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Vanguard Total Stock Market Index Fund |
Summary Prospectus |
April 26, 2012 |
Institutional Shares |
Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) |
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 800-662-7447 (if you are an individual investor) or 888-809-8102 |
(if you are a client of Vanguard‘s Institutional Division), 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 the overall stock market.
Fees and Expenses
The following table describes the fees and expenses you may pay if you buy and hold
Institutional 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 | 0.02% |
12b-1 Distribution Fee | None |
Other Expenses | 0.02% |
Acquired Fund Fees and Expenses | 0.01% |
Total Annual Fund Operating Expenses | 0.05% |
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Example
The following example is intended to help you compare the cost of investing in the
Fund’s Institutional 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 |
$5 | $16 | $28 | $64 |
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 5%.
Primary Investment Strategies
The Fund employs an indexing investment approach designed to track the
performance of the MSCI US Broad Market Index, which represents approximately
99.5% or more of the total market capitalization of all the U.S. common stocks
regularly traded on the New York Stock Exchange and the Nasdaq over-the-counter
market. The Fund invests by sampling the Index, meaning that it holds a broadly
diversified collection of securities that, in the aggregate, approximates the full Index in
terms of key characteristics. These key characteristics include industry weightings
and market capitalization, as well as certain financial measures, such as price/earnings
ratio and dividend yield.
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.
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The Fund’s target index may, at times, become focused in stocks of a particular sector,
category, or group of companies.
• Index sampling risk, which is the chance that the securities selected for the Fund, in
the aggregate, will not provide investment performance matching that of the Fund’s
target index. Index sampling risk for the Fund should be low.
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
Institutional Shares has varied from one calendar year to another over the periods
shown. The table shows how the average annual total returns of the Institutional
Shares compare with those of the Fund‘s target index and other comparative indexes,
which have investment characteristics similar to those of the Fund. Keep in mind that
the Fund’s past performance (before and after taxes) 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 Total Stock Market Index Fund Institutional Shares
During the periods shown in the bar chart, the highest return for a calendar quarter
was 16.98% (quarter ended June 30, 2009), and the lowest return for a quarter was
–22.69% (quarter ended December 31, 2008).
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Average Annual Total Returns for Periods Ended December 31, 2011 | |||
1 Year | 5 Years | 10 Years | |
Vanguard Total Stock Market Index Fund Institutional Shares | |||
Return Before Taxes | 1.09% | 0.32% | 3.87% |
Return After Taxes on Distributions | 0.80 | 0.02 | 3.55 |
Return After Taxes on Distributions and Sale of Fund Shares | 1.09 | 0.25 | 3.29 |
Comparative Indexes | |||
(reflect no deduction for fees, expenses, or taxes) | |||
Dow Jones U.S. Total Stock Market Index | 0.52% | 0.28% | 3.90% |
Spliced Total Stock Market Index | 1.08 | 0.29 | 3.87 |
MSCI US Broad Market Index | 1.08 | 0.29 | — |
Actual after-tax returns depend on your tax situation and may differ from those shown in
the preceding table. When after-tax returns are calculated, it is assumed that the
shareholder was in the highest individual federal marginal income tax bracket at the time
of each distribution of income or capital gains or upon redemption. State and local
income taxes are not reflected in the calculations. Please note that after-tax returns are
not relevant for a shareholder who holds fund shares in a tax-deferred account, such as
an individual retirement account or a 401(k) plan. Also, figures captioned Return After
Taxes on Distributions and Sale of Fund Shares will be higher than other figures for the
same period if a capital loss occurs upon redemption and results in an assumed tax
deduction for the shareholder.
Investment Advisor
The Vanguard Group, Inc.
Portfolio Manager
Gerard C. O’Reilly, Principal of Vanguard. He has managed the Fund since 1994.
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Purchase and Sale of Fund Shares
You may purchase or redeem shares online through our website (vanguard.com), by
mail (The Vanguard Group, P.O. Box 1110, Valley Forge, PA 19482-1110), or by telephone
(800-662-2739). The following table provides the Fund’s minimum initial and subsequent
investment requirements.
Account Minimums | Institutional Shares |
To open and maintain an account | $5 million |
To add to an existing account | Generally $100 (other than by Automatic Investment |
Plan, which has no established minimum) |
Tax Information
The Fund’s distributions may be taxable as ordinary income or capital gain.
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 Total Stock Market Index Fund Institutional Shares—Fund Number 855
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 855 042012 |