Vanguard Funds
Supplement Dated January 12, 2026, to the Statement of Additional Information
As approved by the board of directors of The Vanguard Group, Inc. (the “Vanguard Board”), effective today, The Vanguard Group, Inc.’s (Vanguard) portfolio management and proxy voting administration services have reorganized into separate teams within two newly established wholly owned subsidiaries, Vanguard Capital Management, LLC (VCM) and Vanguard Portfolio Management, LLC (VPM) (the “Reorganization”). The Vanguard Board has determined that the Reorganization is in the best interests of the Vanguard funds and their shareholders.
In connection with the Reorganization, Vanguard has entered into intercompany service agreements with each of VCM and VPM. Each intercompany service agreement was approved by the Vanguard Board and a majority of the independent trustees of the Vanguard funds.
The Reorganization is not expected to increase the expense ratio of the Vanguard funds, nor does it necessitate any changes to the Vanguard funds’ investment objectives or strategies.
Statement of Additional Information (SAI) Changes
The following information amends, replaces, and/or supplements, as appropriate, information described in the Management of the Funds, Investment Advisory and Other Services, Proxy Voting, and other sections of this SAI. Disclosure with respect to investment advisors other than Vanguard (and portfolio managers employed by such investment advisors) remains unchanged.
Vanguard provides investment advisory services to the funds listed below (each, an “Impacted Fund”) through a wholly owned subsidiary, VCM and/or VPM, as identified in the table. All of these services are provided at Vanguard’s total cost of operations pursuant to the Fifth Amended and Restated Funds’ Service Agreement (the Agreement). In addition, in accordance with the Agreement and as approved by the board of trustees of each Vanguard fund, Vanguard has delegated portfolio management and investment stewardship responsibilities for the Impacted Funds to a wholly owned subsidiary advisor (VCM and/or VPM, as identified in the table), pursuant to an agreement between Vanguard and such subsidiary advisor(s). Any such subsidiary advisor is paid by Vanguard and the portfolio management and investment stewardship services are provided to each Impacted Fund at cost.
Vanguard Capital Management (VCM)
Vanguard 0-3 Month Treasury Bill ETF |
Vanguard Multi-Sector Income Bond Fund |
Vanguard 500 Index Fund |
Vanguard Multi-Sector Income Bond ETF |
Vanguard Balanced Index Fund |
Vanguard Municipal Low Duration Fund |
Vanguard California Intermediate-Term Tax-Exempt Fund |
Vanguard Municipal Money Market Fund |
Vanguard California Long-Term Tax-Exempt Fund |
Vanguard New Jersey Long-Term Tax-Exempt Fund |
Vanguard California Municipal Money Market Fund |
Vanguard New York Long-Term Tax-Exempt Fund |
Vanguard California Tax-Exempt Bond ETF |
Vanguard New York Municipal Money Market Fund |
Vanguard Cash Reserves Federal Money Market Fund |
Vanguard New York Tax-Exempt ETF |
Vanguard Core Bond Fund |
Vanguard Ohio Long-Term Tax-Exempt Fund |
Vanguard Core Bond ETF |
Vanguard Pacific Stock Index Fund |
Vanguard Core Tax-Exempt Bond ETF |
Vanguard Pennsylvania Long-Term Tax-Exempt Fund |
Vanguard Core-Plus Bond Fund |
Vanguard Short Duration Bond ETF |
Vanguard Core-Plus Bond ETF |
Vanguard Short Duration Tax-Exempt Bond ETF |
Vanguard Core-Plus Bond Index ETF |
Vanguard Short-Term Bond Index Fund |
Vanguard Developed Markets Index Fund |
Vanguard Short-Term Corporate Bond Index Fund |
Vanguard Capital Management (VCM)
Vanguard Diversified Equity Fund |
Vanguard Short-Term Federal Fund |
Vanguard Emerging Markets Bond Fund |
Vanguard Short-Term Inflation-Protected Securities Index Fund |
Vanguard Emerging Markets Ex-China ETF |
Vanguard Short-Term Investment-Grade Fund |
Vanguard Emerging Markets Government Bond Index Fund |
Vanguard Short-Term Tax-Exempt Bond ETF |
Vanguard Emerging Markets Stock Index Fund |
