Vanguard Funds

Supplement to the Prospectuses

Prospectus Text Changes
The following replaces similar text in the Investment Advisor section:
Vanguards Equity Investment Group is overseen by:
Mortimer J. Buckley, Chief Investment Officer and Managing Director of
Vanguard. As Chief Investment Officer, he is responsible for the oversight of
Vanguards Equity Investment and Fixed Income Groups. The investments
managed by these two groups include active quantitative equity funds, equity
index funds, active bond funds, index bond funds, stable value portfolios, and
money market funds. Mr. Buckley joined Vanguard in 1991 and has held various
senior leadership positions with Vanguard. He received his A.B. in economics
from Harvard and an M.B.A. from Harvard Business School.
Joseph Brennan, CFA, Principal of Vanguard and global head of Vanguards
Equity Index Group. He has oversight responsibility for all equity index funds
managed by the Equity Investment Group. He first joined Vanguard in 1991. He
received his B.A. in economics from Fairfield University and an M.S. in finance
from Drexel University.
John Ameriks, Ph.D., Principal of Vanguard and head of Vanguards Quantitative
Equity Group. He has oversight responsibility for all active quantitative equity
funds managed by the Equity Investment Group. He joined Vanguard in 2003.
He received his A.B. in economics from Stanford University and a Ph.D. in
economics from Columbia University.
CFA

is a trademark owned by CFA Institute.

2014 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor. PS EIG2 062014
Investor Shares & Admiral Shares
Vanguard 500 Index Fund
Prospectus
The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or
passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
This prospectus contains financial data for the Fund through the fiscal year ended December 31, 2013.
April 28, 2014
Vanguard 500 Index Fund Investor Shares (VFINX)
Vanguard 500 Index Fund Admiral Shares (VFIAX)
Contents
Fund Summary 1 Investing With Vanguard 21
Investing in Index Funds 6 Purchasing Shares 21
More on the Fund 7 Converting Shares 24
The Fund and Vanguard 12 Redeeming Shares 26
Investment Advisor 13 Exchanging Shares 29
Dividends, Capital Gains, and Taxes 14 Frequent-Trading Limitations 29
Share Price 17 Other Rules You Should Know 31
Financial Highlights 18 Fund and Account Updates 35
Contacting Vanguard 37
Additional Information 38
Glossary of Investment Terms 40
1
Fund Summary
Investment Objective
The Fund seeks to track the performance of a benchmark index that measures the
investment return of large-capitalization stocks.
Fees and Expenses
The following table describes the fees and expenses you may pay if you buy and hold
Investor Shares or Admiral Shares of the Fund.
Shareholder Fees
(Fees paid directly from your investment)
Investor Shares Admiral Shares
Sales Charge (Load) Imposed on Purchases None None
Purchase Fee None None
Sales Charge (Load) Imposed on Reinvested Dividends None None
Redemption Fee None None
Account Service Fee (for certain fund account balances below
$10,000)
$20/year $20/year
Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)
Investor Shares Admiral Shares
Management Fees 0.15% 0.03%
12b-1 Distribution Fee None None
Other Expenses 0.02% 0.02%
Total Annual Fund Operating Expenses 0.17% 0.05%
2
Examples
The following examples are intended to help you compare the cost of investing in the
Funds Investor Shares or Admiral Shares with the cost of investing in other mutual
funds. They illustrate the hypothetical expenses that you would incur over various
periods if you invest $10,000 in the Funds shares. These examples assume that the
Shares provide a return of 5% a year and that total annual fund operating expenses
remain as stated in the preceding table. The results apply whether or not you redeem
your investment at the end of the given period. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells
securities (or turns over its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in more taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the previous expense examples, reduce the Funds performance.
During the most recent fiscal year, the Funds portfolio turnover rate was 3%.
Primary Investment Strategies
The Fund employs an indexing investment approach designed to track the
performance of the Standard & Poors 500 Index, a widely recognized benchmark of
U.S. stock market performance that is dominated by the stocks of large U.S.
companies. The Fund attempts to replicate the target index by investing all, or
substantially all, of its assets in the stocks that make up the Index, holding each stock
in approximately the same proportion as its weighting in the Index.
Primary Risks
An investment in the Fund could lose money over short or even long periods. You
should expect the Funds share price and total return to fluctuate within a wide range,
like the fluctuations of the overall stock market. The Fund is subject to the following
risks, which could affect the Funds performance:
Stock market risk, which is the chance that stock prices overall will decline. Stock
markets tend to move in cycles, with periods of rising prices and periods of falling
prices. The Funds target index tracks a subset of the U.S. stock market, which could
cause the Fund to perform differently from the overall stock market. In addition, the
1 Year 3 Years 5 Years 10 Years
Investor Shares $17 $55 $96 $217
Admiral Shares $5 $16 $28 $64
3
Funds target index may, at times, become focused in stocks of a particular market
sector, which would subject the Fund to proportionately higher exposure to the risks
of that sector.
Investment style risk, which is the chance that returns from large-capitalization
stocks will trail returns from the overall stock market. Large-cap stocks tend to go
through cycles of doing betteror worsethan other segments of the stock market
or the stock market in general. These periods have, in the past, lasted for as long as
several years.
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency.
Annual Total Returns
The following bar chart and table are intended to help you understand the risks of
investing in the Fund. The bar chart shows how the performance of the Funds
Investor Shares has varied from one calendar year to another over the periods shown.
The table shows how the average annual total returns of the share classes presented
compare with those of the Funds target index, which has investment characteristics
similar to those of the Fund. Keep in mind that the Funds past performance (before
and after taxes) does not indicate how the Fund will perform in the future. Updated
performance information is available on our website at vanguard.com/performance or
by calling Vanguard toll-free at 800-662-7447.
During the periods shown in the bar chart, the highest return for a calendar quarter
was 15.97% (quarter ended June 30, 2009), and the lowest return for a quarter was
21.94% (quarter ended December 31, 2008).
Annual Total Returns Vanguard 500 Index Fund Investor Shares
10.74
4.77
15.64
5.39
-37.02
26.49
14.91
1.97
15.82
32.18
60%
40%
20%
0%
-20%
-40%
-60%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
4
Actual after-tax returns depend on your tax situation and may differ from those shown
in the preceding table. When after-tax returns are calculated, it is assumed that the
shareholder was in the highest individual federal marginal income tax bracket at the
time of each distribution of income or capital gains or upon redemption. State and
local income taxes are not reflected in the calculations. Please note that after-tax
returns are shown only for the Investor Shares and may differ for each share class.
After-tax returns are not relevant for a shareholder who holds fund shares in a tax-
deferred account, such as an individual retirement account or a 401(k) plan. Also,
figures captioned Return After Taxes on Distributions and Sale of Fund Shares may be
higher than other figures for the same period if a capital loss occurs upon redemption
and results in an assumed tax deduction for the shareholder.
Investment Advisor
The Vanguard Group, Inc. (Vanguard)
Portfolio Manager
Michael H. Buek, CFA, Principal of Vanguard. He has managed the Fund since 1991.
Average Annual Total Returns for Periods Ended December 31, 2013
1 Year 5 Years 10 Years
Vanguard 500 Index Fund Investor Shares
Return Before Taxes 32.18% 17.81% 7.29%
Return After Taxes on Distributions 31.58 17.41 6.95
Return After Taxes on Distributions and Sale of Fund Shares 18.62 14.49 5.93
Vanguard 500 Index Fund Admiral Shares
Return Before Taxes 32.33% 17.94% 7.39%
Standard & Poor's 500 Index
(reflects no deduction for fees, expenses, or taxes) 32.39% 17.94% 7.41%
5
Purchase and Sale of Fund Shares
You may purchase or redeem shares online through our website (vanguard.com), by
mail (The Vanguard Group, P.O. Box 1110, Valley Forge, PA 19482-1110), or by telephone
(800-662-2739). The following table provides the Funds minimum initial and subsequent
investment requirements.
Tax Information
The Funds distributions may be taxable as ordinary income or capital gain. If you
are investing through a tax-deferred retirement account, such as an IRA, special tax
rules apply.
Payments to Financial Intermediaries
The Fund and its investment advisor do not pay financial intermediaries for sales of
Fund shares.
Account Minimums Investor Shares Admiral Shares*
To open and maintain an account $3,000 $10,000
To add to an existing account Generally $100 (other than
by Automatic Investment
Plan, which has no
established minimum)
Generally $100 (other than
by Automatic Investment
Plan, which has no
established minimum)
*Institutional and financial intermediary clients should contact Vanguard for information on special eligibility rules that may
apply to them.
6
Investing in Index Funds
What Is Indexing?
Indexing is an investment strategy for tracking the performance of a specified market
benchmark, or index. An index is a group of securities whose overall performance is
used as a standard to measure the investment performance of a particular market.
There are many types of indexes. Some represent entire marketssuch as the U.S.
stock market or the U.S. bond market. Other indexes cover market segmentssuch
as small-capitalization stocks or short-term bonds.
An index fund holds all, or a representative sample, of the securities that make up its
target index. Index funds attempt to mirror the performance of the target index, for
better or worse. However, an index fund generally does not perform exactly like its
target index. For example, like all mutual funds, index funds have operating expenses
and transaction costs. Market indexes do not, and therefore they will usually have a
slight performance advantage over funds that track them.
Index funds typically have the following characteristics:
Variety of investments. Most Vanguard index funds generally invest in the securities
of a variety of companies and industries.
Relative performance consistency. Because they seek to track market benchmarks,
index funds usually do not perform dramatically better or worse than their benchmarks.
Low cost. Index funds are inexpensive to run compared with actively managed funds.
They have low or no research costs and typically keep trading activityand thus
brokerage commissions and other transaction coststo a minimum.
7
More on the Fund
This prospectus describes the primary risks you would face as a Fund shareholder. It
is important to keep in mind one of the main axioms of investing: generally, the higher
the risk of losing money, the higher the potential reward. The reverse, also, is
generally true: the lower the risk, the lower the potential reward. As you consider an
investment in any mutual fund, you should take into account your personal tolerance
for fluctuations in the securities markets. Look for this symbol throughout the
prospectus. It is used to mark detailed information about the more significant risks
that you would confront as a Fund shareholder. To highlight terms and concepts
important to mutual fund investors, we have provided Plain Talk

explanations along
the way. Reading the prospectus will help you decide whether the Fund is the right
investment for you. We suggest that you keep this prospectus for future reference.
Share Class Overview
This prospectus offers the Funds Investor Shares and Admiral Shares. A separate
prospectus offers the Funds Signal

