Vanguard Reduces the Cost of Investing by Broadening Availability of Admiral Shares

VALLEY FORGE, Pa.--(BUSINESS WIRE)--Vanguard today considerably reduced the cost of investing for nearly 2 million clients by broadening the availability of its ultra-low-cost Admiral Shares.

Account balance minimums to qualify have been lowered for most retail clients to $10,000 (from $100,000) for Vanguard’s broad market stock and bond index funds, and to $50,000 (from $100,000) for most of Vanguard’s actively managed stock and bond funds. A total of 52 Vanguard funds offer Admiral Shares with the new eligibility requirements.

The expense ratios for the Admiral Shares of Vanguard’s three broad market index funds – Total Stock Market, Total Bond Market, and Total International¹ – range from 0.07% to 0.20% and afford investors the opportunity to build a balanced, diversified portfolio covering the U.S. stock and bond markets and the developed and emerging international stock markets at a fraction of the cost of comparable funds (as shown in the table below.)

	Expense Ratio	Admiral Shares Expense Ratio Advantage (basis points)
Vanguard Total Stock Market Index Admiral Shares	0.07%	--
Vanguard Total Stock Market Index Investor Shares	0.18%	11
Index General U.S. Equity Funds Average*	0.73%	66
General U.S. Equity Funds Average*	1.36%	129

Vanguard Total Bond Market Index Admiral Shares	0.12%	--
Vanguard Total Bond Market Index Investor Shares	0.22%	10
Index U.S. Bond Funds Average*	0.41%	29
All Bond Funds Average*	1.03%	91

Vanguard Total International Stock Index Fund Admiral Shares¹	0.20%	--
Vanguard Total International Stock Index Fund Investor Shares	0.32%²	12
International Equity Index Funds Average	0.80%	60
International Equity Funds Average*	1.54%	134

* Source: Lipper Inc. as of 12/31/2009

¹ Vanguard filed a registration statement for Vanguard Total International Stock Index Fund with the U.S. Securities & Exchange Commission for Admiral Shares on September 24, 2010. These shares are not currently available for sale. The expense ratio shown in the table is an estimate.

²The expense ratio for Vanguard Total International Stock Index Fund was reported as 0.32% in the Fund’s prospectus dated February 26, 2010. For the six months ended April 30, 2010, the annualized expense ratio was 0.26%.

All asset figures are as of September 30, 2010, unless otherwise noted.

There are other material differences between funds that must be considered prior to investing.

Copies of the final Vanguard Total International Stock Index Fund prospectus for Admiral, ETF, Institutional, Institutional Plus, and Signal Shares, when available, as well as prospectuses for the Fund’s Investor shares and for all other Vanguard funds can be obtained by visiting www.vanguard.com, or by calling 800-662-7447. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing. Please note that a preliminary prospectus is subject to change.

A registration statement relating to the Admiral, ETF, Signal, Institutional and Institutional Plus shares has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Mutual funds and ETFs are subject to risks, including possible loss of principal. Foreign investing involves additional risks including currency fluctuations and political uncertainty. Stocks of companies in emerging markets are generally more risky than stocks of companies in developed countries. Investments in bond funds are subject to interest rate, credit, and inflation risk.

Vanguard provides services to the Vanguard funds at cost. More information about Vanguard funds, including at cost services, is available in each fund’s prospectus. Client-owned means the clients own the funds and the funds own Vanguard.

Vanguard Marketing Corporation, Distributor.