News release

Vanguard Developed Markets Index Fund Begins Tracking New FTSE Index

VALLEY FORGE, PA (May 31, 2016)—Vanguard announced today that the $52 billion Vanguard Developed Markets Index Fund, including its ETF share class (ticker: VEA), will begin tracking a new index, the FTSE Developed All Cap ex US Index, effective with the opening of trading on June 1, 2016.

Since December 2015, the fund has tracked a transition index, FTSE Developed All Cap ex US Transition Index, as it gradually built exposure to small-capitalization and Canadian stocks and proportionately reduced the weightings of other stocks.

The fund’s new target index, the FTSE Developed All Cap ex US Index, is a market-capitalization weighted benchmark representing the performance of large-, mid-, and small-cap companies in developed markets, including Canada and excluding the U.S. The index comprises approximately 3,700 securities from 24 countries, and is derived from the FTSE Global Equity Index Series.

The new benchmark’s 10.6% exposure to small-cap stocks moves the fund closer to market-cap weightings and offers additional diversification. With the addition of Canada, which represents approximately 8.3% of the benchmark, the Developed Markets Index Fund will be the largest market-cap weighted index fund of its type to offer all-cap exposure to all developed markets outside the U.S1.

This benchmark move represents the third of four changes to all-cap benchmarks announced by Vanguard in June 2015. In 2015, Vanguard European Stock Index Fund and Vanguard Pacific Stock Index Fund transitioned to new benchmarks. The fourth fund, Vanguard Emerging Markets Stock Index Fund, will transition to its final benchmark later this year.

About Vanguard

Vanguard is one of the world’s largest investment management companies. As of April 30, 2016, Vanguard managed $3.5 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers more than 345 funds to its more than 20 million investors worldwide. For more information, visit vanguard.com.

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1 Bloomberg, as of April 30, 2016.

All figures are as of April 30, 2016, unless otherwise noted. Source: Vanguard

For more information on Vanguard funds, visit vanguard.com, or call 800-662-7447 to obtain a prospectus or, if available, a summary 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.

All investments are subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks.

Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets, in particular, in countries where market controls may impede investment.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. 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.

U.S. Patent Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646; and 8,417,623.

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