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                             The Vanguard Group (R)

                         Vanguard(R) Selected Value Fund
              Supplement to the Prospectus Dated February 26, 2002


Effective  December  2002,  Mark  Giambrone has joined James P. Barrow as a Fund
Manager for Vanguard Selected Value Fund. Mr. Giambrone has worked in investment
management since 1998, when he joined Barrow, Hanley,  Mewhinney & Strauss, Inc.
Mr.  Giambrone  earned his B.S.  at  Indiana  University  and his M.B.A.  at the
University of Chicago.
     The Fund's investment objective, strategies, and policies remain unchanged.

(C)2002 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.                        PS934 122002