Investment Guide -...

Here’s some general information

that you may want to consider

when making investment decisions

in the Chevron Employee Savings

Investment Plan (ESIP).

Know the Basic Asset Classes

Part of investing wisely is a matter of holding a variety

of investments, that is, diversifying your investments.

Naturally you want some investments that can benefit

from market upswings. But those investments also tend

to be most vulnerable to market declines, so you may

want to consider offsetting their risks by including more

conservative investments in your mix.

The three main asset classes — stocks, bonds and

short-term reserves — carry different risks and

potential returns. By following a few easy steps,

you can combine them to create an investment mix

with a risk-reward balance that’s right for you.

Stocks represent partial ownership of a corporation.

A stock can increase or decrease in value through a rise

or fall in the market price of its shares. Many stocks also

pay dividends.

Key risk: Stock prices move unpredictably based on the

issuing company’s performance, market swings and the

state of the economy. Stocks have historically yielded

the highest returns over the long term but can also

experience prolonged downturns.

Bonds are loans made to a company, government or

government agency. The borrower, or issuer, agrees to

repay the principal after a certain period and also to

make regular interest payments along the way.

Key risk: If interest rates increase, bond prices usually

fall. Conversely, if rates fall, bond prices go up.

Short-term reserves are short-term loans to creditworthy

borrowers. They are designed to conserve the principal

value of your investment and provide income that rises

and falls with short-term interest rates. Examples are

U.S. Treasury bills, certificates of deposit (CDs) and

money market funds.

Key risk: Short-term reserves are conservative. They

usually generate the lowest returns and, as a result,

are vulnerable to the effects of inflation.

Investment Guide

1

2

Be Risk Aware, Not Risk Averse

Many people make safety their #1 priority when investing. But even safety carries a risk. While short-term reserves

offer the least risk, they have historically generated the lowest returns. What’s more, most of their gains are typically

eaten away by inflation. As you can see in the chart below, safety can have a downside.

Average Annual Returns Before and After Inflation: 1926 — 2015

Return Before Inflation Inflation Rate Real Return (After Inflation)

Stocks 10.1% 2.9% 7.2%

Bonds 5.4% 2.9% 2.5%

Short-term reserves 3.5% 2.9% 0.6%

The performance data shown represent past performance, which is not a guarantee of future results. When determining which index to use and for what period, we selected the index that we deemed to fairly represent the characteristics of the referenced market, given the available choices. For U.S. stock market returns, we use the Standard & Poor’s 90 Index from 1926 to March 3, 1957; the Standard & Poor’s 500 Index from March 4, 1957, to 1974; the Wilshire 5000 Index from 1975 to April 22, 2005; the MSCI US Broad Market Index through June 2, 2013; and the CRSP U.S. Total Market Index thereafter. For U.S. bond market returns, we use the Standard & Poor’s High Grade Corporate Index from 1926 to 1968; the Citigroup High Grade Index from 1969 to 1972; the Lehman Brothers U.S. Long Credit AA Index from 1973 to 1975; the Barclays U.S. Aggregate Bond Index from 1976 to 2009; and the Spliced Barclays U.S. Aggregate Float Adjusted Bond Index thereafter. For U.S. short-term reserves, we use the Ibbotson U.S. 30-Day Treasury Bill Index from 1926 to 1977, and the Citigroup 3-Month Treasury Bill Index thereafter. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest. Index performance is not illustrative of any particular investment because you cannot invest in an index.

Source: Vanguard.

The longer your investment time frame, the more you may want to consider focusing on long-term results rather

than on short-term risks. In other words, the further you are from retirement, the more you may want to consider

taking the risk of investing in stocks. Not convinced? Stocks have had the highest real return — that is, the return

after subtracting the rate of inflation. In the modern history of the financial markets, stocks have had a real return

of 7.2 percent; bonds a real return of 2.5 percent; and short-term reserves a real return of 0.6 percent.

Help With Selecting Funds

You can get assistance in determining an investment mix that fits your investment objective, time horizon and risk

tolerance by following one of these investment advice approaches. You have the option to use any of these Vanguard®

tools and services to help you determine an investment strategy, or you can decide to choose funds on your own.

