Vanguard Announces Reverse Share Split for Exchange-Traded Fund

Vanguard today announced that Vanguard 500 Index Fund is planning to declare a 1-for-2 reverse share split of its exchange-traded fund (ETF) shares. Conventional shares of the fund will not be affected.

Shares of Vanguard S&P 500 ETF (ticker: VOO) will be offered on a split-adjusted basis on October 24, 2013. Vanguard expects the split to lower the overall transaction costs to buy and sell VOO shares.

The reverse split will increase the price per share with a proportionate decrease in the number of shares outstanding. The total market value of the shares outstanding will not be affected, except with respect to the redemption of fractional shares.

As a result of the split, VOO shareholders could potentially hold fractional shares. These will be redeemed for cash and sent to the broker of record, which may result in the realization of modest taxable gains or deductible losses for some shareholders. Otherwise, the reverse split will not result in a taxable transaction.

Vanguard S&P 500 ETF has net assets of more than $10 billion and an expense ratio of 0.05%. The average expense ratio of Vanguard ETFsTM is 0.15%—less than one-third the industry average of 0.58% (source: Lipper, a Thomson Reuters Company).

Vanguard is a leader in the ETF marketplace, offering 67 stock and bond ETFs with total assets of nearly $290 billion.

About Vanguard

Vanguard, headquartered in Valley Forge, Pennsylvania, is the world’s largest mutual fund company and one of the world’s largest investment management companies, managing more than $2.5 trillion in global assets. The firm offers more than 160 funds to U.S. investors and more than 80 additional funds in non-U.S. markets. For more information, visit vanguard.com.

All asset figures are as of August 31, 2013, unless otherwise noted. All expense ratio 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.

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.

We recommend that you consult a tax or financial advisor about your individual situation.

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

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