Effectively immediately, the $23 billion Vanguard Primecap and $7 billion Vanguard Capital Opportunity funds are closed to new shareholders. Existing shareholders may make additional purchases not to exceed $25,000 annually.

The funds' investment advisor, PRIMECAP Management Company, consulted on the decision to close the two funds after a year in which both posted particularly strong returns. The Primecap fund returned 36 percent, and the Capital Opportunity Fund returned 48 percent.

The move should protect the interests of the funds’ current investors and prevent cash flows from becoming unmanageable. “We are taking these steps to preserve PRIMECAP Management's ability to employ its distinct investment strategy and pursue competitive long-term returns going forward," said Vanguard Chairman John J. Brennan.  

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