Advice and Investment Management, Powered by Financial Engines

Vanguard offers two services sponsored by Financial Engines that can help you invest and manage your money.

Personal Online Advisor helps you choose investments to create your own portfolio. The Vanguard Managed Account

Program (VMAP™), in contrast, will actually select investments and manage them for you.

Both Financial Engines services can be customized to suit your individual needs:

• You can indicate when you expect to retire, how much investing risk you can live with, even how much Company

stock (within limits) you want to include in your holdings.

• We know that your Chevron plan may not be the only source of your retirement savings. That’s why Financial

Engines gives you the option of having information about other assets, such as IRAs, other employer retirement plan

accounts, and your spouse’s accounts reflected in the recommendations it makes for you.

Personal Online Advisor

If you’re comfortable using online tools and would like specific fund recommendations, then Personal Online Advisor,

an independent online investment advisory service, may be for you. This service, developed by Nobel Prize–winning

economist William F. Sharpe, is offered at no additional cost to ESIP participants through an arrangement with

Financial Engines and Vanguard.

In addition to selecting your funds, Personal Online Advisor, accessible through vanguard.com, helps you monitor your

investments and forecasts your chance of reaching your retirement goals. Personal Online Advisor considers inflation, taxes,

fund expenses and other household investments to recommend a portfolio that’s consistent with your desired risk level.

Personal Online Advisor will automatically load your name, date of birth, estimated Chevron Retirement Plan benefit

and ESIP Target Retirement Trust, core and supplemental account balances when you sign up. If you use the Vanguard

Brokerage Option (VBO®) in the ESIP, you need to enter your VBO balance information manually. (Several layers of

security built into the Personal Online Advisor service are designed to protect your confidential data.) The recommendations

you receive will reflect the unique characteristics of the ESIP, including fund lineup, plan limits and company

matching contributions.

How to Enroll in Personal Online Advisor

Log on to your account at vanguard.com/retirementplans to reach the Welcome page. Next, select Review my

performance and then Get help planning for retirement. Select the Do It Yourself tab and, under “Personal Online

Advisor,” click the Get Started button.

Vanguard Managed Account Program, Powered by Financial Engines

Note: The Vanguard Managed Account Program is not available to U.S. expatriates while living outside of the U.S.

If you are looking for professional help choosing funds, plus you want your account professionally managed for you —

the ESIP offers the Vanguard Managed Account Program.

The service will select your funds, invest your money and periodically make changes to your asset mix to suit your

personal goals. The service then monitors your investments to keep your program on track. If you have money saved

outside of your retirement plan, the service can also consider this when developing your personalized investment strategy.

You’ll get to preview your proposed strategy before any initial changes are made to your account, and you’ll receive a

quarterly portfolio report. With the Managed Account Program you’ll always receive clear, objective and personalized

investment management from an independent advisor.

If you are currently enrolled in the Managed Account Program, you can customize it to suit your own individual needs

by logging on to your account at vanguard.com/retirementplans and selecting the Managed icon next to the plan

name or by speaking with a Vanguard Participant Services associate at 1-800-523-1188.

The Managed Account Program is optional and is offered at a low annual fee, based on your ESIP balance. Your fee is

determined as follows:

0.35% for the first $100,000 of your balance0.25% for the next $150,000 of your balance0.15% for the next $250,000 of your balance0.10% on your balance over $500,000

There is a minimum annual fee of $60.

Note: You should understand that participating in the Managed Account Program could reduce your balance in

the Chevron Common Stock Fund. Before you enroll in the program, you may want to review the Vanguard Can Serve

Your Investing Needs brochure, which you can access online at vanguard.com/chevroninvest, or call a Vanguard

Participant Services associate.3

How to Enroll in the Managed Account Program

Visit financialengines.com/forchevron or call Vanguard through the HR Service Center at 1-888-825-5247 and

select option 1. Associates are available from 5:30 a.m. to 6 p.m., Pacific time (7:30 a.m. to 8 p.m., Central time),

Monday through Friday, except on stock market holidays.

Vanguard Financial Planning Services

Note: Vanguard Financial Planning Services are not available to U.S. expatriates while living outside of the U.S.

