Vanguard PRIMECAP Core Fund As of June 30, 2013

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1 Product Summary Multi-cap equity, investing in a broad spectrum of stocks covering both growth and value stocks and a range of industries. Seeks long-term capital appreciation. Invests in out-of-favor companies at attractive valuations. Fundamental, research-driven stock selection process. Five managers develop separate subportfolios. Note: This fund is closed to new investors. Vanguard Vanguard Style View Large Blend n Expected range of fund holdings n Central tendency Stocks: Diversified multi-cap portfolio of growth and value stocks across industry sectors. People and Process Vanguard seeks to provide long-term capital appreciation through investments in companies at attractive valuation levels. The fund employs a fundamental, research-driven approach in seeking to identify companies with long-term potential overlooked by the market. The fund has the flexibility to invest across all industry sectors and market capitalizations. Each of six portfolio managers independently manages a portion of the fund, searching out stocks that offer a balance between reasonable valuations and attractive earnings-growth prospects. Management Company Founded in 1983, Management Company, Pasadena, California, is recognized for its long-term approach to growth equity investing. The firm has advised Vanguard since Investment Manager Biographies Joel P. Fried, President Worked in investment management since B.S., University of California, Los Angeles. M.B.A., Anderson Graduate School of Business, University of California, Los Angeles. Theo A. Kolokotrones, Vice Chairman Worked in investment management since B.A., University of Chicago. Mitchell J. Milias, Chairman Worked in investment management since B.S., Stanford University. Alfred W. Mordecai, Executive Vice President Worked in investment management since B.S.E., Duke University. M.E.A., Virginia Polytechnic Institute and State University. M. Mohsin Ansari, Senior Vice President Advised the fund since Worked in investment management since B.A., Colgate University. B.S., Washington University.

2 Vanguard Quarterly Commentary U.S. equity markets delivered modest gains for the second quarter despite the volatility seen in June after Federal Reserve Chairman Ben Bernanke indicated that the Fed might begin tapering off its bond buying program later this year. The returned 2.70% for the three months. The rose 3.20%, outperforming both its benchmark and the average return of its peers. The fund s relative outperformance was primarily attributable to good stock selection in information technology. An overweight allocation to the relatively strong health care sector and underweightings of the weaker energy and consumer staples sectors also helped. Tempering relative performance were poor stock selection in health care and underweight exposure to the financial sector, which had a strong quarter. Relative to the index, the fund benefited most from its underweighting of Apple ( 10%), as investors remained concerned about the company s future product offerings and increasing competition from Google and Samsung. Also helpful were an overweight position in Electronic Arts (+30%) and an underweighting of IBM ( 10%). Intuit ( 7%) and Research in Motion ( 28%) subtracted from performance in the information technology sector, however. Despite the overall poor stock selection in health care, Biogen (+12%) was a top contributor to the fund s performance, rising on the launch of a new multiple sclerosis drug. On the other hand, Eli Lilly ( 13%) and Amgen ( 3%) were among the fund s top detractors for the quarter. For the 12 months ended June 30, the returned 27.50%, outperforming its benchmark index (+20.85%) and peer average (+21.45%). Very strong stock selection in information technology contributed most, especially the underweighting of Apple ( 31%) and overweighting of Google (+52%). Solid selection in health care combined with an overweighting of the relatively strong sector also contributed notably to the fund s outperformance. Biogen (+49%), Amgen (+38%), and Roche (+49%) were among top contributors. Restraining performance slightly were overweight exposure to the relatively weak information technology sector and an underweighting of the very strong financial sector. Total Returns Quarter Year to Date 1 Year 3 Years 5 Years Since Inception (12/9/2004) 3.20% 16.81% 27.50% 18.19% 8.59% 8.31% Multi-Cap s Average Since the fund s inception, 12/9/ Since the fund s inception, 12/9/2004. Figures for periods of less than one year are cumulative returns. All other figures represent average annual returns. Performance figures include the reinvestment of all dividends and any capital gains distributions. All returns are net of expenses. Note: Average fund returns are derived from data provided by Lipper Inc.

3 Vanguard Quarterly Returns Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year-End Assets (Millions) % 3.20% $5, % 3.17% 14.57% 16.18% 4, , , , , , , , Since inception of the share class, 12/9/2004. Fund Facts Fund Number 1220 Ticker VPCCX Newspaper Listing PrmcpCor CUSIP Number Assets (millions) $5,377 Inception 12/9/2004 Expense Ratio (as of 1/2013) 0.50% SEC 30-Day Yield 1.33% Risk Statement The fund will typically be diversified across the capitalization spectrum. However, as much as 30% to 40% of fund assets may be concentrated in the top 10 holdings at times. In addition, the advisor s emphasis on identifying companies with long-term potential overlooked by the market may lead to concentrations in certain industries. The fund is exposed to the generally higher risks inherent with investments in mid- and small-cap stocks, relative to large-cap stocks. The fund may invest up to 20% of assets in international stocks, which carry added risks not found in domestic investments. Volatility Measures R-squared Beta Dow Jones U.S. Total Stock Market Float Adjusted Index R-squared and beta are calculated from trailing 36-month fund returns relative to the associated benchmark.

4 Vanguard Equity Characteristics Number of Stocks Median Market Cap $51.6 Billion $49.7 Billion P/E Ratio 19.9x 17.7x P/B Ratio 3.1x 2.4x Return on Equity 18.5% 17.4% Earnings Growth Rate 13.0% 10.8% Foreign Holdings 13.9% 0.0% Short-Term Reserves 4.1% Turnover Rate (Fiscal Year End 9/2012) 10.1% Top 10 Largest Holdings % of Total Net Assets Amgen Inc. 5.2% Roche Holding AG 5.0 Biogen Idec Inc. 3.5 Google Inc. 3.4 Eli Lilly & Co. 3.2 Novartis AG 2.9 Marsh & McLennan Cos. Inc. 2.8 Johnson & Johnson 2.7 Texas Instruments Inc. 2.4 Medtronic Inc. 2.4 Total 33.5% The holdings listed exclude any temporary cash investments and equity index products. Sector Diversification (% of Stocks) Overweight/ Underweight Consumer Discretionary 10.6% 12.8% -2.2 Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Total 100.0% 100.0% Sector categories are based on Vanguard's classification system.

5 Disclosures Past performance especially short-term past performance cannot be used to predict future returns. Investment returns and principal value (with the exception of money market funds, which seek to maintain a stable $1 per share net asset value) will fluctuate, so that investors shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund. All funds subject to risk. The structured equity mandates are managed by Vanguard Fiduciary Trust Company, a subsidiary of The Vanguard Group. 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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 work force. The Fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in the Target Retirement Fund is not guaranteed at any time, including on or after the target date. B2013Q The Vanguard Group, Inc. All rights reserved. U.S. Pat. No. 6,879,964 B2; 7,337,138; 7,720,749; 7,925,573; 8,090,646. Vanguard Marketing Corporation, Distributor.