Five Vanguard Index Funds Transition to CRSP Indexes

VALLEY FORGE, Pa.--(BUSINESS WIRE)--Effective with the opening of trading at 9:30 a.m. Eastern time on January 31, 2013, five Vanguard funds will seek to track CRSP Indexes. The transition to the new benchmarks is part of Vanguard’s announcement in October 2012 that 22 stock and balanced index funds would begin tracking new indexes this year.

The five funds (see chart below) previously sought to track MSCI indexes.

Fund	New CRSP Index	Former MSCI Index
Vanguard Mega Cap Index Fund*	CRSP US Mega Cap Index	MSCI US Large Cap 300 Index
Vanguard Large-Cap Index Fund	CRSP US Large Cap Index	MSCI US Prime Market 750 Index
Vanguard Mid-Cap Index Fund	CRSP US Mid Cap Index	MSCI US Mid Cap 450 Index
Vanguard Small-Cap Index Fund	CRSP US Small Cap Index	MSCI US Small Cap 1750 Index
Vanguard Variable Insurance Fund’s Mid-Cap Index Portfolio	CRSP US Mid Cap Index	MSCI US Mid Cap 450 Index

*Previously Vanguard Mega Cap 300 Index Fund.

The stated expense ratio for each share class of the Small-Cap Index Fund has declined by six basis points because acquired fund fees and expenses (AFFE) related to business development companies (BDCs), which are excluded from CRSP Indexes, are no longer included. The projected expense ratios now range from 0.06% to 0.24%, depending on the share class (see chart below).

Small-Cap Index Fund	Projected Expense Ratios
	New	Former
Investor Shares	0.24%	0.30%
Admiral Shares	0.10%	0.16%
Institutional Shares	0.08%	0.14%
Signal Shares	0.10%	0.16%
Institutional Plus Shares	0.06%	0.12%
ETF Shares	0.10%	0.16%

The expense ratios for the other funds will remain the same because AFFE was not a component in the expense ratios.

In addition, Vanguard Mega Cap 300 Index Fund was renamed Vanguard Mega Cap Index Fund. Its two share classes are now named Mega Cap ETF and Mega Cap Index Fund Institutional.

CRSP’s broadly diversified, capitalization-weighted indexes meet Vanguard’s "best practice" standards for market benchmarks and will help enable the company to deliver significant value to index fund and ETF shareholders through lower expense ratios over time. For more information about Vanguard’s benchmark changes, go to Index Innovation at Vanguard. For details about the CRSP Indexes, visit http://www.crsp.com/indexes/additional.html#quarterly.

Vanguard’s benchmark changes have been embraced by investors. Since the October announcement, the 22 funds adopting new indexes have attracted significant inflows, including nearly 10% of Vanguard’s record-setting net new cash flow of $141 billion in 2012.

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 nearly $2 trillion in U.S. mutual fund assets, including more than $240 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 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, NYSE MKT, 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 capitalization-based indexes. CRSP’s portfolio of historical databases for common stocks, mutual funds, Treasuries, REITs and research indexes is relied on by more than 500 leading academic institutions, commercial and government subscribers in 32 countries. For more information, visit www.crsp.com.

All asset figures are as of December 31, 2012, unless otherwise noted.

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.

Mutual funds and ETFs are subject to risks, including possible loss of principal. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks.

Vanguard Marketing Corporation, Distributor.