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Expense ratio changes (December 2012)

December 28, 2012


Updated to reflect 12/21/2012, 12/27/2012, and 12/28/2012 filings with the SEC.

In December 2012, expense ratios changed for numerous Vanguard mutual funds and ETFs, as shown in the tables below. Fifty-four products had reductions in their expense ratios, and nine had increases.

Expense ratios may fluctuate from year to year based on changes in the cost of managing the funds. For example, economies of scale resulting from an increase in a fund's total assets due to market appreciation or cash flow can help reduce its expense ratio, while a decline in assets can cause the expense ratio to rise.

Other investment firms may lower costs as a business strategy to attract assets. For Vanguard, our unique client-owned corporate structure* is what drives the low costs of our funds. Since we are a mutually owned firm, low costs are an outcome that is directly tied to how much it costs us to manage our funds. Economies of scale and a focus on keeping operating costs low have resulted in a long track record at Vanguard of lowering costs across the board.

Serving our clients—and only our clients—makes us different. We never have to decide between passing along lower costs to our clients and announcing higher quarterly earnings to shareholders. Our clients are our only stakeholders.

As always, Vanguard continues to work hard to create value for our clients by offering high-quality investments with low costs. The tables below identify the Vanguard products that were affected along with their prior and current expense ratios. All of the products below have fiscal years ending in August and reflect Vanguard's filings with the SEC as of December 28, 2012. As prospectuses are updated for other products, there may be additional expense ratio changes.

1. ETFs

Vanguard expense ratio changes with effective dates in December 2012
Effective dateVanguard ETF®Ticker symbolOld expense ratioNew expense ratio** Change
12/27Consumer Discretionary VCR0.19%0.14%
12/27Consumer Staples VDC0.19%0.14%
12/27Energy VDE0.19%0.14%
12/27Extended Duration Treasury EDV0.13%0.12%
12/27Financials VFH0.23%0.19%
12/27Health Care VHT0.19%0.14%
12/27Industrials VIS0.19%0.14%
12/27Information Technology VGT0.19%0.14%
12/21Intermediate-Term Corporate Bond VCIT0.14%0.12%
12/21Intermediate-Term Government Bond VGIT0.14%0.12%
12/21Long-Term Corporate Bond VCLT0.14%0.12%
12/21Long-Term Government Bond VGLT0.14%0.12%
12/27Materials VAW0.19%0.14%
12/21Mortgage-Backed Securities VMBS0.15%0.12%
12/21Russell 1000 Value VONV0.16%0.15%
12/21Russell 2000 VTWO0.22%0.21%
12/21Russell 2000 Value VTWV0.33%0.32%
12/21Russell 3000 VTHR0.16%0.15%
12/28S&P Mid-Cap 400 IVOO0.17%0.16%
12/28S&P Mid-Cap 400 Value IVOV0.24%0.22%
12/28S&P Small-Cap 600 VIOO0.16%0.17%
12/28S&P Small-Cap 600 Value VIOV0.22%0.24%
12/21Short-Term Corporate Bond VCSH0.14%0.12%
12/21Short-Term Government Bond VGSH0.14%0.12%
12/27Telecommunication Services VOX0.19%0.14%
12/27Utilities VPU0.19%0.14%

2. Mutual funds

Vanguard expense ratio changes with effective dates in December 2012
Effective dateVanguard fundShare classTicker symbolOld expense ratioNew expense ratio** Change
12/28Admiral Treasury Money Market InvestorVUSXX0.12%0.10%
12/27Consumer Discretionary IndexAdmiral™VCDAX0.19%0.14%
12/27Consumer Staples IndexAdmiralVCSAX0.19%0.14%
12/27Energy IndexAdmiralVENAX0.19%0.14%
12/21Explorer Value™InvestorVEVFX0.61%0.63%
12/27Extended Duration Treasury IndexInstitutionalVEDTX0.11%0.10%
12/28Federal Money MarketInvestorVMFXX0.20%0.16%
12/27Financials IndexAdmiralVFAIX0.23%0.19%
12/27Health Care IndexAdmiralVHCIX0.19%0.14%
12/27Industrials IndexAdmiralVINAX0.19%0.14%
12/27Information Technology IndexAdmiralVITAX0.19%0.14%
12/21Intermediate-Term Corporate Bond Index Signal®VICSX0.14%0.12%
12/21Intermediate-Term Government Bond Index SignalVSIGX0.13%0.12%
12/27International GrowthInvestorVWIGX0.47%0.49%
12/27International GrowthAdmiralVWILX0.34%0.36%
12/21Long-Term Corporate Bond Index SignalVLTCX0.14%0.12%
12/21Long-Term Government Bond Index SignalVLGSX0.14%0.12%
12/27Materials IndexAdmiralVMIAX0.19%0.14%
12/27Mega Cap 300 Growth IndexInstitutionalVMGAX0.10%0.09%
12/27Mega Cap 300 IndexInstitutionalVMCTX0.10%0.08%
12/27Mega Cap 300 Value IndexInstitutionalVMVLX0.10%0.08%
12/21Mortgage-Backed Securities Index SignalVMBSX0.15%0.12%
12/28Prime Money Market InvestorVMMXX0.20%0.16%
12/21Russell 1000 Value Index InstitutionalVRVIX0.09%0.08%
12/21Russell 2000 Index InstitutionalVRTIX0.15%0.14%
12/21Russell 2000 Value Index InstitutionalVRTVX0.21%0.20%
12/21Russell 3000 Index InstitutionalVRTTX0.09%0.08%
12/28S&P Mid-Cap 400 Index InstitutionalVSPMX0.10%0.09%
12/28S&P Mid-Cap 400 Value Index InstitutionalVMFVX0.12%0.10%
12/28S&P Small-Cap 600 Index InstitutionalVSMSX0.09%0.10%
12/28S&P Small-Cap 600 Value Index InstitutionalVSMVX0.10%0.12%
12/21Short-Term Corporate Bond Index SignalVSCSX0.14%0.12%
12/21Short-Term Government Bond Index SignalVSBSX0.14%0.12%
12/27Telecommunication Services IndexAdmiralVTCAX0.19%0.14%
12/27U.S. GrowthInvestorVWUSX0.44%0.45%
12/27U.S. GrowthAdmiralVWUAX0.30%0.31%
12/27Utilities IndexAdmiralVUIAX0.19%0.14%

*Vanguard is client-owned. As a client-owner, you own the funds that own Vanguard.

**All expense ratios are as of the most recent prospectus. Generally, expense ratios are backward looking, meaning they are based on actual operating expenses reported from the prior fiscal year.

See why costs matter

Get a detailed comparison of how costs can affect your investments by using our Cost simulation tool. You can also easily analyze the cost differences between various ETFs and mutual funds.


All investing is subject to risk, including possible loss of principal.
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.
Vanguard provides its services to the Vanguard funds and ETFs at cost. More information about Vanguard funds and ETFs, including at-cost services, is available in a fund's prospectus.

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