Vanguard U.S. Growth Fund

Semiannual Report | February 28, 2017

Contents

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice.Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, therisks of investing in your fund are spelled out in the prospectus.

See the Glossary for definitions of investment terms used in this report.About the cover: No matter what language you speak, Vanguard has one consistent message and set of principles. Our primary focus is on you, our clients. We conduct our business with integrity as a faithful steward of your assets. This message is showntranslated into seven languages, reflecting our expanding global presence.

A new format, unwavering commitment

As you begin reading this report, you’ll notice that we’ve made some improvementsto the opening sections—based on feedback from you, our clients.

Page 1 starts with a new ”Your Fund’s Performance at a Glance,” a concise, handysummary of how your fund performed during the period.

In the renamed ”Chairman’s Perspective,” Bill McNabb will focus on enduringprinciples and investment insights.

We’ve modified some tables, and eliminated some redundancy, but we haven’tremoved any information.

At Vanguard, we’re always looking for better ways to communicate and to help youmake sound investment decisions. Thank you for entrusting your assets to us.

Your Fund’s Performance at a Glance. . . . . . . . . . . . . . . . . . 1

Chairman’s Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Advisors’ Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Fund Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Performance Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . 28

Trustees Approve Advisory Arrangements. . . . . . . . . . . . . .30

Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Your Fund’s Performance at a Glance

1

Total Returns: Six Months Ended February 28, 2017

TotalReturns

Vanguard U.S. Growth Fund

Investor Shares 4.75%

Admiral™ Shares 4.81

Russell 1000 Growth Index 9.15

Large-Cap Growth Funds Average 7.44

Large-Cap Growth Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company.

Admiral Shares carry lower expenses and are available to investors who meet certain account-balance requirements.

Expense RatiosYour Fund Compared With Its Peer Group

Investor

Shares

Admiral

Shares

Peer Group

Average

U.S. Growth Fund 0.46% 0.32% 1.14%

The fund expense ratios shown are from the prospectus dated December 22, 2016, and represent estimated costs for the current fiscal year.For the six months ended February 28, 2017, the annualized expense ratios were 0.41% for Investor Shares and 0.28% for Admiral Shares.The peer-group expense ratio is derived from data provided by Lipper, a Thomson Reuters Company, and captures information throughyear-end 2016.

Peer group: Large-Cap Growth Funds.

• Vanguard U.S. Growth Fund returned almost 5% for the six months ended February 28,

2017. It trailed the 9.15% return of its benchmark, the Russell 1000 Growth Index, and the

7.44% average return of its large-capitalization growth peers.

• The fund’s five advisors manage their portions of the portfolio separately, but all seek

to hold the stocks of large, high-quality companies with long-term growth potential.

• Value stocks outperformed growth during the half-year, and small-cap stocks topped

large- and mid-caps.

• Information technology stocks, which made up about 40% of the portfolio, added

the most to the fund’s absolute return but lagged those contained in the benchmark.

The advisors’ consumer discretionary, industrial, and health care stocks also recorded

subpar returns versus their benchmark counterparts.

• The fund held stocks in 9 of 11 industry sectors at the period’s end; only consumer

staples declined.

Dear Shareholder,

More than a decade ago, a Vanguard client asked us to help improve its defined contribution retirement plan. New hires were participating in the plan at lower rates than in previous years, and the client wanted to reverse this trend. Another priority was to help more participants invest their retire-ment savings in balanced portfolios.

The overall goal of this longtime client:

Give employees a better chance to

achieve financial security in retirement.

Today, that plan automatically enrolls

employees at a 5% contribution rate, puts

them in a low-cost target-date fund that

takes on less risk as they near retirement,

and offers a comprehensive suite of advice

services. On top of that, employees get

an employer contribution of 5% and

are eligible for a company match.

Because of this combination of attractive

features and generous employer contribu-

tions, nearly all new hires now participate

in the plan, 81% of plan participants invest

their retirement savings in balanced

portfolios, and 87% of participants meet

or exceed Vanguard’s recommended total

retirement savings target. (Vanguard

generally recommends that retirement

investors save 12%–15% of pay,

including company matches.)

Chairman’s Perspective

Bill McNabbChairman and Chief Executive Officer

2

Changing the retirement landscapeAm I singling out an isolated Vanguard

success story? Absolutely not.

Stories like these are becoming

increasingly common with employer-

based retirement plans, particularly

among large and midsize companies.

Solutions such as automatic enrollment,

automatic contribution increases, and

default investment in target-date funds

are having a positive effect.

Insights from the relatively new discipline

of behavioral finance have contributed to

the advances. Simply put, retirement plans

are making natural human inertia work for future retirees, rather than against them,

by putting savings on autopilot as much

as possible.

More than 60% of Vanguard participants

are in plans with automatic enrollment,

which has led to a big jump in participation.

Today, more than four-fifths of eligible

employees are saving for retirement,

compared with only two-thirds ten

years ago.

In addition, many plans have adopted

automatic-escalation features, which

increase plan contributions at regular

intervals until a maximum level is reached

or an employee opts out. Automatic

increases are a crucial tool for boosting

retirement savings rates.

The growing use of target-date funds is

another enormous benefit. More than 70%

of all participants in Vanguard plans invest

at least part of their retirement savings in

Market Barometer Total Returns

Periods Ended February 28, 2017

Six One Five Years

Months Year (Annualized)

Stocks

Russell 1000 Index (Large-caps) 10.10% 25.53% 13.94%

Russell 2000 Index (Small-caps) 12.61 36.11 12.89

Russell 3000 Index (Broad U.S. market) 10.29 26.29 13.85

FTSE All-World ex US Index (International) 5.40 19.87 4.00

Bonds

Bloomberg Barclays U.S. Aggregate Bond Index

(Broad taxable market) -2.19% 1.42% 2.24%

Bloomberg Barclays Municipal Bond Index

(Broad tax-exempt market) -2.80 0.25 3.07

Citigroup Three-Month U.S. Treasury Bill Index 0.19 0.32 0.10

CPI

Consumer Price Index 1.14% 2.74% 1.36%

3

these age-appropriate, diversified

strategies. And nearly 50% of Vanguard

participants are invested solely in a single

target-date fund.

Consider a do-it-yourself autopilot But what if you don’t have access

to a world-class, employer-based

retirement plan? Unfortunately, not

everyone does, which is an important

policy issue.

However, you can still put the features

of these plans to work. For example, you

can set up automatic contributions from

your paycheck to an IRA. And you can

adopt your own automatic escalation by

investing any pay raises.

