Vanguard Energy Fund

Supplement Dated August 17, 2020, to the Prospectusand Summary Prospectus Dated May 29, 2020

The board of trustees of Vanguard Specialized Funds (the “Board”) approvedrestructuring of the investment advisory team of Vanguard Energy Fund (the“Fund”), removing The Vanguard Group, Inc.’s Quantitative Equity Group(“QEG”) as an investment advisor to the Fund. Wellington ManagementCompany LLP (“Wellington”) will serve as the Fund’s sole advisor. All referencesto QEG, and all other details and descriptions regarding QEG’s management ofcertain assets of the Fund in the Prospectus and Summary Prospectus aredeleted in their entirety.

The change in the Fund’s investment advisory arrangement is expected tochange the Fund’s expense ratios to 0.33% for Investor Shares and 0.25% forAdmiral™ Shares.

Additionally, in the fourth quarter of 2020, the Fund will change its primarybenchmark to a custom market-cap weighted blend of the MSCI ACWI EnergyIndex and the MSCI ACWI Utilities Index to better reflect how Wellington intendsto position the Fund within the energy industry (as currently described in theProspectus and Summary Prospectus).

Prospectus and Summary Prospectus Text ChangesThe following replaces a similar table under the heading “Fees and Expenses” inthe Fund Summary section:

Annual Fund Operating Expenses(Expenses that you pay each year as a percentage of the value of your investment)

Investor Shares Admiral SharesManagement Fees 0.31% 0.24%12b-1 Distribution Fee None NoneOther Expenses 0.02% 0.01%Total Annual Fund Operating Expenses 1 0.33% 0.25%

1 The expense information shown in the table has been restated to reflect estimated amounts.

In the same section, the following replaces a similar table under the heading“Examples”:

1 Year 3 Years 5 Years 10 YearsInvestor Shares $34 $106 $185 $418Admiral Shares $26 $80 $141 $318

© 2020 The Vanguard Group, Inc. All rights reserved.Vanguard Marketing Corporation, Distributor. PS 051A 082020

Vanguard U.S. Growth FundVanguard Health Care FundVanguard Energy FundVVIF – Growth PortfolioVVIF – Real Estate Index Portfolio

Supplement Dated July 29, 2020, to the Prospectusesand Summary Prospectuses

Important Changes to Vanguard U.S. Growth Fund, Vanguard HealthCare Fund, Vanguard Energy Fund, VVIF – Growth Portfolio, and VVIF –Real Estate Index Portfolio (each, a “Fund” and collectively, the“Funds”).

The Board of Trustees that oversees each Fund approved a change in the Fund’ssub-classification under the Investment Company Act of 1940 from “diversified”to “non-diversified” and the elimination of a related fundamental policy (the“Proposal”). Generally, a fund that is non-diversified may invest a greaterpercentage of its assets in a small group of issuers or in any one issuer than adiversified fund. The Proposal requires approval by the shareholders of each Fundand will be submitted to shareholders at a special meeting to be held on or aboutJanuary 22, 2021 (the “Meeting”).

Prior to the Meeting, shareholders of each Fund will receive a proxy statementrequesting their votes on the Proposal. If a Fund’s shareholders approve theProposal, then the change is expected to occur as soon as practicable after theMeeting, and the Fund’s Prospectus and Statement of Additional Information willbe updated to reflect the Fund’s non-diversified status and the risks related tooperating as a non-diversified fund.

© 2020 The Vanguard Group, Inc. All rights reserved.Vanguard Marketing Corporation, Distributor. PS DIVA 072020

Vanguard Energy FundProspectus

May 29, 2020

Investor Shares & Admiral™ Shares

Vanguard Energy Fund Investor Shares (VGENX)

Vanguard Energy Fund Admiral Shares (VGELX)

See the inside front cover for important information about access to yourfund’s annual and semiannual shareholder reports.

This prospectus contains financial data for the Fund through the fiscal year ended January 31, 2020.

The Securities and Exchange Commission (SEC) has not approved or disapproved thesesecurities or passed upon the adequacy of this prospectus. Any representation to the contrary isa criminal offense.

Important information about access to shareholder reports

Beginning on January 1, 2021, as permitted by regulations adopted by theSEC, paper copies of your fund’s annual and semiannual shareholder reportswill no longer be sent to you by mail, unless you specifically request them.Instead, you will be notified by mail each time a report is posted on thewebsite and will be provided with a link to access the report.

If you have already elected to receive shareholder reports electronically, youwill not be affected by this change and do not need to take any action. You mayelect to receive shareholder reports and other communications from the fundelectronically by contacting your financial intermediary (such as a broker-dealeror bank) or, if you invest directly with the fund, by calling Vanguard at one ofthe phone numbers on the back cover of this prospectus or by logging on tovanguard.com.

You may elect to receive paper copies of all future shareholder reports free ofcharge. If you invest through a financial intermediary, you can contact theintermediary to request that you continue to receive paper copies. If you investdirectly with the fund, you can call Vanguard at one of the phone numbers onthe back cover of this prospectus or log on to vanguard.com. Your election toreceive paper copies will apply to all the funds you hold through anintermediary or directly with Vanguard.

Contents

Fund Summary 1

More on the Fund 7

The Fund and Vanguard 16

Investment Advisors 16

Dividends, Capital Gains, and Taxes 18

Share Price 22

Financial Highlights 24

Investing With Vanguard 26

Purchasing Shares 26

Converting Shares 29

Redeeming Shares 31

Exchanging Shares 35

Frequent-Trading Limitations 35

Other Rules You Should Know 37

Fund and Account Updates 41

Employer-Sponsored Plans 43

Contacting Vanguard 44

Additional Information 44

Glossary of Investment Terms 45

Fund Summary

Investment ObjectiveThe Fund seeks to provide long-term capital appreciation.

Fees and ExpensesThe following table describes the fees and expenses you may pay if you buy andhold Investor Shares or Admiral Shares of the Fund.

Shareholder Fees(Fees paid directly from your investment)

Investor Shares Admiral SharesSales Charge (Load) Imposed on Purchases None NonePurchase Fee None NoneSales Charge (Load) Imposed on Reinvested Dividends None NoneRedemption Fee None NoneAccount Service Fee Per Year(for certain fund account balances below $10,000) $20 $20

Annual Fund Operating Expenses(Expenses that you pay each year as a percentage of the value of your investment)

Investor Shares Admiral SharesManagement Fees 0.30% 0.23%12b-1 Distribution Fee None NoneOther Expenses 0.02% 0.01%Total Annual Fund Operating Expenses 0.32% 0.24%

Examples

The following examples are intended to help you compare the cost of investingin the Fund’s Investor Shares or Admiral Shares with the cost of investing inother mutual funds. They illustrate the hypothetical expenses that you wouldincur over various periods if you were to invest $10,000 in the Fund’s shares.These examples assume that the shares provide a return of 5% each year andthat total annual fund operating expenses remain as stated in the precedingtable. You would incur these hypothetical expenses whether or not you were toredeem your investment at the end of the given period. Although your actualcosts may be higher or lower, based on these assumptions your costs would be:

1 Year 3 Years 5 Years 10 YearsInvestor Shares $33 $103 $180 $406Admiral Shares $25 $77 $135 $306

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Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sellssecurities (or “turns over” its portfolio). A higher portfolio turnover rate mayindicate higher transaction costs and may result in more taxes when Fundshares are held in a taxable account. These costs, which are not reflected inannual fund operating expenses or in the previous expense examples, reducethe Fund’s performance. During the most recent fiscal year, the Fund’s portfolioturnover rate was 48% of the average value of its portfolio.

Principal Investment StrategiesUnder normal circumstances, the Fund invests at least 80% of its assets in thecommon stocks of companies principally engaged in activities in the energyindustry, such as the exploration, production, and transmission of energy orenergy fuels; the making and servicing of component products for suchactivities; energy research; and energy conservation or pollution control. TheFund may invest in foreign stocks as part of its principal investment strategy. TheFund uses multiple investment advisors. Each advisor independently selects andmaintains a portfolio of common stocks for the Fund.

Principal RisksAn investment in the Fund could lose money over short or long periods of time.You should expect the Fund’s share price and total return to fluctuate within awide range. The Fund is subject to the following risks, which could affect theFund’s performance:

• Industry concentration risk, which is the chance that there will be particularproblems affecting an entire industry. Any fund that concentrates in a particularindustry will generally be more volatile than a fund that invests more broadly.Because the Fund normally invests at least 80% of its assets in the commonstocks of companies principally engaged in activities in the energy industry, theFund’s performance largely depends—for better or for worse—on the overallcondition of the energy industry. The energy industry could be adversely affectedby energy prices, supply-and-demand for energy resources, and various political,regulatory, and economic factors. Additionally, commodity prices may have asignificant impact on the stock prices of energy companies.

• 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 periodsof falling prices. The Fund’s investments in foreign stocks can be riskier than U.S.stock investments. Foreign stocks may be more volatile and less liquid than U.S.stocks. The prices of foreign stocks and the prices of U.S. stocks may move inopposite directions.

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• Manager risk, which is the chance that poor security selection will cause theFund to underperform relevant benchmarks or other funds with a similarinvestment objective.

• Country risk, which is the chance that world events—such as politicalupheaval, financial troubles, or natural disasters—will adversely affect the valueof securities issued by companies in foreign countries.

• Currency risk, which is the chance that the value of a foreign investment,measured in U.S. dollars, will decrease because of unfavorable changes incurrency exchange rates.

• Asset concentration risk, which is the chance that, because the Fund tends toinvest a high percentage of assets in its ten largest holdings, the Fund’sperformance may be hurt disproportionately by the poor performance ofrelatively few stocks.

An investment in the Fund is not a deposit of a bank and is not insured orguaranteed by the Federal Deposit Insurance Corporation or any othergovernment agency.

Annual Total ReturnsThe following bar chart and table are intended to help you understand the risksof investing in the Fund. The bar chart shows how the performance of the Fund‘sInvestor Shares has varied from one calendar year to another over the periodsshown. The table shows how the average annual total returns of the shareclasses presented compare with those of relevant market indexes and acomparative benchmark, which have investment characteristics similar to thoseof the Fund. The Spliced Energy Index reflects the performance of the S&PEnergy Sector Index through May 31, 2010, and the MSCI ACWI Energy Indexthereafter. The MSCI ACWI Energy Index returns are adjusted for withholdingtaxes. Returns for the Global Natural Resources Funds Average are derived fromdata provided by Lipper, a Thomson Reuters Company. Keep in mind that theFund’s past performance (before and after taxes) does not indicate how the Fundwill perform in the future. Updated performance information is available on ourwebsite at vanguard.com/performance or by calling Vanguard toll-free at800-662-7447.