Shares, which are generally for institutional and

financial intermediary investors. In addition, the Fund issues an exchange-traded class of
shares (ETF Shares), which are also offered through a separate prospectus.
All share classes offered by the Fund have the same investment objective, strategies,
and policies. However, different share classes have different expenses; as a result,
their investment performances will differ.
Plain Talk About Fund Expenses
All mutual funds have operating expenses. These expenses, which are deducted
from a funds gross income, are expressed as a percentage of the net assets of
the fund. Assuming that operating expenses remain as stated in the Fees and
Expenses section, Vanguard 500 Index Funds expense ratios would be as
follows: for Investor Shares, 0.17%, or $1.70 per $1,000 of average net assets;
for Admiral Shares, 0.05%, or $0.50 per $1,000 of average net assets. The
average expense ratio for large-cap core funds in 2013 was 1.15%, or $11.50 per
$1,000 of average net assets (derived from data provided by Lipper, a Thomson
Reuters Company, which reports on the mutual fund industry).
8
The following sections explain the primary investment strategies and policies that the
Fund uses in pursuit of its objective. The Funds board of trustees, which oversees the
Funds management, may change investment strategies or policies in the interest of
shareholders without a shareholder vote, unless those strategies or policies are
designated as fundamental. Under normal circumstances, the Fund will invest at least
80% of its assets in the stocks that make up its target index. The Fund may change its
80% policy only upon 60 days notice to shareholders.
Market Exposure
The Fund is subject to stock market risk, which is the chance that stock prices
overall will decline. Stock markets tend to move in cycles, with periods of rising
prices and periods of falling prices. The Funds target index tracks a subset of the
U.S. stock market, which could cause the Fund to perform differently from the
overall stock market. In addition, the Funds target index may, at times, become
focused in stocks of a particular market sector, which would subject the Fund to
proportionately higher exposure to the risks of that sector.
To illustrate the volatility of stock prices, the following table shows the best, worst,
and average annual total returns for the U.S. stock market over various periods as
measured by the Standard & Poors 500 Index, a widely used barometer of U.S.
market activity. (Total returns consist of dividend income plus change in market price.)
Note that the returns shown do not include the costs of buying and selling stocks or
other expenses that a real-world investment portfolio would incur.
Plain Talk About Costs of Investing
Costs are an important consideration in choosing a mutual fund. That is because
you, as a shareholder, pay a proportionate share of the costs of operating a fund,
plus any transaction costs incurred when the fund buys or sells securities. These
costs can erode a substantial portion of the gross income or the capital
appreciation a fund achieves. Even seemingly small differences in expenses can,
over time, have a dramatic effect on a funds performance.
9
The table covers all of the 1-, 5-, 10-, and 20-year periods from 1926 through 2013.
You can see, for example, that although the average annual return on common stocks
for all of the 5-year periods was 9.9%, average annual returns for individual 5-year
periods ranged from 12.4% (from 1928 through 1932) to 28.6% (from 1995 through
1999). These average annual returns reflect past performance of common stocks; you
should not regard them as an indication of future performance of either the stock
market as a whole or the Fund in particular.
Stocks of publicly traded companies and funds that invest in stocks are often
classified according to market value, or market capitalization. These classifications
typically include small-cap, mid-cap, and large-cap. It is important to understand that,
for both companies and stock funds, market-capitalization ranges change over time.
Also, interpretations of size vary, and there are no official definitions of small-, mid-,
and large-cap, even among Vanguard fund advisors. The asset-weighted median
market capitalization of the Funds stock holdings as of December 31, 2013, was
$70.5 billion.
The Fund is subject to investment style risk, which is the chance that returns
from large-capitalization stocks will trail returns from the overall stock market.
Large-cap stocks tend to go through cycles of doing betteror worsethan
other segments of the stock market or the stock market in general. These
periods have, in the past, lasted for as long as several years.
Security Selection
The Fund attempts to track the investment performance of a benchmark index that
measures the return of predominantly large-cap stocks. The Fund uses the replication
method of indexing, meaning that it generally holds the same stocks as its target index,
and in approximately the same proportions.
Other Investment Policies and Risks
The Fund reserves the right to substitute a different index for the index it currently
tracks if the current index is discontinued, if the Funds agreement with the sponsor of
its target index is terminated, or for any other reason determined in good faith by the
U.S. Stock Market Returns
(19262013)
1 Year 5 Years 10 Years 20 Years
Best 54.2% 28.6% 19.9% 17.8%
Worst 43.1 12.4 1.4 3.1
Average 12.0 9.9 10.4 11.1
10
Funds board of trustees. In any such instance, the substitute index would represent
the same market segment as the current index.
The Fund may invest in foreign securities to the extent necessary to carry out its
investment strategy of holding all, or substantially all, of the stocks that make up the
index it tracks. It is not expected that the Fund will invest more than 5% of its assets in
foreign securities.
To track its target index as closely as possible, the Fund attempts to remain fully
invested in stocks. To help stay fully invested and to reduce transaction costs, the
Fund may invest, to a limited extent, in derivatives, including stock futures. The Fund
may also use derivatives such as total return swaps to obtain exposure to a stock, a
basket of stocks, or an index. Generally speaking, a derivative is a financial contract
whose value is based on the value of a financial asset (such as a stock, a bond, or a
currency), a physical asset (such as gold, oil, or wheat), a market index (such as the
S&P 500 Index), or a reference rate (such as LIBOR). Investments in derivatives may
subject the Fund to risks different from, and possibly greater than, those of
investments directly in the underlying securities, assets, or market indexes. The Fund
will not use derivatives for speculation or for the purpose of leveraging (magnifying)
investment returns.
Cash Management
The Funds daily cash balance may be invested in one or more Vanguard CMT Funds,
which are very low-cost money market funds. When investing in a Vanguard CMT Fund,
the Fund bears its proportionate share of the at-cost expenses of the CMT Fund in
which it invests.
Temporary Investment Measures
The Fund may temporarily depart from its normal investment policies and strategies
when the advisor believes that doing so is in the Funds best interest, so long as the
alternative is consistent with the Funds investment objective. For instance, the Fund
may invest beyond its normal limits in derivatives or exchange-traded funds that are
consistent with the Funds objective when those instruments are more favorably
priced or provide needed liquidity, as might be the case when the Fund receives large
cash flows that it cannot prudently invest immediately.
Frequent Trading or Market-Timing
Background. Some investors try to profit from strategies involving frequent trading of
mutual fund shares, such as market-timing. For funds holding foreign securities,
investors may try to take advantage of an anticipated difference between the price of
the funds shares and price movements in overseas markets, a practice also known as
time-zone arbitrage. Investors also may try to engage in frequent trading of funds
11
holding investments such as small-cap stocks and high-yield bonds. As money is
shifted into and out of a fund by a shareholder engaging in frequent trading, the fund
incurs costs for buying and selling securities, resulting in increased brokerage and
administrative costs. These costs are borne by all fund shareholders, including the
long-term investors who do not generate the costs. In addition, frequent trading may
interfere with an advisors ability to efficiently manage the fund.
Policies to address frequent trading. The Vanguard funds (other than money market
funds and short-term bond funds, but including Vanguard Short-Term Inflation-
Protected Securities Index Fund) do not knowingly accommodate frequent trading. The
board of trustees of each Vanguard fund (other than money market funds and short-
term bond funds, but including Vanguard Short-Term Inflation-Protected Securities
Index Fund) has adopted policies and procedures reasonably designed to detect and
discourage frequent trading and, in some cases, to compensate the fund for the costs
associated with it. These policies and procedures do not apply to Vanguard ETF

