Elect your representatives—the funds’ trustees

The most important reason we’re asking you to vote is to elect fund trustees. The trustees oversee each U.S.-based mutual fund and ensure that it is managed in your best interests.

We have a highly capable, experienced slate of nominees, including two new independent trustee candidates, Deanna Mulligan and Sarah Bloom Raskin. With the election of the new members, nearly half our board will be gender- or ethnically diverse. The research on the positive impact of diversity in the boardroom is conclusive—a diverse board is good business.

Simplify the advisor retention process

Two proposals relate to manager oversight. The independent board, in exercising its fiduciary duty to appoint the best investment advisor to manage your assets, is asking for your approval to hire external advisors and Vanguard subsidiaries without holding future shareholder votes.

As it stands today, more than 50 Vanguard funds have the flexibility to make external advisor changes without shareholder approval. We are simply proposing to extend this flexibility to all funds to retain external advisors or subsidiaries of Vanguard. We have a strong roster of external advisors in place, as well as highly skilled and competent Vanguard portfolio managers in the United Kingdom and Australia. We see considerable merit in having the flexibility across all funds to choose the optimal advisor—whether internal or external—to manage your funds. The benefits include access to an exceptionally broad range of investment expertise, greater diversity of management approaches, and the opportunity to lower fund management costs.

We need your approval; otherwise, we’d be required to hold a shareholder vote each time we want to make this type of change, which is both costly and time-consuming.

Watch a message from Bill McNabb

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Enable Vanguard to change the objective of a widely held fund

We are also seeking to change the investment objective (and benchmark) for Vanguard REIT Index Fund and the REIT Index Portfolio of the Vanguard Variable Insurance Fund. This would bring the funds into alignment with the index methodology governing our ten other sector index funds. The proposed MSCI index that would be each fund’s new target benchmark includes real estate management and development companies in addition to real estate investment trusts, thus offering broader diversification and exposure to the real estate market than the fund’s current benchmark.

You can find detailed descriptions of all the proposals here. Our overarching objective is to ensure that we can manage the funds in an efficient and effective manner, which will enable us to continue to lower the cost of investing, deliver superior investment returns, and provide a better overall investing experience at Vanguard.

We hope you’ll make it a priority to vote, as we want avoid additional costs and delay in soliciting sufficient votes should we not obtain a quorum.

Thank you for voting and thank you for investing with Vanguard.

Notes:

All investing is subject to risk, including possible loss of principal

Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility.

For more information about Vanguard funds or Vanguard ETFs, visit vanguard.com or call 800-662-2739 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.