Vanguard [see profile] has filed with the U.S. Securities and Exchange Commission for an actively managed emerging markets equity fund that will be managed by four advisors, each of which will initially oversee 25 percent of the fund�s assets.

The sub-advisors for the new fund include M&G Investment Management Limited; Oaktree Capital Management, L.P.; Pzena Investment Management, LLC and Wellington Management Company, LLP.

In a statement, Vanguard CEO Bill McNabb said the Vanguard Emerging Markets Select Stock Fund will offer a relatively low-cost, diversified option for investors who prefer an actively managed approach to this segment of the global market. The fund is expected to have an expense ratio of 95 basis points.

VANGUARD TO LAUNCH ACTIVELY MANAGED EMERGING MARKETS STOCK FUND WITH MULTI-MANAGED APPROACH Firm recommends �portion control� for portfolio allocations to this volatile segment

VALLEY FORGE, PA (March 28, 2011)�Vanguard has filed a registration statement with the U.S. Securities and Exchange Commission for an actively managed emerging markets equity fund that will complement the firm�s existing emerging markets index fund. The new fund will be managed by four advisors, each of which will initially oversee 25% of the fund�s assets. �The Vanguard Emerging Markets Select Stock Fund will offer a relatively low-cost, diversified option for investors who prefer an actively managed approach to this segment of the global market,� said Vanguard CEO Bill McNabb. �The new fund also provides investors with access to the best thinking of four highly regarded firms that have expertise in navigating this part of the investment world.� The advisors are: * M&G Investment Management Limited, which is an advisor to two Vanguard funds�the $5 billion Vanguard Precious Metals and Mining Fund since its inception in 1984 and a portion of the $18.3 billion Vanguard International Growth Fund since 2008. Portfolio managers Matthew Vaight and Michael Godfrey will use a valuation-based, return on capital-focused approach to create a portfolio with no country or sector constraints. * Oaktree Capital Management, L.P., which has served as advisor to the $2 billion Vanguard Convertible Securities Fund since 1996. The portfolio managers, Tim Jensen and Frank Carroll, will employ a bottom-up research process to invest in a diversified portfolio, limiting exposures by country and industry to avoid concentrated bets. * Pzena Investment Management, LLC, which has provided investment advisory services to the $47 million Vanguard U.S. Fundamental Value Fund since 2005. (This fund is domiciled in Dublin, Ireland, and is available only to non U.S. investors.) The firm will follow a deep value strategy to invest in stocks based on the research of the three portfolio managers, John Goetz, Caroline Cai, and Allison Fisch, supported by a team of analysts. * Wellington Management Company, LLP, which serves in an advisory capacity for 19 Vanguard funds representing $195 billion in assets. Wellington has partnered with Vanguard since Vanguard�s inception in 1975. Portfolio manager Cheryl Duckworth, along with the deep experience of Wellington�s team of global industry analysts, will seek to add value through in-depth fundamental research. Vanguard has offered both index and active funds for more than 35 years, and some 44% of the firm�s assets under management ($732 billion) are in 73 actively managed funds. Of Vanguard�s 29 actively managed stock funds, 15 use a multi-manager approach. The Vanguard Emerging Markets Select Stock Fund is expected to have an expense ratio of 0.95% ($9.50 for every $1,000 invested) which is 40% less than the 1.68% expense ratio of the average actively managed emerging markets fund (Source: Lipper, December 31, 2010). �The greatest hurdle for investment managers to overcome is costs, which detract from fund returns. At Vanguard, we believe that if costs are kept in check, active management can add value over time,� said Mr. McNabb. A CAUTION TO INVESTORS Given the strong absolute and relative investment returns of the emerging markets in 2010 and subsequent torrent of cash flow to emerging market funds, Vanguard is cautioning investors against chasing performance. In a recent article posted on Vanguard.com, �Practice portion control with emerging markets� (www.vanguard.com/portioncontrol) Vanguard encouraged investors to revisit their exposure to emerging markets and to question their reasons for holding the segment. �Emerging markets can be an important part of an overall investment portfolio, but we suggest that investors use market capitalization as a yardstick for the appropriate amount of an investment,� said Joseph H. Davis, Ph.D., Vanguard's chief economist and a principal in Vanguard Investment Strategy Group. �Today, emerging markets make up 25% of the international stock market, so we recommend that emerging markets represent no more than 25% of an investor�s international equity holdings.� Dr. Davis also warned that the past strong economic growth of emerging markets may not necessarily lead to exceptional stock returns in the future. A Vanguard research paper (Investing in emerging markets: Evaluating the allure of rapid economic growth, www.vanguard.com/emresearch) published in April 2010 showed that the average cross-country correlation between long-run GDP growth and long-run stock returns has been effectively zero. The Vanguard Emerging Markets Select Stock Fund will require a $3,000 minimum initial investment and is available only to individual investors who invest directly with Vanguard. As with many of its other international stock funds, Vanguard will assess a 2% redemption fee on shares held less than 60 days in an effort to deter short-term trading. The fee, which is not a load, is paid directly back to the fund to offset transaction costs. About Vanguard Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world�s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages more than $1.6 trillion in U.S. mutual fund assets, including $152 billion in ETF assets. Vanguard offers more than 170 funds to U.S. investors and more than 60 additional funds in non-U.S. markets. # # #

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. For more information about Vanguard funds, visit www.vanguard.com, or call 800-662-7447, to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing. Copies of the final prospectus can be obtained from Vanguard. Please note that a preliminary prospectus is subject to change. Mutual funds are subject to risks, including possible loss of principal. Foreign investing involves additional risks including currency fluctuations and political uncertainty. Stocks of companies in emerging markets are generally more risky than stocks of companies in developed countries.

All asset figures are as of February 28, 2011, unless otherwise noted. Vanguard Marketing Corporation, Distributor.

--------------------------------- Rebecca Katz Principal -- Public Relations Vanguard work- 610.503.2273 mobile - 484.947.3956 www.vanguard.com/pressroom

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