Shares because frequent trading in ETF Shares does not disrupt portfolio management
or otherwise harm fund shareholders. Although there is no assurance that Vanguard
will be able to detect or prevent frequent trading or market-timing in all circumstances,
the following policies have been adopted to address these issues:
Each Vanguard fund reserves the right to reject any purchase requestincluding
exchanges from other Vanguard fundswithout notice and regardless of size. For
example, a purchase request could be rejected because the investor has a history of
frequent trading or if Vanguard determines that such purchase may negatively affect a
funds operation or performance.
Each Vanguard fund (other than money market funds and short-term bond funds,
but including Vanguard Short-Term Inflation-Protected Securities Index Fund) generally
prohibits, except as otherwise noted in the Investing With Vanguard section, an
investors purchases or exchanges into a fund account for 60 calendar days after the
investor has redeemed or exchanged out of that fund account.
Certain Vanguard funds charge shareholders purchase and/or redemption fees on
transactions.
See the Investing With Vanguard section of this prospectus for further details on
Vanguards transaction policies.
Each Vanguard fund (other than money market funds), in determining its net asset
value, will use fair-value pricing when appropriate, as described in the Share Price
section. Fair-value pricing may reduce or eliminate the profitability of certain frequent-
trading strategies.
Do not invest with Vanguard if you are a market-timer.
12
Turnover Rate
Although the Fund generally seeks to invest for the long term, it may sell securities
regardless of how long they have been held. Generally, an index fund sells securities
in response to redemption requests from shareholders of conventional (not exchange-
traded) shares or to changes in the composition of its target index. Turnover rates for
large-cap stock index funds tend to be low because large-cap indexessuch as the
S&P 500 Indextypically do not change significantly from year to year. The Financial
Highlights section of this prospectus shows historical turnover rates for the Fund. A
turnover rate of 100%, for example, would mean that the Fund had sold and replaced
securities valued at 100% of its net assets within a one-year period. The average
turnover rate for domestic stock funds was approximately 68%, as reported by
Morningstar, Inc., on December 31, 2013.
The Fund and Vanguard
The Fund is a member of The Vanguard Group, a family of more than 170 mutual
funds holding assets of approximately $2.4 trillion. All of the funds that are members
of The Vanguard Group (other than funds of funds) share in the expenses associated
with administrative services and business operations, such as personnel, office
space, and equipment.
Vanguard Marketing Corporation provides marketing services to the funds. Although
shareholders do not pay sales commissions or 12b-1 distribution fees, each fund (other
than a fund of funds) or each share class of a fund (in the case of a fund with multiple
share classes) pays its allocated share of the Vanguard funds marketing costs.
Plain Talk About Turnover Rate
Before investing in a mutual fund, you should review its turnover rate. This gives
an indication of how transaction costs, which are not included in the funds
expense ratio, could affect the funds future returns. In general, the greater the
volume of buying and selling by the fund, the greater the impact that brokerage
commissions and other transaction costs will have on its return. Also, funds with
high turnover rates may be more likely to generate capital gains that must be
distributed to shareholders as taxable income.
13
Investment Advisor
The Vanguard Group, Inc. (Vanguard), P.O. Box 2600, Valley Forge, PA 19482, which
began operations in 1975, serves as advisor to the Fund through its Equity Investment
Group. As of December 31, 2013, Vanguard served as advisor for approximately
$2.1 trillion in assets. Vanguard provides investment advisory services to the Fund on
an at-cost basis, subject to the supervision and oversight of the trustees and officers
of the Fund.
For the fiscal year ended December 31, 2013, the advisory expenses represented an
effective annual rate of less than 0.01% of the Funds average net assets.
For a discussion of why the board of trustees approved the Funds investment
advisory arrangement, see the most recent semiannual report to shareholders
covering the fiscal period ended June 30.
Vanguards Equity Investment Group is overseen by:
Mortimer J. Buckley, Chief Investment Officer and Managing Director of Vanguard.
As Chief Investment Officer, he is responsible for the oversight of Vanguards Equity
Investment and Fixed Income Groups. The investments managed by these two
groups include active quantitative equity funds, equity index funds, active bond funds,
index bond funds, stable value portfolios, and money market funds. Mr. Buckley
joined Vanguard in 1991 and has held various senior leadership positions with
Vanguard. He received his A.B. in economics from Harvard and an M.B.A. from
Harvard Business School.
Joseph Brennan, CFA, Principal of Vanguard and head of Vanguards Equity Index
Group. He has oversight responsibility for all equity index funds managed by the
Equity Investment Group. He first joined Vanguard in 1991. He received his B.A. in
economics from Fairfield University and an M.S. in finance from Drexel University.
Plain Talk About Vanguards Unique Corporate Structure
The Vanguard Group is truly a mutual mutual fund company. It is owned jointly by
the funds it oversees and thus indirectly by the shareholders in those funds.
Most other mutual funds are operated by management companies that may be
owned by one person, by a private group of individuals, or by public investors
who own the management companys stock. The management fees charged by
these companies include a profit component over and above the companies cost
of providing services. By contrast, Vanguard provides services to its member
funds on an at-cost basis, with no profit component, which helps to keep the
funds expenses low.
14
John Ameriks, Ph.D., Principal of Vanguard and head of Vanguards Active Equity
Group. He has oversight responsibility for all active quantitative equity funds
managed by the Equity Investment Group. He joined Vanguard in 2003. He received
his A.B. in economics from Stanford University and a Ph.D. in economics from
Columbia University.
The manager primarily responsible for the day-to-day management of the Fund is:
Michael H. Buek, CFA, Principal of Vanguard. He has been with Vanguard since 1987
and has managed investment portfolios, including the Fund, since 1991. Education:
B.S., University of Vermont; M.B.A., Villanova University.
The Statement of Additional Information provides information about the portfolio
managers compensation, other accounts under management, and ownership of
shares of the Fund.
Dividends, Capital Gains, and Taxes
Fund Distributions
The Fund distributes to shareholders virtually all of its net income (interest and
dividends, less expenses) as well as any net capital gains realized from the sale of its
holdings. Income dividends generally are distributed quarterly in March, June,
September, and December; capital gains distributions, if any, generally occur annually in
December. In addition, the Fund may occasionally make a supplemental distribution at
some other time during the year. You can receive distributions of income or capital gains
in cash, or you can have them automatically reinvested in more shares of the Fund.
Plain Talk About Distributions
As a shareholder, you are entitled to your portion of a funds income from interest
and dividends as well as capital gains from the funds sale of investments. Income
consists of both the dividends that the fund earns from any stock holdings and the
interest it receives from any money market and bond investments. Capital gains are
realized whenever the fund sells securities for higher prices than it paid for them.
These capital gains are either short-term or long-term, depending on whether the
fund held the securities for one year or less or for more than one year.
15
Basic Tax Points
Vanguard will send you a statement each year showing the tax status of all your
distributions. In addition, investors in taxable accounts should be aware of the
following basic federal income tax points:
Distributions are taxable to you whether or not you reinvest these amounts in
additional Fund shares.
Distributions declared in Decemberif paid to you by the end of Januaryare
taxable as if received in December.
Any dividend or short-term capital gains distributions that you receive are taxable to
you as ordinary income. If you are an individual and meet certain holding-period
requirements with respect to your Fund shares, you may be eligible for reduced tax
rates on qualified dividend income, if any, distributed by the Fund.
Any distributions of net long-term capital gains are taxable to you as long-term
capital gains, no matter how long you have owned shares in the Fund.
Capital gains distributions may vary considerably from year to year as a result of the
Funds normal investment activities and cash flows.
A sale or exchange of Fund shares is a taxable event. This means that you may have
a capital gain to report as income, or a capital loss to report as a deduction, when you
complete your tax return.
Any conversion between classes of shares of the same fund is a nontaxable event. By
contrast, an exchange between classes of shares of different funds is a taxable event.
Individuals, trusts, and estates whose income exceeds certain threshold amounts are
subject to a 3.8% Medicare contribution tax on net investment income. Net
investment income takes into account distributions paid by the Fund and capital gains
from any sale or exchange of Fund shares.
Dividend and capital gains distributions that you receive, as well as your gains or
losses from any sale or exchange of Fund shares, may be subject to state and local
income taxes.
This prospectus provides general tax information only. If you are investing through a
tax-deferred retirement account, such as an IRA, special tax rules apply. Please
consult your tax advisor for detailed information about any tax consequences for you.
16
General Information
Backup withholding. By law, Vanguard must withhold 28% of any taxable distributions
or redemptions from your account if you do not:
Provide us with your correct taxpayer identification number.
Certify that the taxpayer identification number is correct.
Confirm that you are not subject to backup withholding.
Similarly, Vanguard must withhold taxes from your account if the IRS instructs us to
