New Vanguard ETF Tracking MSCI EAFE Index Begins Trading

  
    
  
  
    
      Vanguard® Europe Pacific ETF, which seeks to 
      track the performance of the MSCI EAFE Index (Europe, Australasia, Far 
      East), is now available for investor purchase. The ETF is trading under 
      the ticker symbol VEA on the American Stock Exchange.
    
    
      Vanguard Europe Pacific ETF holds 1,134 securities and has an expense 
      ratio of 0.15%, making it lower-cost and more broadly diversified than 
      the other ETF available today seeking to track the MSCI EAFE Index.*
    
    
      The new offering is a share class of Vanguard Tax-Managed International 
      Fund, which was introduced in 1999 and has $2.3 billion in total net 
      assets.
    
    
      Vanguard ETFsTM feature a novel structure as a 
      separate share class of existing index mutual funds, rather than as 
      stand-alone funds or unit investment trusts. This structure provides for 
      lower expense ratios through economies of scale and broader 
      diversification among securities than competing products, resulting in 
      the potential for more precise benchmark tracking.
    
    
      MSCI Barra (www.msicbarra.com) 
      develops and maintains equity, hedge fund and REIT indices that serve as 
      benchmarks for an estimated USD 3 trillion on a worldwide basis. MSCI 
      Barra’s risk models and analytics products 
      help the world’s largest investors analyze, 
      measure and manage portfolio and firm-wide investment risk. MSCI Barra 
      is headquartered in New York, with research and commercial offices 
      around the world. Morgan Stanley, a global financial services firm and a 
      market leader in securities, asset management, and credit services, is 
      the majority shareholder of MSCI Barra, and Capital Group International, 
      Inc. is the minority shareholder.
    
    
      The Vanguard Group, headquartered in Valley Forge, Pennsylvania, is the 
      nation’s second-largest mutual fund firm and a 
      leading provider of company-sponsored retirement plan services. Vanguard 
      manages nearly $1.3 trillion in U.S. mutual fund assets, including more 
      than $325 billion in employer-sponsored retirement plans. Vanguard 
      offers more than 140 funds to U.S. investors and more than 40 additional 
      funds in foreign markets.
    
    
      *Source: Bloomberg, June 21, 2007. The expense ratio for Vanguard Europe 
      Pacific ETF is 0.15%, compared with that of the competitor ETF, at 
      0.35%. The Europe Pacific ETF has nearly 40% more holdings than the 
      competitor ETF—1,134 holdings versus 824 
      (Source: FactSet, June 30, 2007).
    
    
      All asset figures are as of June 30, 2007, unless otherwise noted.
    
    
      Diversification does not ensure a profit or protect against a loss in a 
      declining market.
    
    
      Vanguard ETF Shares can be bought and sold only through a broker (who 
      will charge a commission) and cannot be redeemed with the issuing fund. 
      The market price of Vanguard ETF Shares may be more or less than net 
      asset value.
    
    
      All funds and ETF products are subject to stock market risk, which may 
      result in the loss of principal. International funds and ETF products 
      involve additional risks, including currency fluctuations and the 
      potential for adverse developments in specific countries or regions. 
      Stocks of companies in emerging markets are generally more risky than 
      stocks of companies in developed countries.
    
    
      For more information, visit www.vanguard.com, 
      or call 800-662-7447 to obtain a fund prospectus. Visit our website, 
      call 800-992-8327, or contact your broker to obtain a product 
      description and prospectus for Vanguard ETF Shares. Investment 
      objectives, risks, charges, expenses, and other important information 
      about a fund are contained in the prospectus; read and consider it 
      carefully before investing.
    
    
      The funds or securities referred to herein are not sponsored, endorsed, 
      or promoted by MSCI, and MSCI bears no liability with respect to any 
      such funds or securities. For any such funds or securities, the 
      prospectus or the Statement of Additional Information contains a more 
      detailed description of the limited relationship MSCI has with The 
      Vanguard Group and any related funds.
    
    
      Vanguard, Vanguard ETFs, and the ship logo are trademarks of The 
      Vanguard Group, Inc. All other marks are the exclusive property of their 
      respective owners.
    
    
      U.S. Pat. No. 6,879,964 B2.
    
    
      Vanguard Marketing Corporation, Distributor.