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                        [THE VANGUARD GROUP /(R)/ LOGO]
                    VANGUARD(R) CONVERTIBLE SECURITIES FUND
                          SUPPLEMENT TO THE PROSPECTUS

IMPORTANT CHANGES TO VANGUARD CONVERTIBLE SECURITIES FUND

FUND CLOSED TO NEW AND EXISTING SHAREHOLDERS
Effective as of the close of business on May 14, 2004, Vanguard Convertible
Securities Fund stopped accepting new shareholders, and prohibited existing
shareholders from making any additional purchases during the closed period.
Participants in certain qualified retirement plans may continue to invest in
accordance with the terms of their plans. There is no specific time frame for
when the Fund will reopen.


FUND REDEMPTIONS
During the closed period, shareholders may continue to redeem Fund shares using
any method described in the Fund's prospectus.

Vanguard Convertible Securities Fund may modify these transaction policies at
any time without advance notice to shareholders. Please call Vanguard for more
detailed information about the Fund's transaction policies. Investors in
nonretirement accounts and IRAs should call Vanguard's Investor Information
Department at 1-800-662-7447. Participants in employer-sponsored retirement
plans should call Vanguard(R) Participant Services at 1-800-523-1188.


















(C)2004 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.                        PSB82 122004