do so.
Foreign investors. Vanguard funds offered for sale in the United States (Vanguard
U.S. funds), including the Fund offered in this prospectus, generally are not sold
outside the United States, except to certain qualified investors. Non-U.S. investors
should be aware that U.S. withholding and estate taxes and certain U.S. tax reporting
requirements may apply to any investments in Vanguard U.S. funds. Foreign investors
should visit the Non-U.S. Investors page on our website at vanguard.com for
information on Vanguards non-U.S. products.
Invalid addresses. If a dividend or capital gains distribution check mailed to your
address of record is returned as undeliverable, Vanguard will automatically reinvest
the distribution and all future distributions until you provide us with a valid mailing
address. Reinvestments will receive the net asset value calculated on the date of
the reinvestment.
Plain Talk About Buying a Dividend
Unless you are investing through a tax-deferred retirement account (such as an
IRA), you should consider avoiding a purchase of fund shares shortly before the
fund makes a distribution, because doing so can cost you money in taxes. This is
known as buying a dividend. For example: On December 15, you invest $5,000,
buying 250 shares for $20 each. If the fund pays a distribution of $1 per share on
December 16, its share price will drop to $19 (not counting market change). You
still have only $5,000 (250 shares x $19 = $4,750 in share value, plus 250 shares
x $1 = $250 in distributions), but you owe tax on the $250 distribution you
receivedeven if you reinvest it in more shares. To avoid buying a dividend, check
a funds distribution schedule before you invest.
17
Share Price
Share price, also known as net asset value (NAV), is calculated each business day as
of the close of regular trading on the New York Stock Exchange, generally 4 p.m.,
Eastern time. Each share class has its own NAV, which is computed by dividing the
total assets, minus liabilities, allocated to each share class by the number of Fund
shares outstanding for that class. On U.S. holidays or other days when the Exchange
is closed, the NAV is not calculated, and the Fund does not sell or redeem shares.
However, on those days the value of the Funds assets may be affected to the extent
that the Fund holds foreign securities that trade on foreign markets that are open.
Stocks held by a Vanguard fund are valued at their market value when reliable market
quotations are readily available. Certain short-term debt instruments used to manage
a funds cash are valued on the basis of amortized cost. The values of any foreign
securities held by a fund are converted into U.S. dollars using an exchange rate
obtained from an independent third party. The values of any mutual fund shares held
by a fund are based on the NAVs of the shares. The values of any ETF or closed-end
fund shares held by a fund are based on the market value of the shares.
When a fund determines that market quotations either are not readily available or do
not accurately reflect the value of a security, the security is priced at its fair value (the
amount that the owner might reasonably expect to receive upon the current sale of
the security). A fund also will use fair-value pricing if the value of a security it holds has
been materially affected by events occurring before the funds pricing time but after
the close of the primary markets or exchanges on which the security is traded. This
most commonly occurs with foreign securities, which may trade on foreign exchanges
that close many hours before the funds pricing time. Intervening events might be
company-specific (e.g., earnings report, merger announcement) or country-specific or
regional/global (e.g., natural disaster, economic or political news, act of terrorism,
interest rate change). Intervening events include price movements in U.S. markets
that are deemed to affect the value of foreign securities. Fair-value pricing may be
used for domestic securitiesfor example, if (1) trading in a security is halted and
does not resume before the funds pricing time or a security does not trade in the
course of a day and (2) the fund holds enough of the security that its price could affect
the NAV.
Fair-value prices are determined by Vanguard according to procedures adopted by
the board of trustees. When fair-value pricing is employed, the prices of securities
used by a fund to calculate the NAV may differ from quoted or published prices for the
same securities.
Vanguard fund share prices are published daily on our website at vanguard.com/prices.
18
Financial Highlights
The following financial highlights tables are intended to help you understand the
Funds financial performance for the periods shown, and certain information reflects
financial results for a single Fund share. The total returns in each table represent the
rate that an investor would have earned or lost each period on an investment in the
Fund (assuming reinvestment of all distributions). This information has been obtained
from the financial statements audited by PricewaterhouseCoopers LLP, an
independent registered public accounting firm, whose reportalong with the Funds
financial statementsis included in the Funds most recent annual report to
shareholders. You may obtain a free copy of the latest annual or semiannual report by
visiting vanguard.com or by contacting Vanguard by telephone or mail.
Plain Talk About How to Read the Financial Highlights Tables
This explanation uses the Funds Investor Shares as an example. The Investor
Shares began fiscal year 2013 with a net asset value (share price) of $131.37 per
share. During the year, each Investor Share earned $2.956 from investment income
(interest and dividends) and $38.982 from investments that had appreciated in
value or that were sold for higher prices than the Fund paid for them.
Shareholders received $2.948 per share in the form of dividend distributions. A
portion of each years distributions may come from the prior years income or
capital gains.
The share price at the end of the year was $170.36, reflecting earnings of $41.938
per share and distributions of $2.948 per share. This was an increase of $38.99
per share (from $131.37 at the beginning of the year to $170.36 at the end of the
year). For a shareholder who reinvested the distributions in the purchase of more
shares, the total return was 32.18% for the year.
As of December 31, 2013, the Investor Shares had approximately $27.8 billion in
net assets. For the year, the expense ratio was 0.17% ($1.70 per $1,000 of net
assets), and the net investment income amounted to 1.95% of average net
assets. The Fund sold and replaced securities valued at 3% of its net assets.
19
500 Index Fund Investor Shares
For a Share Outstanding Throughout Each Period
Year Ended December 31,
2013 2012 2011 2010 2009
Net Asset Value, Beginning of Period $131.37 $115.80 $115.82 $102.67 $83.09
Investment Operations
Net Investment Income 2.956 2.709 2.246 2.020 2.131
Net Realized and Unrealized Gain (Loss)
on Investments 38.982 15.560 (.020) 13.096 19.553
Total from Investment Operations 41.938 18.269 2.226 15.116 21.684
Distributions
Dividends from Net Investment Income (2.948) (2.699) (2.246) (1.966) (2.104)
Distributions from Realized Capital Gains
Total Distributions (2.948) (2.699) (2.246) (1.966) (2.104)
Net Asset Value, End of Period $170.36 $131.37 $115.80 $115.82 $102.67
Total Return
1
32.18% 15.82% 1.97% 14.91% 26.49%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $27,758 $24,821 $25,967 $31,904 $48,313
Ratio of Total Expenses to Average Net Assets 0.17% 0.17% 0.17% 0.17% 0.18%
Ratio of Net Investment Income to
Average Net Assets 1.95% 2.13% 1.92% 1.94% 2.42%
Portfolio Turnover Rate
2
3% 3% 4% 5% 12%
1 Total returns do not include account service fees that may have applied in the periods shown.
2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the Funds
capital shares, including ETF Creation Units.
20
500 Index Fund Admiral Shares
Year Ended December 31,
For a Share Outstanding Throughout Each Period 2013 2012 2011 2010 2009
Net Asset Value, Beginning of Period $131.37 $115.80 $115.83 $102.67 $83.09
Investment Operations
Net Investment Income 3.142 2.866 2.391 2.152 2.227
Net Realized and Unrealized Gain (Loss)
on Investments 38.980 15.560 (.031) 13.092 19.556
Total from Investment Operations 42.122 18.426 2.360 15.244 21.783
Distributions
Dividends from Net Investment Income (3.132) (2.856) (2.390) (2.084) (2.203)
Distributions from Realized Capital Gains
Total Distributions (3.132) (2.856) (2.390) (2.084) (2.203)
Net Asset Value, End of Period $170.36 $131.37 $115.80 $115.83 $102.67
Total Return
1
32.33% 15.96% 2.08% 15.05% 26.62%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $82,357 $59,749 $51,925 $51,438 $28,380
Ratio of Total Expenses to Average Net Assets 0.05% 0.05% 0.05% 0.06% 0.07%
Ratio of Net Investment Income to
Average Net Assets 2.07% 2.25% 2.04% 2.05% 2.53%
Portfolio Turnover Rate
2
3% 3% 4% 5% 12%
1 Total returns do not include account service fees that may have applied in the periods shown.
2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the Funds
capital shares, including ETF Creation Units.
21
Investing With Vanguard
This section of the prospectus explains the basics of doing business with Vanguard.
Vanguard fund shares can be held directly with Vanguard or indirectly through an
intermediary, such as a bank, a broker, or an investment advisor. If you hold Vanguard
fund shares directly with Vanguard, you should carefully read each topic within this
section that pertains to your relationship with Vanguard. If you hold Vanguard fund
shares indirectly through an intermediary (including shares held through a Vanguard
brokerage account), please see Investing With Vanguard Through Other Firms, and
also refer to your account agreement with the intermediary for information about
transacting in that account. Vanguard reserves the right to change the following
policies without notice. Please call or check online for current information. See
Contacting Vanguard.
For Vanguard fund shares held directly with Vanguard, each fund you hold in an
account is a separate fund account. For example, if you hold three funds in a
nonretirement account titled in your own name, two funds in a nonretirement account
titled jointly with your spouse, and one fund in an individual retirement account, you
have six fund accountsand this is true even if you hold the same fund in multiple
accounts. Note that each reference to you in this prospectus applies to any one or
more registered account owners or persons authorized to transact on your account.
Purchasing Shares
Vanguard reserves the right, without notice, to increase or decrease the minimum