Ask an Advisor™

Vanguard Financial Planning Services lets you connect directly with a financial advisor who can help you over

financial planning hurdles.

You get quick — in most cases, immediate — responses to your personal finance questions. No matter what the topic,

you receive professional advice at no additional cost to you.

Note: A phone call to a financial advisor can provide quick responses to specific questions. It is not a substitute

for a comprehensive financial plan.

Vanguard Financial Plan

For more extensive help, Vanguard Financial Planning Services provides a personalized financial plan and

a phone consultation with a salaried professional who receives no commission for his or her recommendations.

Your Vanguard financial advisor can give you specific recommendations to help you reach your long-term goals.

4

This service is offered to all ESIP investors at a fee of up to $1,000, depending on your total Vanguard balance.

However, there may be more appropriate planning services available to investors with less than $50,000 in

advisable assets at Vanguard. Please contact Vanguard at 1-888-825-5247, option 1, to speak with an associate

about these available options.

Total Vanguard Assets Financial Plan Fee* Annual Checkup

Less than $50,000 $ 1,000 Not available

$50,000 to $250,000 $ 250 Included

$250,000 or more Fee waived** Included

*Your fee or fee waiver will be determined by aggregating assets of all eligible accounts held by you and your immediate family members who reside at the same address. Assets include money in employer-sponsored retirement plans (such as yours) for which Vanguard provides recordkeeping services, and investments in Vanguard mutual funds, Vanguard ETFs®, annuities through Vanguard, The Vanguard 529 Plan and certain small-business accounts. All pricing is subject to change without notice. Fee is waived for participants age 50 and older, regardless of total Vanguard assets, and for participants with $250,000 or more in total Vanguard assets, regardless of age.

**Fee waiver applies to one financial plan per household for a 12-month period.

You May Qualify for a Free Plan

You can get a Vanguard Financial Plan free of charge if you satisfy either of the following requirements:

• You will be age 50 or older by the end of this year.

• You have $250,000 or more in investable assets—including money outside your ESIP account—at Vanguard.

This offer also includes an annual checkup by a financial advisor for as long as you have an ESIP account.

Speak with a Vanguard associate for more information.

Choose Investments on Your Own

If you would prefer to select investments on your own, consider following these steps.

First, get an idea of your comfort level with investment risk by completing the Investor Questionnaire below.

Your answers will lead you to a recommended asset mix.

Then, you can choose investments by following “Vanguard’s Suggested Investment Mixes” on Page 9. For a

brief description of all the investments available in the plan, see “Your Investment Options,” which begins on

Page 12. You can also review the ESIP investment options in more detail on the enclosed fact sheets. To find

performance information for the ESIP’s investment options, log on to your account at vanguard.com

/retirementplans, go to the Research Funds tab, and select Funds in My Plan from the dropdown menu.

Investor Questionnaire

5

Answer the questions on the following pages with one specific financial goal in mind, such as retirement. Don’t

use this questionnaire for goals that require you to spend all of your money for the goal within the next two years.

Savings for short-term objectives should be invested in more stable investments — primarily short-term reserves.

To determine your investment approach for other goals, fill out the questionnaire as many times as you like, with

a different goal in mind each time.

Terms and Conditions of Use for Vanguard’s Investor Questionnaire

This questionnaire is designed to help you decide how to allocate the assets in your retirement plan among

different asset classes (stocks, bonds and short-term reserves). You are under no obligation to accept the

suggestions provided by the questionnaire.

The suggestions provided are based on generally accepted investment principles. There is no guarantee, however,

that any particular asset allocation will meet your investment objectives or provide you with a given level of

retirement income. All investments involve risks, and fluctuations in the financial markets and other factors may

cause declines in the value of your plan account.

Please bear in mind that the suggested asset allocation is only one of many possible allocations. Other allocations

or different percentages of the allocations could also be used. You should carefully consider all of your options.

This investment-planning tool is provided to you at no charge by Vanguard. It does not provide comprehensive

investment or financial advice. In applying the suggestions to your particular situation, you should consider your

other assets and investments. As your financial circumstances or goals change, it may be helpful to complete the

Investor Questionnaire again to see if your suggested asset allocation has changed. Vanguard is not responsible

for reviewing your financial situation or updating the suggestions contained here. By using this investment-

planning tool, you acknowledge that you have read and understood the information above and that you agree to

these terms and conditions.