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Annual Total Returns — Vanguard Energy Fund Investor Shares1

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

0%

20%

40%

60%

-20%

-40%

13.43

–1.74

2.67

18.14

–14.26–21.50

33.10

3.17

–17.15

13.20

1 The year-to-date return as of the most recent calendar quarter, which ended on March 31, 2020, was -41.05%.

During the periods shown in the bar chart, the highest and lowest returns for acalendar quarter were:

Total Return QuarterHighest 17.70% December 31, 2010Lowest -23.34% December 31, 2018

Average Annual Total Returns for Periods Ended December 31, 2019

1 Year 5 Years 10 YearsVanguard Energy Fund Investor Shares

Return Before Taxes 13.20% 0.22% 1.60%Return After Taxes on Distributions 12.33 –0.46 0.70Return After Taxes on Distributions and Sale of Fund Shares 8.42 0.10 1.26Vanguard Energy Fund Admiral Shares

Return Before Taxes 13.29% 0.30% 1.67%Comparative Benchmarks

MSCI ACWI Energy Index(reflects no deduction for fees or expenses) 12.80% 0.74% 1.23%S&P Energy Sector Index(reflects no deduction for fees, expenses, or taxes) 11.81 –1.85 3.32Spliced Energy Index(reflects no deduction for fees, expenses, or taxes) 12.80 0.74 1.67Global Natural Resources Funds Average(reflects no deduction for taxes) 15.31 –1.43 –1.52

Actual after-tax returns depend on your tax situation and may differ from thoseshown in the preceding table. When after-tax returns are calculated, it isassumed that the shareholder was in the highest individual federal marginalincome tax bracket at the time of each distribution of income or capital gains orupon redemption. State and local income taxes are not reflected in thecalculations. Please note that after-tax returns are shown only for the Investor

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Shares and may differ for each share class. After-tax returns are not relevant for ashareholder who holds fund shares in a tax-deferred account, such as anindividual retirement account or a 401(k) plan. Also, figures captioned ReturnAfter Taxes on Distributions and Sale of Fund Shares may be higher than otherfigures for the same period if a capital loss occurs upon redemption and resultsin an assumed tax deduction for the shareholder.

Investment AdvisorsWellington Management Company LLP (Wellington Management)

The Vanguard Group, Inc. (Vanguard)

Portfolio Managers

G. Thomas Levering, Senior Managing Director, Partner, and Global IndustryAnalyst of Wellington Management. He has managed a portion of the Fund sinceJanuary 2020.

James P. Stetler, Senior Portfolio Manager at Vanguard. He has co-managed aportion of the Fund since 2012.

Binbin Guo, Ph.D., Principal of Vanguard and head of the Alpha EquityInvestment team within Vanguard’s Quantitative Equity Group. He hasco-managed a portion of the Fund since 2016.

Purchase and Sale of Fund SharesYou 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 bytelephone (800-662-2739). The minimum investment amount required to openand maintain a Fund account for Investor Shares or Admiral Shares is $3,000 or$50,000, respectively. The minimum investment amount required to add to anexisting Fund account is generally $1. Financial intermediaries, institutionalclients, and Vanguard-advised clients should contact Vanguard for information onspecial eligibility rules that may apply to them regarding Admiral Shares. If youare investing through an intermediary, please contact that firm directly for moreinformation regarding your eligibility. If you are investing through anemployer-sponsored retirement or savings plan, your plan administrator or yourbenefits office can provide you with detailed information on how you can investthrough your plan.

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Tax InformationThe Fund’s distributions may be taxable as ordinary income or capital gain. If you are investing through a tax-advantaged account, such as an IRA or an employer-sponsored retirement or savings plan, special tax rules apply.

Payments to Financial IntermediariesThe Fund and its investment advisors do not pay financial intermediaries for sales of Fund shares.

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More on the Fund

This prospectus describes the principal risks you would face as a Fundshareholder. It is important to keep in mind one of the main principles ofinvesting: generally, the higher the risk of losing money, the higher the potentialreward. The reverse, also, is generally true: the lower the risk, the lower thepotential reward. As you consider an investment in any mutual fund, you shouldtake into account your personal tolerance for fluctuations in the securitiesmarkets. Look for this symbol throughout the prospectus. It is used tomark detailed information about the more significant risks that you wouldconfront as a Fund shareholder. To highlight terms and concepts important tomutual fund investors, we have provided Plain Talk® explanations along the way.Reading the prospectus will help you decide whether the Fund is the rightinvestment for you. We suggest that you keep this prospectus forfuture reference.

Share Class OverviewThe Fund offers two separate classes of shares: Investor Shares andAdmiral Shares.

Both share classes offered by the Fund have the same investment objective,strategies, and policies. However, different share classes have differentexpenses; as a result, their investment returns will differ.

Plain Talk About Fund Expenses

All mutual funds have operating expenses. These expenses, which arededucted from a fund’s gross income, are expressed as a percentage of thenet assets of the fund. Assuming that operating expenses remain as statedin the Fees and Expenses section, Vanguard Energy Fund’s expense ratioswould be as follows: for Investor Shares, 0.32%, or $3.20 per $1,000 ofaverage net assets; for Admiral Shares, 0.24%, or $2.40 per $1,000 ofaverage net assets. The average expense ratio for global natural resourcesfunds in 2019 was 1.33%, or $13.30 per $1,000 of average net assets(derived from data provided by Lipper, a Thomson Reuters Company, whichreports on the mutual fund industry).

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Plain Talk About Costs of Investing

Costs are an important consideration in choosing a mutual fund. That isbecause you, as a shareholder, pay a proportionate share of the costs ofoperating a fund and any transaction costs incurred when the fund buys orsells securities. These costs can erode a substantial portion of the grossincome or the capital appreciation a fund achieves. Even seemingly smalldifferences in expenses can, over time, have a dramatic effect on afund’s performance.

The following sections explain the principal investment strategies and policiesthat the Fund uses in pursuit of its objective. The Fund’s board of trustees, whichoversees the Fund’s management, may change investment strategies or policiesin the interest of shareholders without a shareholder vote, unless thosestrategies or policies are designated as fundamental. The Fund‘s policy ofinvesting at least 80% of its assets in common stocks of companies principallyengaged in activities in the energy industry may be changed only upon 60 days‘notice to shareholders.

Market ExposureUnder normal circumstances, the Fund invests at least 80% of its assets in thecommon stocks of companies principally engaged in activities in the energyindustry, such as the exploration, production, and transmission of energy orenergy fuels; the making and servicing of component products for suchactivities; energy research; and energy conservation or pollution control.

The Fund is subject to industry concentration risk, which is the chancethat there will be particular problems affecting an entire industry. Anyfund that concentrates in a particular industry will generally be morevolatile than a fund that invests more broadly. Because the Fundnormally invests at least 80% of its assets in the common stocks ofcompanies principally engaged in activities in the energy industry, theFund’s performance largely depends—for better or for worse—on theoverall condition of the energy industry. Additionally, commodity pricesmay have a significant impact on the stock prices of energy companies.

The Fund faces the risk that the earnings, dividends, and stock prices of energycompanies will be greatly affected by changes in the prices and supplies of anddemand for oil and other energy fuels. Prices and supplies of energy canfluctuate significantly over short and long periods because of a variety of factors,including, but not limited to, changes in international politics, policies of theOrganization of Petroleum Exporting Countries (OPEC), relationships among

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OPEC members and between OPEC and oil-importing nations, energyconservation, the regulatory environment, government tax policies, weather,financing costs, and the economic growth and stability of the keyenergy-consuming countries. Because the Fund’s performance depends on avariety of factors affecting energy companies, rather than on the stock marketsgenerally, the performance of the Fund could decline, even if the performance ofeither the U.S. or foreign stock market is positive.

The Fund is subject to stock market risk, which is the chance that stockprices overall will decline. Stock markets tend to move in cycles, withperiods of rising prices and periods of falling prices. The Fund‘sinvestments in foreign stocks can be riskier than U.S. stock investments.Foreign stocks may be more volatile and less liquid than U.S. stocks. Theprices of foreign stocks and the prices of U.S. stocks may move inopposite directions.

Most of the stocks held by the Fund are mid- and large-capitalization stocksbecause such stocks tend to be dominant in the energy industry.

Stocks of publicly traded companies are often classified according to marketcapitalization, which is the market value of a company’s outstanding shares.These classifications typically include small-cap, mid-cap, and large-cap. It isimportant to understand that there are no “official” definitions of small-, mid-,and large-cap, even among Vanguard fund advisors, and that marketcapitalization ranges can change over time. The asset-weighted median marketcapitalization of the Fund’s stock holdings as of January 31, 2020, was$51.2 billion.

There is the chance that returns from the types of stocks in which the Fundinvests will trail returns from the overall stock market. As a group, mid- andlarge-cap stocks tend to go through cycles of doing better—or worse—than thestock market in general. These periods have, in the past, lasted for as long asseveral years.

Historically, industry-specific mid- and large-cap stocks, such as those held bythe Fund, have been more volatile than—and at times have performed quitedifferently from—the large-cap stocks that dominate the overall stock market.This volatility is due to several factors, including special industry risks and lesscertain growth and dividend prospects for smaller companies.

The Fund may invest up to 100% of its assets in foreign stocks.

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The Fund is subject to country risk and currency risk. Country risk is thechance that world events—such as political upheaval, financial troubles,or natural disasters—will adversely affect the value of securities issuedby companies in foreign countries. Currency risk is the chance that thevalue of a foreign investment, measured in U.S. dollars, will decreasebecause of unfavorable changes in currency exchange rates.

To the extent that the Fund invests in stocks of companies listed for trading inemerging markets or companies with operations located in emerging markets,the Fund is subject to emerging markets risk. Emerging markets risk is thechance that the stocks of companies located in emerging markets will besubstantially more volatile, and substantially less liquid, than the stocks ofcompanies located in more developed foreign markets because, among otherfactors, emerging markets can have greater custodial and operational risks; lessdeveloped legal, tax, regulatory, and accounting systems; and greater political,social, and economic instability than developed markets.

Plain Talk About International Investing

U.S. investors who invest in foreign securities will encounter risks nottypically associated with U.S. companies because foreign stock and bondmarkets operate differently from the U.S. markets. For instance, foreigncompanies and governments may not be subject to the same or similaraccounting, auditing, legal, tax, and financial reporting standards andpractices as U.S. companies and the U.S. government, and their stocks andbonds may not be as liquid as those of similar U.S. entities. In addition,foreign stock exchanges, brokers, companies, bond markets, and dealersmay be subject to less government supervision and regulation than theircounterparts in the United States. These factors, among others, couldnegatively affect the returns U.S. investors receive from foreign investments.

Market disruptions can adversely affect local and global markets as well asnormal market conditions and operations. Any such disruptions could have anadverse impact on the value of the Fund’s investments and Fund performance.

Security SelectionThe Fund uses multiple investment advisors. Each advisor independently selectsand maintains a portfolio of common stocks and other investments for the Fund.

Each advisor employs active investment management methods, which meansthat securities are bought and sold according to the advisor’s evaluations ofcompanies and their financial prospects, the prices of the securities, and the

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stock market and the economy in general. Each advisor will sell a security when,in the view of the advisor, it is no longer as attractive as an alternativeinvestment or if the advisor deems it to be in the best interest of the Fund.Different advisors may reach different conclusions on the same security.