You can also take a page from top-quality

retirement plans by considering a low-cost,

globally diversified target-date fund. The

beauty of this approach is that you don’t

need to remember to rebalance your

portfolio—the fund does it for you.

Of course, you can take a more active

role in picking your own investments,

and this can be a good choice for some.

But keep in mind the lessons from

successful employer-based plans:

Busy workers, faced with a lot of

competing priorities, are often best

served by putting their retirement

savings on autopilot.

Winning by defaultIn highlighting some recent successes

in retirement savings, I don’t want to

minimize the challenges we still face.

We’re living in a slow-growth, uncertain

world, and investment returns for both

stocks and bonds could well be modest

in the coming decade.

But I believe the innovations we’ve seen

in the last ten years in many retirement

plans—you might call it the “default

revolution”—point the way toward a

solution. And that even goes for people

whose employers don’t have a world-class

retirement plan.

As always, thank you for investing

with Vanguard.

Sincerely,

F. William McNabb III

Chairman and Chief Executive Officer

March 14, 2017

4

Advisors’ Report

5

For the six months ended February 28,

2017, Vanguard U.S. Growth Fund returned

nearly 5%. It trailed its benchmark, the

Russell 1000 Growth Index, and the

average return of its peers. Your fund is

managed by five advisors. The use of

multiple independent advisors enhances

the fund’s diversification by providing

exposure to distinct yet complementary

investment approaches. It is not uncommon

for different advisors to have different views

about individual securities or the broader

investment environment.

The table on page 10 presents the

advisors, the percentage and amount

of fund assets that each manages, and brief

descriptions of their investment strategies.

Each advisor has also prepared a discussion

of the investment environment during the

fiscal half-year and of how the portfolio’s

positioning reflects this assessment. These

reports were prepared on March 16, 2017.

Wellington Management Company LLP

Portfolio Manager:

Andrew J. Shilling, CFA,

Senior Managing Director

We aim for our portion of the fund to

outperform growth benchmarks and, in

the longer term, the broader market. We

employ proprietary fundamental research

and a rigorous valuation discipline to invest

in large-capitalization companies with

attractive growth characteristics. Our

investment approach is based on

identifying companies with a clear

competitive advantage that will enable

them to sustain above-average growth.

Weak security selection in the industrial,

information technology, and health care

sectors weighed on our portion of the

fund over the last six months. Choices

in consumer discretionary also detracted

from relative results. Our selection

was stronger in real estate, helping to

partially offset weakness elsewhere. An

underweighted exposure to consumer

staples and an overweighted allocation

to information technology (a result of

our bottom-up stock selection) further

boosted results.

The largest detractors from relative

performance included athletic apparel-

maker Under Armour, medical equipment

supplier Edwards Lifesciences, and energy

and soft drink company Monster Beverage.

Netflix was the leading contributor. Other

standouts included consumer electronics

company Harman International Industries

and technology products and services

provider CDW.

At the period’s close, we were most

overweighted in the information

technology, financial, and industrial

sectors. We reduced our exposure to

consumer discretionary, where we now

have an underweighted allocation. We

also remained underweighted in health

care, consumer staples, and materials.

6

In today’s environment of low global

growth and elevated uncertainty, we

have maintained the portfolio’s exposure

to secular trends and long-cycle growth.

We believe these durable growth drivers

will yield attractive relative returns during a

challenging period for investors. We remain

true to our process, seeking to invest in

companies with competitive advantages,

strong balance sheets, experienced and

proven management, and the ability to

sustain above-average growth.

Jackson Square Partners, LLC

Portfolio Managers:

Jeffrey S. Van Harte, CFA,

Chairman and Chief Investment Officer

Christopher J. Bonavico, CFA,

Equity Analyst

Christopher M. Ericksen, CFA,

Equity Analyst

Daniel J. Prislin, CFA,

Equity Analyst

Stock selection hurt the portfolio during

the period. TripAdvisor Holdings was

the biggest detractor. The company is

transitioning to a business model that allows

users to book directly online through its site.

Although usage trends for InstantBook are

improving, user behavior has been more

difficult to change than expected. The

company plans to increase its marketing

spending in order to accelerate revenue

growth and attract customers to the new

feature. Such a campaign could push

revenues higher, but it could also

temporarily affect EBITDA. Despite

InstantBook’s slow takeoff, we believe the

company has the assets in place to build a

successful transaction business that will

supplement its core travel search business.

Our largest relative contributor during the

period was Celgene Corporation. Revlimid,

its drug for multiple myeloma, has grown

nearly 30% year-over-year, with notable

international success. We believe the

company is poised to benefit from

additional indications for some of its

drugs (particularly Revlimid), increased

use of others, and international growth

opportunities.

The equity market has delivered positive

absolute results over the past several

years. However, Jackson Square Partners

believes that ever-changing market

sentiment has demonstrated that more

than just fundamental factors are affecting

stock prices. A lack of confidence in the

tepid fundamental outlook since the

financial crisis suggests that many

investors have struggled to accurately

predict the pace of global economic

recovery. They are also uncertain about

assessing external factors that threaten

economic fundamentals, such as central

bank actions and fiscal policy debates

across the globe.

President Trump’s surprising victory in

November and the corresponding market

reaction reflect growing investor optimism,

7

at least in the short term, that upcoming policy shifts could stimulate economic growth. We believe it is too early to determine the direction or magnitude of such moves, but we will closely monitor the launch of Trump’s tenure with a keen eye on potentially significant changes.

William Blair Investment Management, LLC

Portfolio Managers:

James Golan, CFA, Partner

David Ricci, CFA, Partner

Equity market strength over the six months was fueled by positive U.S. economic data and the surprise election of Donald Trump. The president’s proposed policies of lower taxes, increased fiscal spending, and looser regulations were generally perceived as pro-growth. This gave a boost to cheaper and more economically sensitive areas of the market. At the same time, U.S. economic data, including retail sales, housing starts, unemployment claims, and wages, strengthened.

The portfolio was hindered during the period by disappointing stock selection and a challenging environment for our investment style. The market’s preference for cheaper stocks hurt because the portfolio’s quality growth companies typically trade at a valuation premium. At the sector level, our largest detractors were information technology—mainly our decision to not own Apple—and consumer

discretionary, in part because of a position in O’Reilly Automotive. Other top individual detractors included health care holding Cerner Corporation and consumer staples companies Monster Beverage Corporation, Kroger, and Estee Lauder. Top contributors included UnitedHealth Group (health care), Union Pacific (industrials), Adobe Systems (information technology), Affiliated Managers Group (financials), and Mastercard (information technology).

