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Vanguard Small-Cap Index Fund |
Summary Prospectus |
April 26, 2012 |
Signal® Shares for Participants |
Vanguard Small-Cap Index Fund Signal Shares (VSISX) |
The Fund’s statutory Prospectus and Statement of Additional Information dated |
April 26, 2012, are incorporated into and made part of this Summary Prospectus |
by reference. |
Before you invest, you may want to review the Fund’s Prospectus, which |
contains more information about the Fund and its risks. You can find |
the Fund’s Prospectus and other information about the Fund online at |
www.vanguard.com/prospectus. You can also get this information at no |
cost by calling 800-523-1188 or by sending an e-mail request to |
online@vanguard.com. |
The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or |
passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense. |
Investment Objective
The Fund seeks to track the performance of a benchmark index that measures the
investment return of small-capitalization stocks.
Fees and Expenses
The following table describes the fees and expenses you may pay if you buy and hold
Signal Shares of the Fund. “Acquired Fund Fees and Expenses” are expenses incurred
indirectly by the Fund through its ownership of shares in other investment companies,
such as business development companies. Business development company
expenses are similar to the expenses paid by any operating company held by the
Fund. They are not direct costs paid by Fund shareholders and are not used to
calculate the Fund’s net asset value. They have no impact on the costs associated
with fund operations. Acquired Fund Fees and Expenses are not included in the
Fund’s financial statements, which provide a clearer picture of a fund’s actual
operating costs.
Shareholder Fees | |
(Fees paid directly from your investment) | |
Sales Charge (Load) Imposed on Purchases | None |
Purchase Fee | None |
Sales Charge (Load) Imposed on Reinvested Dividends | None |
Redemption Fee | None |
Annual Fund Operating Expenses | |
(Expenses that you pay each year as a percentage of the value of your investment) | |
Management Expenses | 0.07% |
12b-1 Distribution Fee | None |
Other Expenses | 0.03% |
Acquired Fund Fees and Expenses | 0.06% |
Total Annual Fund Operating Expenses | 0.16% |
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Example
The following example is intended to help you compare the cost of investing in the
Fund’s Signal Shares with the cost of investing in other mutual funds. It illustrates the
hypothetical expenses that you would incur over various periods if you invest $10,000
in the Fund’s shares. This example assumes that the Shares provide a return of 5% a
year and that total annual fund operating expenses remain as stated in the preceding
table. The results apply whether or not you redeem your investment at the end of the
given period. Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
1 Year | 3 Years | 5 Years | 10 Years |
$16 | $52 | $90 | $205 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in more taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the previous expense example, reduce the Fund’s performance. During
the most recent fiscal year, the Fund’s portfolio turnover rate was 17%.
Primary Investment Strategies
The Fund employs an indexing investment approach designed to track the
performance of the MSCI US Small Cap 1750 Index, a broadly diversified index of
stocks of smaller U.S. companies. The Fund attempts to replicate the target index by
investing all, or substantially all, of its assets in the stocks that make up the Index,
holding each stock in approximately the same proportion as its weighting in the Index.
Primary Risks
An investment in the Fund could lose money over short or even long periods. You should
expect the Fund’s share price and total return to fluctuate within a wide range, like the
fluctuations of the overall stock market. The Fund’s performance could be hurt by:
• Stock market risk, which is the chance that stock prices overall will decline. Stock
markets tend to move in cycles, with periods of rising prices and periods of falling prices.
The Fund’s target index may, at times, become focused in stocks of a particular sector,
category, or group of companies, which could cause the Fund to underperform the
overall stock market.
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• Investment style risk, which is the chance that returns from small-capitalization
stocks will trail returns from the overall stock market. Historically, small-cap stocks
have been more volatile in price than the large-cap stocks that dominate the overall
market, and they often perform quite differently.
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency.
Annual Total Returns
The following bar chart and table are intended to help you understand the risks of
investing in the Fund. The bar chart shows how the performance of the Fund‘s Signal
Shares has varied from one calendar year to another over the periods shown. The
table shows how the average annual total returns of the Fund‘s Signal Shares
compare with those of the Fund‘s target index, which has investment characteristics
similar to those of the Fund. Keep in mind that the Fund’s past performance does not
indicate how the Fund will perform in the future. Updated performance information is
available on our website at vanguard.com/performance or by calling Vanguard toll-free
at 800-662-7447.
