psmins.htm - Generated by SEC Publisher for SEC Filing

Vanguard Balanced Index Fund

Vanguard Developed Markets Index Fund

Vanguard FTSE All-World ex-US Index Fund

Vanguard FTSE All-World ex-US Small-Cap Index Fund

Vanguard FTSE Social Index Fund

Vanguard International Stock Index Funds

Vanguard Market Neutral Fund

Vanguard Mega Cap 300 Index Funds

Vanguard REIT Index Fund

Vanguard Russell 1000 Stock Index Funds

Vanguard Russell 2000 Stock Index Funds

Vanguard Russell 3000 Index Fund

Vanguard S&P 500 Value and Growth Index Funds

Vanguard S&P Mid-Cap 400 Index Funds

Vanguard S&P Small-Cap 600 Index Funds

Vanguard Sector Bond Index Funds

Vanguard Tax-Managed Funds^®

Vanguard Total World Stock Index Fund

Vanguard U.S. Stock Index Large-Capitalization Funds

Vanguard U.S. Stock Index Mid-Capitalization Funds

Vanguard U.S. Stock Index Small-Capitalization Funds

Supplement to the Prospectuses for Institutional Shares

Prospectus Text Changes

The text under the heading “Account Minimums for Institutional Shares” in the Purchasing Shares section is replaced with the following:

(over, please)

To open and maintain an account. $5 million.

Certain Vanguard institutional clients may meet the minimum investment amount by aggregating up to three separate accounts within the same Fund. This aggregation policy does not apply to clients receiving special administrative services from Vanguard or to omnibus accounts maintained by financial intermediaries.

Institutional clients whose accounts are recordkept by Vanguard generally may hold Institutional Shares if the client has $10 million or more in the Fund. Vanguard may charge certain additional recordkeeping fees. Please contact your Vanguard representative to determine whether additional recordkeeping fees apply to your accounts.

Add to an existing account. $100 by check, exchange, wire, or electronic bank transfer (other than Automatic Investment Plan, which has no established minimum).

PS MINS 102010