1. I plan to begin taking money from my investments in . . .

A. Less than 1 year D. 6–10 years

B. 1–2 years E. 11–15 years

C. 3–5 years F. More than 15 years

2. As I withdraw money from these investments,

I plan to spend it over a period of . . .

A. 2 years or less D. 11–15 years

B. 3–5 years E. More than 15 years

C. 6–10 years

3. When making a long-term investment, I plan to keep

the money invested for . . .

A. 1–2 years D. 7–8 years

B. 3–4 years E. More than 8 years

C. 5–6 years

4. From September 2008 through November 2008,

stocks lost more than 31 percent of their value. If I

owned a stock investment that lost about 31 percent

of its value in three months, I would . . . (If you owned

stocks during this period, please select the answer

that matches your actions at that time.)

A. Sell all of the remaining investment

B. Sell some of the remaining investment

C. Hold on to the investment and sell nothing

D. Buy more of the investment

5. Generally, I prefer an investment with little or no ups

or downs in value, and I am willing to accept the lower

returns these investments may make.

A. I strongly disagree D. I agree

B. I disagree E. I strongly agree

C. I somewhat agree

6. When the market goes down, I tend to sell some

of my riskier investments and put the money in

safer investments.



C. I somewhat agree

7. Based only on a brief conversation with a friend,

coworker, or relative, I would invest in a mutual fund.



C. I somewhat agree

8. From September 2008 through October 2008, bonds

lost nearly 4 percent of their value. If I owned a bond

investment that lost almost 4 percent of its value in two

months, I would . . . (If you owned bonds during this

period, please select the answer that matches your

actions at that time.)

A. Sell all of the remaining investment

B. Sell some of the remaining investment

C. Hold on to the investment and sell nothing

D. Buy more of the investment

Investor Questionnaire

6

9. The chart below shows the highest one-year loss and

the highest one-year gain on three different hypothetical

investments of $10,000.* Given the potential gain or loss

in any one year, I would invest my money in . . .

A. Investment A

B. Investment B

C. Investment C

*The maximum gain or loss on an investment is impossible to predict. The ranges shown in the chart are hypothetical and are designed solely to gauge an investor’s risk tolerance.

10. My current and future income sources (such as salary,

Social Security, pension) are . . .

A. Very unstable D. Stable

B. Unstable E. Very stable

C. Somewhat stable

11. When it comes to investing in stock or bond mutual

funds (or individual stocks or bonds), I would describe

myself as . . .

A. Very inexperienced D. Experienced

B. Somewhat inexperienced E. Very experienced

C. Somewhat experienced

Assumptions

Investment returns for the asset allocations are based on

the following benchmark indexes:

Asset class Benchmark index

Short-term reserves: Citigroup 3-Month U.S. Treasury

Bill Index*

Bonds: Barclays U.S. Aggregate Float

Adjusted Index**

Stocks: MSCI US Broad Market Index=

Source: Vanguard.

*For U.S. short-term reserves, we use the Ibbotson U.S. 30-Day Treasury Bill Index from 1926 to 1977 and the Citigroup 3-Month U.S. Treasury Bill Index thereafter.

**For U.S. bond market returns, we use the Standard & Poor’s High Grade Corporate Index from 1926 to 1968; the Citigroup High Grade Index from 1969 to 1972; the Lehman Brothers U.S. Long Credit AA Index from 1973 to 1975; the Barclays U.S. Aggregate Bond Index from 1976 through December 31, 2009; and the Barclays U.S. Aggregate Float Adjusted Index thereafter.

=For U.S. stock market returns, we use the Standard & Poor’s 90 Index from 1926 to March 3, 1957; the Standard & Poor’s 500 Index from March 4, 1957, to 1974; the Wilshire 5000 Index from 1975 to April 22, 2005; and the MSCI US Broad Market Index thereafter.

Annual returns and inflation for a given asset allocation

are based on historical data from 1926 through the last

calendar year. Past performance is not a guarantee or a

prediction of future results.

