Admirals More Available

Press Release

Vanguard to Introduce Ultra-Low-Cost Shares in More Index Funds VALLEY FORGE, Pa.--Vanguard announced today that it will expand the availability of its ultra-low-cost Admiral Shares to six additional domestic and international equity index funds. The new shares, which are expected to be available in late September, will feature expense ratios ranging from 0.10% to 0.21%.

“The introduction of additional Admiral Shares is another example of our long-term commitment to reduce the cost of investing for our clients”.

Fund Investor Shares Admiral Shares expense ratio estimated expense ratio Vanguard FTSE All World Ex-US Index Fund 0.35% 0.18% Vanguard Mid-Cap Growth Index Fund 0.26% 0.10% Vanguard Small-Cap Growth Index Fund 0.26% 0.10% wVanguard Mid-Cap Value Index Fund 0.26% 0.10% Vanguard Small-Cap Value Index Fund 0.37% 0.21% Vanguard Developed Markets Index Fund 0.22% 0.12%

“The introduction of additional Admiral Shares is another example of our long-term commitment to reduce the cost of investing for our clients,” said Bill McNabb, Vanguard Chairman and CEO, who noted that a significant portion of Vanguard’s total assets are now in Admiral Shares.

Of Vanguard’s $1.7 trillion in U.S. fund assets under management, about $520 billion is held in Admiral Shares, representing nearly one-third of Vanguard’s total fund assets.

Admiral Shares were introduced by Vanguard in November 2000 to recognize and encourage the cost savings associated with large and long-tenured accounts by passing along these savings to shareholders in the form of lower fund expense ratios. In October 2010, Vanguard lowered the account balance minimums to qualify for index fund Admiral Shares for most retail clients from $100,000 to $10,000. A total of 75 funds will now offer Admiral Shares.

The new shares are expected to be available for sale in late September after the standard SEC review period. After that time, retail clients will be able to convert their qualifying shares into the lower priced shares of the equivalent fund by visiting vanguard.com or by calling 1-877-662-7447. Otherwise, Vanguard will automatically convert qualifying accounts over the next several months. Share conversions within the same fund are tax-free.

Lowering costs for institutional investors

Vanguard also announced that it expects to provide new ultra-low-cost shares to institutional investors in late September after the standard SEC review period. Vanguard Institutional Plus Shares and Institutional Shares are expected to be offered for Vanguard Short-Term Bond Index Fund. Institutional Plus shares are also expected to become available for Vanguard Intermediate-Term Bond Index Fund and Vanguard Long-Term Bond Index Fund. The expense ratios are expected to be 0.05% for the new Institutional Plus Shares of these three funds and 0.07% for the new Institutional Shares in the Short-Term Bond Index Fund.

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 $1.7 trillion in U.S. mutual fund assets. Vanguard offers more than 170 funds to U.S. investors and more than 60 additional funds in non-U.S. markets.

All asset figures are as of June 30, 2011.

Mutual funds are subject to risks, including possible loss of principal. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks. Foreign investing involves additional risks including currency fluctuations and political uncertainty. Investments in bonds are subject to interest rate, credit, and inflation risk.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

For more information about Vanguard funds, visit www.vanguard.com, or call 800-662-7447, to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing. Copies of the final prospectus can be obtained from Vanguard. Please note that a preliminary prospectus is subject to change.

Vanguard Marketing Corporation, Distributor.