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The Vanguard® 529 College Savings Plan

Annual Report | June 30, 2017

Contents

Your Portfolio’s Total Returns 1

Chairman’s Letter 2

Performance Summaries and Profiles 12

Selected Financial Data 13

About Your Portfolio’s Expenses 55

Ways to Make the Most of Your Plan 57

Glossary 60

A few notes about the report on plan performance that follows: The opinions expressed here are just that—informed opinions. They should not be construed as promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. For more information about the risks of investing in the portfolios of The Vanguard 529 College Savings Plan, please refer to the Program Description. For the latest data on your portfolio’s performance, visit vanguard.com. Want less clutter in your mailbox? Just register with vanguard.com and opt to get reports online.

> For the 12 months ended June 30, 2017, returns for the Vanguard 529

College Savings Plan ranged from about –1% for the Inflation-Protected

Securities Portfolio to nearly 23% for the Windsor Portfolio.

> The broad U.S. stock market advanced nearly 18%; international stocks

returned about 20%.

> The broad U.S. taxable bond market returned –0.3%.

1

Your Portfolio’s Total Returns

Fiscal Year Ended June 30, 2017 Portfolio Index1

Vanguard Stock Portfolios

500 Index 17.70% 17.90%

Aggressive Growth 19.10 19.40

Growth Index 19.90 20.19

Mid-Cap Index 17.06 17.31

Morgan™ Growth 20.56 20.72

Small-Cap Index 18.90 19.09

Total International Stock Index 19.84 20.41

Total Stock Market Index 18.31 18.49

Value Index 16.22 16.53

Windsor™ 22.89 15.53

Vanguard Balanced Portfolios

10% Stock/90% Bond (Returns since inception: 3/17/2017) 2.00% 2.09%

20% Stock/80% Bond (Returns since inception: 3/17/2017) 2.20 2.28

25% Bond/75% Short-Term Reserves (Returns since inception: 3/17/2017) 0.60 0.54








Conservative Growth 3.98 4.12

Growth 13.87 14.12

Moderate Growth 8.76 9.02

STAR® 13.84 11.83

Vanguard Bond Portfolios

High-Yield Bond 10.13% 10.32%

Income 0.00 0.03

Inflation-Protected Securities -0.94 -0.63

Total Bond Market Index -0.63 -0.33

Total International Bond Index (Returns since inception: 3/17/2017) 1.20 1.28

Vanguard Short-Term Investments Portfolio

Interest Accumulation 1.08% 0.55%

1 See each portfolio’s Performance Summary and Profile page for details on its respective benchmark index. Note: The portfolios’ performance includes operating expenses ranging from 0.17% to 0.45%, whereas the indexes’ performance

does not include any expenses.

1

2

Dear College Saver:

Global stocks climbed throughout much of the 12 months ended June 30, 2017, as investors accepted risk, corporate earnings exceeded expectations, and stock valuations increased. Volatility was generally muted. Central banks in Europe and Japan maintained their accommodative monetary policies. The Federal Reserve’s gradual short-term interest rate increases and its plans to reduce its balance sheet didn’t disrupt markets.

Returns were negative for the period for most sectors of the bond market, but demand for bonds picked up and helped boost global fixed income returns late in the 12-month period even as investors flocked to equities. After a short-term rebound in inflation, expectations declined, contributing to lower yields for U.S. Treasuries and higher bond prices. (Bond prices and yields move in opposite directions.) Accommodative monetary policies outside the United States also supported bond prices, although indications that the European Central Bank (ECB) may reduce its bond-buying stimulus sooner than expected led to a sharp price decline over the period’s final week.

In this environment, 28 of the 30 portfolios in The Vanguard 529 College Savings Plan posted positive results.

Chairman’s Letter

3

Mirroring broader market trends, returns for the plan’s single-fund portfolios ranged from about –1% for the Inflation-Protected Securities Portfolio to about 23% for the Windsor Portfolio.

Among the plan’s multifund portfolios, the Growth Portfolio—which is invested 80% in stocks and 20% in bonds—was the top performer with a return of almost 14%. The Income Portfolio was the weakest performer with a return of 0%. The Interest Accumulation Portfolio returned slightly more than 1% as short-term interest rates remained muted.

The past year brought changes to The Vanguard 529 College Savings Plan. In March, the plan redesigned its age-based

options, which allow you to select the multifund portfolio that is appropriate for your time horizon and risk tolerance. Over time, the plan automatically shifts your balance toward more conservative bond- or cash-oriented allocations, making your hard-earned assets less susceptible to market volatility as your beneficiary nears college age. In addition to offering the lowest costs within the plan, the age-based portfolios transfer some of the complexities of portfolio management to the plan’s investment managers.

Our age-based options, which invest in a broadly diversified combination of low-cost Vanguard index portfolios, will now more gradually reduce an account owner’s equity exposure as the beneficiary nears

Market Barometer Average Annual Total Returns Periods Ended June 30, 2017

One Year Three Years Five Years

Stocks

Russell 1000 Index (Large-caps) 18.03% 9.26% 14.67%

Russell 2000 Index (Small-caps) 24.60 7.36 13.70

Russell 3000 Index (Broad U.S. market) 18.51 9.10 14.58

FTSE All-World ex US Index (International) 20.53 1.33 7.68

Bonds

Bloomberg Barclays U.S. Aggregate Bond Index (Broad taxable market) -0.31% 2.48% 2.21%

Bloomberg Barclays Municipal Bond Index (Broad tax-exempt market) -0.49 3.33 3.26

Citigroup Three-Month U.S. Treasury Bill Index 0.46 0.19 0.13

CPI

Consumer Price Index 1.63% 0.92% 1.31%

4

college age. The redesign allows for a smoother transition from aggressive (riskier) to conservative (less risky) assets over time. The tapered reduction in equities also may enable the account owner to benefit over time from growth associated with a longer exposure to equities, as well as less volatility.

We also added exposure to international fixed income through the Total International Bond Index. Adding this portfolio as both a new allocation within aged-based options and as a stand-alone investment option increases investment diversification. Through this investment, the portfolio:

• Adds breadth and diversity to your asset mix through the exposure to international bonds.

• Provides exposure to the largest segment of the securities market.

• Contributes to lower average portfolio volatility.

Stocks did well, while bonds mostly retreated amid economic optimismAt the start of the 12-month period in July 2016, capital markets continued to digest the implications of Brexit, the United Kingdom’s vote to exit the European Union. Another significant event followed in November with the election of Donald Trump as U.S. president.

As in the days after the Brexit vote, there was short-term volatility after the U.S. election. By the end of 2016, however, the markets’ performance proved to be

less dramatic. Developed-market stocks, including those in the United States, posted healthy returns. Emerging-market stock returns were more modest but still positive.

U.S. and European bonds posted negative total returns during the last six months of 2016 as bond prices dropped and yields rose. After the U.S. election, bond markets anticipated faster economic growth and higher inflation. Meanwhile, the Fed, also expecting that the U.S. economy would continue to perform well, raised short-term rates in December for only the second time in a decade. The ECB and the Bank of Japan continued their historically accommodative stances.

Bolstering the case for optimism, there were signs in the United States that economic momentum was building. Job creation remained solid, wages trended higher, and the housing market seemed to be on its surest footing in a decade.

During the first half of 2017, global growth turned more balanced. Momentum picked up in some of the slower-growing regions including Europe and Japan, while expansion in the United States was a little more muted than some were projecting after November’s presidential election. Emerging economies, with the brighter global economic picture and a weaker U.S. dollar, also did well overall. Developed economies experienced inflation that came in lower than forecast, leading many central banks to keep monetary policy accommodative.

5

This benign macroeconomic backdrop, along with solid corporate earnings and a reduction in risks that had been linked to European elections and trade protectionism, helped global stocks rally more than 11% during the first six months of 2017. (Except where stated otherwise, the returns cited in this letter are in U.S. dollars, stock returns are based on MSCI indexes, and bond returns on Bloomberg Barclays indexes.) Emerging markets as a whole performed best, rising well over 18%. Among the developed markets, Europe returned more than 15% and the Pacific region about 11%. U.S. stocks, which constitute roughly half the global stock market’s value, posted a subpar but still robust return of about 9%.

With more synchronized global growth, weak inflation in many parts of the world, and continuing central bank support in much of Europe and in Japan, the performance of global bonds improved during the first half of 2017. U.S. bonds returned a little more than 2% for the first half of the year even as the Fed continued gradually raising short-term rates. Some of the world’s other large bond markets, including Japan, France, Germany, and Italy, produced returns that ranged from 0% to 1% in local currencies, but that were much higher when expressed in U.S. dollars given the dollar’s weakness over the six months. Those countries’ gains in U.S. dollars contributed to the Citigroup World Government Bond Index’s rise of 4.49%.

For the 12-month period, U.S. stocks returned nearly 18%. Stocks outside the United States returned about 20%, with emerging markets outperforming their developed-market peers. Bond returns were mostly in negative territory, with U.S. bonds (–0.3%) outperforming non-U.S. bonds (–2.3%) and emerging-market bonds outperforming their developed-market counterparts.

