[SHIP]
                            [THE VANGUARD GROUP LOGO]

                      VANGUARD FUNDS PROSPECTUS SUPPLEMENT


IMPORTANT INFORMATION ABOUT POLICIES TO LIMIT FREQUENT TRADING
After  the  close of  business  on  September  30,  2005,  Vanguard  will  begin
implementing a new policy to limit frequent  trading in the Vanguard funds.  The
final  implementation of the policy across all business lines will extend beyond
September 30, 2005. The following changes are made to the prospectus.

The Frequent Trading or Market-Timing section is replaced with the following:

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 fund's 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 that hold  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,  a 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.  Frequent  trading may also  interfere  with an advisor's  ability to
efficiently manage the fund.


Policies to Address Fequent Trading
The Vanguard funds (other than money market funds,  short-term  bond funds,  and
VIPER(R) Shares) do not knowingly  accommodate  frequent  trading.  The board of
trustees of each Vanguard fund has adopted  policies and  procedures  reasonably
designed to detect and  discourage  frequent  trading  and,  in some  cases,  to
compensate  the funds for the costs  associated  with it.  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:
o    Each   Vanguard   fund   reserves   the  right  to  reject   any   purchase
     request--including  exchanges from other Vanguard funds--without notice and
     regardless  of size.  A purchase  request  could be  rejected  if  Vanguard
     determines that such purchase may disrupt a fund's operation or performance
     or because of a history of frequent trading by the investor.

                                                                  (over, please)


o    Each Vanguard fund (other than money market funds,  short-term  bond funds,
     and VIPER Shares)  generally  limits an  investor's  purchases or exchanges
     into a fund account for 60 calendar days after the investor has redeemed or
     exchanged out of that fund account.







o    Certain Vanguard funds charge shareholders  purchase and/or redemption fees
     on transactions.

See the INVESTING WITH VANGUARD section of the prospectus for further details on
Vanguard's transaction policies.

Each fund (other than money market funds),  in determining  its net asset value,
will use fair-value pricing as described in the SHARE PRICE section.  When used,
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.

In addition,  the  following  changes are made to the  INVESTING  WITH  VANGUARD
section of the prospectus.

The Exchanging Shares section is replaced with the following:

FREQUENT-TRADING POLICIES
Because excessive transactions can disrupt management of a fund and increase the
fund's costs for all  shareholders,  Vanguard  places certain limits on frequent
trading in the  Vanguard  funds.  Each  Vanguard  fund (other than money  market
funds,  short-term bond funds, and VIPER Shares) limits an investor's  purchases
or  exchanges  into a fund  account for 60 calendar  days after the investor has
redeemed or exchanged out of that fund account.
     The policy does not apply to following:
o    Purchases of shares with fund dividend or capital gains distributions.
o    Transactions   through  Vanguard's  Automatic  Investment  Plan,  Automatic
     Exchange  Service,  Direct  Deposit  Service,  Automatic  Withdrawal  Plan,
     Required  Minimum   Distribution   Service,  and  Vanguard  Small  Business
     Online(R).
o    Redemptions of shares to pay fund or account fees.
o    Transaction  requests  submitted by mail to Vanguard from  shareholders who
     hold their accounts directly with Vanguard.  (Transactions submitted by fax
     or wire are not mail transactions and are subject to the policy.)
o    Transfers and re-registrations of shares within the same fund.
o    Purchases of shares by asset transfer or direct rollover.
o    Conversions  of shares from one share class to another in the same fund.
o    Checkwriting redemptions.
o    Section 529 college savings plans.
o    Certain approved institutional portfolios and asset allocation programs, as
     well as Vanguard mutual funds investing in other Vanguard mutual funds.




     For participants in  employer-sponsored  defined  contribution plans (other
than those served by the  Vanguard  Small  Business  Services  Department),  the
frequent-trading policy does not apply to:

o    Purchases of shares with participant  payroll or employer  contributions or
     loan repayments.
o    Purchases of shares with fund dividend or capital gains distributions.
o    Distributions, loans, and in-service withdrawals from a plan.
o    Redemptions of shares as part of a plan  termination or at the direction of
     the plan.
o    Automated   transactions   executed  during  the  first  six  months  of  a
     participant's enrollment in the Vanguard Managed Account Program.
o    Redemptions of shares to pay fund or account fees.
o    Share or asset transfers or rollovers.
o    Re-registrations of shares.
o    Conversions of shares from one share class to another in the same fund.