$3,000

$2,000

$1,000

$0

$4,000

$5,000

–$3,000

–$4,000

–$2,000

–$1,000

$1,921

B

–$1,020

–$3,639

C

$4,229

A

$593

–$164

7

Limitations

As you use the questionnaire, keep the following limitations in mind:

• The suggested asset allocations within the questionnaire depend on subjective factors such as your risk tolerance

and financial situation. For this reason, you should view them only as broad guidelines for how you might consider

investing your savings. It’s important to review historical returns of short-term investments, bonds and stocks

carefully over various holding periods to see if you can accept the level of risk in a given investment mix.

• The asset allocations are limited to three broad classes of investments: short-term reserves (such as money market

accounts and certificates of deposit), bonds and stocks. They don’t include other assets, such as real estate, personal

property or precious metals.

• The investment returns represented in the questionnaire are based on historical index returns from 1926 through

the last calendar year and do not reflect the effects of any investment expenses or taxes.

• Any modifications to your current mix of investments should be made gradually to lessen the impact of significant

market changes and potential tax effects.

• The Investor Questionnaire is intended to provide guidelines to help you design a savings and investment program.

It doesn’t provide comprehensive investment advice, such as advice on buying a specific stock or bond, and

shouldn’t be considered the sole or primary basis on which you make investment decisions. You may wish to consult

a professional investment advisor, accountant, attorney or broker before making an investment.

• Your financial projections greatly depend on your assumptions, especially for inflation rate, investment expenses,

taxes and investment return. It’s difficult to forecast such rates and returns accurately, especially over long

periods. Therefore, it’s critical that you update your projections periodically to accommodate any changes in

your assumptions.

• The longer your time horizon, the more likely it is that any change in your assumptions will have a significant impact

on your results. Even small changes can lead to substantial variations in results over time. A 1 percent change in your

investment return can have a significant impact on your ability to meet your retirement goals over the long term.

• Financial projections aren’t mistake-proof and can’t ensure specific future results. Changes in tax or benefit laws,

investment markets or your own financial situation can cause actual results to deviate substantially from your

projection. To address this uncertainty, you should create several retirement scenarios, with various sets of

assumptions, to evaluate a wide range of possible outcomes.

Answer Key

Use the following answer key to score your questionnaire. For example, if you answered “C” to question 1, give

yourself 4 points. Use your score to find your suggested mix on the next page.

A B C D E F Points

1. 0 1 4 7 12 17

2. 0 1 3 5 8 –

3. 0 1 3 5 7 –

4. 1 3 5 6 – –

5. 6 5 3 1 0 –

6. 5 4 3 2 1 –

7. 5 4 3 2 1 –

8. 1 3 5 6 – –

9. 1 3 5 – – –

10. 1 2 3 4 5 –

11. 1 2 3 4 5 –

Add up your score and enter it here:

8

Vanguard’s Suggested Investment Mixes

Overall Score Suggested Mix Asset Allocations

Inco

me

7–22 points 100% bonds

23–28 20% stocks 11% large-cap U.S. stocks 5% small- or mid-cap U.S. stocks 4% international stocks 80% bonds

29–35 30% stocks 17% large-cap U.S. stocks 7% small- or mid–cap U.S. stocks 6% international stocks 70% bonds

Bal

ance

d




Gro

wth



69–75 100% stocks 56% large-cap U.S. stocks 24% small- or mid-cap U.S. stocks 20% international stocks

Stocks Bonds9

Investment Options at a Glance

Chevron has organized your investment options into four tiers to help you make investment decisions.

Target Retirement Trusts: All-in-one Investments

The Vanguard Target Retirement Trusts Plus are a family of target-date investments that provides an opportunity to

create a diversified portfolio containing both stocks and bonds with a single investment. Each trust gradually changes

its investment mix from more aggressive to more conservative over time, which may make it possible for a single

Target Retirement Trust to serve your investing needs throughout both your career and retirement. Even though

Target Retirement Trusts simplify the investment process, they still require some monitoring to ensure the portfolio

is in line with your current situation.

Each Target Retirement Trust invests in several Vanguard funds to form a broadly diversified mix of stocks, bonds, and

short-term reserves. Be aware that diversification does not ensure a profit or protect against a loss. The year in a

Target Retirement Trust’s name is its target date — the approximate year in which an investor in the trust expects to

retire and leave the workforce. For example, the 2040 Trust is managed with the expectation that the investor will

retire in or around 2040.