The equity index portfolios outpaced their fixed income counterpartsResults varied for the plan’s index portfolios, which are designed to keep pace with an entire market or a specific segment of it, regardless of the direction the market takes. (The plan’s actively managed portfolios, discussed later in this report, seek to outperform the market by relying on security selection.)

The Total Stock Market Index Portfolio, which offers investors broad exposure to all segments of the U.S. stock market, reflected the market’s strength with a return of about 18% for the 12 months. The Total International Stock Index Portfolio, which provides broad exposure to stocks in both developed countries outside the United States and emerging markets, fared even better, returning almost 20%.

The plan also offers several market-segment stock index portfolios. These may appeal to investors who wish to focus on a specific segment of the U.S.

6

stock market, such as value or growth stocks, or stocks of companies within a particular market-capitalization range.

The Growth Index Portfolio and the Value Index Portfolio are two of the plan’s style- based options. These two portfolios are considered complementary investments—when growth stocks perform well, value stocks typically do not, and vice versa.

Very generally speaking, growth stocks represent companies that are expected to expand their businesses at a rapid pace and value stocks represent more established, slower-growing companies.

During the period, growth stocks outperformed their value counterparts. In keeping with this trend, the Growth

Total Returns Ten Years Ended June 30, 2017 Average Annual Returns

Portfolio Index1


500 Index 6.90% 7.18%




Morgan Growth 7.36 8.82





Windsor 5.40 5.57


10% Stock/90% Bond (Returns since inception: 3/17/2017) 2.00% 2.09%










1 See each portfolio’s Performance Summary and Profile page for details on its respective benchmark indexes. Note: The portfolios’ performance includes operating expenses ranging from 0.17% to 0.45%, whereas the indexes’ performance

does not include any expenses.

7

Average Annual Returns

Portfolio Index1

Conservative Growth 4.78% 5.07%

Growth 5.43 5.67


STAR 5.67 5.65


High-Yield Bond 6.43% 7.05%

Income 3.27 3.48

Inflation-Protected Securities 3.86 4.27

Total Bond Market Index 4.15 4.50

Total International Bond Index (Returns since inception: 3/17/2017) 1.20 1.28


Interest Accumulation 0.99% 0.86%

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the portfolios. (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 vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s portfolio units, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on nonqualified distributions.

Index Portfolio’s 12-month return (almost 20%) bested that of the Value Index Portfolio (more than 16%).

The plan’s other style-based portfolios focus on market capitalization and include the 500 Index Portfolio, which invests in large-cap companies that are included in the Standard & Poor’s 500 Index; the

Mid-Cap Index Portfolio, which invests in midsized companies; and the Small-Cap Index Portfolio, which invests in the market’s smallest companies.

In general, small-cap stocks performed slightly better than their large- and mid-cap counterparts. The Small-Cap Index Portfolio returned nearly 19% for the 12 months. The Mid-Cap Index Portfolio was the trio’s

8

worst performer, returning about 17%, and the 500 Index Portfolio returned almost 18%.

Although it is not an index portfolio, the Inflation-Protected Securities Portfolio seeks to capture the returns of its market. The portfolio is designed to protect investors’ purchasing power by investing in securities, mostly U.S. Treasury bonds, that can provide a “real” return that accounts for inflation. It returned about –1% as the Treasury Inflation-Protected Securities market lagged the broad U.S. bond market for the period.

Results for the plan’s bond index portfolios were mixed. With a return of –0.63% for the 12 months, the Total Bond Market Index Portfolio was in negative territory. The Total International Bond Index Portfolio returned 1.20% since it was added to the plan in March. A big reason why international bonds in general have performed better than U.S. bonds recently is because of central bank policies. In the United States, the Fed is in the midst of a modest monetary policy tightening, while central banks outside the United States are generally undertaking more accommodative policies.

Stock exposure boosted results for multifund and age-based portfoliosThe plan also offers five multifund index portfolios, ranging from the Aggressive Growth Portfolio, which invests 100% in stocks, to the Income Portfolio, which

invests 100% in bonds and short-term reserves. The other portfolios—the Growth Portfolio, the Moderate Growth Portfolio, and the Conservative Growth Portfolio—invest in a mix of stocks and bonds.

Returns for the multifund portfolios varied. Generally speaking, however, the more exposure to stocks a portfolio had, the higher its return. Not surprisingly, the all-stock Aggressive Growth Portfolio was the top performer, returning more than 19%. The Growth Portfolio—composed of 75% stocks and 25% bonds—returned about 14% and the Moderate Growth Portfolio—which invests 50% in stocks and 50% in bonds—returned about 9%.

The Conservative Growth Portfolio, composed of 75% bonds and only 25% equities, returned nearly 4%. The performance of the Income Portfolio, which consists of 75% bonds as well as a 25% allocation to short-term reserves, was flat with a return of 0% for the year, as returns for short-term investments were minimal.

The plan’s age-based options showed a similar pattern—the more exposure to equities a portfolio had, the stronger its performance. Results since March 17, 2017, when these redesigned portfolios were launched, ranged from nearly 4% for the 90% Stock/10% Bond Portfolio to less than 1% for the 25% Bond/75% Short-Term Reserves Portfolio.

9

Although it’s not an index fund, the Interest Accumulation Portfolio, which invests in short-term securities, seeks to capture the returns of its market. The portfolio returned slightly more than 1% for the period. As with the Income Portfolio, its returns were held back by below-average short-term interest rates.

Stocks also outpaced bonds in actively managed optionsIn addition to the many index portfolios, the plan also offers four actively managed options: the Morgan Growth and Windsor Portfolios, which invest 100% in stocks; the High-Yield Bond Portfolio, which holds non-investment-grade corporate bonds; and the STAR Portfolio, which invests in a mix of actively managed stock, bond, and short-term reserve funds. Unlike their index-based counterparts, which measure success by how closely they track an index, these actively managed portfolios seek to outperform their benchmark indexes.

While the Morgan Growth Portfolio and the Windsor Portfolio are both invested solely in U.S. stocks, they differ in the type of stocks they hold. The Morgan Growth Portfolio invests in stocks of large- and mid-cap companies that the fund’s advisors believe are poised for faster-than-average growth. The Windsor Portfolio focuses on stocks of large-cap companies that the advisor believes are currently undervalued by the market.

Both portfolios recorded strong results for the period. The Morgan Growth Portfolio returned about 21%, in line with its benchmark index, the Russell 3000 Growth Index. The Windsor Portfolio returned about 23%, significantly outperforming its benchmark, the Russell 1000 Value Index, which gained about 16%.

The STAR Portfolio—which invests in six domestic stock portfolios (including growth and value funds), two international stock portfolios (value and growth), and three fixed income portfolios (including long-term and short-term bond funds)—returned nearly 14%. The portfolio’s equity holdings contributed to returns, while several of its bond components detracted from performance.

The High-Yield Bond Portfolio returned about 10% for the period. Unlike other sectors of the fixed income market, the high-yield bond market posted strong gains during the year, though it failed to keep pace with stocks.

Why bonds still belong in your portfolioDespite the current rising interest rate environment in the United States, it still makes sense over the long term to include bonds in your portfolio. Fixed income investments may not provide the same yields and returns as they have in the past. But they continue to play a crucial role in helping offset potential downturns in equities. This can be especially important

10

when the savings period is compressed, as it is when building a fund for a child’s education expenses.

Many people look at bonds independently of their stocks, but it’s more beneficial to think about how bonds complement stocks in your portfolio. You really want to put the two types of investments together and see how they work as a whole. Ask yourself: What’s my risk level for all my holdings? Does it align with my risk comfort if there’s a downturn? If you answer no, you should make the appropriate adjustments.

Taking a holistic view of your asset allocation—how you divide your investments among stocks, bonds, and cash equivalents—and diversifying your investments broadly can help reduce risk, although you can never completely eliminate it from any type of investing.

The importance of allowing each type of investment in your portfolio to play its role cannot be overstated. For bonds, it’s to provide downside protection when stock prices drop. It would be naïve to assume stocks won’t go through a bear market at some point, so it’s wise to understand the risks you’re taking and be prepared for them.

It’s always important to keep sight of one of Vanguard’s key principles: Maintain perspective and long-term discipline. Whether you’re investing for yourself or for your child’s future, your success is

affected greatly by how you respond— or don’t respond—during uncertain markets. (You can read Vanguard’s Principles for Investing Success at vanguard.com/research.)

Tim Buckley chosen as Vanguard’s next CEOIn closing, I’ll note senior leadership changes that we announced in July. Our board of directors has elected Vanguard Chief Investment Officer Tim Buckley as president and director of Vanguard. Under the planned transition, Tim will succeed me as Vanguard’s chief executive officer on January 1, 2018.

I’m delighted with our board’s unanimous decision to elect Tim. We first met in 1991 when Tim was interviewing for a job at Vanguard. In the decades since, we’ve worked closely together, and he’s always impressed me as a man of tremendous character and an outstanding leader with a passion for serving our clients. During the transition period, I will work closely with Tim in managing the firm and overseeing its operations.

