Company Press Release

VALLEY FORGE, PA, April 6, 2009 — Vanguard FTSE All-World ex-US Small-Cap ETF, which seeks to track the performance of the FTSE Global Small Cap ex US Index, has begun trading on the NYSE Arca exchange under the ticker symbol VSS. The launch brings the number of Vanguard’s ETFs to 39, with aggregate assets topping $44 billion.

VSS holds approximately 2,100 securities and has an expense ratio of 0.38%, making it lower-cost and more broadly diversified than the other small-cap international-focused ETFs available today.* It is the only international small-cap ETF in the marketplace to cover both developed and emerging international markets (Source: Lipper Inc., February 27, 2009).

"Many advisors are committed to providing international exposure within their clients’ portfolios, but until now a low-cost index option with developed and emerging market small-cap exposure was not available,” said Martha Papariello, principal, Vanguard Financial Advisor Services. “VSS serves as the ideal complement to Vanguard FTSE All-World ex-US ETF [VEU], which was introduced in March 2007 and holds mid- and large-cap securities."

With a historically low correlation to U.S. small-cap securities, international small-cap ETFs can further diversify a portfolio containing only domestic and international large- or mid-cap stocks. VSS provides advisors with a low-cost option for customizing and diversifying their clients' international portfolios.

Financial advisors seeking more information about Vanguard's ETFs and low-cost mutual funds can visit https://advisors.vanguard.com. The site features analytic tools and practice-management programs to help advisors better meet the changing needs of their clients.

About Vanguard

Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages $1 trillion in U.S. mutual fund assets, including nearly $490 billion in retirement assets. Vanguard offers more than 150 funds to U.S. investors and more than 50 additional funds in non-U.S. markets.