market capitalization Large Mid Small Market Dvlp Emrg Central tendency Expected range of fund holdings Quarterly Commentary Although stocks hit record highs in key markets at the beginning of the period, a sudden change in market sentiment brought about the return of volatility, ending a prolonged period of calm. Tax reform legislation was passed in the United States, but investors there grew concerned about a tightening labor market leading to higher wages, inflation, and a more aggressive approach to interest rate hikes by the Federal Reserve. Further uncertainty arose about the possibility of tariffs leading to a trade war between the United States and China. The an economy continued on a path of broad improvement, and markets in the Asia Pacific region were helped by robust economic and business activity. The Spliced an Stock Index returned 1.81% for the quarter ended March 31. The Global All Cap ex US Index, which measures developing and emerging markets outside of the United States, returned 1.14%. Italy (+5.0%), Finland (+6.8), and Norway (+3.3%) were the top contributors. The United Kingdom ( 3.6), Switzerland ( 3.7%), and Germany ( 3.0%) were the biggest detractors. For the 12 months ended March 31, the Spliced an Stock Index returned 15.79%. All countries except Bermuda posted positive returns. The top contributors were the United Kingdom (+13.2), France (+22.0%), and Germany (+16.7%). People and Process Vanguard seeks to track the Developed All Cap Index, an unmanaged benchmark representing stocks in developed an markets. Vanguard is an exchange-traded share class of Vanguard an Stock Index Fund. Using full replication, the portfolio holds all stocks in the same capitalization weighting as the index. The experience and stability of Vanguard s Equity Index Group have permitted continuous refinement of techniques for reducing tracking error. The 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. Justin E. Hales, CFP. Portfolio manager. Advised the fund since Worked in investment management since B.A., University of Maryland. For institutional use only. Not for distribution to retail investors.

2 Vanguard Total Returns (3/4/2005) Quarter Year to Date 1 Year 3 Years 5 Years 10 Years Net Asset Value -1.27% -1.27% 16.19% 5.60% 6.95% 2.53% Market Price Spliced an Stock Index 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 an Stock Index: MSCI Index through March 26, 2013; Developed Index through September 30, 2015; Developed All Cap Index thereafter. Benchmark returns are adjusted for withholding taxes. 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 Vanguard Quarterly Returns Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Spliced an Stock Index Year-End Assets (Millions) % $18, % 6.46% 2.05% 27.06% 26.83% 18, , , , , , , , , ,639 Recent Dividends and Distributions Ex-Dividend Date Income Total Dividend March 27, 2018 $0.28 $0.28 December 20, September 21, June 23, March 24, December 22, September 15, June 16, March 17, December 23, September 29, June 30, Volatility Measures R-Squared Beta Spliced an Stock Index Global All Cap ex US Index R-squared and beta are calculated from trailing 36-month fund returns relative to the associated benchmark.

4 Vanguard Fund Facts Fund Number 0963 Ticker Intra-day Ticker Benchmark Ticker VGK VGK.IV ACDER CUSIP Number Assets (millions) $18,822 Inception 3/4/2005 Expense Ratio (as of 2/2018) 0.10% Equity Characteristics Developed All Cap Index Top 10 Largest Holdings % of Total Net Assets Royal Dutch Shell plc 2.5% Nestle SA 2.3 HSBC Holdings plc 1.8 Novartis AG 1.7 Roche Holding AG 1.6 Unilever 1.4 British American Tobacco plc 1.3 BP plc 1.2 TOTAL SA 1.2 Banco Santander SA 1.0 Total 16.0% The holdings listed exclude any temporary cash investments and equity index products. Number of stocks 1,301 1,278 Median market cap $40.8 Billion $40.8 Billion Average market cap $64.7 Billion $64.9 Billion Price/earnings ratio 14.5x 14.5x Price/book ratio 1.8x 1.8x Return on equity 12.3% 12.3% Earnings growth rate 6.1% 6.1% Equity yield (dividend) 3.2% 3.2% Short-term reserves 0.0% Turnover rate (fiscal year end) 4.2% Sector Diversification (% of Stocks) Developed All Cap Index Overweight/ Underweight Basic Materials 7.0% 7.0% 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.

5 Vanguard Country Diversification (% of Stocks) United Kingdom 28.5% France 15.2 Germany 14.9 Switzerland 12.0 Netherlands 5.6 Spain 5.1 Sweden 4.8 Italy 4.6 Denmark 2.8 Belgium 2.0 Finland 1.8 Norway 1.4 Other 1.3 Total 100.0%

6 Vanguard

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 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 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 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 s are subject to interest rate, credit, and inflation risk. Factor funds are subject to investment style risk, which is the chance that returns from the types of stocks in which the fund invests will trail returns from the stock market. Factor funds are subject to manager risk, which is the chance that poor security selection will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective. London Stock Exchange Group companies includes International Limited ( ), Frank Russell Company ( Russell ), MTS Next Limited ( MTS ), and TMX Global Debt Capital Markets Inc ( TMX ). All rights reserved., Russell, MTS, TMX and Russell and other service marks and trademarks related to the or Russell indexes are trade marks of the London Stock Exchange Group companies and are used by, MTS, 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. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); S&P and S&P 500 are trademarks of S&P; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Vanguard. Vanguard product(s) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the index. The Russell Indexes and Russell are registered trademarks of Russell Investments and have been licensed for use by The Vanguard Group. The products are not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in the products. CFA and Chartered Financial Analyst are registered trademarks owned by CFA Institute. Dividend Achievers is a trademark of The NASDAQ OMX Group, Inc. (collectively, with its affiliates, NASDAQ OMX ) and has been licensed for use by The Vanguard Group, Inc. Vanguard mutual funds are not sponsored, endorsed, sold, or promoted by NASDAQ OMX and NASDAQ OMX makes no representation regarding the advisability of investing in the funds. NASDAQ OMX MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE VANGUARD MUTUAL FUNDS. BLOOMBERG is a trademark and service mark of Bloomberg Finance L.P. BARCLAYS is a trademark and service mark of Barclays Bank Plc, used under license. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited ("BISL") (collectively, "Bloomberg"), or Bloomberg's licensors own all proprietary rights in the Bloomberg Barclays Indices. The products are not sponsored, endorsed, issued, sold or promoted by Bloomberg or Barclays. 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. The Global Industry Classification Standard ("GICS") was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard and Poor's, a division of McGraw-Hill Companies, Inc. ("S&P") and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. U.S. government backing of Treasury or agency securities applies only to the underlying securities and does not prevent share-price fluctuations. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest. Investments in stocks or bonds issued by non-u.s. companies are subject to risks including country/regional risk and currency risk. 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.