Replacing Tim as chief investment officer is Greg Davis, who had been global head of Vanguard Fixed Income Group. And succeeding Greg as our fixed income leader is John Hollyer, who most recently served as our global head of investment risk management. I know Greg and John will both do a superb job in their new roles.

As my predecessors have done in past successions, I will remain as chairman for a period of time determined by the board. Tim and the rest of the team will serve you and our other clients extremely well as Vanguard prepares for its next chapter.

As always, thank you for investing with Vanguard.

Sincerely,

F. William McNabb III Vanguard Chairman and Chief Executive Officer August 17, 2017

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1212

Performance Summaries and ProfilesFigures as of June 30, 2017

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the portfolios. (Current performance may be lower or higher than the performance data cited. The portfolios’ performance includes expense ratios during the fiscal year ranging from 0.17% to 0.45%, whereas the indexes’ performance does not include any expenses. For performance data and operating expenses current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s portfolio units, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on nonqualified distributions.

The portfolios are available as individual portfolios and, in addition, several are available within the plan’s three age-based options, which become more conservative over time. The portfolios in the age-based options are the:

• Aggressive Growth Portfolio

• Growth Portfolio

• Moderate Growth Portfolio

• Conservative Growth Portfolio

• Income Portfolio

• Interest Accumulation Portfolio

The age-based options are described in more detail on pages 57–59.

Fiscal-Year Total Returns (%) Vanguard 500 S&P 500 Index Portfolio Index

Fiscal Year Total Return Total Return

2008 -13.5% -13.1%

2009 -26.4 -26.2

2010 14.0 14.4

2011 30.3 30.7

2012 5.2 5.4

2013 20.3 20.6

2014 24.3 24.6

2015 7.3 7.4

2016 3.8 4.0

2017 17.7 17.9

Allocation to Underlying Funds

Vanguard Institutional Index Fund 100.0%

Expense Ratio (as of June 30, 2017)

Vanguard 500 Index Portfolio 0.19%

Equity Investment Focus

Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Vanguard 500 Index PortfolioAvailable as an individual portfolio.

Cumulative Performance: June 30, 2007–June 30, 2017Initial investment of $10,000

Average Annual Total Returns Final Value Periods Ended June 30, 2017 of a $10,000 One Year Five Years Ten Years Investment

Vanguard 500 Index Portfolio 17.70% 14.39% 6.90% $19,486

S&P 500 Index 17.90 14.63 7.18 20,008

Large-Cap Core Funds Average1 16.83 13.07 5.80 17,572

1 Derived from data provided by Lipper, a Thomson Reuters Company.

13

2017201620152014201320122011201020092008

$25,000

2,000

19,486

Vanguard Aggressive Growth PortfolioAvailable within the age-based options or as an individual portfolio.



Vanguard Aggressive Growth Portfolio 19.10% 12.22% 5.37% $16,867

Vanguard 529 Aggressive Growth Composite1 19.40 12.52 5.66 17,337

Vanguard 529 Aggressive Growth Composite Average2 17.97 11.25 4.30 15,228

2017201620152014201320122011201020092008

$20,000

3,000

16,867

Fiscal-Year Total Returns (%) Vanguard Aggressive Growth Portfolio Composite1 Fiscal Year Total Return Total Return

2008 -11.9% -11.5%

2009 -27.1 -27.0

2010 14.1 14.8

2011 32.0 32.0

2012 -2.1 -1.7

2013 19.0 19.4

2014 24.2 24.5

2015 3.4 3.7

2016 -2.1 -2.0

2017 19.1 19.4


Vanguard Aggressive Growth Portfolio 0.17%


n 59.9% Vanguard Institutional Total Stock Market Index Fund

n 40.1% Vanguard Total International Stock Index Fund


Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

1 Vanguard 529 Aggressive Growth Composite: Weighted 60% CRSP US Total Market Index and 40% FTSE Global All Cap ex US Index. The CRSP index replaced the MSCI US Broad Market Index on January 15, 2013. The FTSE Global All Cap ex US Index replaced the MSCI ACWI ex USA IMI Index on June 3, 2013, which had replaced the MSCI EAFE + Emerging Markets Index on December 16, 2010.

2 Vanguard 529 Aggressive Growth Composite Average: Weighted 70% multi-cap core funds average and 30% international funds average; derived from data provided by Lipper, a Thomson Reuters Company.

14

Vanguard Growth Index PortfolioAvailable as an individual portfolio.



Vanguard Growth Index Portfolio 19.90% 14.61% 8.51% $22,636

Spliced Growth Index1 20.19 14.93 8.87 23,385

Large-Cap Growth Funds Average2 20.31 13.85 7.31 20,253

Fiscal-Year Total Returns (%) Vanguard Growth Spliced Index Portfolio Growth Index1


2008 -4.2% -3.8%

2009 -26.1 -25.8

2010 13.2 13.7

2011 34.3 34.8

2012 6.3 6.6

2013 16.5 16.9

2014 27.8 28.2

2015 9.4 9.7

2016 1.2 1.5

2017 19.9 20.2


Vanguard Growth Index Fund 100.0%


Vanguard Growth Index Portfolio 0.25%


Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

1 Spliced Growth Index: MSCI US Prime Market Growth Index through April 16, 2013; CRSP US Large Cap Growth Index thereafter. 2 Derived from data provided by Lipper, a Thomson Reuters Company.

15

2017201620152014201320122011201020092008

$30,000

3,000

22,636

Vanguard Mid-Cap Index PortfolioAvailable as an individual portfolio.



Vanguard Mid-Cap Index Portfolio 17.06% 14.57% 7.22% $20,071

Spliced Mid Cap Index1 17.31 14.83 7.52 20,655

Mid-Cap Core Funds Average2 17.41 12.96 6.34 18,489

Fiscal-Year Total Returns (%) Vanguard Mid-Cap Spliced Index Portfolio Mid Cap Index1


2008 -12.2% -11.8%

2009 -31.8 -31.6

2010 26.5 27.0

2011 38.3 38.7

2012 -3.0 -2.7

2013 24.8 25.1

2014 26.0 26.3

2015 8.4 8.7

2016 -1.1 -0.9

2017 17.1 17.3


Vanguard Mid-Cap Index Fund 100.0%


Vanguard Mid-Cap Index Portfolio 0.23%


Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

1 Spliced Mid Cap Index: MSCI US Mid Cap 450 Index through January 30, 2013; CRSP US Mid Cap Index thereafter. 2 Derived from data provided by Lipper, a Thomson Reuters Company.

16

2017201620152014201320122011201020092008

$25,000

2,000

20,071

Vanguard Morgan Growth PortfolioAvailable as an individual portfolio.



Vanguard Morgan Growth Portfolio 20.56% 14.55% 7.36% $20,343

Russell 3000 Growth Index 20.72 15.20 8.82 23,282

Multi-Cap Growth Funds Average1 19.88 13.32 6.57 18,890

Fiscal-Year Total Returns (%) Vanguard Morgan Russell 3000 Growth Portfolio Growth Index


2008 -6.5% -6.4%

2009 -29.5 -24.5

2010 14.9 14.0

2011 35.3 35.7

2012 0.6 5.0

2013 17.2 17.6

2014 25.3 26.8

2015 12.6 10.7

2016 -1.0 1.9

2017 20.6 20.7


Vanguard Morgan Growth Fund 100.0%


Vanguard Morgan Growth Portfolio 0.45%


Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle


17

2017201620152014201320122011201020092008

$28,000

2,000

20,343

Vanguard Small-Cap Index PortfolioAvailable as an individual portfolio.



Vanguard Small-Cap Index Portfolio 18.90% 13.90% 7.55% $20,699

Spliced Small Cap Index1 19.09 14.10 7.76 21,105

Small-Cap Core Funds Average2 21.07 12.62 5.84 17,646

Fiscal-Year Total Returns (%) Spliced Vanguard Small-Cap Small Cap Index Portfolio Index1


2008 -15.3% -15.0%

2009 -25.4 -25.4

2010 24.8 25.2

2011 39.1 39.4

2012 -1.6 -1.4

2013 25.4 25.7

2014 26.3 26.5

2015 5.0 5.2

2016 -3.1 -2.9

2017 18.9 19.1


Vanguard Small-Cap Index Fund 100.0%


Vanguard Small-Cap Index Portfolio 0.23%


Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

1 Spliced Small Cap Index: MSCI US Small Cap 1750 Index through January 30, 2013; CRSP US Small Cap Index thereafter.2 Derived from data provided by Lipper, a Thomson Reuters Company.

18

2017201620152014201320122011201020092008

$25,000

2,000

20,699

Vanguard Total International Stock Index PortfolioAvailable as an individual portfolio.