Although each advisor uses a different process to select securities for its portionof the Fund’s assets, the overall investment strategy of the Fund is designed toprovide returns that are broadly representative of the energy sector. To achievethis, the Fund invests in the common stocks of companies engaged in thefollowing energy-related areas: the exploration, production, transmission,refining, storing, marketing, control, and measurement of energy or energyfuels; the making and servicing of component products for such activities;energy research or experimentation; and operations related to energyconservation and pollution control. These areas may involve newer sources ofenergy, such as geothermal, nuclear, and solar power, as well as more traditionalsources of energy, such as oil, natural gas, and coal. As new sources of energyare developed and current methods of exploiting and developing energy areadvanced, companies in these new areas will also be considered for the Fund. Asecurity will generally be considered to be in the energy industry if at least 50%of the issuer’s assets, revenues, or net income is related to, or derived from, oneor more of the energy-related areas listed above.

Wellington Management uses a bottom up approach, in which stocks are chosenbased on the advisor’s fundamental analysis and its assessment of valuation.Although oil and gas price expectations are considered, company-specific factorssuch as the quality of the companies’ assets, internal reinvestmentopportunities, investment plans to capitalize on those opportunities, and qualityof management are key inputs in the decision-making process. The advisor alsoconsiders the supply and demand outlook across the various subindustries ofthe energy sector in an effort to identify the most attractive parts of the energymarket in which to invest. When assessing valuation, the advisor evaluatesmultiple metrics, including earnings, cash flows, and asset values. A security willbe sold when the advisor believes that an alternative investment provides moreattractive risk/return characteristics or when the advisor otherwise determinesthat a sale is appropriate.

Vanguard constructs a diversified portfolio of energy-related stocks based on itsassessment of the relative return potential of the securities. The advisor selectssecurities that it believes offer an appropriate balance between strong growthprospects and reasonable valuations relative to their industry peers. Vanguardmanages the portfolio through the use of a quantitative process to evaluate all ofthe securities in the benchmark while seeking to maintain a risk profile similar tothat of the FTSE All World Oil & Gas Index. This process was developed and

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managed by Vanguard’s Alpha Equity Investment team and is continuallyevolving. All potential enhancements to the process go through rigorous peervetting and validation before being implemented.

The Fund is subject to manager risk, which is the chance that poorsecurity selection will cause the Fund to underperform relevantbenchmarks or other funds with a similar investment objective.

The Fund is subject to asset concentration risk, which is the chance that,because the Fund tends to invest a high percentage of assets in its tenlargest holdings, the Fund‘s performance may be hurt disproportionatelyby the poor performance of relatively few stocks.

Other Investment Policies and RisksIn addition to investing in the common stocks of companies principally engagedin activities in the energy industry, the Fund may make other kinds ofinvestments to achieve its objective.

The Fund may invest, to a limited extent, in derivatives. Generally speaking, aderivative is a financial contract whose value is based on the value of a financialasset (such as a stock, a bond, or a currency), a physical asset (such as gold, oil,or wheat), a market index, or a reference rate. Investments in derivatives maysubject the Fund to risks different from, and possibly greater than, those ofinvestments directly in the underlying securities or assets. The Fund will not usederivatives for speculation or for the purpose of leveraging (magnifying)investment returns.

The Fund may enter into foreign currency exchange forward contracts, which area type of derivative. A foreign currency exchange forward contract is anagreement to buy or sell a currency at a specific price on a specific date, usually30, 60, or 90 days in the future. In other words, the contract guarantees anexchange rate on a given date. Advisors of funds that invest in foreign securitiescan use these contracts to guard against unfavorable changes in currencyexchange rates. These contracts, however, would not prevent the Fund’ssecurities from falling in value as a result of risks other than unfavorable currencyexchange movements. Note that the Fund will not enter into such contracts forspeculative purposes. Under normal circumstances, the Fund will not commitmore than 20% of its assets to foreign currency exchange forward contracts.

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Plain Talk About Derivatives

Derivatives can take many forms. Some forms of derivatives—such asexchange-traded futures and options on securities, commodities, orindexes—have been trading on regulated exchanges for decades. Thesetypes of derivatives are standardized contracts that can easily be bought andsold and whose market values are determined and published daily. On theother hand, non-exchange-traded derivatives—such as certain swapagreements and foreign currency exchange forward contracts—tend to bemore specialized or complex and may be more difficult to accurately value.

Vanguard administers a small portion of the Fund’s assets to facilitate cash flowsto and from the Fund’s advisors. The Fund may invest these assets in equityfutures, which are a type of derivative, and/or shares of exchange-traded funds(ETFs), including ETF Shares issued by Vanguard stock funds. These equityfutures and ETFs typically provide returns similar to those of common stocks.The Fund may also purchase futures or ETFs when doing so will reduce theFund’s transaction costs or have the potential to add value because theinstruments are favorably priced. Vanguard receives no additional revenue fromFund assets invested in ETF Shares of other Vanguard funds. Fund assetsinvested in ETF Shares are excluded when allocating to the Fund its share of thecosts of Vanguard operations.

Cash ManagementThe Fund’s daily cash balance may be invested in Vanguard Market LiquidityFund and/or Vanguard Municipal Cash Management Fund (each, a CMT Fund),which are low-cost money market funds. When investing in a CMT Fund, theFund bears its proportionate share of the expenses of the CMT Fund in which itinvests. Vanguard receives no additional revenue from Fund assets invested in aCMT Fund.

Methods Used to Meet Redemption RequestsUnder normal circumstances, the Fund typically expects to meet redemptionswith positive cash flows. When this is not an option, the Fund seeks to firstmeet redemptions from a cash or cash equivalent reserve. Alternatively,Vanguard may instruct the advisors to sell a cross section of the Fund’s holdingsto meet redemptions, while also factoring in transaction costs. Additionally, theFund may work with larger clients to implement their redemptions in a mannerthat is least disruptive to the portfolio; see “Potentially disruptive redemptions”under Redeeming Shares in the Investing With Vanguard section.

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Under certain circumstances, including under stressed market conditions, thereare additional tools that the Fund may use in order to meet redemptions,including advancing the settlement of market trades with counterparties tomatch investor redemption payments or delaying settlement of an investor’stransaction to match trade settlement within regulatory requirements. The Fundmay also suspend payment of redemption proceeds for up to seven days; see“Emergency circumstances” under Redeeming Shares in the Investing WithVanguard section. Additionally under these unusual circumstances, the Fundmay borrow money (subject to certain regulatory conditions and if availableunder board-approved procedures) through an interfund lending facility orthrough a bank line-of-credit, including a joint committed credit facility, in order tomeet redemption requests.

Temporary Investment MeasuresThe Fund may temporarily depart from its normal investment policies andstrategies when an advisor believes that doing so is in the Fund’s best interest,so long as the strategy or policy employed is consistent with the Fund’sinvestment objective. For instance, the Fund may invest beyond its normal limitsin derivatives or exchange-traded funds that are consistent with the Fund’sinvestment objective when those instruments are more favorably priced orprovide needed liquidity, as might be the case if the Fund is transitioning assetsfrom one advisor to another or receives large cash flows that it cannot prudentlyinvest immediately.

In addition, the Fund may take temporary defensive positions that areinconsistent with its normal investment policies and strategies—for instance, byallocating substantial assets to cash equivalent investments or other less volatileinstruments— in response to adverse or unusual market, economic, political, orother conditions. In doing so, the Fund may succeed in avoiding losses but mayotherwise fail to achieve its investment objective.

Frequent Trading or Market-TimingBackground. Some investors try to profit from strategies involving frequenttrading of mutual fund shares, such as market-timing. For funds holding foreignsecurities, investors may try to take advantage of an anticipated differencebetween the price of the fund’s shares and price movements in overseasmarkets, a practice also known as time-zone arbitrage. Investors also may try toengage in frequent trading of funds holding investments such as small-capstocks and high-yield bonds. As money is shifted into and out of a fund by ashareholder engaging in frequent trading, the fund incurs costs for buying andselling securities, resulting in increased brokerage and administrative costs.

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These costs are borne by all fund shareholders, including the long-term investorswho do not generate the costs. In addition, frequent trading may interfere withan advisor’s ability to efficiently manage the fund.

Policies to address frequent trading. The Vanguard funds (other than moneymarket funds and short-term bond funds, but including Vanguard Short-TermInflation-Protected Securities Index Fund) do not knowingly accommodatefrequent trading. The board of trustees of each Vanguard fund (other than moneymarket funds and short-term bond funds, but including Vanguard Short-TermInflation-Protected Securities Index Fund) has adopted policies and proceduresreasonably designed to detect and discourage frequent trading and, in somecases, to compensate the fund for the costs associated with it. These policiesand procedures do not apply to ETF Shares because frequent trading in ETFShares generally does not disrupt portfolio management or otherwise harm fundshareholders. Although there is no assurance that Vanguard will be able todetect or prevent frequent trading or market-timing in all circumstances, thefollowing policies have been adopted to address these issues:

• Each Vanguard fund reserves the right to reject any purchaserequest—including exchanges from other Vanguard funds—without notice andregardless of size. For example, a purchase request could be rejected becausethe investor has a history of frequent trading or if Vanguard determines that suchpurchase may negatively affect a fund’s operation or performance.

• Each Vanguard fund (other than money market funds and short-term bondfunds, but including Vanguard Short-Term Inflation-Protected Securities IndexFund) generally prohibits, except as otherwise noted in the Investing WithVanguard section, an investor’s purchases or exchanges into a fund account for30 calendar days after the investor has redeemed or exchanged out of thatfund account.

• Certain Vanguard funds charge shareholders purchase and/or redemption feeson transactions.

See the Investing With Vanguard section of this prospectus for further detailson Vanguard’s transaction policies.

Each Vanguard fund (other than retail and government money market funds), indetermining its net asset value, will use fair-value pricing when appropriate, asdescribed in the Share Price section. Fair-value pricing may reduce or eliminatethe profitability of certain frequent-trading strategies.

Do not invest with Vanguard if you are a market-timer.

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Turnover RateAlthough the Fund generally seeks to invest for the long term, it may sellsecurities regardless of how long they have been held. The Financial Highlightssection of this prospectus shows historical turnover rates for the Fund. Aturnover rate of 100%, for example, would mean that the Fund had sold andreplaced securities valued at 100% of its net assets within a one-year period. Ingeneral, the greater the turnover rate, the greater the impact transaction costswill have on a fund’s return. Also, funds with high turnover rates may be morelikely to generate capital gains, including short-term capital gains, that must bedistributed to shareholders and will be taxable to shareholders investing througha taxable account.

The Fund and Vanguard

The Fund is a member of The Vanguard Group, a family of over 200 funds. All ofthe funds that are members of The Vanguard Group (other than funds of funds)share in the expenses associated with administrative services and businessoperations, such as personnel, office space, and equipment.

Vanguard Marketing Corporation provides marketing services to the funds.Although fund shareholders do not pay sales commissions or 12b-1 distributionfees, each fund (other than a fund of funds) or each share class of a fund (in thecase of a fund with multiple share classes) pays its allocated share of theVanguard funds’ marketing costs.

Plain Talk About Vanguard’s Unique Corporate Structure

The Vanguard Group is owned jointly by the funds it oversees and thusindirectly by the shareholders in those funds. Most other mutual funds areoperated by management companies that are owned by third parties—eitherpublic or private stockholders—and not by the funds they serve.