As always, we believe other investors’ focus on near-term events creates opportunities for investors such as ourselves, who analyze companies over the long term to achieve excess returns. We remain focused on identifying companies with durable growth drivers whose stocks present compelling risk/reward opportunities.

Jennison Associates LLC

Portfolio Managers:

Kathleen A. McCarragher, Managing Director

Blair A. Boyer, Managing Director

Hurt by the U.S. election’s focus on drug pricing earlier in the period, health care stocks dragged on portfolio returns despite a later rebound as concerns abated somewhat. Bristol-Myers Squibb declined following disappointing clinical data from its immuno-oncology program. Allergan and Shire, which have grown through acquisitions, were affected by

8

regulatory changes that threatened to remove the tax benefits of mergers between U.S. and offshore companies.

Technology positions were strong contributors but underperformed the benchmark sector. Apple’s strength reflected the proliferation of the iOS platform across mobile phones, tablets, and personal computers and the financial power and attractive margins of the company’s hardware products. Semiconductor-maker NVIDIA benefited from its focus on high-growth markets, where it is offering high-value-added graphics products. Qualcomm fell because of new and ongoing antitrust litigation.

In the wake of the U.S. election, the financial and industrial sectors performed well in anticipation of a less onerous regulatory environment and stimulus to infrastructure investment. We believe Goldman Sachs’s strong capital base and leading positions in investment banking, capital markets, trading, and asset management provide attractive exposure to long-term global economic expansion. Morgan Stanley is a formidable competitor and has a balanced and diversified business model.

Boeing’s gain reflected strong financial results and the 787 Dreamliner commercial jet’s cash generation. In consumer discretionary, Netflix rose on robust subscriber growth. As the company develops into a global network, its earnings potential grows significantly.

We conduct rigorous research to determine company, industry, and sector fundamentals and prospects over intermediate and longer terms, projecting how markets, industries, and businesses will evolve over time. With this perspective, we build the portfolio through individual stock selection based on company fundamentals.

Baillie Gifford Overseas Ltd.

Portfolio Managers:

Tom Slater, Investment Manager, Partner

Gary Robinson, Investment Manager

The election victory of Donald Trump dominated the news during the period. As in 2016, markets were primarily driven by politics and sentiment. Given our long-term view and focus on company fundamentals, it was pleasing to see the companies held by the portfolio continue to deliver outstanding operational results. We are heartened by their extensive investment for future growth.

Our philosophy and process focus on finding and holding exceptional growth companies, as defined by their culture, growth opportunity, and competitive edge. As a result of our research, we acquired a diverse range of stocks with attractive and durable growth prospects. CoStar Group (commercial real estate data), Ellie Mae (mortgage origination software), NVIDIA (graphic-chip designer), and Vertex Pharmaceuticals (cystic fibrosis drug developer) were all purchased over the

9

period. Funds for these stocks came from the complete sales of Apache, Colgate-Palmolive, Genomic Health, Idexx Laboratories, and O’Reilly Automotive.

Despite political uncertainties, we remain very optimistic about the portfolio’s prospects; some of its holdings are literally changing the world through their innovation, expertise, and vision. We look forward to updating you on their progress and finding more exceptional growth companies over the coming year.

10

Vanguard U.S. Growth Fund Investment Advisors

Fund Assets Managed

Investment Advisor % $ Million Investment Strategy

Wellington ManagementCompany LLP

37 2,536 Employs proprietary fundamental research and arigorous valuation discipline in an effort to invest inhigh-quality, large-cap, sustainable-growth companies.The investment approach is based on the belief thatstock prices often overreact to short-term trends andthat bottom-up, intensive research focused onlonger-term fundamentals can be used to identifystocks that will outperform the market over time.

Jackson Square Partners, LLC 36 2,511 Uses a bottom-up approach, seeking companies thathave large end-market potential, dominant businessmodels, and strong free cash flow generation that isattractively priced compared with the intrinsic value ofthe securities.

William Blair InvestmentManagement, LLC

13 882 Uses a fundamental investment approach in pursuit ofsuperior long-term investment results fromgrowth-oriented companies with leadership positionsand strong market presence.

Jennison Associates LLC 6 441 Uses a research-driven, fundamental investmentapproach that relies on in-depth company knowledgegleaned through meetings with management,customers, and suppliers.

Baillie Gifford Overseas Ltd. 6 428 Uses a long-term, active, bottom-up investmentapproach to identify companies that can generateabove-average growth in earnings and cash flow.

Cash Investments 2 127 These short-term reserves are invested by Vanguard inequity index products to simulate investment in stocks.Each advisor may also maintain a modest cashposition.

1 The expense ratios shown are from the prospectus dated December 22, 2016, and represent estimated costs for the current fiscal year. For the six months ended February 28, 2017, the annualized expense ratios were 0.41% for Investor Shares and 0.28% for Admiral Shares.

Fund ProfileAs of February 28, 2017

Share-Class Characteristics

InvestorShares

AdmiralShares

Ticker Symbol VWUSX VWUAX

Expense Ratio1 0.46% 0.32%

30-Day SEC Yield 0.45% 0.60%

U.S. Growth Fund

11

Volatility Measures

Russell 1000Growth Index

DJU.S. Total

MarketFA Index

R-Squared 0.92 0.79

Beta 1.01 0.97

These measures show the degree and timing of the fund’sfluctuations compared with the indexes over 36 months.

Ten Largest Holdings (% of total net assets)

Alphabet Inc. Internet Software &Services 6.0%

Facebook Inc. Internet Software &Services 3.9

Microsoft Corp. Systems Software 3.9

Mastercard Inc. Data Processing &Outsourced Services 3.3

Visa Inc. Data Processing &Outsourced Services 3.1

Amazon.com Inc. Internet & DirectMarketing Retail 2.7

Apple Inc. TechnologyHardware, Storage &Peripherals 2.6

PayPal Holdings Inc. Data Processing &Outsourced Services 2.5

Celgene Corp. Biotechnology 2.5

Allergan plc Pharmaceuticals 2.1

Top Ten 32.6%

The holdings listed exclude any temporary cash investments andequity index products.