amount required to open, convert shares to, or maintain a fund account or to add to an
existing fund account.
Investment minimums may differ for certain categories of investors.
Account Minimums for Investor Shares
To open and maintain an account. $3,000.
To add to an existing account. Generally $100 (other than by Automatic Investment
Plan, which has no established minimum).
Account Minimums for Admiral Shares
To open and maintain an account. $10,000. If you request Admiral Shares when
you open a new account but the investment amount does not meet the account
minimum for Admiral Shares, your investment will be placed in Investor Shares of the
Fund. Institutional and financial intermediary clients should contact Vanguard for
information on special eligibility rules that may apply to them.
To add to an existing account. Generally $100 (other than by Automatic Investment
Plan, which has no established minimum).
22
How to Initiate a Purchase Request
Be sure to check Exchanging Shares, Frequent-Trading Limitations, and Other Rules
You Should Know before placing your purchase request.
Online. You may open certain types of accounts, request a purchase of shares, and
request an exchange through our website or our mobile application if you are
registered for online access.
By telephone. You may call Vanguard to begin the account registration process or
request that the account-opening forms be sent to you. You may also call Vanguard to
request a purchase of shares in your account or to request an exchange. See
Contacting Vanguard.
By mail. You may send Vanguard your account registration form and check to open a
new fund account. To add to an existing fund account, you may send your check with
an Invest-by-Mail form (from a transaction confirmation or your account statement),
with a deposit slip (available online), or with a written request. You may also send a
written request to Vanguard to make an exchange. For a list of Vanguard addresses,
see Contacting Vanguard.
How to Pay for a Purchase
By electronic bank transfer. You may purchase shares of a Vanguard fund through an
electronic transfer of money from a bank account. To establish the electronic bank
transfer service on an account, you must designate the bank account online, complete a
special form, or fill out the appropriate section of your account registration form. After
the service is set up on your account, you can purchase shares by electronic bank
transfer on a regular schedule (Automatic Investment Plan) or upon request. Your
purchase request can be initiated online (if you are registered for online access), by
telephone, or by mail.
By wire. Wiring instructions vary for different types of purchases. Please call Vanguard
for instructions and policies on purchasing shares by wire. See Contacting Vanguard.
By check. You may make initial or additional purchases to your fund account by sending
a check or by utilizing our mobile application if you are registered for online access. Also
see How to Initiate a Purchase Request. Make your check payable to Vanguard and
include the appropriate fund number (e.g., Vanguardxx). For a list of Fund numbers
(for share classes in this prospectus), see Additional Information.
By exchange. You may purchase shares of a Vanguard fund using the proceeds from
the simultaneous redemption of shares of another Vanguard fund. You may initiate an
exchange online (if you are registered for online access), by telephone, or by written
request. See Exchanging Shares.
23
Trade Date
The trade date for any purchase request received in good order will depend on the day
and time Vanguard receives your request, the manner in which you are paying, and
the type of fund you are purchasing. Your purchase will be executed using the NAV as
calculated on the trade date. NAVs are calculated only on days that the New York
Stock Exchange (NYSE) is open for trading (a business day).
For purchases by check into all funds other than money market funds and for
purchases by exchange, wire, or electronic bank transfer (not using an Automatic
Investment Plan) into all funds: If the purchase request is received by Vanguard on a
business day before the close of regular trading on the NYSE (generally 4 p.m.,
Eastern time), the trade date for the purchase will be the same day. If the purchase
request is received on a business day after the close of regular trading on the NYSE,
or on a nonbusiness day, the trade date for the purchase will be the next business day.
For purchases by check into money market funds: If the purchase request is received
by Vanguard on a business day before the close of regular trading on the NYSE
(generally 4 p.m., Eastern time), the trade date for the purchase will be the next
business day. If the purchase request is received on a business day after the close of
regular trading on the NYSE, or on a nonbusiness day, the trade date for the purchase
will be the second business day following the day Vanguard receives the purchase
request. Because money market instruments must be purchased with federal funds
and it takes a money market mutual fund one business day to convert check proceeds
into federal funds, the trade date for the purchase will be one business day later than
for other funds.
For purchases by electronic bank transfer using an Automatic Investment Plan: Your
trade date generally will be the date you designated for withdrawal of funds from your
bank account. Your bank account generally will be debited on the business day after
your trade date. If the date you designated for withdrawal of funds from your bank
account falls on a weekend, holiday, or other nonbusiness day, your trade date
generally will be the previous business day.
If your purchase request is not accurate and complete, it may be rejected. See Other
Rules You Should KnowGood Order.
For further information about purchase transactions, consult our website at
vanguard.com or see Contacting Vanguard.
Other Purchase Rules You Should Know
Check purchases. All purchase checks must be written in U.S. dollars and must be
drawn on a U.S. bank. Vanguard does not accept cash, travelers checks, or money
orders. In addition, Vanguard may refuse starter checks and checks that are not made
payable to Vanguard.
24
New accounts. We are required by law to obtain from you certain personal information
that we will use to verify your identity. If you do not provide the information, we may
not be able to open your account. If we are unable to verify your identity, Vanguard
reserves the right, without notice, to close your account or take such other steps as we
deem reasonable. Certain types of accounts may require additional documentation.
Refused or rejected purchase requests. Vanguard reserves the right to stop selling
fund shares or to reject any purchase request at any time and without notice, including,
but not limited to, purchases requested by exchange from another Vanguard fund. This
also includes the right to reject any purchase request because the investor has a
history of frequent trading or because the purchase may negatively affect a funds
operation or performance.
Large purchases. Please call Vanguard before attempting to invest a large
dollar amount.
No cancellations. Vanguard will not accept your request to cancel any purchase request
once processing has begun. Please be careful when placing a purchase request.
Converting Shares
When a conversion occurs, you receive shares of one class in place of shares of another
class of the same fund. At the time of conversion, the dollar value of the new shares
you receive equals the dollar value of the old shares that were converted. In other
words, the conversion has no effect on the value of your investment in the fund at the
time of the conversion. However, the number of shares you own after the conversion
may be greater than or less than the number of shares you owned before the
conversion, depending on the net asset values of the two share classes.
Vanguard will not accept your request to cancel any self-directed conversion request
once processing has begun. Please be careful when placing a conversion request.
A conversion between share classes of the same fund is a nontaxable event.
Trade Date
The trade date for any conversion request received in good order will depend on the
day and time Vanguard receives your request. Your conversion will be executed using
the NAVs of the different share classes on the trade date. NAVs are calculated only on
days that the NYSE is open for trading (a business day).
For a conversion request (other than a request to convert to ETF Shares) received by
Vanguard on a business day before the close of regular trading on the NYSE (generally
4 p.m., Eastern time), the trade date will be the same day. For a conversion request
received on a business day after the close of regular trading on the NYSE, or on a
25
nonbusiness day, the trade date will be the next business day. See Other Rules You
Should Know.
Conversions From Investor Shares to Admiral Shares
Self-directed conversions. If your account balance in the Fund is at least $10,000,
you may ask Vanguard to convert your Investor Shares to Admiral Shares. You may
request a conversion through our website (if you are registered for online access), by
telephone, or by mail. Institutional and financial intermediary clients should contact
Vanguard for information on special eligibility rules that may apply to them. See
Contacting Vanguard.
Automatic conversions. Vanguard conducts periodic reviews of account balances and
may, if your account balance in the Fund exceeds $10,000, automatically convert your
Investor Shares to Admiral Shares. You will be notified before an automatic conversion
occurs and will have an opportunity to instruct Vanguard not to effect the conversion.
Institutional and financial intermediary clients should contact Vanguard for information
on special eligibility rules that may apply to them.
Conversions to ETF Shares
Owners of conventional shares (i.e., not exchange-traded shares) issued by the Fund
may convert those shares to ETF Shares of equivalent value of the same fund. Please
note that investors who own conventional shares through a 401(k) plan or other
employer-sponsored retirement or benefit plan generally may not convert those
shares to ETF Shares and should check with their plan sponsor or recordkeeper. ETF
Shares, whether acquired through a conversion or purchased on the secondary
market, cannot be converted to conventional shares. Also, ETF Shares of one fund
cannot be exchanged for ETF Shares of another fund.
ETF Shares must be held in a brokerage account. Thus, before converting conventional
shares to ETF Shares, you must have an existing, or open a new, brokerage account.
This account may be with Vanguard Brokerage Services