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 client's accounts
the 60-day policy previously described, prohibiting a client's purchases of fund
shares, and/or eliminating the client's exchange privilege.

ACCOUNTS HELD BY INTERMEDIARIES
When  intermediaries  establish accounts in Vanguard funds for their clients, we
cannot always monitor the trading activity of individual  clients.  However,  we
review  trading  activity  at the  omnibus  level,  and if we detect  suspicious
activity, we will seek to investigate and take appropriate action. If necessary,
Vanguard may prohibit additional  purchases of fund shares by an intermediary or
by certain of the intermediary's clients.  Intermediaries may also monitor their
clients' trading activities in the Vanguard funds.
     For  those  Vanguard  funds  that  charge  purchase  or  redemption   fees,
intermediaries  will  be  asked  to  assess  purchase  and  redemption  fees  on
shareholder  and  participant  accounts  and remit these fees to the funds.  The
application of purchase and redemption  fees and  frequent-trading  policies may
vary  among   intermediaries.   There  are  no  assurances  that  Vanguard  will
successfully  identify all intermediaries or that  intermediaries  will properly
assess purchase or redemption fees or administer frequent-trading policies.
     For funds to which fees apply,  intermediaries will be expected to begin to
assess purchase and redemption fees within the next year.  Intermediaries may be
provided additional time if needed to address systems issues. If you invest with
Vanguard through an intermediary, please read that firm's materials carefully to
learn of any other rules or fees that may apply.



RIGHT TO CHANGE POLICIES
Vanguard may change these  policies in the future  without  shareholder  notice,
except when legally required.




The Other Rules You Should  Know--Investing  With  Vanguard  Through Other Firms
section is amended as follows:

Beginning with the paragraph that states,  "When  intermediaries  establish...,"
replace all remaining text in that section with the following:

Please  see  Frequent  Trading  Policies--Accounts  Held by  Intermediaries  for
information  about the assessment of redemption  fees and monitoring of frequent
trading for accounts held by intermediaries.






























(C) The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.                     PSNRDM   082005





                                     [SHIP]
                            [THE VANGUARD GROUP LOGO]

              VANGUARD FUNDS PROSPECTUS SUPPLEMENT FOR PARTICIPANTS


IMPORTANT INFORMATION ABOUT POLICIES TO LIMIT FREQUENT TRADING
After  the  close of  business  on  September  30,  2005,  Vanguard  will  begin
implementing  a new  policy to limit  frequent  trading in the  Vanguard  mutual
funds.  The final  implementation  of the policy across all business  lines will
extend  beyond  September  30,  2005.  The  following  changes  are  made to the
prospectus.

The Frequent Trading or Market-Timing section is replaced with the following:

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 fund's 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 that hold  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,  a 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.  Frequent  trading may also  interfere  with an advisor's  ability to
efficiently manage the fund.

POLICIES TO ADDRESS FREQUENT TRADING
The Vanguard funds (other than money market funds,  short-term  bond funds,  and
VIPER(R) Shares) do not knowingly  accommodate  frequent  trading.  The board of
trustees of each Vanguard fund has adopted  policies and  procedures  reasonably
designed to detect and  discourage  frequent  trading  and,  in some  cases,  to
compensate  the funds for the costs  associated  with it.  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:

o    Each   Vanguard   fund   reserves   the  right  to  reject   any   purchase
     request--including  exchanges from other Vanguard funds--without notice and
     regardless  of size.  A purchase  request  could be  rejected  if  Vanguard
     determines that such purchase may disrupt a fund's operation or performance
     or because of a history of frequent trading by the investor.
o    Each Vanguard fund (other than money market funds,  short-term  bond funds,
     and VIPER  Shares)  prohibits a  participant  from  exchanging  into a fund
     account for 60 calendar days after the participant exchanged out
         of that fund account.



o Certain Vanguard funds charge purchase and/or redemption fees on transactions.