Investment Focus

Market Cap

Value

Large

Medium

Small

Blend Growth Style

Portfolio Characteristics

Fund

Russell1000

GrowthIndex

DJU.S.Total

MarketFA

Index

Number of Stocks 156 610 3,807

Median Market Cap $53.4B $82.4B $57.6B

Price/Earnings Ratio 31.6x 24.7x 24.8x

Price/Book Ratio 5.0x 5.9x 3.0x

Return on Equity 21.0% 22.5% 16.4%

Earnings GrowthRate 12.7% 11.6% 7.6%

Dividend Yield 0.9% 1.5% 1.9%

Foreign Holdings 1.1% 0.0% 0.0%

Turnover Rate(Annualized) 33% — —

Short-TermReserves 1.1% — —

U.S. Growth Fund

12

Sector Diversification (% of equity exposure)

Fund

Russell1000

GrowthIndex

DJU.S.Total

MarketFA

Index

ConsumerDiscretionary 16.6% 20.6% 12.4%

Consumer Staples 3.6 9.3 8.4

Energy 0.5 0.5 6.2

Financials 7.0 2.9 15.3

Health Care 15.4 16.2 13.4

Industrials 8.8 10.9 10.8

InformationTechnology 41.7 32.3 20.7

Materials 0.8 3.5 3.4

Other 1.8 0.0 0.0

Real Estate 3.8 2.8 4.1

TelecommunicationServices 0.0 1.0 2.1

Utilities 0.0 0.0 3.2

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher thanthe performance data cited. For performance data current to the most recent month-end, visitour website at vanguard.com/performance.) Note, too, that both investment returns and principalvalue can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

See Financial Highlights for dividend and capital gains information.

Performance Summary

U.S. Growth Fund

13

Fiscal-Year Total Returns (%): August 31, 2006, Through February 28, 2017

14.5017.70

2007

–7.44 –6.77

2008

–16.29 –16.76

2009

–0.02

6.14

2010

23.58 23.96

2011

15.2217.37

2012

19.3116.43

2013

26.29 26.29

2014

7.964.26

2015

6.8910.54

2016

4.759.15

2017

U.S. Growth Fund Investor Shares

Russell 1000 Growth Index

Note: For 2017, performance data reflect the six months ended February 28, 2017.

Average Annual Total Returns: Periods Ended December 31, 2016This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.Securities and Exchange Commission rules require that we provide this information.

InceptionDate

OneYear

FiveYears

TenYears

Investor Shares 1/6/1959 -0.75% 14.32% 7.18%

Admiral Shares 8/13/2001 -0.59 14.48 7.35

Market Value• Shares ($000)

Market Value• Shares ($000)

Common Stocks (96.0%)1

Consumer Discretionary (16.3%) * Amazon.com Inc. 223,927 189,227 Home Depot Inc. 829,918 120,263* Liberty Interactive Corp.

QVC Group Class A 4,656,094 87,907* Netflix Inc. 597,274 84,891* Liberty Global plc 1,881,595 66,025* TripAdvisor Inc. 1,513,701 62,773* O’Reilly Automotive Inc. 226,143 61,445 NIKE Inc. Class B 869,228 49,685 Dollar General Corp. 672,388 49,098 Starbucks Corp. 825,973 46,973* Priceline Group Inc. 25,840 44,552^ Tesla Inc. 130,819 32,703 Ross Stores Inc. 393,741 27,003* Chipotle Mexican Grill Inc.

Class A 57,790 24,199* Hilton Worldwide

Holdings Inc. 418,642 23,946* Under Armour Inc. 1,185,878 22,010* AutoZone Inc. 28,136 20,724 Las Vegas Sands Corp. 390,933 20,700* Liberty Global plc Class A 501,593 17,907 Lennar Corp. Class A 298,631 14,570 adidas AG 59,368 9,959 Marriott International Inc.

Class A 109,409 9,518^ Wayfair Inc. 239,189 9,044 Industria de Diseno Textil

SA ADR 549,830 8,797 Charter Communications

Inc. Class A 20,104 6,495 CarMax Inc. 89,514 5,777 Harley-Davidson Inc. 87,428 4,929 Ulta Beauty Inc. 14,945 4,086 Expedia Inc. 28,280 3,367

1,128,573

Consumer Staples (3.5%) * Monster Beverage Corp. 1,269,295 52,599 Walgreens Boots Alliance

Inc. 523,500 45,220 Estee Lauder Cos. Inc.

Class A 449,633 37,252 Constellation Brands Inc.

Class A 229,601 36,463 Kroger Co. 975,100 31,008 PepsiCo Inc. 148,225 16,361 Costco Wholesale Corp. 64,294 11,392 Mondelez International Inc.

Class A 132,213 5,807 Brown-Forman Corp.

Class B 80,411 3,921

240,023

Energy (0.4%)

Schlumberger Ltd. 201,447 16,188 Concho Resources Inc. 39,274 5,202 EOG Resources Inc. 37,884 3,674

25,064

Financials (6.7%)

Intercontinental Exchange Inc. 2,464,830 140,816

Charles Schwab Corp. 1,688,205 68,220 MarketAxess Holdings

Inc. 304,193 59,388* Markel Corp. 43,200 42,324 Marsh & McLennan Cos.

Inc. 447,559 32,887 MSCI Inc. Class A 269,311 25,474 First Republic Bank 239,467 22,469 Affiliated Managers

Group Inc. 121,600 20,420 TD Ameritrade Holding

Corp. 349,576 13,669 Goldman Sachs Group Inc. 44,455 11,028 Morgan Stanley 200,680 9,165

Financial Statements (unaudited)

Statement of Net AssetsAs of February 28, 2017

The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

U.S. Growth Fund

14

U.S. Growth Fund

Market Value• Shares ($000)

Market Value• Shares ($000)

American Express Co. 104,261 8,347 M&T Bank Corp. 43,105 7,197 Interactive Brokers Group

Inc. 162,552 5,967

467,371

Health Care (15.0%) * Celgene Corp. 1,404,163 173,428 Allergan plc 599,713 146,822* Biogen Inc. 428,458 123,653 Bristol-Myers Squibb Co. 1,573,259 89,220* Quintiles IMS Holdings

Inc. 1,019,919 78,932 UnitedHealth Group Inc. 446,990 73,923 Dentsply Sirona Inc. 1,084,720 68,901* Edwards Lifesciences

Corp. 425,253 39,991* Illumina Inc. 216,436 36,231 Medtronic plc 413,911 33,490 Zoetis Inc. 567,600 30,259* ABIOMED Inc. 220,850 26,054 Danaher Corp. 253,600 21,695* Cerner Corp. 334,900 18,433* Regeneron

Pharmaceuticals Inc. 49,095 18,337 Alexion Pharmaceuticals

Inc. 86,611 11,368 BioMarin Pharmaceutical

Inc. 120,546 11,323 Waters Corp. 55,868 8,659 Bioverativ Inc. 166,229 8,657 Shire plc ADR 43,912 7,935 Vertex Pharmaceuticals Inc. 61,810 5,601 Juno Therapeutics Inc. 135,822 3,265 Alnylam Pharmaceuticals

Inc. 58,026 2,996 Seattle Genetics Inc. 45,430 2,982

1,042,155

Industrials (8.6%)

Nielsen Holdings plc 1,682,770 74,648* Verisk Analytics Inc.