Vanguard Total International Stock Index Portfolio 19.84% 7.37% 0.84% $10,876

Spliced Total International Stock Index1 20.41 7.77 1.18 11,246

International Funds Average2 18.87 7.96 0.91 10,947

Fiscal-Year Total Returns (%) Vanguard Total Spliced Total International Stock International Index Portfolio Stock Index1


2008 -8.4% -8.0%

2009 -30.7 -30.7

2010 8.2 9.8

2011 30.6 29.5

2012 -15.0 -14.8

2013 13.1 13.9

2014 22.0 22.5

2015 -4.8 -4.5

2016 -9.3 -9.4

2017 19.8 20.4


Vanguard Total International Stock Index Fund 100.0%


Vanguard Total International Stock Index Portfolio 0.24%

1 Spliced Total International Stock Index: Total International Composite Index through August 31, 2006; MSCI EAFE + Emerging Markets Index through December 15, 2010; MSCI ACWI ex USA IMI Index through June 2, 2013; and FTSE Global All Cap ex US Index thereafter.


19

2017201620152014201320122011201020092008

$14,000

2,000

10,876

Vanguard Total Stock Market Index PortfolioAvailable as an individual portfolio.



Vanguard Total Stock Market Index Portfolio 18.31% 14.38% 7.14% $19,923

Spliced Institutional Total Stock Market Index1 18.49 14.58 7.38 20,379

Multi-Cap Core Funds Average2 17.46 12.62 5.56 17,180

Fiscal-Year Total Returns (%) Spliced Vanguard Total Institutional Stock Market Total Stock Index Portfolio Market Index1


2008 -12.8% -12.5%

2009 -26.5 -26.2

2010 15.7 16.0

2011 32.2 32.6

2012 3.7 4.0

2013 21.3 21.5

2014 25.0 25.2

2015 7.0 7.2

2016 2.0 2.1

2017 18.3 18.5


Vanguard Institutional Total Stock Market Index Fund 100.0%


Vanguard Total Stock Market Index Portfolio 0.19%


Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

1 Spliced Institutional Total Stock Market Index: Dow Jones Wilshire 5000 Index through April 8, 2005; the MSCI US Broad Market Index through January 14, 2013; CRSP US Total Market Index thereafter.


20

2017201620152014201320122011201020092008

$25,000

2,000

19,923

Vanguard Value Index PortfolioAvailable as an individual portfolio.



Vanguard Value Index Portfolio 16.22% 14.14% 5.54% $17,143

Spliced Value Index1 16.53 14.45 5.84 17,648

Large-Cap Value Funds Average2 17.71 12.84 4.81 15,996

Fiscal-Year Total Returns (%) Vanguard Value Spliced Index Portfolio Value Index1


2008 -20.2% -19.8%

2009 -27.0 -26.9

2010 15.7 16.1

2011 28.3 28.8

2012 2.3 2.6

2013 24.1 24.5

2014 22.1 22.5

2015 5.3 5.5

2016 4.4 4.7

2017 16.2 16.5


Vanguard Value Index Fund 100.0%


Vanguard Value Index Portfolio 0.25%


Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

1 Spliced Value Index: MSCI US Prime Market Value Index through April 16, 2013; CRSP US Large Cap Value Index thereafter. 2 Derived from data provided by Lipper, a Thomson Reuters Company.

21

2017201620152014201320122011201020092008

$22,000

2,000

17,143

Vanguard Windsor PortfolioAvailable as an individual portfolio.



Vanguard Windsor Portfolio 22.89% 14.67% 5.40% $16,914

Russell 1000 Value Index 15.53 13.94 5.57 17,187

Multi-Cap Value Funds Average1 17.72 12.82 4.84 16,038

Fiscal-Year Total Returns (%) Vanguard Russell 1000 Windsor Portfolio Value Index


2008 -24.9% -18.8%

2009 -24.5 -29.0

2010 15.2 16.9

2011 29.9 28.9

2012 0.5 3.0

2013 29.8 25.3

2014 26.1 23.8

2015 5.3 4.1

2016 -6.4 2.9

2017 22.9 15.5


Vanguard Windsor Fund 100.0%


Vanguard Windsor Portfolio 0.44%


Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle


22

2017201620152014201320122011201020092008

$20,000

2,000

16,914

Vanguard 10% Stock/90% Bond PortfolioAvailable within the age-based options.

Cumulative Performance: March 17, 2017–June 30, 2017Initial investment of $10,000 Average Annual Total Returns Final Value Periods Ended June 30, 2017 of a $10,000 Since Inception1 Investment

Vanguard 10% Stock/90% Bond Portfolio 2.00% $10,200

Vanguard 529 10/90 Composite2 2.09 10,209

Fiscal-Year Total Returns (%) Composite2

Fiscal Year Portfolio Total Return

20171 2.0% 2.1%


n 63.0% Vanguard Total Bond Market II Index Fund

n 27.0% Vanguard Total International Bond Index Fund




Vanguard 10% Stock/90% Bond Portfolio 0.17%


Fixed Income Investment Focus

Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

1 Performance for the portfolio and its comparative standards is calculated since the portfolio’s inception: March 17, 2017.2 Vanguard 529 10/90 Composite Index: Weighted 63% Bloomberg Barclays U.S. Aggregate Float Adjusted Index, 27% Bloomberg

Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged, 6% CRSP US Total Market Index, and 4% FTSE Global All Cap ex US Index.

23

Average Maturity

Investment Focus

Short

Treasury/Agency

Investment-GradeCorporate

BelowInvestment-Grade

Med. Long

Credit Quality







20171 2.2% 2.3%










Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle



24

Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality

Vanguard 25% Bond/75% Short-Term Reserves PortfolioAvailable within the age-based options.


Vanguard 25% Bond/75% Short-Term Reserves Portfolio 0.60% $10,060

Vanguard 529 25 Bond/75 Short-Term Reserves Composite2 0.54 10,054



20171 0.6% 0.5%


n 75.1% Vanguard Short-Term Reserves



n 6.0% Vanguard Short-Term Inflation-Protected Securities Index Fund


Vanguard 25% Bond/75% Short-Term Reserves Portfolio 0.17%


1 Performance for the portfolio and its comparative standards is calculated since the portfolio’s inception: March 17, 2017.2 Vanguard 529 25 Bond/75 Short-Term Reserves Composite Index: Weighted 67.5% Citigroup 3-Month U.S. Treasury Bill Index,

11.5% Bloomberg Barclays U.S. Aggregate Float Adjusted Index, 7.5% Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged, 7.5% Ryan Labs 3 Year GIC Index, and 6% Bloomberg Barclays U.S. 0–5 Year Treasury Inflation Protected Securities Index.

25

Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality







20171 2.4% 2.5%












26

Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality





1 Performance for the portfolio and its comparative standards is calculated since the portfolio’s inception: March 17, 2017.2 Vanguard 529 40/60 Composite Index: Weighted 42% Bloomberg Barclays U.S. Aggregate Float Adjusted Index, 24% CRSP US

Total Market Index, 18% Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged, and 16% FTSE Global All Cap ex US Index.

27



20171 2.6% 2.6%










Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality

Vanguard 50% Bond/50% Short-Term Reserves PortfolioAvailable within the age-based options.


Vanguard 50% Bond/50% Short-Term Reserves Portfolio 0.80% $10,080

Vanguard 529 50 Bond/50 Short-Term Reserves Composite2 0.78 10,078



20171 0.8% 0.8%







Vanguard 50% Bond/50% Short-Term Reserves Portfolio 0.17%


1 Performance for the portfolio and its comparative standards is calculated since the portfolio’s inception: March 17, 2017.2 Vanguard 529 50 Bond/50 Short-Term Reserves Composite Index: Weighted 45% Citigroup 3-Month U.S. Treasury Bill Index, 23%

Bloomberg Barclays U.S. Aggregate Float Adjusted Index, 15% Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged, 12% Bloomberg Barclays U.S. 0–5 Year Treasury Inflation Protected Securities Index, and 5% Ryan Labs 3 year GIC Index.

28

Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality







20171 3.0% 3.0%










1 Performance for the portfolio and its comparative standards is calculated since the portfolio’s inception: March 17, 2017.2 Vanguard 529 60/40 Composite Index: Weighted 36% CRSP US Total Market Index, 28% Bloomberg Barclays U.S. Aggregate

Float Adjusted Index, 24% FTSE Global All Cap ex US Index, and 12% Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged.

29

Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality







20171 3.2% 3.2%










1 Performance for the portfolio and its comparative standards is calculated since the portfolio’s inception: March 17, 2017.2 Vanguard 529 70/30 Composite Index: Weighted 42% CRSP US Total Market Index, 28% FTSE Global All Cap ex US Index, 21%

Bloomberg Barclays U.S. Aggregate Float Adjusted Index, and 9% Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged.

30

Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality







20171 3.4% 3.4%












31

Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality







20171 3.6% 3.5%












32

Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality

Vanguard Conservative Growth PortfolioAvailable as an individual portfolio.