Annual Total Returns — Vanguard Small-Cap Index Fund Signal Shares
During the periods shown in the bar chart, the highest return for a calendar quarter
was 24.21% (quarter ended June 30, 2009), and the lowest return for a quarter was
–26.64% (quarter ended December 31, 2008).
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Average Annual Total Returns for Periods Ended December 31, 2011 | |||
Since | |||
Inception | |||
(Dec. 15, | |||
1 Year | 5 Years | 2006) | |
Vanguard Small-Cap Index Fund Signal Shares | –2.68% | 1.91% | 1.73% |
MSCI US Small Cap 1750 Index | |||
(reflects no deduction for fees or expenses) | –2.75% | 1.79% | 1.61% |
Investment Advisor
The Vanguard Group, Inc.
Portfolio Manager
Michael H. Buek, CFA, Principal of Vanguard. He has managed the Fund since 1991.
Tax Information
The Fund’s distributions will be reinvested in additional Fund shares and accumulate on
a tax-deferred basis if you are investing through an employer-sponsored retirement or
savings plan. You will not owe taxes on these distributions until you begin withdrawals
from the plan. You should consult your plan administrator, your plan’s Summary Plan
Description, or your tax advisor about the tax consequences of plan withdrawals.
Payments to Financial Intermediaries
The Fund and its investment advisor do not pay financial intermediaries for sales of
Fund shares.
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Vanguard Small-Cap Index Fund Signal Shares for Participants—Fund Number 1345 |
CFA® is a trademark owned by CFA Institute. |
THIS FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MSCI INC. (“MSCI”), ANY OF ITS AFFILIATES, ANY OF ITS |
DIRECT OR INDIRECT INFORMATION PROVIDERS OR ANY OTHER THIRD PARTY INVOLVED IN, OR RELATED TO, COMPILING, |
COMPUTING OR CREATING ANY MSCI INDEX (COLLECTIVELY, THE “MSCI PARTIES”). THE MSCI INDEXES ARE THE EXCLUSIVE |
PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES ARE SERVICE MARK(S) OF MSCI OR ITS AFFILIATES AND HAVE BEEN |
LICENSED FOR USE FOR CERTAIN PURPOSES BY VANGUARD. NONE OF THE MSCI PARTIES MAKES ANY REPRESENTATION OR |
WARRANTY, EXPRESS OR IMPLIED, TO THE OWNERS OF THIS FUND OR ANY MEMBER OF THE PUBLIC REGARDING THE |
ADVISABILITY OF INVESTING IN FUNDS GENERALLY OR IN THIS FUND PARTICULARLY OR THE ABILITY OF ANY MSCI INDEX TO |
TRACK CORRESPONDING STOCK MARKET PERFORMANCE. MSCI OR ITS AFFILIATES ARE THE LICENSORS OF CERTAIN |
TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND OF THE MSCI INDEXES WHICH ARE DETERMINED, COMPOSED |
AND CALCULATED BY MSCI WITHOUT REGARD TO THIS FUND OR THE ISSUER OR OWNER OF THIS FUND. NONE OF THE MSCI |
PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE ISSUERS OR OWNERS OF THIS FUND INTO CONSIDERATION IN |
DETERMINING, COMPOSING OR CALCULATING THE MSCI INDEXES. NONE OF THE MSCI PARTIES IS RESPONSIBLE FOR OR |
HAS PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THIS FUND TO BE ISSUED OR IN |
THE DETERMINATION OR CALCULATION OF THE CONSIDERATION INTO WHICH THIS FUND IS REDEEMABLE. NONE OF THE |
MSCI PARTIES HAS ANY OBLIGATION OR LIABILITY TO THE OWNERS OF THIS FUND IN CONNECTION WITH THE |
ADMINISTRATION, MARKETING OR OFFERING OF THIS FUND. |
ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES |
FROM SOURCES WHICH MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE |
ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE |
MSCI PARTIES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, LICENSEE’S |
CUSTOMERS OR COUNTERPARTIES, ISSUERS OF THE FUNDS, OWNERS OF THE FUNDS, OR ANY OTHER PERSON OR ENTITY, |
FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN IN CONNECTION WITH THE RIGHTS LICENSED |
HEREUNDER OR FOR ANY OTHER USE. NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS |
OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE |
MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY |
DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO ANY MSCI |
INDEX AND ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE |
MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES |
(INCLUDING WITHOUT LIMITATION LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. |
© 2012 The Vanguard Group, Inc. All rights reserved. |
Vanguard Marketing Corporation, Distributor. |
SPI 1345 042012 |