Class A 578,690 47,985 Union Pacific Corp. 383,000 41,341 FedEx Corp. 198,285 38,265 AMETEK Inc. 643,769 34,744* TransUnion 934,737 34,669 Equifax Inc. 262,396 34,403 Lockheed Martin Corp. 124,507 33,191 Fastenal Co. 648,268 32,433* IHS Markit Ltd. 775,944 30,883 TransDigm Group Inc. 119,959 30,494 Fortive Corp. 454,266 26,188 Northrop Grumman Corp. 97,801 24,166 Fortune Brands Home &

Security Inc. 391,681 22,651 JB Hunt Transport

Services Inc. 214,707 21,078

Snap-on Inc. 96,304 16,340 Watsco Inc. 92,794 13,758 Boeing Co. 56,451 10,174 Wabtec Corp. 101,519 8,134 Parker-Hannifin Corp. 38,499 5,961 NOW Inc. 307,754 5,890 CSX Corp. 97,275 4,724

592,120

Information Technology (41.0%) * Facebook Inc. Class A 2,010,099 272,449 Microsoft Corp. 4,203,891 268,965* Alphabet Inc. Class C 314,253 258,696 Mastercard Inc. Class A 2,069,448 228,591 Visa Inc. Class A 2,421,729 212,967 Apple Inc. 1,319,952 180,820* PayPal Holdings Inc. 4,155,713 174,540* Alphabet Inc. Class A 183,496 155,041* eBay Inc. 4,218,220 142,998* Electronic Arts Inc. 1,098,366 95,009 Symantec Corp. 2,729,680 77,987* Adobe Systems Inc. 633,817 75,006 Intuit Inc. 433,143 54,333 QUALCOMM Inc. 918,900 51,900* salesforce.com Inc. 555,138 45,161* Alibaba Group Holding

Ltd. ADR 408,429 42,027* ServiceNow Inc. 456,471 39,676 CDW Corp. 655,997 38,638* Autodesk Inc. 430,631 37,163 ASML Holding NV 297,845 36,245 Alliance Data Systems

Corp. 147,795 35,911 Texas Instruments Inc. 462,700 35,452* Workday Inc. Class A 426,634 35,381* FleetCor Technologies Inc. 201,112 34,189 Global Payments Inc. 415,835 33,138* Red Hat Inc. 399,095 33,049 NVIDIA Corp. 290,034 29,433 Accenture plc Class A 166,600 20,409*,^ Zillow Group Inc. 485,598 16,481 Microchip Technology Inc. 192,370 13,951 GrubHub Inc. 364,128 12,766 Tencent Holdings Ltd. 430,849 11,433 Ellie Mae Inc. 73,867 7,059 Tableau Software Inc.

Class A 124,316 6,556 CoStar Group Inc. 29,335 5,960 Palo Alto Networks Inc. 37,956 5,766 Splunk Inc. 78,349 4,837 Mobileye NV 101,912 4,639 Analog Devices Inc. 38,206 3,130 Advanced Micro Devices

Inc. 186,577 2,698

2,840,450

15

U.S. Growth Fund

Market Value• Shares ($000)

Face Market Amount Value• ($000) ($000)

Materials (0.7%)

Sherwin-Williams Co. 79,172 24,428 PPG Industries Inc. 159,100 16,297 Martin Marietta Materials

Inc. 51,536 11,129

51,854

Other (0.0%) *,2 WeWork Class A PP 52,398 2,6303 Vanguard Growth ETF 3,100 373

3,003

Real Estate (3.8%)

Crown Castle International Corp. 1,231,864 115,216

Equinix Inc. 157,271 59,145 American Tower

Corporation 362,296 41,588 Public Storage 118,040 26,849* SBA Communications

Corp. Class A 146,800 16,995

259,793

Total Common Stocks

(Cost $4,713,308) 6,650,406

Preferred Stocks (1.6%)

*,2 Uber Technologies PP 1,408,784 68,709*,2 WeWork Pfd. D1 PP 260,418 13,071*,2 WeWork Pfd. D2 PP 204,614 10,270*,2 Pinterest Prf G PP 1,596,475 10,154*,2 Cloudera, Inc. Pfd. 300,088 5,681

Total Preferred Stocks

(Cost $45,428) 107,885

Convertible Preferred Stocks (0.2%)

*,2 Airbnb Inc. (Cost $11,928) 128,123 13,453

Temporary Cash Investments (3.2%)1

Money Market Fund (2.9%)4,5 Vanguard Market

Liquidity Fund, 0.864% 2,014,480 201,468

Repurchase Agreement (0.2%)

Bank of America Securities, LLC 0.530%, 3/1/17 (Dated 2/28/17, Repurchase Value $12,700,000, collateralized by Federal Home Loan Bank 0.000%, 8/25/17, with a value of $12,955,000) 12,700 12,700

U.S. Government and Agency Obligations (0.1%) 6 United States Treasury Bill,

0.534%, 6/8/17 6,000 5,9926 United States Treasury Bill,

0.593%, 7/13/17 2,500 2,494

8,486

Total Temporary Cash Investments

(Cost $222,643) 222,654

Total Investments (101.0%)

(Cost $4,993,307) 6,994,398

Amount ($000)

Other Assets and Liabilities (-1.0%)

Other Assets

Investment in Vanguard 485Receivables for Investment Securities Sold 15,137Receivables for Accrued Income 7,373Receivables for Capital Shares Issued 2,867Other Assets 195

Total Other Assets 26,057

Liabilities

Payables for Investment Securities Purchased (35,423)

Collateral for Securities on Loan (19,089)Payables to Investment Advisor (2,320)Payables for Capital Shares Redeemed (24,516)Payables to Vanguard (12,798)Other Liabilities (806)

Total Liabilities (94,952)

Net Assets (100%) 6,925,503

16

U.S. Growth Fund

At February 28, 2017, net assets consisted of:

Amount ($000)

Paid-in Capital 4,771,514Overdistributed Net Investment Income (4,324)Accumulated Net Realized Gains 153,464Unrealized Appreciation (Depreciation) Investment Securities 2,001,091 Futures Contracts 3,758

Net Assets 6,925,503

Investor Shares—Net Assets

Applicable to 120,903,751 outstanding

$.001 par value shares of beneficial

interest (unlimited authorization) 3,782,875

Net Asset Value Per Share—

Investor Shares $31.29

Admiral Shares—Net Assets

Applicable to 38,816,046 outstanding

$.001 par value shares of beneficial

interest (unlimited authorization) 3,142,628

Net Asset Value Per Share—

Admiral Shares $80.96

• See Note A in Notes to Financial Statements.