(Vanguard Brokerage) or with

any other brokerage firm.
Vanguard Brokerage does not impose a fee on conversions from conventional shares
to Vanguard ETF Shares. However, other brokerage firms may charge a fee to process
a conversion. Vanguard reserves the right, in the future, to impose a transaction fee
on conversions or to limit or terminate the conversion privilege. For additional
information on converting conventional shares to ETF Shares, please contact Vanguard
to obtain a prospectus for ETF Shares. See Contacting Vanguard.
26
Mandatory Conversions to Investor Shares
If an account no longer meets the balance requirements for Admiral Shares, Vanguard
may automatically convert the shares in the account to Investor Shares. A decline in
the account balance because of market movement may result in such a conversion.
Vanguard will notify the investor in writing before any mandatory conversion occurs.
Please note that mandatory conversions do not apply to ETF Shares.
Redeeming Shares
How to Initiate a Redemption Request
Be sure to check Exchanging Shares, Frequent-Trading Limitations, and Other Rules
You Should Know before placing your redemption request.
Online. You may request a redemption of shares or request an exchange through our
website or our mobile application if you are registered for online access.
By telephone. You may call Vanguard to request a redemption of shares or an
exchange. See Contacting Vanguard.
By mail. You may send a written request to Vanguard to redeem from a fund account
or to make an exchange. See Contacting Vanguard.
How to Receive Redemption Proceeds
By electronic bank transfer. You may have the proceeds of a fund redemption sent
directly to a designated bank account. To establish the electronic bank transfer service
on an account, you must designate a bank account online, complete a special form, or
fill out the appropriate section of your account registration form. After the service is set
up on your account, you can redeem shares by electronic bank transfer on a regular
schedule (Automatic Withdrawal Plan) or upon request. Your redemption request can be
initiated online (if you are registered for online access), by telephone, or by mail.
By wire. To receive your proceeds by wire, you may instruct Vanguard to wire your
redemption proceeds ($100 minimum) to a previously designated bank account. To
establish the wire redemption service, you generally must designate a bank account
online, complete a special form, or fill out the appropriate section of your account
registration form.
By exchange. You may have the proceeds of a Vanguard fund redemption invested
directly in shares of another Vanguard fund. You may initiate an exchange online (if you are
registered for online access), by telephone, or by written request. See Exchanging Shares.
By check. If you have not chosen another redemption method, Vanguard will mail you
a redemption check, generally payable to all registered account owners, normally
within two business days of your trade date, and generally to the address of record.
27
Trade Date
The trade date for any redemption request received in good order will depend on the
day and time Vanguard receives your request and the manner in which you are
redeeming. Your redemption will be executed using the NAV as calculated on the
trade date. NAVs are calculated only on days that the NYSE is open for trading (a
business day).
For redemptions by check, exchange, or wire: If the redemption request is received
by Vanguard on a business day before the close of regular trading on the NYSE
(generally 4 p.m., Eastern time), the trade date will be the same day. If the redemption
request is received on a business day after the close of regular trading on the NYSE,
or on a nonbusiness day, the trade date will be the next business day.
Note on timing of wire redemptions from money market funds: For telephone
requests received by Vanguard on a business day before 10:45 a.m., Eastern time
(2 p.m., Eastern time, for Vanguard Prime Money Market Fund), the redemption
proceeds generally will leave Vanguard by the close of business the same day. For
telephone requests received by Vanguard on a business day after those cut-off
times, or on a nonbusiness day, and for all requests other than by telephone, the
redemption proceeds generally will leave Vanguard by the close of business on the
next business day.
Note on timing of wire redemptions from all other funds: For requests received
by Vanguard on a business day before the close of regular trading on the NYSE
(generally 4 p.m., Eastern time), the redemption proceeds generally will leave
Vanguard by the close of business on the next business day. For requests received
by Vanguard on a business day after the close of regular trading on the NYSE, or on
a nonbusiness day, the redemption proceeds generally will leave Vanguard by the
close of business on the second business day after Vanguard receives the request.
For redemptions by electronic bank transfer using an Automatic Withdrawal Plan:
Your trade date generally will be the date you designated for withdrawal of funds
(redemption of shares) from your Vanguard account. Proceeds of redeemed shares
generally will be credited to your designated bank account two business days after
your trade date. If the date you designated for withdrawal of funds from your
Vanguard account falls on a weekend, holiday, or other nonbusiness day, your trade
date generally will be the previous business day.
For redemptions by electronic bank transfer not using an Automatic Withdrawal
Plan: If the redemption request is received by Vanguard on a business day before the
close of regular trading on the NYSE (generally 4 p.m., Eastern time), the trade date
will be the same day. If the redemption request is received on a business day after the
close of regular trading on the NYSE, or on a nonbusiness day, the trade date will be
the next business day.
28
If your redemption request is not accurate and complete, it may be rejected. If we are
unable to send your redemption proceeds by wire or electronic bank transfer because
the receiving institution rejects the transfer, Vanguard will make additional efforts to
complete your transaction. If Vanguard is still unable to complete the transaction, we
may send the proceeds of the redemption to you by check, generally payable to all
registered account owners, or use your proceeds to purchase new shares of the fund
from which you sold shares for the purpose of the wire or electronic bank transfer
transaction. See Other Rules You Should KnowGood Order.
For further information about redemption transactions, consult our website at
vanguard.com or see Contacting Vanguard.
Other Redemption Rules You Should Know
Documentation for certain accounts. Special documentation may be required to
redeem from certain types of accounts, such as trust, corporate, nonprofit, or
retirement accounts. Please call us before attempting to redeem from these types
of accounts.
Potentially disruptive redemptions. Vanguard reserves the right to pay all or part of a
redemption in kindthat is, in the form of securitiesif we reasonably believe that a
cash redemption would negatively affect the funds operation or performance or that
the shareholder may be engaged in market-timing or frequent trading. Under these
circumstances, Vanguard also reserves the right to delay payment of the redemption
proceeds for up to seven calendar days. By calling us before you attempt to redeem a
large dollar amount, you may avoid in-kind or delayed payment of your redemption.
Please see Frequent-Trading Limitations for information about Vanguards policies to
limit frequent trading.
Recently purchased shares. Although you can redeem shares at any time, proceeds
may not be made available to you until the fund collects payment for your purchase.
This may take up to seven calendar days for shares purchased by check or by electronic
bank transfer. If you have written a check on a fund with checkwriting privileges, that
check may be rejected if your fund account does not have a sufficient available balance.
Share certificates. Share certificates are no longer issued for Vanguard funds. Shares
currently held in certificates cannot be redeemed, exchanged, converted, or
transferred (reregistered) until you return the certificates (unsigned) to Vanguard by
registered mail. For the correct address, see Contacting Vanguard.
Address change. If you change your address online or by telephone, there may be up
to a 14-day restriction on your ability to request check redemptions online and by
telephone. You can request a redemption in writing at any time. Confirmations of
address changes are sent to both the old and new addresses.
29
Payment to a different person or address. At your request, we can make your
redemption check payable, or wire your redemption proceeds, to a different person or
send it to a different address. However, this generally requires the written consent of
all registered account owners and may require a signature guarantee or a notarized
signature. You may obtain a signature guarantee from some commercial or savings
banks, credit unions, trust companies, or member firms of a U.S. stock exchange.
No cancellations. Vanguard will not accept your request to cancel any redemption
request once processing has begun. Please be careful when placing a redemption request.
Emergency circumstances. Vanguard funds can postpone payment of redemption
proceeds for up to seven calendar days. In addition, Vanguard funds can suspend
redemptions and/or postpone payments of redemption proceeds beyond seven
calendar days at times when the NYSE is closed or during emergency circumstances,
as determined by the SEC.
Exchanging Shares
An exchange occurs when you use the proceeds from the redemption of shares of one
Vanguard fund to simultaneously purchase shares of a different Vanguard fund. You can
make exchange requests online (if you are registered for online access), by telephone,
or by written request. See Purchasing Shares and Redeeming Shares.
If the NYSE is open for regular trading (generally until 4 p.m., Eastern time, on a
business day) at the time an exchange request is received in good order, the trade
date generally will be the same day. See Other Rules You Should KnowGood Order
for additional information on all transaction requests.
Vanguard will not accept your request to cancel any exchange request once
processing has begun. Please be careful when placing an exchange request.
Please note that Vanguard reserves the right, without notice, to revise or terminate
the exchange privilege, limit the amount of any exchange, or reject an exchange, at
any time, for any reason. See Frequent-Trading Limitations for additional restrictions
on exchanges.
Frequent-Trading Limitations
Because excessive transactions can disrupt management of a fund and increase the
funds costs for all shareholders, the board of trustees of each Vanguard fund places
certain limits on frequent trading in the funds. Each Vanguard fund (other than money
market funds and short-term bond funds, but including Vanguard Short-Term Inflation-
Protected Securities Index Fund) limits an investors purchases or exchanges into a
30
fund account for 60 calendar days after the investor has redeemed or exchanged out
of that fund account. ETF Shares are not subject to these frequent-trading limits.
For Vanguard Retirement Investment Program pooled plans, the limitations apply to
exchanges made online or by telephone.
These frequent-trading limitations do not apply to the following:
Purchases of shares with reinvested dividend or capital gains distributions.
Transactions through Vanguards Automatic Investment Plan, Automatic Exchange
Service, Direct Deposit Service, Automatic Withdrawal Plan, Required Minimum
Distribution Service, and Vanguard Small Business Online

.
Redemptions of shares to pay fund or account fees.
Redemptions of shares to remove excess shareholder contributions to certain
types of retirement accounts (including, but not limited to, IRAs, certain Individual
403(b)(7) Custodial Accounts, and Vanguard Individual 401(k) Plans).
Transaction requests submitted by mail to Vanguard from shareholders who hold
their accounts directly with Vanguard or through a Vanguard brokerage account.
(Transaction requests submitted by fax, if otherwise permitted, are subject to the
limitations.)
Transfers and reregistrations of shares within the same fund.
Purchases of shares by asset transfer or direct rollover.
Conversions of shares from one share class to another in the same fund.
Checkwriting redemptions.
Section 529 college savings plans.
Certain approved institutional portfolios and asset allocation programs, as well as
trades made by Vanguard funds that invest in other Vanguard funds. (Please note that
shareholders of Vanguards funds of funds are subject to the limitations.)
For participants in employer-sponsored defined contribution plans,* the frequent-
trading limitations do not apply to:
Purchases of shares with participant payroll or employer contributions or
loan repayments.
Purchases of shares with reinvested dividend or capital gains distributions.
Distributions, loans, and in-service withdrawals from a plan.
Redemptions of shares as part of a plan termination or at the direction of the plan.
Automated transactions executed during the first six months of a participants
enrollment in the Vanguard Managed Account Program.
Redemptions of shares to pay fund or account fees.
Share or asset transfers or rollovers.
31
Reregistrations of shares.
Conversions of shares from one share class to another in the same fund.
Exchange requests submitted by written request to Vanguard. (Exchange requests
submitted by fax, if otherwise permitted, are subject to the limitations.)
* The following Vanguard fund accounts are subject to the frequent-trading
limitations: SEP-IRAs, SIMPLE IRAs, certain Individual 403(b)(7) Custodial Accounts,
and Vanguard Individual 401(k) Plans.
Accounts Held by Institutions (Other Than Defined Contribution Plans)
Vanguard will systematically monitor for frequent trading in institutional clients
accounts. If we detect suspicious trading activity, we will investigate and take
appropriate action, which may include applying to a clients accounts the 60-day policy
previously described, prohibiting a clients purchases of fund shares, and/or revoking
the clients exchange privilege.
Accounts Held by Intermediaries
When intermediaries establish accounts in Vanguard funds for the benefit of their
clients, we cannot always monitor the trading activity of the individual clients.
However, we review trading activity at the intermediary (omnibus) level, and if we
detect suspicious activity, we will investigate and take appropriate action. If
necessary, Vanguard may prohibit additional purchases of fund shares by an
intermediary, including for the benefit of certain of the intermediarys clients.
Intermediaries also may monitor their clients trading activities with respect to
Vanguard funds.
For those Vanguard funds that charge purchase and/or redemption fees,
intermediaries will be asked to assess these fees on client accounts and remit these
fees to the funds. The application of purchase and redemption fees and frequent-
trading limitations may vary among intermediaries. There are no assurances that
Vanguard will successfully identify all intermediaries or that intermediaries will
properly assess purchase and redemption fees or administer frequent-trading
limitations. If you invest with Vanguard through an intermediary, please read that
firms materials carefully to learn of any other rules or fees that may apply.
Other Rules You Should Know
Prospectus and Shareholder Report Mailings
Vanguard attempts to eliminate the unnecessary expense of duplicate mailings by
sending just one summary prospectus (or prospectus) and/or shareholder report
when two or more shareholders have the same last name and address. You may
32
request individual prospectuses and reports by contacting our Client Services
Department in writing, by telephone, or online. See Contacting Vanguard.
Vanguard.com
Registration. If you are a registered user of vanguard.com, you can review your
account holdings; buy, sell, or exchange shares of most Vanguard funds; and perform
most other transactions through our website. You must register for this service online.
Electronic delivery. Vanguard can deliver your account statements, transaction
confirmations, prospectuses, tax forms, and shareholder reports electronically. If you
are a registered user of vanguard.com, you can consent to the electronic delivery of
these documents by logging on and changing your mailing preferences under
Account Maintenance. You can revoke your electronic consent at any time through
our website, and we will begin to send paper copies of these documents within 30
days of receiving your revocation.
Telephone Transactions
Automatic. When we set up your account, we will automatically enable you to do
business with us by telephone, unless you instruct us otherwise in writing.
Tele-Account