Investment Advisors

The Fund uses a multimanager approach. Each advisor independently managesits assigned portion of the Fund’s assets, subject to the supervision andoversight of Vanguard and the Fund’s board of trustees. The board of trusteesdesignates the proportion of Fund assets to be managed by each advisor andmay change these proportions at any time.

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Wellington Management Company LLP, 280 Congress Street, Boston, MA02210, a Delaware limited liability partnership, is an investment counseling firmthat provides investment services to investment companies, employee benefitplans, endowments, foundations, and other institutions. Wellington Managementand its predecessor organizations have provided investment advisory servicesfor over 80 years. Wellington Management is owned by the partners ofWellington Management Group LLP, a Massachusetts limited liability partnership.As of January 31, 2020, Wellington Management and its investment advisoryaffiliates had investment management authority with respect to approximately$1.2 trillion in client assets.

The Vanguard Group, Inc., P.O. Box 2600, Valley Forge, PA 19482, which beganoperations in 1975, serves as advisor to the Fund through its Quantitative EquityGroup. As of January 31, 2020, Vanguard served as advisor for approximately $5trillion in assets. Vanguard provides investment advisory services to the Fundpursuant to the Funds’ Service Agreement and subject to the supervision andoversight of the trustees and officers of the Fund.

The Fund pays Wellington Management a base fee plus or minus a performanceadjustment. The base fee, which is paid quarterly, is a percentage of averagedaily net assets managed by the advisor during the most recent fiscal quarter.The base fee has breakpoints, which means that the percentage declines asassets go up. The performance adjustment, also paid quarterly, is based on thecumulative total return of the advisor’s portion of the Fund relative to that of theMSCI ACWI Energy Index over the preceding 36-month period. When theperformance adjustment is positive, the Fund’s expenses increase; when it isnegative, expenses decrease.

For the fiscal year ended January 31, 2020, the aggregate advisory fees andexpenses represented an effective annual rate of 0.15% of the Fund’s averagenet assets before a performance-based decrease of 0.06%.

Under the terms of an SEC exemption, the Fund’s board of trustees may,without prior approval from shareholders, change the terms of an advisoryagreement with a third-party investment advisor or hire a new third-partyinvestment advisor—either as a replacement for an existing advisor or as anadditional advisor. Any significant change in the Fund’s advisory arrangementswill be communicated to shareholders in writing. As the Fund’s sponsor andoverall manager, Vanguard may provide investment advisory services to the Fundat any time. Vanguard may also recommend to the board of trustees that anadvisor be hired, terminated, or replaced or that the terms of an existingadvisory agreement be revised. The Fund has filed an application seeking a

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similar SEC exemption with respect to investment advisors that are whollyowned subsidiaries of Vanguard. If the exemption is granted, the Fund may relyon the new SEC relief.

For a discussion of why the board of trustees approved the Fund’s investmentadvisory arrangements, see the most recent semiannual report to shareholderscovering the fiscal period ended July 31.

The managers primarily responsible for the day-to-day management of theFund are:

G. Thomas Levering, Senior Managing Director, Partner, and Global IndustryAnalyst of Wellington Management. He has managed investment portfolios forWellington Management since 2001 and has managed a portion of the Fundsince January 2020. Education: A.B., Harvard University; M.B.A., The WhartonSchool at the University of Pennsylvania.

James P. Stetler, Senior Portfolio Manager at Vanguard. He has been withVanguard since 1982; has worked in investment management since 1996; hasmanaged investment portfolios since 2003, and has co-managed a portion of theFund since 2012. Education: B.S., Susquehanna University; M.B.A., SaintJoseph’s University.

Binbin Guo, Ph.D., Principal of Vanguard and head of the Alpha EquityInvestment team within Vanguard’s Quantitative Equity Group. He oversees theactive quantitative equity funds and separately managed equity accounts. Hehas been with Vanguard since 2007 and has co-managed a portion of the Fundsince 2016. Education: B.S. and M.S., Tsinghua University, China; Ph.D. andM.Phil., Yale University.

The Fund’s Statement of Additional Information provides information about eachportfolio manager’s compensation, other accounts under management, andownership of shares of the Fund.

Dividends, Capital Gains, and Taxes

Fund DistributionsThe Fund distributes to shareholders virtually all of its net income (interest anddividends, less expenses) as well as any net short-term or long-term capitalgains realized from the sale of its holdings. Income and capital gainsdistributions, if any, generally occur annually in December. In addition, the Fund

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may occasionally make a supplemental distribution at some other time duringthe year. You can receive distributions of income or capital gains in cash, or youcan have them automatically reinvested in more shares of the Fund. However, ifyou are investing through an employer-sponsored retirement or savings plan,your distributions will be automatically reinvested in additional Fund shares.

Plain Talk About Distributions

As a shareholder, you are entitled to your portion of a fund’s income frominterest and dividends as well as capital gains from the fund’s sale ofinvestments. Income consists of both the dividends that the fund earns fromany stock holdings and the interest it receives from any money market andbond investments. Capital gains are realized whenever the fund sellssecurities for higher prices than it paid for them. These capital gains areeither short-term or long-term, depending on whether the fund held thesecurities for one year or less or for more than one year.

Basic Tax PointsInvestors in taxable accounts should be aware of the following basic federalincome tax points:

• Distributions are taxable to you whether or not you reinvest these amounts inadditional Fund shares.

• Distributions declared in December—if paid to you by the end of January—aretaxable as if received in December.

• Any dividend distribution or short-term capital gains distribution that youreceive is taxable to you as ordinary income. If you are an individual and meetcertain holding-period requirements with respect to your Fund shares, you maybe eligible for reduced tax rates on “qualified dividend income,” if any, distributedby the Fund.

• Any distribution of net long-term capital gains is taxable to you as long-termcapital gains, no matter how long you have owned shares in the Fund.

• Capital gains distributions may vary considerably from year to year as a resultof the Fund’s normal investment activities and cash flows.

• A sale or exchange of Fund shares is a taxable event. This means that you mayhave a capital gain to report as income, or a capital loss to report as a deduction,when you complete your tax return.

• Any conversion between classes of shares of the same fund is a nontaxableevent. By contrast, an exchange between classes of shares of different funds isa taxable event.

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• Vanguard (or your intermediary) will send you a statement each year showingthe tax status of all of your distributions.

Individuals, trusts, and estates whose income exceeds certain thresholdamounts are subject to a 3.8% Medicare contribution tax on “net investmentincome.” Net investment income takes into account distributions paid by theFund and capital gains from any sale or exchange of Fund shares.

Dividend distributions and capital gains distributions that you receive, as well asyour gains or losses from any sale or exchange of Fund shares, may be subjectto state and local income taxes.

The Fund may be subject to foreign taxes or foreign tax withholding ondividends, interest, and some capital gains that it receives on foreign securities.If at the end of the taxable year more than 50% of the value of the Fund’s assetsconsists of securities of foreign corporations, and the Fund makes a specialelection, you will generally be required to include in your income, for U.S. federalincome tax purposes, your share of the qualifying foreign income taxes paid bythe Fund in respect of its foreign portfolio securities. There is no assurance thatthe Fund will make this election for a taxable year, even if it is eligible to do so.You may qualify for an offsetting credit or deduction under U.S. tax laws for anyamount designated as your portion of the Fund’s foreign tax obligations, providedthat you meet certain requirements. See your tax advisor or IRS publications formore information.

This prospectus provides general tax information only. If you are investingthrough a tax-advantaged account, such as an IRA or an employer-sponsoredretirement or savings plan, special tax rules apply. Please consult your taxadvisor for detailed information about any tax consequences for you.

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Plain Talk About Buying a Dividend

Unless you are a tax-exempt investor or investing through a tax-advantagedaccount(such as an IRA or an employer-sponsored retirement or savingsplan), you should consider avoiding a purchase of fund shares shortly beforethe fund makes a distribution, because doing so can cost you money intaxes. This is known as “buying a dividend.” For example: On December 15,you invest $5,000, buying 250 shares for $20 each. If the fund pays adistribution of $1 per share on December 16, its share price will drop to $19(not counting market change). You still have only $5,000 (250 shares x $19 =$4,750 in share value, plus 250 shares x $1 = $250 in distributions), but youowe tax on the $250 distribution you received—even if you reinvest it inmore shares. To avoid buying a dividend, check a fund’s distribution schedulebefore you invest.

General InformationBackup withholding. By law, Vanguard must withhold 24% of any taxabledistributions or redemptions from your account if you do not:

• Provide your correct taxpayer identification number.

• Certify that the taxpayer identification number is correct.

• Confirm that you are not subject to backup withholding.

Similarly, Vanguard (or your intermediary) must withhold taxes from your accountif the IRS instructs us to do so.

Foreign investors. Vanguard funds offered for sale in the United States(Vanguard U.S. funds), including the Fund offered in this prospectus, are notwidely available outside the United States. Non-U.S. investors should be awarethat U.S. withholding and estate taxes and certain U.S. tax reportingrequirements may apply to any investments in Vanguard U.S. funds. Foreigninvestors should visit the non-U.S. investors page on our website atvanguard.com for information on Vanguard’s non-U.S. products.

Invalid addresses. If a dividend distribution or capital gains distribution checkmailed to your address of record is returned as undeliverable, Vanguard willautomatically reinvest the distribution and all future distributions until you provideus with a valid mailing address. Reinvestments will receive the net asset valuecalculated on the date of the reinvestment.

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Share Price

Share price, also known as net asset value (NAV), is calculated as of the close ofregular trading on the New York Stock Exchange (NYSE), generally 4 p.m.,Eastern time, on each day that the NYSE is open for business (a business day).In the rare event the NYSE experiences unanticipated disruptions and isunavailable at the close of the trading day, the Fund reserves the right to treatsuch day as a business day and calculate NAVs as of the close of regular tradingon the Nasdaq (or another alternate exchange if the Nasdaq is unavailable, asdetermined at Vanguard’s discretion), generally 4 p.m., Eastern time. Each shareclass has its own NAV, which is computed by dividing the total assets, minusliabilities, allocated to the share class by the number of Fund shares outstandingfor that class. On U.S. holidays or other days when the NYSE is closed, the NAVis not calculated, and the Fund does not sell or redeem shares. However, onthose days the value of the Fund’s assets may be affected to the extent that theFund holds securities that change in value on those days (such as foreignsecurities that trade on foreign markets that are open).

Stocks held by a Vanguard fund are valued at their market value when reliablemarket quotations are readily available from the principal exchange or market onwhich they are traded. Such securities are generally valued at their official closingprice, the last reported sales price, or if there were no sales that day, the meanbetween the closing bid and asking prices. When a fund determines that marketquotations either are not readily available or do not accurately reflect the value ofa security, the security is priced at its fair value (the amount that the ownermight reasonably expect to receive upon the current sale of the security).

The values of any foreign securities held by a fund are converted into U.S. dollarsusing an exchange rate obtained from an independent third party as of the closeof regular trading on the NYSE. The values of any mutual fund shares, includinginstitutional money market fund shares, held by a fund are based on the NAVs ofthe shares. The values of any ETF shares or closed-end fund shares held by afund are based on the market value of the shares.