* Non-income-producing security.

^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $18,642,000.

1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 97.8% and 1.4%, respectively, of net assets.

2 Restricted securities totaling $123,968,000, representing 1.8% of net assets.

3 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.

4 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

5 Includes $19,089,000 of collateral received for securities on loan.

6 Securities with a value of $6,569,000 have been segregated as initial margin for open futures contracts.

ADR—American Depositary Receipt.

PP—Private Placement.

See accompanying Notes, which are an integral part of the Financial Statements.

17

Six Months Ended February 28, 2017

($000)

Investment Income

Income

Dividends1,2 29,933

Interest1 694

Securities Lending—Net 251

Total Income 30,878

Expenses

Investment Advisory Fees—Note B

Basic Fee 5,924

Performance Adjustment (908)

The Vanguard Group—Note C

Management and Administrative—Investor Shares 4,395

Management and Administrative—Admiral Shares 1,797

Marketing and Distribution—Investor Shares 339

Marketing and Distribution—Admiral Shares 128

Custodian Fees 29

Shareholders’ Reports—Investor Shares 71

Shareholders’ Reports—Admiral Shares 14

Trustees’ Fees and Expenses 9

Total Expenses 11,798

Expenses Paid Indirectly (123)

Net Expenses 11,675

Net Investment Income 19,203

Realized Net Gain (Loss)

Investment Securities Sold1 214,001

Futures Contracts 10,448

Realized Net Gain (Loss) 224,449

Change in Unrealized Appreciation (Depreciation)

Investment Securities 70,223

Futures Contracts 2,856

Change in Unrealized Appreciation (Depreciation) 73,079

Net Increase (Decrease) in Net Assets Resulting from Operations 316,731

1 Dividend income, interest income, and realized net gain (loss) from affiliated companies of the fund were $3,000, $642,000, and $4,000, respectively.

2 Dividends are net of foreign withholding taxes of $15,000.

Statement of Operations

U.S. Growth Fund

See accompanying Notes, which are an integral part of the Financial Statements.

18

Statement of Changes in Net Assets

U.S. Growth Fund

See accompanying Notes, which are an integral part of the Financial Statements.

Six Months Ended Year Ended February 28, August 31, 2017 2016

($000) ($000)

Increase (Decrease) in Net Assets

Operations

Net Investment Income 19,203 38,023

Realized Net Gain (Loss) 224,449 71,168

Change in Unrealized Appreciation (Depreciation) 73,079 333,653

Net Increase (Decrease) in Net Assets Resulting from Operations 316,731 442,844

Distributions

Net Investment Income

Investor Shares (14,717) (19,111)

Admiral Shares (16,728) (16,735)

Realized Capital Gain1

Investor Shares (38,970) (327,359)

Admiral Shares (32,022) (218,490)

Total Distributions (102,437) (581,695)

Capital Share Transactions

Investor Shares (128,312) (96,179)

Admiral Shares (20,865) 699,217

Net Increase (Decrease) from Capital Share Transactions (149,177) 603,038

Total Increase (Decrease) 65,117 464,187

Net Assets

Beginning of Period 6,860,386 6,396,199

End of Period2 6,925,503 6,860,386

1 Includes fiscal 2017 and 2016 short-term gain distributions totaling $0 and $0, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.

2 Net Assets—End of Period includes undistributed (overdistributed) net investment income of ($4,324,000) and $7,918,000.

19

Investor Shares

Six Months Ended

For a Share Outstanding February 28, Year Ended August 31,

Throughout Each Period 2017 2016 2015 2014 2013 2012

Net Asset Value, Beginning of Period $30.32 $30.89 $31.03 $24.67 $20.79 $18.12

Investment Operations

Net Investment Income .078 .151 .169 .168 .134 .068

Net Realized and Unrealized Gain (Loss) on Investments 1.333 1.944 2.168 6.303 3.861 2.679

Total from Investment Operations 1.411 2.095 2.337 6.471 3.995 2.747

Distributions

Dividends from Net Investment Income (.121) (.147) (.194) (.111) (.115) (.077)

Distributions from Realized Capital Gains (.320) (2.518) (2.283) — — —

Total Distributions (.441) (2.665) (2.477) (.111) (.115) (.077)

Net Asset Value, End of Period $31.29 $30.32 $30.89 $31.03 $24.67 $20.79

Total Return1 4.75% 6.89% 7.96% 26.29% 19.31% 15.22%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $3,783 $3,794 $3,975 $4,038 $3,137 $2,975

Ratio of Total Expenses to Average Net Assets2 0.41% 0.46% 0.47% 0.44% 0.45% 0.45%

Ratio of Net Investment Income to Average Net Assets 0.53% 0.50% 0.53% 0.59% 0.59% 0.35%

Portfolio Turnover Rate 33% 32% 38% 36% 38% 43%

The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.

1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.

2 Includes performance-based investment advisory fee increases (decreases) of (0.03%), 0.02%, 0.03%, (0.01%), (0.01%), and (0.01%).

Financial Highlights

See accompanying Notes, which are an integral part of the Financial Statements.

U.S. Growth Fund

20

Admiral Shares

Six Months Ended

For a Share Outstanding February 28, Year Ended August 31,

Throughout Each Period 2017 2016 2015 2014 2013 2012

Net Asset Value, Beginning of Period $78.52 $80.01 $80.37 $63.91 $53.85 $46.94

Investment Operations

Net Investment Income .257 .506 .563 .557 .440 .258

Net Realized and Unrealized Gain (Loss) on Investments 3.445 5.018 5.607 16.293 10.002 6.924

Total from Investment Operations 3.702 5.524 6.170 16.850 10.442 7.182

Distributions

Dividends from Net Investment Income (.433) (.499) (.623) (.390) (.382) (.272)

Distributions from Realized Capital Gains (.829) (6.515) (5.907) — — —

Total Distributions (1.262) (7.014) (6.530) (.390) (.382) (.272)

Net Asset Value, End of Period $80.96 $78.52 $80.01 $80.37 $63.91 $53.85

Total Return1 4.81% 7.03% 8.12% 26.44% 19.51% 15.38%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $3,143 $3,066 $2,421 $1,868 $1,141 $869

Ratio of Total Expenses to Average Net Assets2 0.28% 0.32% 0.33% 0.30% 0.31% 0.31%

Ratio of Net Investment Income to Average Net Assets 0.66% 0.64% 0.67% 0.73% 0.73% 0.49%

Portfolio Turnover Rate 33% 32% 38% 36% 38% 43%

The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.