Investments in Target Retirement Trusts are subject to the risks of their underlying funds. An investment in a Target

Retirement Trust is not guaranteed at any time, including on or after the target date. Bond funds are subject to the

risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates

or negative perceptions of an issuer’s ability to make payments.

Consider choosing the trust with the date that’s closest to the year when you expect to retire. If you are already

retired, consider choosing Vanguard Target Retirement Income Trust Plus. This trust is designed to provide retirees

with current income and some capital appreciation.

Core Investments

The core investment lineup includes a broad range of investment options that, when used in combination, can provide

significant diversification. You can select from a variety of money market, bond and stock investment options to create

a portfolio that you believe is right for your investment objective, time horizon and risk tolerance. With the exception

of a money market fund and Chevron stock, the core lineup is composed of passive index investments. These are

investment options that seek to track the investment performance of specific indexes, such as the Standard & Poor’s

500 Index.

Supplemental Investments

If you want more investment flexibility and diversification, you can also invest in supplemental investments. These

options are actively managed, which means that the manager seeks to outperform the market or a specific market

segment. If you invest in supplemental investments, you will have the same access to account services that you get

with core investments, such as Financial Engines investment advice and integrated account information on your

statements and online.

Vanguard Brokerage Option

For even greater choice in your investment decision-making, you may want to use the brokerage option. With this

option you open an account with Vanguard Brokerage Services®. Then, you can invest a portion of your ESIP savings

in thousands of mutual funds and exchange-traded funds (ETFs) from Vanguard and other companies that are not

included in your core or supplemental investment options. You pay a $50 annual fee for this option. Keep in mind that

the risks can be substantially different with this strategy — and you’ll be responsible for paying commissions and other

costs. Also, your plan may have specific provisions and restrictions that apply to these accounts.

11

12

Plan Assets Eligible for VBO

You can invest up to 50 percent of your vested plan balance. To learn more about investing and the general risks of

Vanguard funds, go online to vanguard.com/retirementplans.

Your Investment Options

Within each of the following tiers, the investment options are listed by overall risk level, which takes into account the

different types of risk applicable to each fund’s asset class and investment style. The expense ratio is the annual cost

of running the investment, expressed as a percentage of the investment’s average net assets, as of the most recent

fund prospectus. For the Vanguard Target Retirement Trusts and Vanguard Developed Markets Index Fund, this is an

average weighted expense ratio, based on expenses incurred by the Vanguard funds that make up the trust or fund.

Target Retirement Trusts: All-in-one Investments

Investment Name Type Objective Risk Level Expense Ratio*

Vanguard Target Retirement

2060 Trust Plus

Balanced (stocks

and bonds)

Seeks to provide capital appreciation

and current income consistent with

its current asset allocation.

Moderate to

aggressive

0.06%


2055 Trust Plus

Balanced (stocks

and bonds)




Moderate to

aggressive

0.06%


2050 Trust Plus

Balanced (stocks

and bonds)




Moderate to

aggressive

0.06%


2045 Trust Plus

Balanced (stocks

and bonds)




Moderate to

aggressive

0.06%


2040 Trust Plus

Balanced (stocks

and bonds)




Moderate to

aggressive

0.06%


2035 Trust Plus

Balanced (stocks

and bonds)




Moderate to

aggressive

0.06%


2030 Trust Plus

Balanced (stocks

and bonds)




Moderate to

aggressive

0.06%


2025 Trust Plus

Balanced (stocks

and bonds)




Moderate 0.06%


2020 Trust Plus

Balanced (stocks

and bonds)




Moderate 0.06%


2015 Trust Plus

Balanced (stocks

and bonds)




Moderate 0.06%


2010 Trust Plus

Balanced (stocks

and bonds)




Moderate 0.06%


Income Trust Plus

Balanced (stocks

and bonds)

Seeks to provide current income and

some capital appreciation.

Conservative to

moderate

0.06%

*As of December 31, 2016. Source: Vanguard.