Vanguard Short-Term Treasury Index Fund |
Vanguard ESG International Stock ETF |
Vanguard Short-Term Treasury Fund |
Vanguard ESG U.S. Corporate Bond ETF |
Vanguard STAR Core-Plus Bond Fund |
Vanguard European Stock Index Fund |
Vanguard STAR Fund |
Vanguard Extended Duration Treasury Index Fund |
Vanguard Target Retirement 2020 Fund |
Vanguard Extended Market Index Fund |
Vanguard Target Retirement 2025 Fund |
Vanguard Federal Money Market Fund |
Vanguard Target Retirement 2030 Fund |
Vanguard FTSE All-World ex-US Index Fund |
Vanguard Target Retirement 2035 Fund |
Vanguard FTSE All-World ex-US Small-Cap Index Fund |
Vanguard Target Retirement 2040 Fund |
Vanguard Global Credit Bond Fund |
Vanguard Target Retirement 2045 Fund |
Vanguard Global ex-U.S. Real Estate Index Fund |
Vanguard Target Retirement 2050 Fund |
Vanguard Government Securities Active ETF |
Vanguard Target Retirement 2055 Fund |
Vanguard High-Yield Active ETF |
Vanguard Target Retirement 2060 Fund |
Vanguard High-Yield Corporate Fund |
Vanguard Target Retirement 2065 Fund |
Vanguard High-Yield Tax-Exempt Fund |
Vanguard Target Retirement 2070 Fund |
Vanguard Inflation-Protected Securities Fund |
Vanguard Target Retirement Income Fund |
Vanguard Institutional Index Fund |
Vanguard Tax-Exempt Bond Index Fund |
Vanguard Institutional Intermediate-Term Bond Fund |
Vanguard Tax-Managed Balanced Fund |
Vanguard Institutional Short-Term Bond Fund |
Vanguard Total Bond Market II Index Fund |
Vanguard Institutional Total Stock Market Index Fund |
Vanguard Total Bond Market Index Fund |
Vanguard Intermediate-Term Bond Index Fund |
Vanguard Total Corporate Bond ETF |
Vanguard Intermediate-Term Corporate Bond Index Fund |
Vanguard Total Inflation-Protected Securities ETF |
Vanguard Intermediate-Term Investment-Grade Fund |
Vanguard Total International Bond II Index Fund |
Vanguard Intermediate-Term Tax-Exempt Bond ETF |
Vanguard Total International Bond Index Fund |
Vanguard Intermediate-Term Tax-Exempt Fund |
Vanguard Total International Stock Index Fund |
Vanguard Intermediate-Term Treasury Index Fund |
Vanguard Total Stock Market Index Fund |
Vanguard Intermediate-Term Treasury Fund |
Vanguard Total Treasury ETF |
Vanguard International Dividend Appreciation Index Fund |
Vanguard Total World Bond ETF |
Vanguard International High Dividend Yield Index Fund |
Vanguard Total World Stock Index Fund |
Vanguard LifeStrategy Conservative Growth Fund |
Vanguard Treasury Money Market Fund |
Vanguard LifeStrategy Growth Fund |
Vanguard Ultra-Short Treasury ETF |
Vanguard LifeStrategy Income Fund |
Vanguard Ultra-Short-Term Bond Fund |
Vanguard LifeStrategy Moderate Growth Fund |
Vanguard Ultra-Short-Term Bond ETF |
Vanguard Limited-Term Tax-Exempt Fund |
Vanguard Ultra-Short-Term Tax-Exempt Fund |
Vanguard Long-Term Bond Index Fund |
Vanguard Variable Insurance Funds (VVIF) — Conservative |
|
Allocation Portfolio |
Vanguard Long-Term Corporate Bond Index Fund |
VVIF — Equity Index Portfolio |
Vanguard Capital Management (VCM)
Vanguard Long-Term Investment-Grade Fund |
VVIF — Global Bond Index Portfolio |
Vanguard Long-Term Tax-Exempt Bond ETF |
VVIF — High Yield Bond Portfolio |
Vanguard Long-Term Tax-Exempt Fund |
VVIF — Moderate Allocation Portfolio |
Vanguard Long-Term Treasury Index Fund |
VVIF — Money Market Portfolio |
Vanguard Long-Term Treasury Fund |
VVIF — Short-Term Investment-Grade Portfolio |
Vanguard Market Liquidity Fund |
VVIF — Total Bond Market Index Portfolio |
Vanguard Massachusetts Tax-Exempt Fund |
VVIF — Total International Stock Market Index Portfolio |
Vanguard Mortgage-Backed Securities Index Fund |
VVIF — Total Stock Market Index Portfolio |
Vanguard Portfolio Management (VPM) |
|
Vanguard Communication Services Index Fund |
Vanguard Russell 2000 Index Fund |
Vanguard Consumer Discretionary Index Fund |
Vanguard Russell 2000 Value Index Fund |
Vanguard Consumer Staples Index Fund |
Vanguard Russell 3000 Index Fund |
Vanguard Dividend Appreciation Index Fund |
Vanguard S&P 500 Growth Index Fund |