1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.

2 Includes performance-based investment advisory fee increases (decreases) of (0.03%), 0.02%, 0.03%, (0.01%), (0.01%), and (0.01%).

Financial Highlights

See accompanying Notes, which are an integral part of the Financial Statements.

U.S. Growth Fund

21

Notes to Financial Statements

U.S. Growth Fund

Vanguard U.S. Growth Fund is registered under the Investment Company Act of 1940 as an open- end investment company, or mutual fund. The fund offers two classes of shares: Investor Shares and Admiral Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares are designed for investors who meet certain administrative, service, and account-size criteria.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract.

22

U.S. Growth Fund

Futures contracts are valued at their quoted daily settlement prices. The aggregate settlement values of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

During the six months ended February 28, 2017, the fund’s average investments in long and short futures contracts represented 2% and 0% of net assets, respectively, based on the average of aggregate settlement values at each quarter-end during the period.

4. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.

5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (August 31, 2013–2016), and for the period ended February 28, 2017, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

6. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

7. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the absence of a default the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Net Assets for the return of the collateral, during the period the securities are on loan. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

23

U.S. Growth Fund

8. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $3.1 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at February 28, 2017, or at any time during the period then ended.

9. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

B. The investment advisory firms Wellington Management Company LLP, Jackson Square Partners, LLC, William Blair Investment Management, LLC, Jennison Associates LLC, and Baillie Gifford Overseas Ltd. each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fees of Wellington Management Company LLP, Jackson Square Partners, LLC, and Jennison Associates LLC are subject to quarterly adjustments based on performance relative to the Russell 1000 Growth Index for the preceding three years. The basic fee of William Blair Investment Management, LLC, is subject to quarterly adjustments based on performance relative to the Russell 1000 Growth Index for the preceding five years. The basic fee of Baillie Gifford Overseas Ltd. is subject to quarterly adjustments based on performance relative to the S&P 500 Index for the preceding three years.

Vanguard manages the cash reserves of the fund as described below.

For the six months ended February 28, 2017, the aggregate investment advisory fee represented an effective annual basic rate of 0.18% of the fund’s average net assets, before a decrease of $908,000 (0.03%) based on performance.

C. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution, and cash management services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the

24

U.S. Growth Fund

board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2017, the fund had contributed to Vanguard capital in the amount of $485,000, representing 0.01% of the fund’s net assets and 0.19% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

D. The fund has asked its investment advisors to direct certain security trades, subject to obtaining the best price and execution, to brokers who have agreed to rebate to the fund part of the commissions generated. Such rebates are used solely to reduce the fund’s management and administrative expenses. For the six months ended February 28, 2017, these arrangements reduced the fund’s expenses by $123,000 (an annual rate of 0.00% of average net assets).

E. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1—Quoted prices in active markets for identical securities. Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The following table summarizes the market value of the fund’s investments as of February 28, 2017, based on the inputs used to value them:

Level 1 Level 2 Level 3 Investments ($000) ($000) ($000)

Common Stocks 6,626,384 21,392 2,630

Preferred Stocks — — 107,885

Convertible Preferred Stocks — — 13,453

Temporary Cash Investments 201,468 21,186 —

Futures Contracts—Liabilities1 (806) — —

Total 6,827,046 42,578 123,968

1 Represents variation margin on the last day of the reporting period.

The determination of Level 3 fair value measurements is governed by documented policies and procedures adopted by the board of trustees. The board has designated a pricing review committee, as an agent of the board, to ensure the timely analysis and valuation of Level 3 securities held by the fund in accordance with established policies and procedures. The pricing review committee employs various methods for calibrating valuation approaches, including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity. All valuation decisions made by the pricing review committee are reported to the board on a quarterly basis for review and ratification. The board reviews the adequacy of the fair value measurement policies and procedures in place on an annual basis.

25

U.S. Growth Fund

The following table summarizes changes in investments valued based on Level 3 inputs during the six months ended February 28, 2017. Transfers into or out of Level 3 are recognized based on values as of the date of transfer.

Investments in Investments in Investments in Convertible Common Stocks Preferred Stocks Preferred Stocks Amount Valued Based on Level 3 Inputs ($000) ($000) ($000)

Balance as of August 31, 2016 2,630 107,612 13,453

Change in Unrealized Appreciation (Depreciation) — 273 —

Balance as of February 28, 2017 2,630 107,885 13,453

The following table provides quantitative information about the significant unobservable inputs used in fair value measurement as of February 28, 2017:

Fair Value Security Type ($000) Valuation Technique Unobservable Input Amount

Common Stocks 2,630 Market Approach Recent Market Transaction $50.192

Preferred Stocks 107,885 Market Approach Recent Market Transaction 50.192 Recent Market Transaction 48.772 Comparable Company Approach 18.930 Comparable Company Approach 6.360

Convertible Preferred Stocks 13,453 Market Approach Recent Market Transaction 105.000

Significant increases or decreases in the significant unobservable inputs used in the fair value measurement of the portfolio’s Level 3 securities, in isolation, could result in a significantly higher or lower fair value measurement.

F. At February 28, 2017, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:

($000)

Aggregate Number of Settlement Unrealized Long (Short) Value Appreciation Futures Contracts Expiration Contracts Long (Short) (Depreciation)

E-mini S&P 500 Index March 2017 691 81,635 2,796

E-mini S&P Mid-Cap 400 Index March 2017 262 45,266 962

3,758

Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.

G. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes. These differences will

26

U.S. Growth Fund

reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes. The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year.

At February 28, 2017, the cost of investment securities for tax purposes was $4,993,307,000. Net unrealized appreciation of investment securities for tax purposes was $2,001,091,000, consisting of unrealized gains of $2,140,369,000 on securities that had risen in value since their purchase and $139,278,000 in unrealized losses on securities that had fallen in value since their purchase.

H. During the six months ended February 28, 2017, the fund purchased $1,089,501,000 of investment securities and sold $1,250,278,000 of investment securities, other than temporary cash investments.