Core Investments

Fund Name Type Objective Risk Level Expense Ratio*

Vanguard Federal

Money Market Fund

Investor Shares

Money market Seeks to provide current income while

maintaining liquidity and a stable share

price of $1.

Conservative 0.11%

State Street U.S. Inflation

Protected Bond Index

Non-Lending Series Fund

Class C

Bond Seeks an investment return that approximates

as closely as practicable, before expenses, the

performance of the Barclays U.S. Treasury

Inflation Protected Securities Index over

the long term.

Conservative

to moderate

0.06%

Vanguard Institutional

Total Bond Market

Index Trust

Bond Seeks to track the performance of the Barclays

U.S. Aggregate Float Adjusted Bond Index by

currently investing all its assets in Institutional

Select shares of the Vanguard Total Bond Market

Index Fund.

Conservative

to moderate

0.021%

Vanguard Short-Term Bond

Index Fund Institutional

Plus Shares

Bond Seeks to track the performance of a market-

weighted bond index with a short-term dollar-

weighted average maturity.

Conservative

to moderate

0.04%


500 Index Trust

Domestic stock Seeks to track the performance of the Standard &

Poor’s 500 Index, a widely recognized benchmark

of U.S. stock market performance that is

dominated by the stocks of large U.S. companies,

by currently investing all its assets in Institutional

Select shares of the Vanguard 500 Index Fund.

Moderate to

aggressive

0.012%


Total Stock Market

Index Trust

Domestic stock Seeks to track the performance of the CRSP US

Total Market Index, which represents approximately

100% of the investable U.S. stock market and

includes large-, mid-, small-, and micro-cap stocks

regularly traded on the New York Stock Exchange

and Nasdaq, by currently investing all its assets in

Institutional Select shares of the Vanguard Total

Stock Market Index Fund.

Moderate to

aggressive

0.015%

Vanguard Total World

Stock Index Fund

Institutional Shares

Global stock Seeks to track the performance of the FTSE

Global All Cap Index, a free-float-adjusted,

market-capitalization-weighted index designed

to measure the market performance of large-,

mid-, and small-capitalization stocks of companies

located around the world.

Moderate to

aggressive

0.13%

Vanguard REIT Index

Fund Institutional Shares

Sector-specific

stock

Seeks to track the investment performance of the

MSCI US REIT Index, which covers approximately

two-thirds of the U.S. real estate investment trust

(REIT) market. The fund seeks to provide high

income and moderate long-term capital growth by

investing in stocks issued by commercial REITs.

Moderate to

aggressive

0.10%


Extended Market

Index Trust

Domestic stock Seeks to track the performance of the Standard

& Poor’s Completion Index, a broadly diversified

index of stocks of small and medium-size U.S.

companies, by currently investing all its assets

in Institutional Select shares of the Vanguard

Institutional Extended Market Index Fund.

Aggressive 0.024%

13

14


Vanguard Small-Cap

Index Fund Institutional

Plus Shares

Domestic stock Seeks to track the performance of the CRSP US

Small Cap Index, a broadly diversified index of

stocks of smaller U.S. companies.

Aggressive 0.05%

Vanguard Developed

Markets Index Fund

Institutional Plus Shares

International

stock

Seeks to track the performance of a benchmark

index that measures the investment return of

stocks issued by companies located in the major

markets of Europe and the Pacific region.

Aggressive 0.06%

Vanguard Emerging

Markets Stock Index Fund

Institutional Plus Shares

International

stock

Seeks to track the investment performance

of the FTSE Emerging Index.

Aggressive 0.10%

Chevron Common

Stock Fund**

Company stock Seeks long-term growth of capital. Aggressive Not applicable

*As of December 31, 2016. Source: Vanguard. **Note: Unlike the other ESIP investment options, the Chevron Common Stock Fund is not diversified. It reflects the performance of only one company.

Supplemental Funds


Dodge & Cox

Income Separate

Account

Bond Seeks a high and stable rate of current

income, consistent with long-term

preservation of capital.

Conservative to

moderate

0.17%

Vanguard Windsor™ II

Fund Admiral™ Shares

Domestic stock Seeks to provide long-term capital

appreciation and income.