. To obtain fund and account information through Vanguards

automated telephone service, you must first establish a Personal Identification
Number (PIN) by calling Tele-Account at 800-662-6273.
Proof of a callers authority. We reserve the right to refuse a telephone request if
the caller is unable to provide the requested information or if we reasonably believe
that the caller is not an individual authorized to act on the account. Before we allow a
caller to act on an account, we may request the following information:
Authorization to act on the account (as the account owner or by legal documentation
or other means).
Account registration and address.
Fund name and account number, if applicable.
Other information relating to the caller, the account owner, or the account.
Good Order
We reserve the right to reject any transaction instructions that are not in good order.
Good order generally means that your instructions:
Are provided by the person(s) authorized in accordance with Vanguards policies and
procedures to access the account and request transactions.
Include the fund name and account number.
Include the amount of the transaction (stated in dollars, shares, or percentage).
33
Written instructions also must include:
Signature guarantees or notarized signatures, if required for the type of transaction.
(Call Vanguard for specific requirements.)
Any supporting documentation that may be required.
The requirements vary among types of accounts and transactions. For more
information, consult our website at vanguard.com or see Contacting Vanguard.
Vanguard reserves the right, without notice, to revise the requirements for good order.
Future Trade-Date Requests
Vanguard does not accept requests to hold a purchase, conversion, redemption, or
exchange transaction for a future date. All such requests will receive trade dates as
previously described in Purchasing Shares, Converting Shares, Redeeming Shares, and
Exchanging Shares. Vanguard reserves the right to return future-dated purchase checks.
Accounts With More Than One Owner
If an account has more than one owner or authorized person, Vanguard generally will
accept instructions from any one owner or authorized person.
Responsibility for Fraud
Vanguard will not be responsible for any account losses because of fraud if we
reasonably believe that the person transacting business on an account is authorized to
do so. Please take precautions to protect yourself from fraud. Keep your account
information private, and immediately review any account statements or other
information that we provide to you. It is important that you contact Vanguard
immediately about any transactions or changes to your account that you believe to
be unauthorized.
Uncashed Checks
Please cash your distribution or redemption checks promptly. Vanguard will not pay
interest on uncashed checks. Vanguard may be required to transfer assets related to
uncashed checks to a state under the states abandoned property law.
Dormant Accounts
If your account has no activity in it for a period of time, Vanguard may be required to
transfer it to a state under the states abandoned property law.
Unusual Circumstances
If you experience difficulty contacting Vanguard online or by telephone, you can send us
your transaction request by regular or express mail. See Contacting Vanguard for addresses.
34
Investing With Vanguard Through Other Firms
You may purchase or sell shares of most Vanguard funds through a financial
intermediary, such as a bank, a broker, or an investment advisor. Please consult your
financial intermediary to determine which, if any, shares are available through that firm
and to learn about other rules that may apply.
Please see Frequent-Trading LimitationsAccounts Held by Intermediaries for
information about the assessment of any purchase or redemption fees and the
monitoring of frequent trading for accounts held by intermediaries.
Account Service Fee
Vanguard charges a $20 account service fee on fund accounts that have a balance
below $10,000 for any reason, including market fluctuation. The account service fee
applies to both retirement and nonretirement fund accounts and will be assessed on
fund accounts in all Vanguard funds, regardless of the account minimum. The fee,
which will be collected by redeeming fund shares in the amount of $20, will be
deducted from a fund account only once per calendar year.
If you register on vanguard.com and elect to receive electronic delivery of statements,
reports, and other materials for all of your fund accounts, the account service fee for
balances below $10,000 will not be charged, so long as that election remains in effect.
The account service fee also does not apply to the following:
Money market sweep accounts owned in connection with a Vanguard Brokerage
Services

account.
Accounts held through intermediaries.
Accounts held by institutional clients.
Accounts held by Voyager, Voyager Select, and Flagship clients. Eligibility is based
on total household assets held at Vanguard, with a minimum of $50,000 to qualify for
Vanguard Voyager Services

, $500,000 for Vanguard Voyager Select Services

, and
$1 million for Vanguard Flagship Services

. Vanguard determines eligibility by

aggregating assets of all qualifying accounts held by the investor and immediate
family members who reside at the same address. Aggregate assets include
investments in Vanguard mutual funds, Vanguard ETFs

, certain annuities through

Vanguard, the Vanguard 529 Plan, and certain small-business accounts. Assets in
employer-sponsored retirement plans for which Vanguard provides recordkeeping
services may be included in determining eligibility if the investor also has a personal
account holding Vanguard mutual funds. Note that assets held in a Vanguard
Brokerage Services account (other than Vanguard funds, including Vanguard ETFs) are
not included when determining a households eligibility.
Participant accounts in employer-sponsored defined contribution plans.* Please
consult your enrollment materials for the rules that apply to your account.
35
Section 529 college savings plans.
* The following Vanguard fund accounts have alternative fee structures: SIMPLE IRAs,
certain Individual 403(b)(7) Custodial Accounts, Vanguard Retirement Investment
Program pooled plans, and Vanguard Individual 401(k) Plans.
Low-Balance Accounts
The Fund reserves the right to liquidate a fund account whose balance falls below the
account minimum for any reason, including market fluctuation. This policy applies to
nonretirement fund accounts and accounts that are held through intermediaries.
Right to Change Policies
In addition to the rights expressly stated elsewhere in this prospectus, Vanguard
reserves the right, without notice, to (1) alter, add, or discontinue any conditions of
purchase (including eligibility requirements), redemption, exchange, conversion,
service, or privilege at any time; (2) accept initial purchases by telephone; (3) freeze any
account and/or suspend account services if Vanguard has received reasonable notice
of a dispute regarding the assets in an account, including notice of a dispute between
the registered or beneficial account owners, or if Vanguard reasonably believes a
fraudulent transaction may occur or has occurred; (4) temporarily freeze any account
and/or suspend account services upon initial notification to Vanguard of the death of
the shareholder until Vanguard receives required documentation in good order; (5) alter,
impose, discontinue, or waive any purchase fee, redemption fee, account service fee,
or other fees charged to a group of shareholders; and (6) redeem an account or
suspend account privileges, without the owners permission to do so, in cases of
threatening conduct or activity Vanguard believes to be suspicious, fraudulent, or
illegal. Changes may affect any or all investors. These actions will be taken when, at
the sole discretion of Vanguard management, Vanguard reasonably believes they are
deemed to be in the best interest of a fund.
Share Classes
Vanguard reserves the right, without notice, to change the eligibility requirements of
its share classes, including the types of clients who are eligible to purchase each
share class.
Fund and Account Updates
Confirmation Statements
We will send (or provide through our website, whichever you prefer) a confirmation of
your trade date and the amount of your transaction when you buy, sell, exchange, or
convert shares. However, we will not send confirmations reflecting only checkwriting
36
redemptions or the reinvestment of dividend or capital gains distributions. For any
month in which you had a checkwriting redemption, a Checkwriting Activity
Statement will be sent to you itemizing the checkwriting redemptions for that month.
Promptly review each confirmation statement that we provide to you. It is important
that you contact Vanguard immediately with any questions you may have about any
transaction reflected on a confirmation statement, or Vanguard will consider the
transaction properly processed.
Portfolio Summaries
We will send (or provide through our website, whichever you prefer) quarterly portfolio
summaries to help you keep track of your accounts throughout the year. If you prefer,
you may request to receive monthly portfolio summaries. Each summary shows the
market value of your account at the close of the statement period, as well as all
distributions, purchases, redemptions, exchanges, transfers, and conversions for the
current calendar quarter (or month). Promptly review each summary that we provide
to you. It is important that you contact Vanguard immediately with any questions you
may have about any transaction reflected on the summary, or Vanguard will consider
the transaction properly processed.
Tax Information Statements
For most accounts, we are required to provide annual tax forms to assist you in
preparing your income tax returns. We will generally send (or provide through our
website, whichever you prefer) annual tax forms in January. These forms will report the
previous years dividends, capital gains distributions, proceeds from the sale of shares
from taxable accounts, and distributions from IRAs and other retirement plans.
Registered users of vanguard.com can also view these forms through our website.
Vanguard may also provide you with additional tax-related documentation. For more
information, consult our website at vanguard.com or see Contacting Vanguard.
Annual and Semiannual Reports
We will send (or provide through our website, whichever you prefer) reports about
Vanguard 500 Index Fund twice a year, in February and August. These reports include
overviews of the financial markets and provide the following specific Fund
information:
Performance assessments and comparisons with industry benchmarks.
Financial statements with listings of Fund holdings.
Portfolio Holdings
We generally post on our website at vanguard.com, in the Portfolio section of the
Funds Portfolio & Management page, a detailed list of the securities held by the Fund
37
as of the end of the most recent month. This list is generally updated 15 calendar days
after the end of the month. Vanguard may exclude any portion of these portfolio
holdings from publication when deemed in the best interest of the Fund. We also
generally post the ten largest stock portfolio holdings of the Fund and the percentage
of the Funds total assets that each of these holdings represents, as of the end of the
most recent month. This list is generally updated 15 calendar days after the end of the
month. Please consult the Funds Statement of Additional Information or our website
for a description of the policies and procedures that govern disclosure of the Funds
portfolio holdings.
Contacting Vanguard
Web
Vanguard.com For the most complete source of Vanguard news
For fund, account, and service information
For most account transactions
For literature requests
24 hours a day, 7 days a week
Phone
Vanguard Tele-Account