A fund also will use fair-value pricing if the value of a security it holds has beenmaterially affected by events occurring before the fund’s pricing time but afterthe close of the principal exchange or market on which the security is traded.This most commonly occurs with foreign securities, which may trade on foreignexchanges that close many hours before the fund’s pricing time. Interveningevents might be company-specific (e.g., earnings report, merger announcement)or country-specific or regional/global (e.g., natural disaster, economic or political

22

news, act of terrorism, interest rate change). Intervening events include pricemovements in U.S. markets that exceed a specified threshold or that areotherwise deemed to affect the value of foreign securities.

Fair-value pricing may be used for domestic securities—for example, if (1) tradingin a security is halted and does not resume before the fund’s pricing time or asecurity does not trade in the course of a day and (2) the fund holds enough ofthe security that its price could affect the NAV.

Fair-value prices are determined by Vanguard according to procedures adoptedby the board of trustees. When fair-value pricing is employed, the prices ofsecurities used by a fund to calculate the NAV may differ from quoted orpublished prices for the same securities.

Vanguard fund share prices are published daily on our website atvanguard.com/prices.

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Financial Highlights

Financial highlights information is intended to help you understand a fund’sperformance for the past five years (or, if shorter, its period of operations).Certain information reflects financial results for a single fund share. Total returnrepresents the rate that an investor would have earned or lost each period on aninvestment in a fund or share class (assuming reinvestment of all distributions).This information has been obtained from the financial statements audited byPricewaterhouseCoopers LLP, an independent registered public accounting firm,whose report, along with fund financial statements, is included in a fund’s mostrecent annual report to shareholders. You may obtain a free copy of a fund’slatest annual or semiannual report, which is available upon request.

Vanguard Energy Fund Investor Shares

Year Ended January 31,For a Share Outstanding Throughout Each Period 2020 2019 2018 2017 2016Net Asset Value, Beginning of Period $47.85 $55.62 $52.70 $40.43 $51.53

Investment Operations

Net Investment Income 1.5191 1.3001 1.4771,2 0.982 1.096Net Realized and Unrealized Gain (Loss) onInvestments

(4.524) (7.788) 3.035 12.275 (11.118)

Total from Investment Operations (3.005) (6.488) 4.512 13.257 (10.022)Distributions

Dividends from Net Investment Income (1.565) (1.282) (1.592) (0.987) (1.078)Distributions from Realized Capital Gains — — — — —Total Distributions (1.565) (1.282) (1.592) (0.987) (1.078)Net Asset Value, End of Period $43.28 $47.85 $55.62 $52.70 $40.43

Total Return3 –6.55% –11.48% 8.75% 32.73% –19.53%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $1,793 $2,265 $2,968 $3,452 $2,693Ratio of Total Expenses to Average Net Assets4 0.32% 0.37% 0.38% 0.41% 0.37%Ratio of Net Investment Income to Average NetAssets

3.20% 2.42% 2.86%2 1.97% 2.20%

Portfolio Turnover Rate 48% 31% 24% 29% 23%

1 Calculated based on average shares outstanding.2 Net investment income per share and the ratio of net investment income to average net assets include $.342 and

0.67%, respectively, from income received as a result of the General Electric Co. and Baker Hughes Inc. merger inJuly 2017.

3 Total returns do not include account service fees that may have applied in the periods shown.4 Includes performance-based investment advisory fee increases (decreases) of (0.06%), (0.01%), 0.00%, 0.03%,

and 0.03%.

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Vanguard Energy Fund Admiral Shares

Year Ended January 31,For a Share Outstanding Throughout Each Period 2020 2019 2018 2017 2016Net Asset Value, Beginning of Period $89.77 $104.35 $98.88 $75.85 $96.69

Investment Operations

Net Investment Income 2.9261 2.5111 2.8151,2 1.918 2.113Net Realized and Unrealized Gain (Loss) onInvestments

(8.512) (14.600) 5.730 23.035 (20.872)

Total from Investment Operations (5.586) (12.089) 8.545 24.953 (18.759)Distributions

Dividends from Net Investment Income (3.004) (2.491) (3.075) (1.923) (2.081)Distributions from Realized Capital Gains — — — — —Total Distributions (3.004) 2.491 (3.075) (1.923) (2.081)Net Asset Value, End of Period $81.18 $89.77 $104.35 $98.88 $75.85

Total Return3 –6.50% –11.40% 8.84% 32.83% –19.48%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $4,388 $5,606 $6,796 $7,231 $5,428Ratio of Total Expenses to Average Net Assets4 0.24% 0.29% 0.30% 0.33% 0.31%Ratio of Net Investment Income to Average NetAssets

3.28% 2.50% 2.94%2 2.05% 2.26%

Portfolio Turnover Rate 48% 31% 24% 29% 23%

1 Calculated based on average shares outstanding.2 Net investment income per share and the ratio of net investment income to average net assets include $.643 and

0.67%, respectively, from income received as a result of the General Electric Co. and Baker Hughes Inc. merger inJuly 2017.

3 Total returns do not include account service fees that may have applied in the periods shown.4 Includes performance-based investment advisory fee increases (decreases) of (0.06%), (0.01%), 0.00%, 0.03%,

and 0.03%.

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Investing With Vanguard

This section of the prospectus explains the basics of doing business withVanguard. Vanguard fund shares can be held directly with Vanguard or indirectlythrough an intermediary, such as a bank, a broker, or an investment advisor. Ifyou hold Vanguard fund shares directly with Vanguard, you should carefully readeach topic within this section that pertains to your relationship with Vanguard. Ifyou hold Vanguard fund shares indirectly through an intermediary (includingshares held in a brokerage account through Vanguard Brokerage Services®),please see Investing With Vanguard Through Other Firms, and also refer to youraccount agreement with the intermediary for information about transacting inthat account. If you hold Vanguard fund shares through an employer-sponsoredretirement or savings plan, please see Employer-Sponsored Plans. Vanguardreserves the right to change the following policies without notice. Please call orcheck online for current information. See Contacting Vanguard.

For Vanguard fund shares held directly with Vanguard, each fund you hold in anaccount is a separate “fund account.” For example, if you hold three funds in anonretirement account titled in your own name, two funds in a nonretirementaccount titled jointly with your spouse, and one fund in an individual retirementaccount, you have six fund accounts—and this is true even if you hold the samefund in multiple accounts. Note that each reference to “you” in this prospectusapplies to any one or more registered account owners or persons authorized totransact on your account.

Purchasing Shares

Vanguard reserves the right, without notice, to increase or decrease theminimum amount required to open, convert shares to, or maintain a fundaccount or to add to an existing fund account.

Investment minimums may differ for certain categories of investors.

Account Minimums for Investor SharesTo open and maintain an account. $3,000.

To add to an existing account. Generally $1.

Account Minimums for Admiral SharesTo open and maintain an account. $50,000. If you request Admiral Shareswhen you open a new account but the investment amount does not meet theaccount minimum for Admiral Shares, your investment will be placed in InvestorShares of the Fund. Financial intermediaries, institutional clients, andVanguard-advised clients should contact Vanguard for information on special

26

eligibility rules that may apply to them regarding Admiral Shares. If you areinvesting through an intermediary, please contact that firm directly for moreinformation regarding your eligibility.

To add to an existing account. Generally $1.

How to Initiate a Purchase RequestBe sure to check Exchanging Shares, Frequent-Trading Limitations, and OtherRules You Should Know before placing your purchase request.

Online. You may open certain types of accounts, request a purchase of shares,and request an exchange through our website or our mobile application if you areregistered for online access.

By telephone. You may call Vanguard to begin the account registration processor request that the account-opening forms be sent to you. You may also callVanguard to request a purchase of shares in your account or to request anexchange. See Contacting Vanguard.

By mail. You may send Vanguard your account registration form and check toopen a new fund account. To add to an existing fund account, you may send yourcheck with an Invest-by-Mail form (from a transaction confirmation or youraccount statement) or with a deposit slip (available online).

How to Pay for a PurchaseBy electronic bank transfer. You may purchase shares of a Vanguard fundthrough an electronic transfer of money from a bank account. To establish theelectronic bank transfer service on an account, you must designate the bankaccount online, complete a form, or fill out the appropriate section of youraccount registration form. After the service is set up on your account, you canpurchase shares by electronic bank transfer on a regular schedule (AutomaticInvestment Plan) or upon request. Your purchase request can be initiated online(if you are registered for online access), by telephone, or by mail.

By wire. Wiring instructions vary for different types of purchases. Please callVanguard for instructions and policies on purchasing shares by wire. SeeContacting Vanguard.

By check. You may make initial or additional purchases to your fund account bysending a check with a deposit slip or by utilizing our mobile application if you areregistered for online access. Also see How to Initiate a Purchase Request. Makeyour check payable to Vanguard and include the appropriate fund number (e.g.,Vanguard—xx). For a list of Fund numbers (for share classes in this prospectus),see Additional Information.

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By exchange. You may purchase shares of a Vanguard fund using the proceedsfrom the simultaneous redemption of shares of another Vanguard fund. You mayinitiate an exchange online (if you are registered for online access), by telephone,or by mail with an exchange form. See Exchanging Shares.

Trade DateThe trade date for any purchase request received in good order will depend onthe day and time Vanguard receives your request, the manner in which you arepaying, and the type of fund you are purchasing. Your purchase will be executedusing the NAV as calculated on the trade date. NAVs are calculated only on daysthat the NYSE is open for trading (a business day). In the rare event the NYSEexperiences unanticipated disruptions and is unavailable at the close of thetrading day, NAVs will be calculated as of the close of regular trading on theNasdaq (or another alternate exchange if the Nasdaq is unavailable, asdetermined at Vanguard’s discretion), generally 4 p.m., Eastern time. The timeselected for NAV calculation in this rare event shall also serve as the conclusionof the trade date. See Share Price.

For purchases by check into all funds other than money market funds and forpurchases by exchange, wire, or electronic bank transfer into all funds: If thepurchase request is received by Vanguard on a business day before the close ofregular trading on the NYSE (generally 4 p.m., Eastern time), the trade date forthe purchase will be the same day. If the purchase request is received on abusiness day after the close of regular trading on the NYSE, or on a nonbusinessday, the trade date for the purchase will be the next business day.

For purchases by check into money market funds: If the purchase request isreceived by Vanguard on a business day before the close of regular trading onthe NYSE (generally 4 p.m., Eastern time), the trade date for the purchase will bethe next business day. If the purchase request is received on a business dayafter the close of regular trading on the NYSE, or on a nonbusiness day, the tradedate for the purchase will be the second business day following the dayVanguard receives the purchase request. Because money market instrumentsmust be purchased with federal funds and it takes a money market mutual fundone business day to convert check proceeds into federal funds, the trade date forthe purchase will be one business day later than for other funds.

If your purchase request is not accurate and complete, it may be rejected. SeeOther Rules You Should Know—Good Order.

For further information about purchase transactions, consult our website atvanguard.com or see Contacting Vanguard.

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Other Purchase Rules You Should KnowAdmiral Shares. Admiral Shares generally are not available for SIMPLE IRAs andVanguard Individual 401(k) Plans.