Vanguard Conservative Growth Portfolio 3.98% 4.57% 4.78% $15,956

Vanguard 529 Conservative Growth Composite1 4.12 4.81 5.07 16,401

Vanguard 529 Conservative Growth Composite Average2 4.60 4.62 4.30 15,242

2017201620152014201320122011201020092008

$20,000

5,000

15,956

Fiscal-Year Total Returns (%) Vanguard Conservative Growth Portfolio Composite1 Fiscal Year Total Return Total Return

2008 2.1% 2.4%

2009 -2.8 -2.6

2010 10.8 11.1

2011 10.1 10.6

2012 5.4 5.8

2013 3.8 4.2

2014 8.8 9.2

2015 2.3 2.4

2016 4.1 4.3

2017 4.0 4.1






1 Vanguard 529 Conservative Growth Composite: Weighted 52.5% Bloomberg Barclays U.S. Aggregate Float Adjusted Index, 22.5% Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged, 15% CRSP US Total Market Index, and 10% FTSE Global All Cap ex US Index. The CRSP index replaced the MSCI US Broad Market Index on January 15, 2013, which had replaced the Dow Jones Wilshire 5000 Index on April 22, 2005. The Bloomberg Barclays U.S. Aggregate Float Adjusted Index replaced the Bloomberg Barclays U.S. Aggregate Bond Index on December 31, 2009. The FTSE Global All Cap ex US Index replaced the MSCI ACWI ex USA IMI Index on June 3, 2013, which had replaced the MSCI EAFE + Emerging Markets Index on December 16, 2010.

2 Vanguard 529 Conservative Growth Composite Average: Weighted 75% core bond funds average, 17.5% multi-cap core funds average, and 7.5% international funds average; derived from data provided by Lipper, a Thomson Reuters Company.

33

34


Vanguard Conservative Growth Portfolio 0.17%



Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality

Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Vanguard Conservative Growth Portfolio

Vanguard Growth PortfolioAvailable as an individual portfolio.



Vanguard Growth Portfolio 13.87% 9.74% 5.43% $16,974

Vanguard 529 Growth Composite1 14.12 10.00 5.67 17,358

Vanguard 529 Growth Composite Average2 13.37 9.06 4.45 15,456

2017201620152014201320122011201020092008

$20,000

3,000

16,974

Fiscal-Year Total Returns (%) Vanguard Growth Portfolio Composite1 Fiscal Year Total Return Total Return

2008 -7.2% -7.0%

2009 -19.1 -19.2

2010 13.2 13.8

2011 24.5 24.6

2012 0.8 1.1

2013 13.8 14.2

2014 19.0 19.3

2015 3.1 3.3

2016 0.2 0.3

2017 13.9 14.1






1 Vanguard 529 Growth Composite: Weighted 45% CRSP US Total Market Index, 30% FTSE Global All Cap ex US Index, 17.5% Bloomberg Barclays U.S. Aggregate Float Adjusted Index, and 7.5% Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged. The CRSP index replaced the MSCI US Broad Market Index on January 15, 2013, which had replaced the Dow Jones Wilshire 5000 Index on April 22, 2005. The Bloomberg Barclays U.S. Aggregate Float Adjusted Index replaced the Bloomberg Barclays U.S. Aggregate Bond Index on December 31, 2009. The FTSE Global All Cap ex US Index replaced the MSCI ACWI ex USA IMI Index on June 3, 2013, which had replaced the MSCI EAFE + Emerging Markets Index on December 16, 2010.

2 Vanguard 529 Growth Composite Average: Weighted 52.5% multi-cap core funds average, 25% core bond funds average, and 22.5% international funds average; derived from data provided by Lipper, a Thomson Reuters Company.

35

36


Vanguard Growth Portfolio 0.17%



Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality

Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Vanguard Growth Portfolio

Vanguard Moderate Growth PortfolioAvailable within the age-based options or as an individual portfolio.



Vanguard Moderate Growth Portfolio 8.76% 7.19% 5.24% $16,664

Vanguard 529 Moderate Growth Composite1 9.02 7.43 5.47 17,038

Vanguard 529 Moderate Growth Composite Average2 8.91 6.85 4.45 15,459

2017201620152014201320122011201020092008

$20,000

3,000

16,664

Fiscal-Year Total Returns (%) Vanguard Moderate Growth Portfolio Composite1 Fiscal Year Total Return Total Return

2008 -2.7% -2.3%

2009 -11.0 -11.0

2010 12.3 12.5

2011 17.1 17.5

2012 3.3 3.6

2013 8.7 9.1

2014 13.9 14.1

2015 2.7 2.9

2016 2.3 2.4

2017 8.8 9.0






1 Vanguard 529 Moderate Growth Composite: Weighted 35% Bloomberg Barclays U.S. Aggregate Float Adjusted Index, 30% CRSP US Total Market Index, 20% FTSE Global All Cap ex US Index, and 15% Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged. The CRSP index replaced the MSCI US Broad Market Index on January 15, 2013, which had replaced the Dow Jones Wilshire 5000 Index on April 22, 2005. The Bloomberg Barclays U.S. Aggregate Float Adjusted Index replaced the Bloomberg Barclays U.S. Aggregate Bond Index on December 31, 2009. The FTSE Global All Cap ex US Index replaced the MSCI ACWI ex USA IMI Index on June 3, 2013, which had replaced the MSCI EAFE + Emerging Markets Index on December 16, 2010.

2 Vanguard 529 Moderate Growth Composite Average: Weighted 50% core bond funds average, 35% multi-cap core funds average, and 15% international funds average; derived from data provided by Lipper, a Thomson Reuters Company.

37

38


Vanguard Moderate Growth Portfolio 0.17%



Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality

Market Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Vanguard Moderate Growth Portfolio

Vanguard STAR PortfolioAvailable as an individual portfolio.



Vanguard STAR Portfolio 13.84% 9.39% 5.67% $17,351

STAR Composite Index1 11.83 8.73 5.65 17,325

STAR Composite Average2 12.39 7.97 4.42 15,411

Fiscal-Year Total Returns (%) STAR Vanguard Composite STAR Portfolio Index1


2008 -6.5% -4.9%

2009 -14.6 -13.7

2010 12.7 12.9

2011 20.7 20.8

2012 2.0 1.9

2013 12.7 11.9

2014 18.2 16.5

2015 3.3 3.0

2016 0.0 1.2

2017 13.8 11.8


Vanguard STAR Fund 100.0%


Vanguard STAR Portfolio 0.45%

1 STAR Composite Index: Weighted 50% MSCI US Broad Market Index, 25% Bloomberg Barclays U.S. Aggregate Bond Index, 12.5% Bloomberg Barclays U.S. 1–5 Year Credit Bond Index, and 12.5% MSCI EAFE Index through September 30, 2010; and 43.75% MSCI US Broad Market Index, 25% Bloomberg Barclays U.S. Aggregate Bond Index, 18.75% MSCI All Country World Index ex USA, and 12.5% Bloomberg Barclays U.S. 1–5 Year Credit Bond Index thereafter. MSCI international benchmark returns are adjusted for withholding taxes.

2 The STAR Composite Average: Weighted 43.75% general equity funds average, 25% fixed income funds average, 18.75% international funds average, and 12.5% 1–5 year investment-grade debt funds average; derived from data provided by Lipper, a Thomson Reuters Company.

39

2017201620152014201320122011201020092008

$22,000

3,000

17,351

Equity Investment Focus Fixed Income Investment Focus

Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit QualityMarket Cap

Investment Focus

Value

Large

Medium

Small

Blend GrowthStyle

Vanguard STAR Portfolio

40

Vanguard High-Yield Bond PortfolioAvailable as an individual portfolio.



Vanguard High-Yield Bond Portfolio 10.13% 6.03% 6.43% $18,640

High-Yield Corporate Composite Index1 10.32 6.26 7.05 19,769

High Yield Funds Average2 10.67 5.52 5.56 17,179

Fiscal-Year Total Returns (%) High-Yield Vanguard Corporate High-Yield Composite Bond Portfolio Index1


2008 -2.1% 0.5%

2009 -4.1 -1.4

2010 20.0 20.0

2011 13.6 13.9

2012 8.7 7.7

2013 6.7 8.0

2014 10.1 10.7

2015 1.3 0.8

2016 2.3 1.9

2017 10.1 10.3


Vanguard High-Yield Corporate Fund 100.0%


Vanguard High-Yield Bond Portfolio 0.32%


Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality

1 High-Yield Corporate Composite Index: Weighted 95% Bloomberg Barclays U.S. High Yield Ba/B 2% Issuer Cap Index, and 5% Bloomberg Barclays U.S. 1–5 Year Treasury Bond Index.


41

2017201620152014201320122011201020092008

$22,000

5,000

18,640

Vanguard Income PortfolioAvailable within the age-based options or as an individual portfolio.



