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Nine Vanguard Index Funds to Transition Benchmarks to CRSP and FTSE Indexes



  Nine Vanguard Index Funds to Transition Benchmarks to CRSP and FTSE Indexes

Business Wire

VALLEY FORGE, Pa. -- April 16, 2013

Vanguard announced today that nine funds will transition to new target
benchmarks, with eight domestic index funds moving to University of Chicago’s
Center for Research in Security Prices (CRSP) indexes and one international
index fund adopting a FTSE index, on April 17, 2013. The transitions are
related to Vanguard’s October 2012 announcement that 22 funds would be
adopting new indexes over several months.

The nine funds scheduled to transition from MSCI benchmarks are listed below.

                                                           
Fund                        New Index                     Former Index
Mega Cap Growth Index       CRSP US Mega Cap Growth       MSCI US Large Cap
Fund                        Index                         Growth Index
Mega Cap Value Index        CRSP US Mega Cap Value        MSCI US Large Cap
Fund                        Index                         Value Index
Growth Index Fund           CRSP US Large Cap Growth      MSCI US Prime Market
                            Index                         Growth Index
Value Index Fund            CRSP US Large Cap Value       MSCI US Prime Market
                            Index                         Value Index
Mid-Cap Growth Index        CRSP US Mid Cap Growth        MSCI US Mid Cap
Fund                        Index                         Growth Index
Mid-Cap Value Index         CRSP US Mid Cap Value         MSCI US Mid Cap
Fund                        Index                         Value Index
Small-Cap Growth Index      CRSP US Small Cap Growth      MSCI US Small Cap
Fund                        Index                         Growth Index
Small-Cap Value Index       CRSP US Small Cap Value       MSCI US Small Cap
Fund                        Index                         Value Index
Developed Markets Index     FTSE Developed ex North       MSCI EAFE Index
Fund                        America Index
                                                         

With the change in benchmarks, the Vanguard Mega Cap 300 Growth Index Fund is
renamed Vanguard Mega Cap Growth Index Fund and its two share classes are
renamed Mega Cap Growth Index Fund Institutional Shares and Mega Cap Growth
ETF. In addition, the Vanguard Mega Cap 300 Value Index Fund is renamed
Vanguard Mega Cap Value Index Fund and its two share classes are renamed Mega
Cap Value Index Institutional Shares and Mega Cap Value ETF.

Vanguard has now successfully transitioned 18 of the 22 funds to new
benchmarks. The CRSP and FTSE indexes are well constructed, offer
comprehensive market coverage, and meet Vanguard’s "best practice" standards
for market benchmarks. Vanguard also expects that the benchmark transitions
will result in considerable cost savings for the funds’ shareholders over time
in the form of lower expense ratios. In addition, the agreements with FTSE and
CRSP are long term in nature and provide cost certainty going forward with
respect to licensing costs, which have been escalating and represent a growing
portion of the expenses that investors pay to own index products.

About Vanguard

Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s
largest investment management companies and a leading provider of
company-sponsored retirement plan services. Vanguard manages more than $2.15
trillion in U.S. mutual fund assets, including $277 billion in ETF assets. The
firm offers more than 170 funds to U.S. investors and more than 70 additional
funds in non-U.S. markets. For more information, visit vanguard.com.

About FTSE Group

FTSE Group (FTSE) is a world leader in the provision of global index and
analytical solutions. FTSE calculates indexes across a wide range of asset
classes, on both a standard and custom basis. FTSE indexes are used
extensively by investors worldwide for investment analysis, performance
measurement, asset allocation, portfolio hedging and the creation of a wide
range of index derivatives, funds, ETFs, and other structured products. For
more information, visit ftse.com.

About The Center for Research in Security Prices (CRSP)

CRSP (Center for Research in Security Prices) is one of 11 research centers at
the University of Chicago Booth School of Business. The research organization
pioneered the development of U.S. stock market data in 1960 that are widely
used in academic and investment research. The CRSP Indexes capture broad U.S.
equity market coverage and include securities traded on the NYSE, AMEX, NASDAQ
and ARCA markets. Nearly 4,000 constituents across mega, large, mid, small and
micro capitalizations, representing 100% of the U.S. investable equity market
(or 99.5% of cumulative full market capitalization of U.S. equity), comprise
the market-cap indexes. CRSP’s portfolio of historical databases for common
stocks, mutual funds, Treasuries, REITs and research indexes is relied on by
more than 435 leading academic institutions in 31 countries. It is also widely
used for research in the commercial and governmental sectors. For more
information, visit crsp.com.

Asset figures are as of March 31, 2013.

For more information on Vanguard funds, visit vanguard.com, or call
800-662-7447 to obtain a prospectus. Visit our website, call 800-662-7447, or
contact your broker to obtain a prospectus for Vanguard ETF Shares. Investment
objectives, risks, charges, expenses, and other important information are
contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in
Creation Unit aggregations. Instead, investors must buy or sell Vanguard ETF
Shares in the secondary market with the assistance of a stockbroker. In doing
so, the investor may incur brokerage commissions and may pay more than net
asset value when buying and receive less than net asset value when selling.

Mutual funds and ETFs are subject to risks, including possible loss of
principal. Foreign investing involves additional risks including currency
fluctuations and political uncertainty.

Prices of mid- and small-cap stocks often fluctuate more than those of
large-company stocks.

All rights in the FTSE Developed ex North America Index (the “Index”) vest in
FTSE International Limited (“FTSE”). “FTSE®” is a trademark of London Stock
Exchange Group companies and is used by FTSE under license. Vanguard Developed
Markets Index (the “Product”) has been developed solely by Vanguard. The Index
is calculated by FTSE or its agent. FTSE and its licensors are not connected
to and do not sponsor, advise, recommend, endorse or promote the Product and
do not accept any liability whatsoever to any person arising out of (a) the
use of, reliance on or any error in the Index or (b) investment in or
operation of the Product. FTSE makes no claim, prediction, warranty or
representation either as to the results to be obtained from the Product or the
suitability of the Index for the purpose to which it is being put by Vanguard.

U.S. Pat. No. 6,879,964 B2; 7,337,138; 7,720,749; 7,925,573; 8,090,646

Vanguard Marketing Corporation, Distributor.

© 2013 The Vanguard Group, Inc. All rights reserved.

Contact:

Vanguard PR Hotline
610-669-5002
vanguard_media_relations@vanguard.com
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