Check purchases. All purchase checks must be written in U.S. dollars, be drawnon a U.S. bank, and be accompanied by good order instructions. Vanguard doesnot accept cash, traveler’s checks, starter checks, or money orders. In addition,Vanguard may refuse checks that are not made payable to Vanguard.

New accounts. We are required by law to obtain from you certain personalinformation that we will use to verify your identity. If you do not provide theinformation, we may not be able to open your account. If we are unable to verifyyour identity, Vanguard reserves the right, without notice, to close your accountor take such other steps as we deem reasonable. Certain types of accounts mayrequire additional documentation.

Refused or rejected purchase requests. Vanguard reserves the right to stopselling fund shares or to reject any purchase request at any time and withoutnotice, including, but not limited to, purchases requested by exchange fromanother Vanguard fund. This also includes the right to reject any purchaserequest because the investor has a history of frequent trading or because thepurchase may negatively affect a fund’s operation or performance.

Large purchases. Call Vanguard before attempting to invest a largedollar amount.

No cancellations. Vanguard will not accept your request to cancel any purchaserequest once processing has begun. Please be careful when placing apurchase request.

Converting Shares

When a conversion occurs, you receive shares of one class in place of shares ofanother class of the same fund. At the time of conversion, the dollar value of the“new” shares you receive equals the dollar value of the “old” shares that wereconverted. In other words, the conversion has no effect on the value of yourinvestment in the fund at the time of the conversion. However, the number ofshares you own after the conversion may be greater than or less than thenumber of shares you owned before the conversion, depending on the NAVs ofthe two share classes.

Vanguard will not accept your request to cancel any self-directed conversionrequest once processing has begun. Please be careful when placing aconversion request.

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A conversion between share classes of the same fund is a nontaxable event.

Trade DateThe trade date for any conversion request received in good order will depend onthe day and time Vanguard receives your request. Your conversion will beexecuted using the NAVs of the different share classes on the trade date. NAVsare calculated only on days that the NYSE is open for trading (a business day). Inthe rare event the NYSE experiences unanticipated disruptions and is unavailableat the close of the trading day, NAVs will be calculated as of the close of regulartrading on the Nasdaq (or another alternate exchange if the Nasdaq isunavailable, as determined at Vanguard’s discretion), generally 4 p.m., Easterntime. The time selected for NAV calculation in this rare event shall also serve asthe conclusion of the trade date. See Share Price.

For a conversion request received by Vanguard on a business day before theclose of regular trading on the NYSE (generally 4 p.m., Eastern time), the tradedate will be the same day. For a conversion request received on a business dayafter the close of regular trading on the NYSE, or on a nonbusiness day, the tradedate will be the next business day. See Other Rules You Should Know.

Conversions From Investor Shares to Admiral SharesSelf-directed conversions. If your account balance in the Fund is at least$50,000, you may ask Vanguard to convert your Investor Shares to AdmiralShares at any time. You may request a conversion through our website (if you areregistered for online access), by telephone, or by mail. Financial intermediaries,institutional clients, and Vanguard-advised clients should contact Vanguard forinformation on special eligibility rules that may apply to them regarding AdmiralShares. See Contacting Vanguard. If you are investing through an intermediary,please contact that firm directly for more information regarding your eligibility.

Automatic conversions. Vanguard conducts periodic reviews of accountbalances and may, if your account balance in the Fund exceeds $50,000,automatically convert your Investor Shares to Admiral Shares. You will be notifiedbefore an automatic conversion occurs and will have an opportunity to instructVanguard not to effect the conversion. Financial intermediaries, institutionalclients, and Vanguard-advised clients should contact Vanguard for information onspecial eligibility rules that may apply to them regarding Admiral Shares. If youare investing through an intermediary, please contact that firm directly for moreinformation regarding your eligibility.

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Mandatory Conversions to Investor SharesIf an account no longer meets the balance requirements for Admiral Shares,Vanguard may automatically convert the shares in the account to InvestorShares. A decline in the account balance because of market movement mayresult in such a conversion. Vanguard will notify the investor in writing before anymandatory conversion occurs.

Redeeming Shares

How to Initiate a Redemption RequestBe sure to check Exchanging Shares, Frequent-Trading Limitations, and OtherRules You Should Know before placing your redemption request.

Online. You may request a redemption of shares or request an exchange throughour website or our mobile application if you are registered for online access.

By telephone. You may call Vanguard to request a redemption of shares or anexchange. See Contacting Vanguard.

By mail. You may send a form (available online) to Vanguard to redeem from afund account or to make an exchange.

How to Receive Redemption ProceedsBy electronic bank transfer. You may have the proceeds of a fund redemptionsent directly to a designated bank account. To establish the electronic banktransfer service on an account, you must designate a bank account online,complete a form, or fill out the appropriate section of your account registrationform. After the service is set up on your account, you can redeem shares byelectronic bank transfer on a regular schedule (Automatic Withdrawal Plan) orupon request. Your redemption request can be initiated online (if you areregistered for online access), by telephone, or by mail.

By wire. To receive your proceeds by wire, you may instruct Vanguard to wireyour redemption proceeds ($100 minimum) to a previously designated bankaccount. To establish the wire redemption service, you generally must designatea bank account online, complete a form, or fill out the appropriate section of youraccount registration form.

Please note that Vanguard charges a $10 wire fee for outgoing wireredemptions. The fee is assessed in addition to, rather than being withheld from,redemption proceeds and is paid directly to the fund in which you invest. Forexample, if you redeem $100 via a wire, you will receive the full $100, and the$10 fee will be assessed to your fund account through an additional redemption

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of fund shares. If you redeem your entire fund account, your redemptionproceeds will be reduced by the amount of the fee. The wire fee does not applyto accounts held by Flagship and Flagship Select clients; accounts held throughintermediaries, including Vanguard Brokerage Services; or accounts held byinstitutional clients.

By exchange. You may have the proceeds of a Vanguard fund redemptioninvested directly in shares of another Vanguard fund. You may initiate anexchange online (if you are registered for online access), by telephone, or bymail. See Exchanging Shares.

By check. If you have not chosen another redemption method, Vanguard will mailyou a redemption check, generally payable to all registered account owners,normally within two business days of your trade date, and generally to theaddress of record.

Trade DateThe trade date for any redemption request received in good order will depend onthe day and time Vanguard receives your request and the manner in which youare redeeming. Your redemption will be executed using the NAV as calculated onthe trade date. NAVs are calculated only on days that the NYSE is open fortrading (a business day). In the rare event the NYSE experiences unanticipateddisruptions and is unavailable at the close of the trading day, NAVs will becalculated as of the close of regular trading on the Nasdaq (or another alternateexchange if the Nasdaq is unavailable, as determined at Vanguard’s discretion),generally 4 p.m., Eastern time. The time selected for NAV calculation in this rareevent shall also serve as the conclusion of the trade date. See Share Price.

For redemptions by check, exchange, or wire: If the redemption request isreceived by Vanguard on a business day before the close of regular trading onthe NYSE (generally 4 p.m., Eastern time), the trade date will be the same day. Ifthe redemption request is received on a business day after the close of regulartrading on the NYSE, or on a nonbusiness day, the trade date will be the nextbusiness day.

• Note on timing of wire redemptions from money market funds: Fortelephone requests received by Vanguard on a business day before10:45 a.m., Eastern time (2 p.m., Eastern time, for Vanguard Prime MoneyMarket Fund; 12:30 p.m., Eastern time, for Vanguard Federal Money MarketFund), the redemption proceeds generally will leave Vanguard by the close ofbusiness the same day. For telephone requests received by Vanguard on abusiness day after those cut-off times, or on a nonbusiness day, and for allrequests other than by telephone, the redemption proceeds generally willleave Vanguard by the close of business on the next business day.

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• Note on timing of wire redemptions from all other funds: For requestsreceived by Vanguard on a business day before the close of regular trading onthe NYSE (generally 4 p.m., Eastern time), the redemption proceeds generallywill leave Vanguard by the close of business on the next business day. Forrequests received by Vanguard on a business day after the close of regulartrading on the NYSE, or on a nonbusiness day, the redemption proceedsgenerally will leave Vanguard by the close of business on the second businessday after Vanguard receives the request.

For redemptions by electronic bank transfer: If the redemption request isreceived by Vanguard on a business day before the close of regular trading onthe NYSE (generally 4 p.m., Eastern time), the trade date will be the same day. Ifthe redemption request is received on a business day after the close of regulartrading on the NYSE, or on a nonbusiness day, the trade date will be the nextbusiness day.

If your redemption request is not accurate and complete, it may be rejected. Ifwe are unable to send your redemption proceeds by wire or electronic banktransfer because the receiving institution rejects the transfer, Vanguard will makeadditional efforts to complete your transaction. If Vanguard is still unable tocomplete the transaction, we may send the proceeds of the redemption to youby check, generally payable to all registered account owners, or use yourproceeds to purchase new shares of the fund from which you sold shares for thepurpose of the wire or electronic bank transfer transaction. See Other Rules YouShould Know—Good Order.

If your redemption request is received in good order, we typically expect thatredemption proceeds will be paid by the Fund within one business day of thetrade date; however, in certain circumstances, investors may experience a longersettlement period at the time of the transaction. For further information, see“Potentially disruptive redemptions” and “Emergency circumstances.”

For further information about redemption transactions, consult our website atvanguard.com or see Contacting Vanguard.

Other Redemption Rules You Should KnowDocumentation for certain accounts. Special documentation may be requiredto redeem from certain types of accounts, such as trust, corporate, nonprofit, orretirement accounts. Please call us before attempting to redeem from thesetypes of accounts.

Potentially disruptive redemptions. Vanguard reserves the right to pay all orpart of a redemption in kind—that is, in the form of securities—if we reasonablybelieve that a cash redemption would negatively affect the fund’s operation or

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performance or that the shareholder may be engaged in market-timing orfrequent trading. Under these circumstances, Vanguard also reserves the right todelay payment of the redemption proceeds for up to seven calendar days. Bycalling us before you attempt to redeem a large dollar amount, you may avoidin-kind or delayed payment of your redemption. Please see Frequent-TradingLimitations for information about Vanguard’s policies to limit frequent trading.

Recently purchased shares. Although you can redeem shares at any time,proceeds may not be made available to you until the fund collects payment foryour purchase. This may take up to seven calendar days for shares purchased bycheck or by electronic bank transfer. If you have written a check on a fund withcheckwriting privileges, that check may be rejected if your fund account does nothave a sufficient available balance.

Share certificates. Share certificates are no longer issued for Vanguard funds.Shares currently held in certificates cannot be redeemed, exchanged, converted,or transferred (reregistered) until you return the certificates (unsigned) toVanguard by registered mail. For the correct address, see Contacting Vanguard.

Address change. If you change your address online or by telephone, there maybe up to a 14-day restriction (starting on the business day after your address ischanged) on your ability to request check redemptions online and by telephone.You can request a redemption in writing (using a form available online) at anytime. Confirmations of address changes are sent to both the old andnew addresses.