Vanguard Income Portfolio 0.00% 1.00% 3.27% $13,793

Vanguard 529 Income Composite1 0.03 1.16 3.48 14,073

Vanguard 529 Income Composite Average2 0.35 1.17 2.97 13,406

2017201620152014201320122011201020092008

$17,000

7,000

13,793

Fiscal-Year Total Returns (%) Vanguard Income Portfolio Composite1


2008 8.2% 8.1%

2009 2.6 3.0

2010 7.0 7.4

2011 3.6 4.1

2012 6.6 6.7

2013 -1.8 -1.4

2014 3.1 3.3

2015 0.4 0.5

2016 3.4 3.5

2017 0.0 0.0


Vanguard Income Portfolio 0.17%







Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality

1 Vanguard 529 Income Composite: Consists of five unmanaged benchmarks, weighted 34.5% Spliced Total Bond Market Index, 22.5% Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged, 21.25% Citigroup 3-Month Treasury Bill Index, 18% Bloomberg Barclays U.S. 0–5 Year Treasury Inflation Protected Securities Index, and 3.75% Ryan Labs 3 year GIC Index. The Spliced Total Bond Market Index consists of the Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009; Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter.

2 Vanguard 529 Income Composite Average: Weighted 50% core bond funds average, 25% inflation-protected bond funds average, and 25% money market funds average; derived from data provided by Lipper, a Thomson Reuters Company.

42

Vanguard Inflation-Protected Securities PortfolioAvailable as an individual portfolio.



Vanguard Inflation-Protected Securities Portfolio -0.94% 0.03% 3.86% $14,603

Bloomberg Barclays U.S. Treasury Inflation Protected Securities Index -0.63 0.27 4.27 15,196

Inflation-Protected Bond Funds Average1 0.19 -0.17 3.33 13,872

Fiscal-Year Total Returns (%) Bloomberg Barclays U.S. Treasury Vanguard Inflation Inflation-Protected Protected Securities Portfolio Securities Index


2008 14.9% 15.1%

2009 -2.7 -1.1

2010 9.2 9.5

2011 6.9 7.7

2012 11.7 11.7

2013 -5.3 -4.8

2014 4.3 4.4

2015 -2.1 -1.7

2016 4.5 4.4

2017 -0.9 -0.6


Vanguard Inflation-Protected Securities Fund 100.0%


Vanguard Inflation-Protected Securities Portfolio 0.25%


Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality


43

2017201620152014201320122011201020092008

$18,000

7,000

14,603

Vanguard Total Bond Market Index PortfolioAvailable as an individual portfolio.



Vanguard Total Bond Market Index Portfolio -0.30% 1.95% 4.15% $15,017

Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Bond Index1 -0.33 2.23 4.50 15,532

Spliced Intermediate-Term Investment-Grade Debt Funds Average2 0.43 2.38 4.01 14,816

Fiscal-Year Total Returns (%) Spliced Bloomberg Barclays Vanguard Total U.S. Aggregate Bond Market Float Adjusted Index Portfolio Index1


2008 6.9% 7.1%

2009 5.4 6.0

2010 9.0 9.5

2011 3.4 3.9

2012 7.4 7.6

2013 -1.0 -0.6

2014 4.1 4.3

2015 1.5 1.8

2016 6.0 6.1

2017 -0.6 -0.3


Vanguard Total Bond Market Index Fund 100.0%


Vanguard Total Bond Market Index Portfolio 0.22%


Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality

1 Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Bond Index: Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009; Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter.

2 Spliced Intermediate Investment-Grade Debt Funds Average: Intermediate U.S. Government Funds Average through December 31, 2001; Intermediate Investment-Grade Debt Funds Average through August 31, 2013; Core Bond Funds Average thereafter; derived from data provided by Lipper, a Thomson Reuters Company.

44

2017201620152014201320122011201020092008

$20,000

5,000

15,017

Vanguard Total International Bond Index PortfolioAvailable within the age-based options or as an individual portfolio.


Vanguard Total International Bond Index Portfolio 1.20% $10,120

Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged 1.28 10,128

International Income Funds Average2 2.89 10,289

Fiscal-Year Total Returns (%) Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index

Fiscal Year Portfolio Hedged

20171 1.2% 1.3%


Vanguard Total International Bond Index Fund 100.0%

Expense Ratio

Vanguard Total International Bond Index Portfolio 0.26%


Average Maturity

Investment Focus

Short

Treasury/Agency



Med. Long

Credit Quality

1 Performance for the portfolio and its comparative standards is calculated since the portfolio’s inception: March 17, 2017.2 Derived from data provided by Lipper, a Thomson Reuters Company.

45

Vanguard Interest Accumulation PortfolioAvailable within the age-based options or as an individual portfolio.



Vanguard Interest Accumulation Portfolio 1.08% 0.42% 0.99% $11,038

Interest Accumulation Composite1 0.55 0.24 0.86 10,899

Money Market Funds Average2 0.33 0.07 0.47 10,484

Fiscal-Year Total Returns (%) Vanguard Interest Interest Accumulation Accumulation Portfolio Composite1


2008 4.0% 3.7%

2009 2.4 1.8

2010 0.8 1.1

2011 0.6 0.7

2012 0.2 0.3

2013 0.2 0.2

2014 0.1 0.1

2015 0.2 0.1

2016 0.6 0.2

2017 1.1 0.6

Yield: 1.38%


Vanguard Federal Money Market Fund † 10.3%

Funding Agreements 89.7%

† The Vanguard Income Portfolio, Vanguard Interest Accumulation Portfolio, Vanguard 25% Bond/75% Short-Term Reserves Portfolio and Vanguard 50% Bond/50% Short-Term Reserves Portfolio all invest in the Vanguard Short-Term Reserves Account, which, in turn, invests in the 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 Interest Accumulation Portfolio 0.17%

1 Interest Accumulation Composite: Weighted 90% Citigroup 3-Month U.S. Treasury Bill Index and 10% Ryan Labs 3 Year GIC Index.2 Derived from data provided by Lipper, a Thomson Reuters Company.

46

2017201620152014201320122011201020092008

$14,000

7,000

11,038

47

Selected Financial Data

The Vanguard 529 College Savings Plan

For the Period June 30, 2016, Through June 30, 2017

Vanguard Vanguard Vanguard Vanguard 500 Aggressive Growth Mid-Cap Index Growth Index Index Portfolio Portfolio Portfolio Portfolio ($000) ($000) ($000) ($000)

Increase (Decrease) in Net Position

Investment Operations

Income Dividends Received 19,940 31,288 3,825 6,904

Capital Gain Distributions Received 2,654 6,527 — —

Realized Net Gain (Loss) on Investment Securities Sold 3,527 75,786 4,207 6,072

Change in Net Unrealized Appreciation (Depreciation) in Value of Investments 128,382 126,826 42,072 56,438

Administrative Expenses (1,603) (1,757) (585) (884)

Net Increase (Decrease) Resulting from Investment Operations 152,900 238,670 49,519 68,530

Unit Transactions

Contributions 133,240 282,945 35,339 40,988

Exchanges In 100,676 56,323 30,861 29,213

Transfers In1 — 2 — —

Withdrawals (36,772) (29,982) (11,246) (16,533)

Exchanges Out (100,647) (300,045) (39,957) (50,842)

Transfers Out1 — (201,704) — —

Net Increase (Decrease) from Unit Transactions 96,497 (192,461) 14,997 2,826

Total Increase (Decrease) 249,397 46,209 64,516 71,356

Net Position

Beginning of Period 827,993 1,304,918 248,950 404,196

End of Period 1,077,390 1,351,127 313,466 475,552

Net Position Value Per Unit, End of Period $34.12 $33.43 $36.33 $45.28

Total Return 17.70% 19.10% 19.90% 17.06%

Ratios/Supplemental Data

Expense Ratio 0.19% 0.17% 0.25% 0.23%

(Continued on next page)

48


Vanguard Vanguard Vanguard Vanguard Total Total Stock Morgan Small-Cap International Market Growth Index Stock Index Index Portfolio Portfolio Portfolio Portfolio ($000) ($000) ($000) ($000)



Income Dividends Received 612 7,053 15,269 17,463

Capital Gain Distributions Received 3,052 — — 6,843

Realized Net Gain (Loss) on Investment Securities Sold 1,188 4,532 (888) 7,540


Administrative Expenses (105) (896) (1,284) (1,457)


Unit Transactions

Contributions 6,940 43,819 49,906 93,320

Exchanges In 7,942 45,638 44,996 80,233

Transfers In1 — — — —

Withdrawals (2,861) (15,989) (18,760) (31,414)

Exchanges Out (16,809) (49,925) (62,583) (96,761)

Transfers Out1 — — — —

Net Increase (Decrease) from Unit Transactions (4,788) 23,543 13,559 45,378


Net Position

Beginning of Period 68,365 392,440 481,313 769,644

End of Period 76,796 491,091 589,748 958,048


Total Return 20.56% 18.90% 19.84% 18.31%


Expense Ratio 0.45% 0.23% 0.24% 0.19%


49


Vanguard Vanguard Vanguard Value Vanguard 10% Stock/ 20% Stock/ Index Windsor 90% Bond 80% Bond Portfolio Portfolio Portfolio2 Portfolio2 ($000) ($000) ($000) ($000)




Capital Gain Distributions Received — 2,840 21 28

Realized Net Gain (Loss) on Investment Securities Sold 3,331 1,579 118 40


Administrative Expenses (562) (252) (241) (155)