800-662-6273 For automated fund and account information
Toll-free, 24 hours a day, 7 days a week
Investor Information 800-662-7447
(Text telephone for people with hearing
impairment at 800-749-7273)
For fund and service information
For literature requests
Hours of operation: MondayFriday, 8 a.m. to 10 p.m.,
Eastern time; Saturday, 9 a.m. to 4 p.m., Eastern time
Client Services 800-662-2739
(Text telephone for people with hearing
impairment at 800-749-7273)
For account information
For most account transactions
Hours of operation: MondayFriday, 8 a.m. to 10 p.m.,
Eastern time; Saturday, 9 a.m. to 4 p.m., Eastern time
Institutional Division
888-809-8102
For information and services for large institutional investors
Hours of operation: MondayFriday, 8:30 a.m. to 9 p.m.,
Eastern time
Financial Advisor and Intermediary
Sales Support 800-997-2798
For information and services for financial intermediaries
including financial advisors, broker-dealers, trust institutions,
and insurance companies
Hours of operation: MondayFriday, 8:30 a.m. to 7 p.m.,
Eastern time
38
Vanguard Addresses
Please be sure to use the correct address. Use of an incorrect address could delay the
processing of your transaction.
Additional Information
Regular Mail (Individuals) The Vanguard Group
P.O. Box 1110
Valley Forge, PA 19482-1110
Regular Mail (Institutions and Intermediaries) The Vanguard Group
P.O. Box 2900
Valley Forge, PA 19482-2900
Registered, Express, or Overnight Mail The Vanguard Group
455 Devon Park Drive
Wayne, PA 19087-1815
Inception
Date
Suitable
for IRAs
Newspaper
Abbreviation
Vanguard
Fund Number
CUSIP
Number
500 Index Fund
Investor Shares 8/31/1976 Yes 500 40 922908108
Admiral Shares 11/13/2000 Yes 500Adml 540 922908710
39
CFA

is a trademark owned by CFA Institute.

Morningstar data 2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate,
complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any
use of this information. Past performance is no guarantee of future results.
S&P

and S&P 500

are registered trademarks of Standard & Poors Financial Services LLC (S&P). The trademarks have
been licensed to S&P Dow Jones Indices LLC and its affiliates and have been sublicensed for use for certain purposes by
Vanguard. The S&P 500 Index is a product of S&P Dow Jones Indices LLC and has been licensed for use by Vanguard.
Vanguard 500 Index Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or
any of their respective affiliates (collectively, S&P Dow Jones Indices). S&P Dow Jones Indices make no representation or
warranty, express or implied, to the owners of the Vanguard 500 Index Fund or any member of the public regarding the
advisability of investing in securities generally or in Vanguard 500 Index Fund particularly or the ability of the S&P 500 Index
to track general market performance. S&P Dow Jones Indices only relationship to Vanguard with respect to the S&P 500
Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/
or its third party licensors. The S&P 500 Index is determined, composed and calculated by S&P Dow Jones Indices without
regard to Vanguard or the Vanguard 500 Index Fund. S&P Dow Jones Indices have no obligation to take the needs of
Vanguard or the owners of Vanguard 500 Index Fund into consideration in determining, composing or calculating the S&P 500
Index. S&P Dow Jones Indices are not responsible for and have not participated in the determination of the prices, and
amount of Vanguard 500 Index Fund or the timing of the issuance or sale of Vanguard 500 Index Fund or in the determination
or calculation of the equation by which Vanguard 500 Index Fund is to be converted into cash. S&P Dow Jones Indices has no
obligation or liability in connection with the administration, marketing or trading of Vanguard 500 Index Fund. There is no
assurance that investment products based on the S&P 500 Index will accurately track index performance or provide positive
investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a
recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE
COMPLETENESS OF THE S&P 500 INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT
NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT
THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR
DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY
DISCLAIMS ALL WARRANTIES OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE
AND ANY OTHER EXPRESS OR IMPLIED WARRANTY OR CONDITION WITH RESPECT TO THE S&P 500 INDEX OR DATA
INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES
INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT
NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.
40
Glossary of Investment Terms
Active Management. An investment approach that seeks to exceed the average
returns of a particular financial market or market segment. In selecting securities to
buy and sell, active managers may rely on, among other things, research, market
forecasts, quantitative models, and their own judgment and experience.
Capital Gains Distribution. Payment to mutual fund shareholders of gains realized on
securities that a fund has sold at a profit, minus any realized losses.
Cash Equivalent Investments. Cash deposits, short-term bank deposits, and money
market instruments that include U.S. Treasury bills and notes, bank certificates of
deposit (CDs), repurchase agreements, commercial paper, and bankers acceptances.
Common Stock. A security representing ownership rights in a corporation. A
stockholder is entitled to share in the companys profits, some of which may be paid
out as dividends.
Dividend Distribution. Payment to mutual fund shareholders of income from interest
or dividends generated by a funds investments.
Expense Ratio. A funds total annual operating expenses expressed as a percentage
of the funds average net assets. The expense ratio includes management and
administrative expenses, but it does not include the transaction costs of buying and
selling portfolio securities.
Inception Date. The date on which the assets of a fund (or one of its share classes)
are first invested in accordance with the funds investment objective. For funds with a
subscription period, the inception date is the day after that period ends. Investment
performance is generally measured from the inception date.
Indexing. A low-cost investment strategy in which a mutual fund attempts to
trackrather than outperforma specified market benchmark, or index.
Median Market Capitalization. An indicator of the size of companies in which a fund
invests; the midpoint of market capitalization (market price x shares outstanding) of a
funds stocks, weighted by the proportion of the funds assets invested in each stock.
Stocks representing half of the funds assets have market capitalizations above the
median, and the rest are below it.
Mutual Fund. An investment company that pools the money of many people and
invests it in a variety of securities in an effort to achieve a specific objective over time.
Securities. Stocks, bonds, money market instruments, and other investments.
Total Return. A percentage change, over a specified time period, in a mutual funds
net asset value, assuming the reinvestment of all distributions of dividends and
capital gains.
Volatility. The fluctuations in value of a mutual fund or other security. The greater a
funds volatility, the wider the fluctuations in its returns.
Yield. Income (interest or dividends) earned by an investment, expressed as a
percentage of the investments price.
P.O. Box 2600
Valley Forge, PA 19482-2600
Connect with Vanguard

> vanguard.com
2014 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.
P 040 042014
For More Information
If you would like more information about Vanguard
500 Index Fund, the following documents are available
free upon request:
Annual/Semiannual Reports to Shareholders
Additional information about the Funds investments is
available in the Funds annual and semiannual reports
to shareholders. In the annual report, you will find a
discussion of the market conditions and investment
strategies that significantly affected the Funds
performance during its last fiscal year.
Statement of Additional Information (SAI)
The SAI provides more detailed information about the
Fund and is incorporated by reference into (and thus
legally a part of) this prospectus.
To receive a free copy of the latest annual or semiannual
report or the SAI, or to request additional information
about the Fund or other Vanguard funds, please visit
vanguard.com or contact us as follows:
The Vanguard Group
Investor Information Department
P.O. Box 2600
Valley Forge, PA 19482-2600
Telephone: 800-662-7447
Text telephone for people with hearing impairment:
800-749-7273
If you are a current Vanguard shareholder and would
like information about your account, account
transactions, and/or account statements, please call:
Client Services Department
Telephone: 800-662-2739
Text telephone for people with hearing impairment:
800-749-7273
Information Provided by the Securities and
Exchange Commission (SEC)
You can review and copy information about the Fund
(including the SAI) at the SECs Public Reference Room
in Washington, DC. To find out more about this public
service, call the SEC at 202-551-8090. Reports and
other information about the Fund are also available in
the EDGAR database on the SECs website at
www.sec.gov, or you can receive copies of this
information, for a fee, by electronic request at the
following e-mail address: [email protected], or by
writing the Public Reference Section, Securities and
Exchange Commission, Washington, DC 20549-1520.
Funds Investment Company Act file number: 811-02652