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                          Vanguard(R) Explorer(TM) Fund
               SUPPLEMENT TO THE PROSPECTUS DATED JANUARY 31, 2003

In the "Security  Selection"  section of the prospectus,  the text regarding The
Vanguard Group is replaced with the following:

     The Vanguard Group (Vanguard), which managed about 16% of the Fund's assets
as of October 31, 2002,  constructs a broadly diversified portfolio of small-cap
domestic growth stocks based on the adviser's  assessment of the relative return
potential of the underlying  securities.  The adviser selects securities that it
believes  offer a good balance  between  reasonable  valuations  and  attractive
earnings growth prospects relative to their peers. Vanguard implements its stock
selection  process through the use of proprietary  software  programs that allow
comparisons to be made among hundreds of securities at a time.







(C)2003 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.                         PS24 022003