Unit Transactions

Contributions 24,845 9,865 11,698 9,867

Exchanges In 32,705 9,154 88,557 91,545

Transfers In1 — — 609,673 399,834

Withdrawals (10,831) (4,525) (11,895) (1,500)

Exchanges Out (34,525) (16,982) (54,605) (87,679)




Net Position

Beginning of Period 232,805 93,929 — —

End of Period 283,873 112,421 655,898 421,022


Total Return 16.22% 22.89% 2.00% 2.20%


Expense Ratio 0.25% 0.44% 0.17% 0.17%


50


Vanguard Vanguard 25% Bond/ Vanguard Vanguard 50% Bond/ 75% Short-Term 30% Stock/ 40% Stock/ 50% Short-Term Reserves 70% Bond 60% Bond Reserves Portfolio2 Portfolio2 Portfolio2 Portfolio2 ($000) ($000) ($000) ($000)



Income Dividends Received 296 4,843 5,195 235

Capital Gain Distributions Received — 66 89 —

Realized Net Gain (Loss) on Investment Securities Sold 4 69 61 4

Change in Net Unrealized Appreciation (Depreciation) in Value of Investments 147 10,707 11,745 229


Net Increase (Decrease) Resulting from Investment Operations 421 15,440 16,844 447

Unit Transactions

Contributions 2,009 17,404 18,253 1,513

Exchanges In 10,381 109,205 111,177 10,229

Transfers In1 68,415 627,343 636,823 53,025

Withdrawals (928) (1,785) (1,581) (109)

Exchanges Out (7,611) (97,875) (107,945) (6,518)


Net Increase (Decrease) from Unit Transactions 72,266 654,292 656,727 58,140


Net Position

Beginning of Period — — — —

End of Period 72,687 669,732 673,571 58,587


Total Return 0.60% 2.40% 2.60% 0.80%


Expense Ratio 0.17% 0.17% 0.17% 0.17%


51


Vanguard Vanguard Vanguard Vanguard 60% Stock/ 70% Stock/ 80% Stock/ 90% Stock/ 40% Bond 30% Bond 20% Bond 10% Bond Portfolio2 Portfolio2 Portfolio2 Portfolio2 ($000) ($000) ($000) ($000)




Capital Gain Distributions Received 203 206 189 177

Realized Net Gain (Loss) on Investment Securities Sold 437 357 262 513




Unit Transactions

Contributions 31,307 29,736 30,025 40,677

Exchanges In 108,687 89,013 76,045 49,335

Transfers In1 971,006 843,910 677,148 562,398

Withdrawals (2,365) (1,947) (2,197) (1,735)

Exchanges Out (127,573) (103,677) (88,448) (74,758)


Net Increase (Decrease) from Unit Transactions 981,062 857,035 692,573 575,917

Total Increase (Decrease) 1,010,477 884,268 715,840 596,504

Net Position

Beginning of Period — — — —

End of Period 1,010,477 884,268 715,840 596,504


Total Return 3.00% 3.20% 3.40% 3.60%


Expense Ratio 0.17% 0.17% 0.17% 0.17%


52


Vanguard Vanguard Conservative Vanguard Moderate Vanguard Growth Growth Growth STAR Portfolio Portfolio Portfolio Portfolio ($000) ($000) ($000) ($000)




Capital Gain Distributions Received 3,079 7,247 6,900 2,701

Realized Net Gain (Loss) on Investment Securities Sold 85,510 347,000 173,105 1,407

Change in Net Unrealized Appreciation (Depreciation) in Value of Investments (85,322) (176,143) (51,031) 8,119

Administrative Expenses (1,727) (2,059) (2,907) (133)


Unit Transactions

Contributions 123,131 264,639 234,885 9,920

Exchanges In 381,249 218,027 532,631 12,723


Withdrawals (59,005) (26,807) (32,278) (5,169)

Exchanges Out (306,827) (394,710) (515,676) (18,463)

Transfers Out1 (1,547,561) (1,775,727) (1,366,167) —

Net Increase (Decrease) from Unit Transactions (1,409,013) (1,714,578) (1,146,605) (989)

Total Increase (Decrease) (1,380,917) (1,507,904) (974,147) 13,281

Net Position

Beginning of Period 1,533,912 1,891,397 2,279,359 104,924

End of Period 152,995 383,493 1,305,212 118,205


Total Return 3.98% 13.87% 8.76% 13.84%


Expense Ratio 0.17% 0.17% 0.17% 0.45%


53


Vanguard Vanguard Vanguard Inflation- Total Bond High-Yield Vanguard Protected Market Bond Income Securities Index Portfolio Portfolio Portfolio Portfolio ($000) ($000) ($000) ($000)




Capital Gain Distributions Received 51 579 — 117

Realized Net Gain (Loss) on Investment Securities Sold 134 (281) 180 19

Change in Net Unrealized Appreciation (Depreciation) in Value of Investments 6,217 (21,276) (5,491) (7,896)

Administrative Expenses (286) (1,331) (227) (514)

Net Increase (Decrease) Resulting from Investment Operations 14,493 (5,687) (1,154) (1,590)

Unit Transactions

Contributions 15,820 92,233 10,157 29,322

Exchanges In 23,693 357,542 27,439 61,515


Withdrawals (9,061) (186,447) (6,675) (18,993)

Exchanges Out (28,039) (122,363) (18,775) (50,183)

Transfers Out1 — (559,570) — —


Total Increase (Decrease) 16,906 (424,292) 10,992 20,071

Net Position

Beginning of Period 143,410 1,072,590 121,319 265,079

End of Period 160,316 648,298 132,311 285,150


Total Return 10.13% 0.00% -0.94% -0.63%


Expense Ratio 0.32% 0.17% 0.25% 0.22%


1 Transfers In and Transfers Out represent assets transferred as the result of the age-based option redesign effective March 17, 2017.2 Portfolio activity for the period March 17, 2017, through June 30, 2017.

54


Vanguard Total Vanguard International Interest Bond Index Accumulation Portfolio2 Portfolio ($000) ($000)



Income Dividends Received 8 8,512

Capital Gain Distributions Received — —

Realized Net Gain (Loss) on Investment Securities Sold — —

Change in Net Unrealized Appreciation (Depreciation) in Value of Investments (2) —

Administrative Expenses (1) (846)

Net Increase (Decrease) Resulting from Investment Operations 5 7,666

Unit Transactions

Contributions 210 74,056

Exchanges In 3,328 294,066

Transfers In1 — 1,152

Withdrawals (32) (122,602)

Exchanges Out (145) (113,182)

Transfers Out1 — —

Net Increase (Decrease) from Unit Transactions 3,361 133,490

Total Increase (Decrease) 3,366 141,156

Net Position

Beginning of Period — 613,884

End of Period 3,366 755,040

Net Position Value Per Unit, End of Period $10.12 $12.12

Total Return 1.20% 1.08%


Expense Ratio 0.26% 0.17%

55

About Your Portfolio’s Expenses

Each investment option in The Vanguard 529 College Savings Plan assesses a fee that is expressed as a percentage of portfolio assets. During the fiscal year, this fee (or expense ratio) ranged from 0.17% to 0.45%.

The following examples in the table are intended to illustrate the ongoing costs of investing in the portfolios. The examples assume a $10,000 initial investment and a hypothetical 5% annual return for each portfolio, and show the cumulative cost in dollars over a one-year period ended June 30, 2017. The fee represents the only ongoing cost that you incur as an account owner.

It is important to understand that the portfolios—much like the mutual funds in which they invest—do not assess the fee at one time. Rather, this cost is factored into each day’s closing unit price, and thus directly reduces the return of each portfolio.

More information about the costs of investing in The Vanguard 529 College Savings Plan can be found in the Program Description.

1 Expense ratios are as of June 30, 2017.2 Expenses are equal to the portfolio’s expense ratio multiplied by the average account value over the period. Note: The examples assume the fee remains the same for each portfolio over the investment period and no portfolio units are

bought or sold. These examples should not be considered to represent actual expenses or performance from the past or for the future. Actual future expenses may be higher or lower than those shown.

56

Cost of a Hypothetical $10,000 Investment Expenses Paid Over 529 Portfolio Expense Ratio1 One Year2


500 Index 0.19% $19.46




Morgan Growth 0.45 46.02





Windsor 0.44 45.00


10% Stock/90% Bond (since inception: 3/17/2017) 0.17% $17.41

20% Stock/80% Bond (since inception: 3/17/2017) 0.17 17.41

25% Bond/75% Short-Term Reserves (since inception: 3/17/2017) 0.17 17.41



50% Bond/50% Short-Term Reserves (since inception: 3/17/2017) 0.17 17.41





Conservative Growth 0.17 17.41

Growth 0.17 17.41


STAR 0.45 46.02


High-Yield Bond 0.32% $32.75

Income 0.17 17.41

Inflation-Protected Securities 0.25 25.59

Total Bond Market Index 0.22 22.53

Total International Bond Index (since inception: 3/17/2017) 0.26 26.62


Interest Accumulation 0.17% $17.41

57

Ways to Make the Most of Your Plan

Low costs and a variety of investment choices are just a few of the benefits you get when you use The Vanguard 529 College Savings Plan. Here are some other advantages:

Autopilot savings that can help you save more—convenientlyYou probably know that the sooner you get started investing, the better off you’ll likely be. But contributing regularly can also greatly accelerate your savings. With our Automatic Investment Plan, you can link your bank account to your 529 account and invest as little as $50 each month or quarter. You can choose the specific day you want your bank account to be debited electronically, and you won’t have to remember to write and mail a check.