Moderate to

aggressive

0.26%

Vanguard PRIMECAP

Fund Admiral Shares

Domestic stock Seeks to provide long-term capital

appreciation. This fund charges a

redemption fee of 1% on shares held

less than 1 year.

Aggressive 0.34%

American Funds

EuroPacific Growth Fund

Class R-6

International

stock

Seeks to provide long-term growth

of capital. This fund is closed to new

investments.

Aggressive 0.50%

*As of December 31, 2016. Source: Vanguard.

A Note About Risk

All investing is subject to risk, including the possible loss of the money you invest. U.S. government backing of

Treasury or agency securities applies only to the underlying securities and does not prevent share-price fluctuations.

Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest. Bond

funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline

because of rising interest rates or negative perceptions of an issuer’s ability to make payments. Prices of mid- and

small-cap stocks often fluctuate more than those of large-company stocks. Investments in stocks or bonds issued by

non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially

high in emerging markets. Funds that concentrate on a relatively narrow market sector face the risk of higher share-

price volatility. Because it concentrates on a single stock, the Chevron Common Stock Fund is considered riskier than

a diversified stock mutual fund.

15

For more information about any fund, including investment objectives, risks, charges and expenses, call

Vanguard toll-free at 1-888-825-5247 and select option 1 to obtain a prospectus or, if available, a summary

prospectus. If you are outside the U.S. and unable to dial a toll-free number, call 610-669-8595. The prospectus

contains this and other important information about the fund. Read and consider the prospectus information

carefully before you invest. You can also download Vanguard fund prospectuses at vanguard.com.

Vanguard Federal Money Market Fund:

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment

at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by

the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal

obligation to provide financial support to the fund, and you should not expect that the sponsor will provide

financial support to the fund at any time.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth

millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold

those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay

more than net asset value when buying and receive less than net asset value when selling.

Vanguard trusts are not mutual funds. They are collective trusts available only to tax-qualified plans and their eligible participants. Investment objectives, risks, charges, expenses and other important information should be considered carefully before investing. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a wholly owned subsidiary of The Vanguard Group, Inc.

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 Vanguard and any related funds.

London Stock Exchange Group companies include FTSE International Limited (“FTSE”), Frank Russell Company (“Russell”), MTS Next Limited (“MTS”), and FTSE TMX Global Debt Capital Markets Inc. (“FTSE TMX”). All rights reserved. “FTSE®”, “Russell®”, “MTS®”, “FTSE TMX®” and “FTSE Russell” and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under licence. All information is provided for information purposes only. No responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of its licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.

The Vanguard Group has partnered with Financial Engines Advisors LLC to provide subadvisory services to the Vanguard Managed Account Program and Personal Online Advisor. Financial Engines Advisors LLC is an independent, federally registered investment advisor that does not sell investments or receive commission for the investments it recommends. Advice is provided by Vanguard Advisers, Inc. (VAI), a federally registered investment advisor and an affiliate of The Vanguard Group, Inc. (Vanguard). Eligibility restrictions may apply. Vanguard is owned by the Vanguard funds, which are distributed by Vanguard Marketing Corporation, a registered broker-dealer affiliated with VAI and Vanguard. Neither Vanguard, Financial Engines nor their respective affiliates guarantee future results.

Vanguard Financial Planning Services, offered as part of Vanguard Personal Advisor Services, are provided by Vanguard Advisers, Inc., a federally registered investment advisor. Eligibility restrictions may apply.

Vanguard, Vanguard Brokerage Services, VBO, vanguard.com, Vanguard ETFs, Windsor and Admiral are trademarks of The Vanguard Group, Inc. Financial Engines is a trademark of Financial Engines, Inc. All rights reserved. Used with permission.

Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, Member FINRA.

This communication provides only certain highlights of benefits provisions. It is not intended to be a complete explanation. It is neither a summary plan description nor a summary of material modification. If there are any discrepancies between this communication and legal plan documents, the legal plan documents will rule. Chevron, as the plan sponsor, reserves the right to amend, change or terminate these plans for any reason at any time. Some benefit plans and policies described in this communication may be subject to collective bargaining and, therefore, may not apply to union-represented employees.

© 2017 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor of the Vanguard Funds.

© 2017 Chevron Corporation. All rights reserved.

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