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                            Fund Profile Prospectus
                                      for

                                    VANGUARD
                                 EXPLORER FUND

                                 July 26, 1996


                           [THE VANGUARD GROUP LOGO]
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1    OBJECTIVE

Vanguard Explorer Fund seeks to provide long-term capital growth. The Fund may
not meet this objective.

2    INVESTMENT STRATEGIES

The Fund invests in stocks of small companies (that is, those with an average
market value of between $100 million and $500 million). These companies tend to
be unseasoned but are considered to have favorable prospects for growth. In
addition to investing in common stocks, the Fund may also invest, to a limited
degree, in short-term fixed-income securities, and futures and options
contracts.

3    RISKS

The Fund's total return will fluctuate, so an investor could lose money over
short or extended periods. More specifically, investors in the Fund are exposed
to . . .

- -  A HIGH degree of stock market risk (the possibility that stock prices in
   general will decline over short or extended periods).

Historical returns for the U.S. stock market (as measured by the Standard &
Poor's 500 Composite Stock Price Index) show some of this market volatility.
From 1926 to 1995, the S&P 500 Index provided an annualized total return of
+10.5%, but provided a negative return--averaging -12.3%--in 20 of these 70
years. Annual returns for the period ranged from a low of -43.3% to a high of
+53.9%.

Because it emphasizes the stocks of smaller companies, the Fund is likely to
perform differently than broader market benchmarks like the S&P 500 Index.

4  APPROPRIATENESS

This Fund may be suitable for investors who . . .

- -  Are seeking long-term capital growth.

- -  Are willing to assume above-average investment risk.

- -  Want an aggressive growth fund as part of a balanced investment program.

- -  Plan to invest for at least five years.

The Fund is not suitable for investors who . . .

- -  Are seeking current income.

- -  Cannot tolerate fluctuating share prices.
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5    FEES AND EXPENSES

Vanguard Explorer Fund--like all Vanguard Funds--is offered on a pure no-load
basis (that is, the Fund has no 12b-1 fees or charges to buy or sell shares).

The Fund's operating expenses are deducted from its total assets before daily
share prices and income distributions are calculated. The Fund's expense ratio
for fiscal year 1995 was 0.68% of assets.



   ANNUAL FUND OPERATING EXPENSES                       
   ----------------------------------------------------------
                                                     
    Investment Advisory Fees  . . . . . . . . . . . .   0.28%
    Distribution Costs  . . . . . . . . . . . . . . .   0.02
    Other Expenses  . . . . . . . . . . . . . . . . .   0.38 
                                                        -----
    Total Operating Expenses  . . . . . . . . . . . .   0.68%
                                                        -----


The following example illustrates the expenses that you would incur on a $1,000
investment over various periods, assuming (1) a 5% annual rate of return and
(2) redemption at the end of each period.



  1 Year       3 Years       5 Years      10 Years
  ------------------------------------------------
                                     
     $7           $22           $38           $85


This example should not be considered a representation of past or future
expenses or performance. Actual expenses may be higher or lower than those
shown.
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6    PAST PERFORMANCE

                                  Performance
                          Annual Returns (%) 1986-1995



                              1986    1987     1988    1989     1990    1991     1992    1993     1994    1995
                                                                            
Vanguard Explorer Fund        -8.4    -6.9     25.8    9.4     -10.8    55.9     13.0    15.4     10.5    26.6
Russell 2000 Index*            5.7    -8.8     24.9    16.2    -19.5    46.1     18.4    18.9     -1.8    28.4


                              Performance Summary
                         (Periods ended June 30, 1996)



                      AVERAGE ANNUAL TOTAL RETURN
                    EXPLORER FUND      RUSSELL 2000*
                                    
   1 Year              +26.2%             +23.9%
   5 Years             +18.0%             +17.5%
   10 Years            +10.9%             +10.4%


Note: In evaluating past performance, it is important to consider that returns
from stocks were close to their highest levels in history during the past ten
years. Past performance is not indicative of future performance.

Performance figures include the reinvestment of all dividends and any capital
gains distributions. All returns are net of expenses. The performance data
quoted represent past performance. The investment return and principal value of
an investment will fluctuate so that investors' shares, when redeemed, may be
worth more or less than their original cost.



*The Russell 2000 Index is a diversified group of some 2,000 securities used to
measure the performance of small-company stocks. An index is unmanaged; you
cannot invest in an index.
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7    INVESTMENT ADVISER

The Fund employs a "multi-adviser" approach. Wellington Management Company (46%
of the Fund's assets as of June 30, 1996) and Granahan Investment Management,
Inc. (54% of the Fund's assets as of June 30, 1996) select stocks and maintain
portfolios independently of each other.

John J. Granahan, President of Granahan Investment Management, Inc., oversees
his firm's portion of the Fund's assets. He served as portfolio manager of
Explorer II from its inception in 1985 to its merger with the Fund in 1990.
Kenneth L. Abrams, Vice President of Wellington Management Company, has
overseen his firm's portion of the Fund's assets since February 1994. He has
been with Wellington for ten years.

8    PURCHASES

You may purchase shares by mail, wire, or exchange from another Vanguard Fund.
The minimum initial investment is $3,000 ($1,000 for IRAs and custodial
accounts for minors).

9    REDEMPTIONS

You may redeem shares by sending a letter to or calling Vanguard. The Fund's
share price is expected to fluctuate and, at redemption, may be higher or lower
than at the time of initial purchase, resulting in a gain or loss.

10   DISTRIBUTIONS

The Fund expects to pay dividend and capital gains distributions annually.
These distributions can be automatically reinvested or received in cash. All
distributions are taxable to you whether reinvested in additional shares or
received in cash.

11   OTHER SERVICES

- -    Vanguard Fund Express(R)--electronic transfers
     between your bank account and the Fund.
- -    Vanguard Tele-Account(R)--around-the-clock access to Vanguard Fund
     information, account balances, and some transactions by calling 1-800-
     662-6273 (ON-BOARD).
- -    Investor Information--toll-free access to Vanguard Associates by calling
     1-800-662-7447 (SHIP).
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           This Fund Profile contains key information about the Fund.
          If you would like more information before you invest, please
          consult the Fund's prospectus. For details about the Fund's
       holdings or recent investment strategies, please review the Fund's
          most recent annual or semi-annual report. The prospectus and
         reports may be obtained at no cost by calling 1-800-662-7447.

                           [THE VANGUARD GROUP LOGO]

0796-20S     (C) 1996 Vanguard Marketing Corporation, Distributor         FP24