[SHIP]
                            [THE VANGUARD GROUP LOGO]

                        VANGUARD(R) STRATEGIC EQUITY FUND
              SUPPLEMENT TO THE PROSPECTUS DATED FEBRUARY 27, 2001

Effective   after  the  close  of  business  on  April  6,  2001,  the  Fund  is
discontinuing  the 1% fee  applied  to  shares  redeemed  within  five  years of
purchase.  The Fund  reserves the right to reinstate the  redemption  fee in the
future with respect to newly purchased shares.

(C)2001 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.                       PS114  042001