Payment to a different person or address. At your request, we can make yourredemption check payable, or wire your redemption proceeds, to a differentperson or send it to a different address. However, this generally requires thewritten consent of all registered account owners and may require additionaldocumentation, such as a signature guarantee or a notarized signature. You mayobtain a signature guarantee from some commercial or savings banks, creditunions, trust companies, or member firms of a U.S. stock exchange.

No cancellations. Vanguard will not accept your request to cancel anyredemption request once processing has begun. Please be careful when placinga redemption request.

Emergency circumstances. Vanguard funds can postpone payment ofredemption proceeds for up to seven calendar days. In addition, Vanguard fundscan suspend redemptions and/or postpone payments of redemption proceedsbeyond seven calendar days at times when the NYSE is closed or duringemergency circumstances, as determined by the SEC.

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Exchanging Shares

An exchange occurs when you use the proceeds from the redemption of shares ofone Vanguard fund to simultaneously purchase shares of a different Vanguardfund.You can make exchange requests online (if you are registered for onlineaccess), by telephone, or by mail. See Purchasing Shares and Redeeming Shares.

If the NYSE is open for regular trading (generally until 4 p.m., Eastern time, on abusiness day) at the time an exchange request is received in good order, thetrade date generally will be the same day. See Other Rules You ShouldKnow—Good Order for additional information on all transaction requests.

Vanguard will not accept your request to cancel any exchange request onceprocessing has begun. Please be careful when placing an exchange request.

Call Vanguard before attempting to exchange a large dollar amount. By calling usbefore you attempt to exchange a large dollar amount, you may avoid delayed orrejected transactions.

Please note that Vanguard reserves the right, without notice, to revise orterminate the exchange privilege, limit the amount of any exchange, or reject anexchange, at any time, for any reason. See Frequent-Trading Limitations foradditional restrictions on exchanges.

Frequent-Trading Limitations

Because excessive transactions can disrupt management of a fund and increasethe fund’s costs for all shareholders, the board of trustees of each Vanguard fundplaces certain limits on frequent trading in the funds. Each Vanguard fund (otherthan money market funds and short-term bond funds, but including VanguardShort-Term Inflation-Protected Securities Index Fund) limits an investor’spurchases or exchanges into a fund account for 30 calendar days after theinvestor has redeemed or exchanged out of that fund account. ETF Shares arenot subject to these frequent-trading limits.

For Vanguard Retirement Investment Program pooled plans, the limitations applyto exchanges made online or by telephone.

These frequent-trading limitations do not apply to the following:

• Purchases of shares with reinvested dividend or capital gains distributions.

• Transactions through Vanguard’s Automatic Investment Plan, AutomaticExchange Service, Direct Deposit Service, Automatic Withdrawal Plan, RequiredMinimum Distribution Service, and Vanguard Small Business Online®.

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• Discretionary transactions through Vanguard Personal Advisor Services®,Vanguard Institutional Advisory Services®, and Vanguard Digital Advisor™.

• Redemptions of shares to pay fund or account fees.

• Redemptions of shares to remove excess shareholder contributions to certaintypes of retirement accounts (including, but not limited to, IRAs and VanguardIndividual 401(k) Plans).

• Transfers and reregistrations of shares within the same fund.

• Purchases of shares by asset transfer or direct rollover.

• Conversions of shares from one share class to another in the same fund.

• Checkwriting redemptions.

• Section 529 college savings plans.

• Certain approved institutional portfolios and asset allocation programs, as wellas trades made by funds or trusts managed by Vanguard or its affiliates thatinvest in other Vanguard funds. (Please note that shareholders of Vanguard’sfunds of funds are subject to the limitations.)

For participants in employer-sponsored defined contribution plans,* thefrequent-trading limitations do not apply to:

• Purchases of shares with participant payroll or employer contributions orloan repayments.

• Purchases of shares with reinvested dividend or capital gains distributions.

• Distributions, loans, and in-service withdrawals from a plan.

• Redemptions of shares as part of a plan termination or at the direction ofthe plan.

• Transactions executed through the Vanguard Managed Account Program.

• Redemptions of shares to pay fund or account fees.

• Share or asset transfers or rollovers.

• Reregistrations of shares.

• Conversions of shares from one share class to another in the same fund.

• Exchange requests submitted by written request to Vanguard. (Exchangerequests submitted by fax, if otherwise permitted, are subject to the limitations.)

* The following Vanguard fund accounts are subject to the frequent-tradinglimitations: SEP-IRAs, SIMPLE IRAs, certain Individual 403(b)(7) CustodialAccounts, and Vanguard Individual 401(k) Plans.

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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 takeappropriate action, which may include applying to a client’s accounts the 30-daypolicy previously described, prohibiting a client’s purchases of fund shares,and/or revoking the client’s exchange privilege.

Accounts Held by IntermediariesWhen intermediaries establish accounts in Vanguard funds for the benefit oftheir clients, we cannot always monitor the trading activity of the individualclients. However, we review trading activity at the intermediary (omnibus) level,and if we detect suspicious activity, we will investigate and take appropriateaction. If necessary, Vanguard may prohibit additional purchases of fund sharesby an intermediary, including for the benefit of certain of the intermediary’sclients. Intermediaries also may monitor their clients’ trading activities withrespect to Vanguard funds.

For those Vanguard funds that charge purchase and/or redemption fees,intermediaries will be asked to assess these fees on client accounts and remitthese fees to the funds. The application of purchase and redemption fees andfrequent-trading limitations may vary among intermediaries. There are noassurances that Vanguard will successfully identify all intermediaries or thatintermediaries will properly assess purchase and redemption fees or administerfrequent-trading limitations. If you invest with Vanguard through an intermediary,please read that firm’s materials carefully to learn of any other rules or fees thatmay apply.

Other Rules You Should Know

Prospectus and Shareholder Report MailingsWhen two or more shareholders have the same last name and address, just onesummary prospectus (or prospectus) and/or shareholder report may be sent inan attempt to eliminate the unnecessary expense of duplicate mailings. You mayrequest individual prospectuses and reports by contacting our Client ServicesDepartment in writing, by telephone, or online. See Contacting Vanguard.

Vanguard.comRegistration. If you are a registered user of vanguard.com, you can review youraccount holdings; buy, sell, or exchange shares of most Vanguard funds; andperform most other transactions through our website. You must register for thisservice online.

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Electronic delivery. Vanguard can deliver your account statements, transactionconfirmations, prospectuses, certain tax forms, and shareholder reportselectronically. If you are a registered user of vanguard.com, you can consent tothe electronic delivery of these documents by logging on and changing yourmailing preferences under “Account Maintenance.” You can revoke yourelectronic consent at any time through our website, and we will begin to sendpaper copies of these documents within 30 days of receiving your revocation.

Telephone TransactionsAutomatic. When we set up your account, we will automatically enable you todo business with us by telephone, unless you instruct us otherwise in writing.

Tele-Account®. To obtain fund and account information through Vanguard’sautomated telephone service, you must first establish a Personal IdentificationNumber (PIN) by calling Tele-Account at 800-662-6273.

Proof of a caller’s authority. We reserve the right to refuse a telephone requestif the caller is unable to provide the requested information or if we reasonablybelieve that the caller is not an individual authorized to act on the account.Before we allow a caller to act on an account, we may request thefollowing information:

• Authorization to act on the account (as the account owner or by legaldocumentation or other means).

• Account registration and address.

• Fund name and account number, if applicable.

• Other information relating to the caller, the account owner, or the account.

Good OrderWe reserve the right to reject any transaction instructions that are not in “goodorder.” Good order generally means that your instructions:

• Are provided by the person(s) authorized in accordance with Vanguard’spolicies and procedures to access the account and request transactions.

• Include the fund name and account number.

• Include the amount of the transaction (stated in dollars, shares,or percentage).

Written instructions also must generally be provided on a Vanguard formand include:

• Signature(s) and date from the authorized person(s).

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• Signature guarantees or notarized signatures, if required for the type oftransaction. (Call Vanguard for specific requirements.)

• Any supporting documentation that may be required.

Good order requirements may vary among types of accounts and transactions.For more information, consult our website at vanguard.com or seeContacting Vanguard.

Vanguard reserves the right, without notice, to revise the requirements forgood order.

Future Trade-Date RequestsVanguard does not accept requests to hold a purchase, conversion, redemption,or exchange transaction for a future date. All such requests will receive tradedates as previously described in Purchasing Shares, Converting Shares,Redeeming Shares, and Exchanging Shares. Vanguard reserves the right toreturn future-dated purchase checks.

Accounts With More Than One OwnerIf an account has more than one owner or authorized person, Vanguard generallywill accept instructions from any one owner or authorized person.

Responsibility for FraudYou should take precautions to protect yourself from fraud. Keep youraccount-related information private, and review any account confirmations,statements, or other information that we provide to you as soon as you receivethem. Let us know immediately if you discover unauthorized activity or seesomething on your account that you do not understand or that looks unusual.

Vanguard will not be responsible for losses that result from transactions by aperson who we reasonably believe is authorized to act on your account.

Uncashed ChecksPlease cash your distribution or redemption checks promptly. Vanguard will notpay interest on uncashed checks. Vanguard may be required to transfer assetsrelated to uncashed checks to a state under the state’s abandoned property law.

Dormant AccountsIf your account has no activity in it for a period of time, Vanguard may berequired to transfer it to a state under the state’s abandoned property law,subject to potential federal or state withholding taxes.

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Unusual CircumstancesIf you experience difficulty contacting Vanguard online or by telephone, you cansend us your transaction request on a Vanguard form by regular or express mail.

Investing With Vanguard Through Other FirmsYou may purchase or sell shares of most Vanguard funds through a financialintermediary, such as a bank, a broker, or an investment advisor. Please consultyour financial intermediary to determine which, if any, shares are availablethrough that firm and to learn about other rules that may apply. Your financialintermediary can provide you with account information and any required taxforms. You may be required to pay a commission on purchases of mutual fundshares made through a financial intermediary.

Please see Frequent-Trading Limitations—Accounts Held by Intermediaries forinformation about the assessment of any purchase or redemption fees and themonitoring of frequent trading for accounts held by intermediaries.

Account Service FeeVanguard may charge a $20 account service fee on fund accounts that have abalance below $10,000 for any reason, including market fluctuation. The accountservice fee may be applied to both retirement and nonretirement fund accountsand may be assessed on fund accounts in all Vanguard funds, regardless of theaccount minimum. The fee, which will be collected by redeeming fund shares inthe amount of $20, will be deducted from fund accounts subject to the fee onceper calendar year.

If you elect to receive your statements and other materials electronically (i.e., bye-delivery), the account service fee will not be charged, so long as your electionremains in effect. You can make your e-delivery election on vanguard.com.

Beginning on January 1, 2021, you may elect to receive paper copies ofshareholder reports free of charge as noted on the cover of this prospectus.

Certain account types have alternative fee structures, including SIMPLE IRAs,Vanguard Retirement Investment Program pooled plans, and Vanguard Individual401(k) Plans.

Low-Balance AccountsThe Fund reserves the right to liquidate a fund account whose balance fallsbelow the account minimum for any reason, including market fluctuation. Thisliquidation policy applies to nonretirement fund accounts and accounts that areheld through intermediaries. Any such liquidation will be preceded by writtennotice to the investor.