     See the  INVESTING  WITH  VANGUARD  section of the  prospectus  for further
details on Vanguard's transaction policies.

Each fund (other than money market funds),  in determining  its net asset value,
will use fair-value pricing as described in the Share Price section.  When used,
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.

In addition,  the  following  changes are made to the  Investing  With  Vanguard
section of the prospectus.

The Exchanges section is replaced with the following:

The exchange  privilege (your ability to redeem shares from one fund to purchase
shares of another  fund) may be available to you through your plan.  Although we
make every  effort to maintain  the exchange  privilege,  Vanguard  reserves the
right to revise or terminate this privilege, limit the amount of an exchange, or
reject any exchange,  at any time, without notice.  Because excessive  exchanges
can disrupt the management of the Vanguard funds and increase their  transaction
costs, Vanguard places the following limits on the exchange privilege.
     If you are  exchanging  out of any  Vanguard  fund (other than money market
funds,  short-term  bond funds,  and VIPER Shares) after September 30, 2005, the
following policy applies, regardless of the dollar amount:

o    You must wait 60 days before exchanging back into the fund.
o    The 60-day clock restarts after every exchange out of the fund.
     The policy does not apply to the following:
o    Purchases of shares with participant  payroll or employer  contributions or
     loan repayments.
o    Purchases of shares with fund dividends or capital gains distributions.
o    Distributions, loans, and in-service withdrawals from a plan.
o    Redemptions of shares as part of a plan  termination or at the direction of
     the plan.
o    Redemptions of shares to pay fund or account fees.
o    Share or asset transfers or rollovers.
o    Re-registrations of shares within the same fund.
o    Conversions of shares from one share class to another in the same fund.
o    Automated   transactions   executed  during  the  first  six  months  of  a
     participant's enrollment in the Vanguard Managed Account Program.


Before  making an  exchange  to or from  another  fund  available  in your plan,
consider the following:
o    Certain investment options,  particularly funds made up of company stock or
     investment contracts, may be subject to unique restrictions.
o    Be sure to read that  fund's  prospectus.  Contact  Vanguard's  Participant
     Access Center, toll-free, at 800-523-1188 for a copy.




o    Vanguard can accept exchanges only as permitted by your plan.  Contact your
     plan  administrator  for details on other  exchange  policies that apply to
     your plan.

Plans for which  Vanguard does not serve as  recordkeeper.  If Vanguard does not
serve as  recordkeeper  for your plan, your plan's  recordkeeper  will establish
accounts in Vanguard  funds.  In such  accounts,  we cannot  always  monitor the
trading activity of individual  clients.  However, we review trading activity at
the  omnibus  level,  and if we  detect  suspicious  activity,  we will  seek to
investigate  the trading  activity and take  appropriate  action.  If necessary,
Vanguard may prohibit additional  purchases of fund shares by an intermediary or
certain  of  the  intermediary's   clients.   Intermediaries  may  also  monitor
participants' trading activity in the Vanguard funds.
     For  those  Vanguard  funds  that  charge  purchase  or  redemption   fees,
intermediaries  that  establish  accounts in the Vanguard funds will be asked to
assess purchase and redemption fees on participant accounts and remit redemption
fees to the funds.  The application of purchase and redemption fees and frequent
trading  policies may vary among  intermediaries.  There are no assurances  that
Vanguard will successfully  identify all  intermediaries or that  intermediaries
will properly assess purchase or redemption fees or administer  frequent-trading
policies.
     For funds to which fees apply,  intermediaries will be expected to begin to
assess purchase and redemption fees within the next year.  Intermediaries may be
provided  additional time if needed to address  systems issues.  If a firm other
than  Vanguard  serves as  recordkeeper  for your plan,  please read that firm's
materials carefully to learn of any other rules or fees that may apply.

Right to Change  Policies:  Vanguard  may change  these  policies  in the future
without shareholder notice, except when legally required.










(C) The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.                      ISNRDM  082005