497 1 exchangepolicy125.txt VANGUARD FUNDS PROSPECTUS SUPPLEMENT [SHIP] [THE VANGUARD GROUP LOGO] Vanguard Funds Prospectus Supplement IMPORTANT INFORMATION ABOUT VANGUARD'S NEW EXCHANGE PRIVILEGES EFFECTIVE MARCH 18, 2002 New exchange privileges for Vanguard's index funds and international funds apply to all types of shareholder accounts, including IRAs (with the exception of SIMPLE IRAs and SEP-IRAs) and other retirement accounts. The chart below details all of the Vanguard funds' exchange privileges, and generally replaces any exchange information contained in the accompanying prospectus. Please note that the Vanguard funds reserve the right to further amend their exchange privileges at any time, for any reason, and without prior notice to shareholders. In addition, please note that in the event of a conflict between the exchange privileges of two funds, the stricter policy will apply to the transaction.
------------------------------------------------------------------------------------------------------------------------ EXCHANGE INDEX AND POLICIES INTERNATIONAL FUNDS* ALL OTHER FUNDS ------------------------------------------------------------------------------------------------------------------------ Exchanges OUT of a fund: Permitted for all accounts by Web, Permitted for all accounts by Web, telephone, or mail, subject to these telephone, or mail, subject to these limitations: limitations: o No telephone or Web exchanges o No more than two substantive between 2:30 p.m. and 4:00 p.m., "round trips" through a Eastern time, on business days.** non-money-market fund during any Any exchange request placed during 12-month period. these hours will be rejected. o A "round trip" is a redemption o No more than two exchanges OUT OUT of a fund (by any means) of a fund by telephone or Web followed by a purchase back INTO request within any 12-month period. the same fund (by any means). o Each fund reserves the right o Round trips must be at least to reject exchanges considered 30 days apart. excessive. o "Substantive" means a dollar amount that Vanguard determines, in its sole discretion, could advsersely affect management of the fund. ---------------------------------------------------------------------------------------------------------------------- (chart continued on back)
------------------------------------------------------------------------------------------------------------------------ EXCHANGE INDEX AND POLICIES INTERNATIONAL FUNDS* ALL OTHER FUNDS ------------------------------------------------------------------------------------------------------------------------ Permitted for all accounts by Web, Permitted for all accounts by web, telephone, or mail, subject to these telephone, or mail, subject to the Exchanges INTO a fund: limitations: limitations described above. o No telephone or Web exchanges between 2:30 p.m. and 4:00 p.m., Eastern time, on business days.** Any exchange request placed during these hours will be rejected. o Each fund reserves the right to reject exchanges considered excessive. ------------------------------------------------------------------------------------------------------------------------
This policy does not affect your ability to redeem shares by telephone, Web, or mail at any time.
*These funds include: Vanguard(R) 500 Index Fund Vanguard(R) International Growth Fund Vanguard(R) Balanced Index Fund Vanguard(R) International Value Fund Vanguard(R) Calvert Social Index(TM) Fund Vanguard(R) Mid-Cap Index Fund Vanguard(R) Developed Markets Index Fund Vanguard(R) Pacific Stock Index Fund Vanguard(R) Emerging Markets Stock Index Fund Vanguard(R) REIT Index Fund Vanguard(R) European Stock Index Fund Vanguard(R) Small-Cap Index Fund Vanguard(R) Extended Market Index Fund Vanguard(R) Small-Cap Growth Index Fund Vanguard(R) Growth and Income Fund Vanguard(R) Small-Cap Value Index Fund Vanguard(R) Growth Index Fund Vanguard(R)Total International Stock Index Fund Vanguard(R) Total Stock Market Index Fund Vanguard(R) Value Index Fund
**In the event of scheduled early market closings of the New York Stock Exchange, the end-of-day restrictions will be adjusted to 1.5 hours prior to the scheduled close. For example, on days when the market closes at 1:00 p.m., Eastern time, the cut-off for phone and Web transactions will be 11:30 a.m., Eastern time. (C)2002 the Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. PSIEP 012002 012002