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Right to Change PoliciesIn addition to the rights expressly stated elsewhere in this prospectus, Vanguardreserves the right, without notice, to (1) alter, add, or discontinue any conditionsof purchase (including eligibility requirements), redemption, exchange,conversion, service, or privilege at any time and (2) alter, impose, discontinue, orwaive any purchase fee, redemption fee, account service fee, or other feecharged to a shareholder or a group of shareholders. Changes may affect any orall investors. These actions will be taken when, at the sole discretion of Vanguardmanagement, Vanguard believes they are in the best interest of a fund.

Account RestrictionsVanguard reserves the right to: (1) redeem all or a portion of a fund/account tomeet a legal obligation, including tax withholding, tax lien, garnishment order, orother obligation imposed on your account by a court or government agency; (2)redeem shares, close an account, or suspend account privileges, features, oroptions in the case of threatening conduct or activity; (3) redeem shares, closean account, or suspend account privileges, features, or options if Vanguardbelieves or suspects that not doing so could result in a suspicious, fraudulent, orillegal transaction; (4) place restrictions on the ability to redeem any or all sharesin an account if it is required to do so by a court or government agency; (5) placerestrictions on the ability to redeem any or all shares in an account if Vanguardbelieves that doing so will prevent fraud, financial exploitation or abuse, or toprotect vulnerable investors; (6) freeze any account and/or suspend accountservices if Vanguard has received reasonable notice of a dispute regarding theassets in an account, including notice of a dispute between the registered orbeneficial account owners; and (7) freeze any account and/or suspend accountservices upon initial notification to Vanguard of the death of an account owner.

Share ClassesVanguard reserves the right, without notice, to change the eligibilityrequirements of its share classes, including the types of clients who are eligibleto purchase each share class.

Fund and Account Updates

Confirmation StatementsWe will send (or provide through our website, whichever you prefer) aconfirmation of your trade date and the amount of your transaction when youbuy, sell, exchange, or convert shares. However, we will not send confirmationsreflecting only checkwriting redemptions or the reinvestment of dividend orcapital gains distributions. For any month in which you had a checkwriting

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redemption, a Checkwriting Activity Statement will be sent to you itemizing thecheckwriting redemptions for that month. Promptly review each confirmationstatement that we provide to you. It is important that you contact Vanguardimmediately with any questions you may have about any transaction reflected ona confirmation statement, or Vanguard will consider the transactionproperly processed.

Portfolio SummariesWe will send (or provide through our website, whichever you prefer) quarterlyportfolio summaries to help you keep track of your accounts throughout the year.Each summary shows the market value of your account at the close of thestatement period, as well as all distributions, purchases, redemptions,exchanges, transfers, and conversions for the current calendar quarter (ormonth). Promptly review each summary that we provide to you. It is importantthat you contact Vanguard immediately with any questions you may have aboutany transaction reflected on the summary, or Vanguard will consider thetransaction properly processed.

Tax Information StatementsFor most accounts, Vanguard (or your intermediary) is required to provide annualtax forms to assist you in preparing your income tax returns. These forms aregenerally available for each calendar year early in the following year. Registeredusers of vanguard.com can also view certain forms through our website.Vanguard (or your intermediary) may also provide you with additional tax-relateddocumentation. For more information, consult our website at vanguard.com orsee Contacting Vanguard.

Annual and Semiannual ReportsWe will send (or provide through our website, whichever you prefer) reportsabout Vanguard Energy Fund twice a year, in March and September. Thesereports include overviews of the financial markets and provide the followingspecific Fund information:

• Performance assessments and comparisons with industry benchmarks.

• Reports from the advisors.

• Financial statements with listings of Fund holdings.

Portfolio HoldingsPlease consult the Fund’s Statement of Additional Information or our website fora description of the policies and procedures that govern disclosure of the Fund’sportfolio holdings.

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Employer-Sponsored Plans

Your plan administrator or your employee benefits office can provide you withdetailed information on how to participate in your plan and how to elect the Fundas an investment option.

• If you have any questions about the Fund or Vanguard, including those aboutthe Fund’s investment objective, strategies, or risks, contact Vanguard ParticipantServices toll-free at 800-523-1188 or visit our website at vanguard.com.

• If you have questions about your account, contact your plan administrator orthe organization that provides recordkeeping services for your plan.

• Be sure to carefully read each topic that pertains to your transactionswith Vanguard.

Vanguard reserves the right to change its policies without noticeto shareholders.

TransactionsProcessing times for your transaction requests may differ among recordkeepersor among transaction and funding types. Your plan’s recordkeeper (which mayalso be Vanguard) will determine the necessary processing time frames for yourtransaction requests prior to submission to the Fund. Consult your recordkeeperor plan administrator for more information.

If Vanguard is serving as your plan recordkeeper and if your transaction involvesone or more investments with an early cut-off time for processing or anothertrading restriction, your entire transaction will be subject to the restriction whenthe trade date for your transaction is determined.

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Contacting Vanguard

WebVanguard.com For the most complete source of Vanguard news

For fund, account, and service informationFor most account transactionsFor literature requests24 hours a day, 7 days a week

PhoneVanguard Tele-Account®

800-662-6273For automated fund and account informationToll-free, 24 hours a day, 7 days a week

Investor Information 800-662-7447(Text telephone for people withhearing impairment at 800-749-7273)

For fund and service informationFor literature requests

Client Services 800-662-2739(Text telephone for people withhearing impairment at 800-749-7273)

For account informationFor most account transactions

Participant Services 800-523-1188(Text telephone for people withhearing impairment at 800-749-7273)

For information and services for participants inemployer-sponsored plans

Institutional Division888-809-8102

For information and services for large institutionalinvestors

Financial Advisor and IntermediarySales Support 800-997-2798

For information and services for financial intermediariesincluding financial advisors, broker-dealers, trustinstitutions, and insurance companies

Financial Advisory and IntermediaryTrading Support 800-669-0498

For account information and trading support forfinancial intermediaries including financial advisors,broker-dealers, trust institutions, and insurancecompanies

Additional Information

InceptionDate

NewspaperAbbreviation

VanguardFund Number

CUSIPNumber

Energy Fund

Investor Shares 5/23/1984 Energy 51 921908109Admiral Shares 11/12/2001 EnergyAdml 551 921908802

CGS identifiers have been provided by CUSIP Global Services, managed on behalf of the American BankersAssociation by Standard & Poor’s Financial Services, LLC, and are not for use or dissemination in a manner that wouldserve as a substitute for any CUSIP service. The CUSIP Database, ©2020 American Bankers Association. “CUSIP” is aregistered trademark of the American Bankers Association.

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Glossary of Investment Terms

Capital Gains Distributions. Payments to mutual fund shareholders of gainsrealized on securities that a fund has sold at a profit, minus any realized losses.

Cash Equivalent Investments. Cash deposits, short-term bank deposits, andmoney market instruments that include U.S. Treasury bills and notes, bankcertificates of deposit (CDs), repurchase agreements, commercial paper, andbanker’s acceptances.

Common Stock. A security representing ownership rights in a corporation.

Dividend Distributions. Payments to mutual fund shareholders of income frominterest or dividends generated by a fund’s investments.

Expense Ratio. A fund’s total annual operating expenses expressed as apercentage of the fund’s average net assets. The expense ratio includesmanagement and administrative expenses, but it does not include thetransaction costs of buying and selling portfolio securities.

Inception Date. The date on which the assets of a fund (or one of its shareclasses) are first invested in accordance with the fund’s investment objective.For funds with a subscription period, the inception date is the day after thatperiod ends. Investment performance is generally measured from theinception date.

Joint Committed Credit Facility. The Fund participates, along with other fundsmanaged by Vanguard, in a committed credit facility provided by a syndicate oflenders pursuant to a credit agreement that may be renewed annually; eachVanguard fund is individually liable for its borrowings, if any, under the creditfacility. The amount and terms of the committed credit facility are subject toapproval by the Fund’s board of trustees and renegotiation with the lendersyndicate on an annual basis.

Median Market Capitalization. An indicator of the size of companies in which afund invests; the midpoint of market capitalization (market price x sharesoutstanding) of a fund’s stocks, weighted by the proportion of the fund’s assetsinvested in each stock. Stocks representing half of the fund’s assets have marketcapitalizations above the median, and the rest are below it.

MSCI ACWI Energy Index. An index that measures the energy-related equitiesmarket performance of developed and emerging markets.

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Mutual Fund. An investment company that pools the money of many peopleand invests it in a variety of securities in an effort to achieve a specific objectiveover time.

New York Stock Exchange (NYSE). A stock exchange based in New York Citythat is open for regular trading on business days, Monday through Friday, from9:30 a.m. to 4 p.m., Eastern time.

Quantitative Process. An assessment of specific measurable factors, such ascost of capital; value of assets; and projections of sales, costs, earnings, andprofits. The use of a quantitative process provides a systematic approach toinvestment decisions and portfolios.

Securities. Stocks, bonds, money market instruments, and other investments.

S&P Energy Sector Index. An index that tracks the stocks of the energy-relatedcompanies within the S&P 500 Index.

Total Return. A percentage change, over a specified time period, in a mutualfund’s net asset value, assuming the reinvestment of all distributions ofdividends and capital gains.

Volatility. The fluctuations in value of a mutual fund or other security. The greatera fund’s volatility, the wider the fluctuations in its returns.

Yield. Income (interest or dividends) earned by an investment, expressed as apercentage of the investment’s price.

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Connect with Vanguard®

> vanguard.com

For More InformationIf you would like more information about VanguardEnergy Fund, the following documents are availablefree upon request:

Annual/Semiannual Reports to ShareholdersAdditional information about the Fund’s investments isavailable in the Fund’s annual and semiannual reportsto shareholders. In the annual report, you will find adiscussion of the market conditions and investmentstrategies that significantly affected the Fund’sperformance during its last fiscal year.

Statement of Additional Information (SAI)The SAI provides more detailed information about theFund and is incorporated by reference into (and thuslegally a part of) this prospectus.

To receive a free copy of the latest annual orsemiannual report or the SAI, or to request additionalinformation about the Fund or other Vanguard funds,please visit vanguard.com or contact us as follows:

If you are an individual investor:Telephone: 800-662-7447;Text telephone for people with hearing impairment:800-749-7273

If you are a participant in an employer-sponsored plan:Telephone: 800-523-1188; Text telephone for peoplewith hearing impairment: 800-749-7273

If you are a current Vanguard shareholder and wouldlike information about your account, accounttransactions, and/or account statements, please call:

Client Services DepartmentTelephone: 800-662-2739;Text telephone for people with hearing impairment:800-749-7273

Information Provided by the Securities andExchange Commission (SEC)Reports and other information about the Fund areavailable in the EDGAR database on the SEC’s websiteat www.sec.gov, or you can receive copies of thisinformation, for a fee, by electronic request at thefollowing email address: publicinfo@sec.gov.

Fund’s Investment Company Act file number: 811-03916

© 2020 The Vanguard Group, Inc. All rights reserved.Vanguard Marketing Corporation, Distributor.

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