* Source: Lipper Inc. Vanguard average expense ratio 0.20%, industry average 1.12% as of December 31, 2011.

** Source: The "Money 70" list in Money magazine's January 2012 Investor's Guide issue is based on low expenses, a strong record for putting shareholder interests first, a consistent investment strategy, and long-term performance. Vanguard had 24 individual mutual funds and exchange-traded funds as well as the Vanguard Target Retirement Fund series on the list, three times the number of ranked funds than our nearest competitor.  

Vanguard provides services to the Vanguard funds at cost. More information about Vanguard funds, including at-cost services, is available in the fund's prospectus.

Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date. Should you choose to retire significantly earlier or later, you may want to consider a fund with an asset allocation more appropriate to your situation.

You must buy and sell Vanguard ETF® Shares through a broker like Vanguard Brokerage Services (we offer them commission-free) or through another broker (you may incur commissions). Vanguard ETF Shares are not redeemable directly with an applicant fund other than in creation unit aggregations. Like stocks, ETFs are subject to market volatility. When buying or selling an ETF, you'll pay or receive the current market price, which may be more or less than net asset value.

Past performance cannot be used to predict future returns. Fund share prices will fluctuate, so investors could lose money if they sell shares when prices have fallen. See the most recent performance of our funds.

When taking withdrawals from an IRA before age 59½, you may have to pay ordinary income tax plus a 10% federal penalty tax.