Vanguard Energy Index Fund |
Vanguard S&P 500 Value Index Fund |
Vanguard Equity Income Fund |
Vanguard S&P Mid-Cap 400 Growth Index Fund |
Vanguard ESG U.S. Stock ETF |
Vanguard S&P Mid-Cap 400 Index Fund |
Vanguard Explorer Fund |
Vanguard S&P Mid-Cap 400 Value Index Fund |
Vanguard Financials Index Fund |
Vanguard S&P Small-Cap 600 Growth Index Fund |
Vanguard FTSE Social Index Fund |
Vanguard S&P Small-Cap 600 Index Fund |
Vanguard Global Minimum Volatility Fund |
Vanguard S&P Small-Cap 600 Value Index Fund |
Vanguard Growth Index Fund |
Vanguard Small-Cap Growth Index Fund |
Vanguard Health Care Index Fund |
Vanguard Small-Cap Index Fund |
Vanguard High Dividend Yield Index Fund |
Vanguard Small-Cap Value Index Fund |
Vanguard Industrials Index Fund |
Vanguard Strategic Equity Fund |
Vanguard Information Technology Index Fund |
Vanguard Strategic Small-Cap Equity Fund |
Vanguard Large-Cap Index Fund |
Vanguard Tax-Managed Capital Appreciation Fund |
Vanguard Market Neutral Fund |
Vanguard Tax-Managed Small-Cap Fund |
Vanguard Materials Index Fund |
Vanguard U.S. Minimum Volatility ETF |
Vanguard Mega Cap Growth Index Fund |
Vanguard U.S. Momentum Factor ETF |
Vanguard Mega Cap Index Fund |
Vanguard U.S. Multifactor Fund |
Vanguard Mega Cap Value Index Fund |
Vanguard U.S. Multifactor ETF |
Vanguard Mid-Cap Growth Index Fund |
Vanguard U.S. Quality Factor ETF |
Vanguard Mid-Cap Index Fund |
Vanguard U.S. Value Factor ETF |
Vanguard Mid-Cap Value Index Fund |
Vanguard Utilities Index Fund |
Vanguard Real Estate II Index Fund |
Vanguard Value Index Fund |
Vanguard Real Estate Index Fund |
Vanguard Variable Insurance Funds (VVIF) — Equity |
|
Income Portfolio |
Vanguard Russell 1000 Growth Index Fund |
VVIF — Mid-Cap Index Portfolio |
Vanguard Russell 1000 Index Fund |
VVIF — Real Estate Index Portfolio |
Vanguard Russell 1000 Value Index Fund |
VVIF — Small Company Growth Portfolio |
Vanguard Portfolio Management (VPM)
Vanguard Russell 2000 Growth Index Fund
Vanguard Capital Management (VCM) and Vanguard Portfolio Management (VPM)
Vanguard Commodity Strategy Fund
Investment advisory services are provided to the Impacted Funds by experienced investment management professionals who are employed by Vanguard and are associated persons of either VCM or VPM (as disclosed in a Supplement to the Impacted Funds’ Prospectuses and Summary Prospectuses dated January 12, 2026). Individual portfolio managers at a wholly owned subsidiary advisor (VCM or VPM) may manage multiple accounts for multiple clients. In addition to mutual funds, these accounts may include separate accounts, collective trusts, or offshore funds. Managing multiple funds or accounts may give rise to potential conflicts of interest including, for example, conflicts among investment strategies and conflicts in the allocation of investment opportunities. Each wholly owned subsidiary advisor manages potential conflicts between funds or accounts through allocation policies and procedures, internal review processes, and oversight by trustees and independent third parties. Each wholly owned subsidiary advisor has developed trade allocation procedures and controls to ensure that no one client, regardless of type, is intentionally favored at the expense of another. Allocation policies are designed to address potential conflicts in situations in which two or more funds or accounts participate in investment decisions involving the same securities.
Each Impacted Fund retains the authority to vote proxies received with respect to the shares of equity securities held in a portfolio advised by Vanguard through one of its wholly owned subsidiaries. The boards of trustees of the Impacted Funds have adopted proxy voting procedures and guidelines (to be administered by VCM and/or VPM and their respective Investment Stewardship teams, as appropriate) which govern proxy voting for each portfolio retaining proxy voting authority.
© 2026 The Vanguard Group, Inc. All rights reserved. |
SAI ALL4 012026 |
Vanguard Marketing Corporation, Distributor. |