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                               THE VANGUARD FUNDS

                             PROSPECTUS SUPPLEMENT
                               NOVEMBER 21, 1995

The Vanguard Funds have adopted the following new administrative policies:

         1.      NEW MINIMUM INITIAL INVESTMENT AMOUNTS.  Effective January 1,
1996, all Vanguard Funds will increase their minimum initial investments for
individual retirement accounts (IRAs) and Uniform Gifts/Transfers to Minors Act
accounts from $500 to $1,000. All Vanguard Funds will retain their current
minimum initial investments for other types of accounts, except for Vanguard
STAR Portfolio and Vanguard/Trustees' Equity Fund. Vanguard STAR Portfolio will
increase its minimum initial investment for other types of accounts from $500
to $1,000. Vanguard/Trustees' Equity Fund will decrease its minimum initial
investment for other types of accounts from $10,000 to $3,000.

         2.      NEW LOW BALANCE FEE.  Beginning in 1996, all Vanguard Funds
will automatically deduct a $10 annual fee from non-retirement accounts with
balances falling below a minimum level. This fee deduction will occur mid-year,
and is designed to offset the disproportionately high costs of servicing
accounts with low balances. The low balance fee will apply to Uniform
Gifts/Transfers to Minors Act accounts and Vanguard STAR Portfolio accounts
with balances falling below $500. For all other Vanguard Fund accounts, the fee
will apply to balances falling below $2,500. The fee will be waived for
investors whose aggregate Vanguard Fund assets total $50,000 or more. In
addition, the low balance fee will not apply to IRAs and other Vanguard
retirement plan accounts. (Please note, however, that a separate custodial fee
applies to IRAs and other Vanguard retirement plan accounts.)

                                                                            PSAP