You can set up this convenient way to save either online or by mailing a form. The service charges no fees—and it’s just one less thing to worry about.

Age-based options that simplify investingTake the guesswork out of saving for college by choosing one of our three age-based options. Simply select the one that’s most consistent with your desired level of risk—conservative, moderate, or aggressive. Then sit back while Vanguard implements your investment strategy by automatically adjusting your asset allocation to become more conservative over time. This gradual change helps make your savings less vulnerable to market volatility as your beneficiary gets older.

Online resources to plan and refine your strategyVanguard’s College Savings Center (https://investor.vanguard.com/college-savings-plans/saving-for-college) is a valuable resource for planning your future educational needs. And it’s available around the clock.

Visit the center not only to learn about savings options, future college costs, and much more, but also to take advantage of our powerful yet easy-to-use planning tools. For example, our College Savings Planner will create a comprehensive report summarizing how much you’ll need to save to meet your goals. You can estimate costs for a specific school—more than 3,500 colleges and universities are in our database—or use national averages. Other tools can calculate what your savings may be worth when it’s time for college and help determine how you should allocate them among stocks, bonds, and short-term reserves.

Easy contributions from a Vanguard mutual fundYou may be able to move assets from a Vanguard mutual fund to your Vanguard 529 Plan account. The fund must be an individual account owned by the owner of the Vanguard 529 Plan account or an UGMA account moving to a Vanguard 529 Plan UGMA account for the same minor and custodian. This is a two-day process. The Vanguard mutual fund redemption occurs first, and the purchase into the Vanguard 529 Plan account takes place on the following business day. Assets can be moved at enrollment or during subsequent purchases—but only online. Please be aware that this may result in a taxable event.

Online exchanges and qualified withdrawalsYou can make an exchange—move money from one of your investment options to another—twice a year and request withdrawals online at vanguard.com. Simplify management of your account and initiate these and other common requests from our secure, easy-to-use website.

58

Age-Based Options (The expense ratio for all the portfolios in the three age-based options is 0.17% as of June 30, 2017.)

Age of Bene�ciary0–2 years 3–4 years 5–6 years 7–8 years 9–10 years 11–12 years

Vanguard 60% Stock/40% BondPortfolio*





Conservative OptionAge of Bene�ciary Conservative Moderate Aggressive

Newborn Vanguard Moderate Vanguard Growth Portfolio Vanguard Aggressive through 5 Growth Portfolio Growth Portfolio

6 through 10 Vanguard Conservative Vanguard Moderate Vanguard Growth Portfolio Growth Portfolio Growth Portfolio

■ 75%■ 25% ■ 100%

■ 50%■ 50%

■ 25%■ 75%

■ 50%■ 50%

■ 75%■ 25%

11 through 15 Vanguard Income Portfolio Vanguard Conservative Vanguard Moderate Growth Portfolio Growth Portfolio

■ 25%■ 75%

■ 25%■ 75%

■ 50%■ 50%

16 through 18 Vanguard Income Portfolio Vanguard Income Portfolio Vanguard Conservative Growth Portfolio

■ 25%■ 75%

■ 25%■ 75%

■ 25%■ 75%

19 or older Vanguard Interest Vanguard Income Portfolio Vanguard Income PortfolioAccumulation Portfolio

■ 100%■ 25%■ 75%

■ Stocks ■ Bonds ■ Short-term reserves * New portfolio

Stocks Bonds Short-termReserves

■ Stocks ■ Bonds ■ Short-Term Investments

■ Stocks ■ Bonds ■ Short-Term Investments * New portfolio

Vanguard Moderate Growth Portfolio50% Stock/50% Bond






Moderate Option


Vanguard AggressiveGrowth Portfolio100% Stock





Aggressive Option


13–14 years 15 years 16 years 17 years 18 years 19 years or older

■ Stocks ■ Bonds ■ Short-term * New portfolio reserves

Vanguard Income Portfolio75% Bond/25% Short-TermReserves

Vanguard 50% Bond/50% Short-TermReservesPortfolio*



Vanguard Interest AccumulationPortfolio 100% Short-TermReserves














Note: The new portfolios are only available for purchase as part of an age-based portfolio and can’t be purchased individually.

59

Age of Bene�ciary0–2 years 3–4 years 5–6 years 7–8 years 9–10 years 11–12 years






Conservative OptionAge of Bene�ciary Conservative Moderate Aggressive

Newborn Vanguard Moderate Vanguard Growth Portfolio Vanguard Aggressive through 5 Growth Portfolio Growth Portfolio

6 through 10 Vanguard Conservative Vanguard Moderate Vanguard Growth Portfolio Growth Portfolio Growth Portfolio

■ 75%■ 25% ■ 100%

■ 50%■ 50%

■ 25%■ 75%

■ 50%■ 50%

■ 75%■ 25%

11 through 15 Vanguard Income Portfolio Vanguard Conservative Vanguard Moderate Growth Portfolio Growth Portfolio

■ 25%■ 75%

■ 25%■ 75%

■ 50%■ 50%

16 through 18 Vanguard Income Portfolio Vanguard Income Portfolio Vanguard Conservative Growth Portfolio

■ 25%■ 75%

■ 25%■ 75%

■ 25%■ 75%

19 or older Vanguard Interest Vanguard Income Portfolio Vanguard Income PortfolioAccumulation Portfolio

■ 100%■ 25%■ 75%

■ Stocks ■ Bonds ■ Short-term reserves * New portfolio

Stocks Bonds Short-termReserves

■ Stocks ■ Bonds ■ Short-Term Investments

■ Stocks ■ Bonds ■ Short-Term Investments * New portfolio







Moderate Option







Aggressive Option


13–14 years 15 years 16 years 17 years 18 years 19 years or older

■ Stocks ■ Bonds ■ Short-term * New portfolio reserves





Vanguard Interest AccumulationPortfolio 100% Short-TermReserves














60

Glossary

Age-Based Option. Designed to take into account a beneficiary’s age and your investing time horizon. As the beneficiary nears college age, account assets are automatically moved to more conservative portfolios.

Expense Ratio. The percentage of a portfolio’s average net assets used to pay its annual administrative and advisory expenses. These expenses directly reduce returns to investors. The expense ratio includes a portfolio’s proportionate share of operating, administrative, and advisory expenses of the underlying funds.

Individual Portfolio. Asset allocation remains fixed over time and does not change as the beneficiary nears college age. For the 2017 fiscal year, The Vanguard 529 Plan offered 15 multifund portfolios and 15 single-fund portfolios.

Multifund Portfolio. A portfolio that invests in two or more underlying funds.

Net Position. Total assets minus total liabilities.

Return. A percentage change, over a specified time period, in unit price.

Single-Fund Portfolio. A portfolio that invests in a single underlying fund.

Unit Price. Calculated by dividing the dollar value of the portfolio’s net position by the number of units outstanding.

Yield. A portfolio’s yield is derived using a formula specified by the U.S. Securities and Exchange Commission. Under the formula, data related to the portfolio’s security holdings in the previous 30 days are used to calculate the portfolio’s actual net income for that period, which is then annualized and divided by the portfolio’s average net assets over the calculation period. For the purposes of this calculation, a security’s net income is based on the actual income earned in the prior 30 days.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Vanguard. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P® and S&P 500® are trademarks of S&P; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Vanguard. Vanguard’s Product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

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 license. 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.

Connect with Vanguard® > vanguard.com > 866-734-4530

© 2017 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor and Underwriter.

Q5290 102017

Administered by Nevada State Treasurer

Dan Schwartz

The Vanguard® 529 College Savings PlanProcessing Center P.O. Box 55111 Boston, MA 02205-5111

The Vanguard Income Portfolio, Vanguard Interest Accumulation Portfolio, Vanguard 25% Bond/75% Short-Term Reserves Portfolio and Vanguard 50% Bond/50% Short-Term Reserves Portfolio, all invest in the Vanguard Short-Term Reserves Account, which, in turn, invests in the 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.

The Vanguard 529 College Savings Plan is a Nevada Trust administered by the Board of Trustees of the College Savings Plans of Nevada, chaired by the Nevada State Treasurer.

This material may be used in conjunction with the offering of shares of The Vanguard 529 College Savings Plan portfolios only if preceded or accompanied by the current Program Description.

Before investing, consider whether any state tax or other benefits are available for investments in the qualified tuition program offered by the investor’s or beneficiary’s home state.

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