News release

Vanguard Shareholders Approve Value Fund Merger and Change to Diversification Status of Five Funds

VALLEY FORGE, PA (January 22, 2021)—Vanguard today announced that based on preliminary voting results at today’s shareholder meeting, which was held virtually, Vanguard fund shareholders approved a proposal for a fund merger and a change in diversification status of five funds.

“We are grateful to all of our shareholders who voted on these important proposals,” said Tim Buckley, Vanguard Chairman and CEO. “The proxy ties directly to Vanguard’s mission of giving every investor the best chance for investment success, and we believe the approval of the changes strengthens our ability to deliver superior investment outcomes by enabling us to manage these funds more efficiently and effectively.”

The approved proposals are summarized below.

Vanguard U.S. Value Fund merger

Shareholders of the $1.1 billion Vanguard U.S. Value Fund approved a proposal to merge the fund into the $96.9 billion Vanguard Value Index Fund. Introduced in 1992, Vanguard Value Index Fund is a broadly diversified, large-capitalization U.S. value index portfolio.

The merged fund will retain the current expense ratio of 0.05% -- a decrease of 0.17% for existing Vanguard U.S. Value Fund shareholders. Vanguard Value Index Fund’s investment objective, benchmark, strategies, policies, and overall portfolio management process will not change. The merger is scheduled to be completed on or about February 5, 2021.

Change in diversification status for five Vanguard funds

Shareholders also approved a proposal to change the diversification status of five Vanguard funds (Vanguard Health Care Fund, Vanguard Energy Fund, Vanguard U.S. Growth Fund, Vanguard Variable Insurance Funds - Growth Portfolio, and Vanguard Variable Insurance Funds - Real Estate Index Portfolio) from “diversified” to “non-diversified” as defined by the Investment Company Act of 1940.

This change affords the funds’ investment advisors greater flexibility to manage their respective mandates, while not materially altering the funds’ characteristics. The change of diversification status to non-diversified for the five funds is scheduled to become effective on or about January 26, 2021.


About Vanguard

Vanguard is one of the world’s largest investment management companies. As of December 31, 2020, Vanguard managed $7.1 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers more than 423 funds to its more than 30 million investors worldwide. For more information, visit

Asset figures as of December 31, 2020 unless otherwise noted.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.

For more information about Vanguard funds, visit or call

800-523-7064 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

Vanguard Marketing Corporation, Distributor.