I. Capital share transactions for each class of shares were:

Six Months Ended Year Ended February 28, 2017 August 31, 2016

Amount Shares Amount Shares ($000) (000) ($000) (000)

Investor Shares

Issued 117,563 3,900 566,832 18,852

Issued in Lieu of Cash Distributions 52,776 1,792 340,874 11,389

Redeemed (298,651) (9,922) (1,003,885) (33,788)

Net Increase (Decrease)—Investor Shares (128,312) (4,230) (96,179) (3,547)

Admiral Shares

Issued 270,896 3,489 1,021,665 13,128

Issued in Lieu of Cash Distributions 46,252 607 223,265 2,883

Redeemed (338,013) (4,332) (545,713) (7,215)

Net Increase (Decrease)—Admiral Shares (20,865) (236) 699,217 8,796

J. Management has determined that no material events or transactions occurred subsequent to February 28, 2017, that would require recognition or disclosure in these financial statements.

27

About Your Fund’s Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund’s costs in two ways:

• Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During Period.“

• Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Note that the expenses shown in the table are meant to highlight and help you compare ongoingcosts only and do not reflect transaction costs incurred by the fund for buying and selling securities.Further, the expenses do not include any purchase, redemption, or account service fees described inthe fund prospectus. If such fees were applied to your account, your costs would be higher. Yourfund does not carry a “sales load.”

The calculations assume no shares were bought or sold during the period. Your actual costs mayhave been higher or lower, depending on the amount of your investment and the timing of anypurchases or redemptions.

You can find more information about the fund’s expenses, including annual expense ratios, in theFinancial Statements section of this report. For additional information on operating expenses andother shareholder costs, please refer to your fund’s current prospectus.

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Six Months Ended February 28, 2017

U.S. Growth Fund

BeginningAccount Value

8/31/2016

EndingAccount Value

2/28/2017

ExpensesPaid During

Period

Based on Actual Fund Return

Investor Shares $1,000.00 $1,047.46 $2.08

Admiral Shares 1,000.00 1,048.15 1.42

Based on Hypothetical 5% Yearly Return

Investor Shares $1,000.00 $1,022.76 $2.06

Admiral Shares 1,000.00 1,023.41 1.40

The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for thatperiod are 0.41% for Investor Shares and 0.28% for Admiral Shares. The dollar amounts shown as “Expenses Paid” are equal to theannualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recentsix-month period, then divided by the number of days in the most recent 12-month period (181/365).

The board of trustees of Vanguard U.S. Growth Fund has renewed the fund’s investment advisory arrangements with Baillie Gifford Overseas Ltd. (Baillie Gifford), Jackson Square Partners, LLC (Jackson Square), Jennison Associates LLC (Jennison), Wellington Management Company LLP (Wellington Management), and William Blair Investment Management, LLC (William Blair). The board determined that renewing the fund’s advisory arrangements was in the best interests of the fund and its shareholders.

The board based its decision upon an evaluation of each advisor’s investment staff, portfolio management process, and performance. This evaluation included information provided to the board by Vanguard’s Portfolio Review Department, which is responsible for fund and advisor oversight and product management. The Portfolio Review Department met regularly with the advisors and made monthly presentations to the board during the fiscal year that directed the board’s focus to relevant information and topics.

The board, or an investment committee made up of board members, also received information throughout the year during advisor presentations. For each advisor presentation, the board was provided with letters and reports that included information about, among other things, the advisory firm and the advisor’s assessment of the investment environment, portfolio performance, and portfolio characteristics.

In addition, the board received monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.

Prior to their meeting, the trustees were provided with a memo and materials that summarized the information they received over the course of the year. They also considered the factors discussed below, among others. However, no single factor determined whether the board approved the arrangements. Rather, it was the totality of the circumstances that drove the board’s decision.

Nature, extent, and quality of services

The board reviewed the quality of the fund’s investment management services over both the short and long term and took into account the organizational depth and stability of each advisor. The board considered the following:

Baillie Gifford. Baillie Gifford is a unit of Baillie Gifford & Co., which was founded in 1908 and is among the largest independently owned investment management firms in the United Kingdom. Baillie Gifford aims to deliver outstanding investment performance for its clients by identifying exceptional growth companies in the United States and investing in them long enough for the advantages of their business models and strength of their cultures to become the dominant drivers of their stock prices. This long-term horizon allows the advisor to harness the asymmetry inherent in equity markets to capture the disproportionate impact of successful investments in its clients’ portfolios. Baillie Gifford began managing a portion of the fund in 2014.

Jackson Square. Founded in February 2014, Jackson Square invests primarily in common stocks of large-capitalization, growth-oriented companies that it believes have long-term capital appreciation potential and are expected to grow faster than the U.S. economy. Jackson Square uses a bottom-up approach, seeking companies that have large-end market potential, dominant business models, and strong free cash flow generation that is attractively priced compared to the intrinsic value of the securities. Jackson Square was founded by the same investment team that has managed a portion of the fund since 2010, previously as a part of Delaware Investments.

Trustees Approve Advisory Arrangements

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Jennison. Jennison, founded in 1969, is an indirect, wholly owned subsidiary of Prudential Financial Inc. Jennison uses internal fundamental research and a highly interactive stock selection process to identify companies that exhibit above-average growth in units, revenues, earnings, and cash flows. When analyzing a company for purchase or sale, Jennison focuses on the duration of the company’s growth opportunity and seeks to capture inflection points in its growth trajectory. Jennison began managing a portion of the fund in 2014.

Wellington Management. Founded in 1928, Wellington Management is among the nation’s oldest and most respected institutional investment managers. The firm employs a traditional, bottom-up fundamental research approach to identify companies with sustainable growth advantages and reasonable valuations. Wellington Management identifies companies that have demonstrated above-average growth in the past and follows up with a thorough review of each company’s business model and an assessment of its valuation. The goal of this review is to identify companies with high returns on capital, superior business management, and high-quality balance sheets. Wellington Management has managed a portion of the fund since 2010.

William Blair. Founded in 1935, William Blair is an independently owned full-service investment firm. William Blair uses an investment process that relies on thorough fundamental research. Based on this process, it invests in quality growth companies that it believes will grow faster than the market expects or sustain an above-average growth rate for longer than the market expects. In selecting stocks, William Blair considers each company’s leadership position within the company’s market, the quality of products or services it provides, its return on equity, its accounting policies, and the quality of the management team. William Blair has advised a portion of the fund since 2004.

The board concluded that each advisor’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangements.

Investment performance

The board considered the short- and long-term performance of the fund and each advisor, including any periods of outperformance or underperformance compared with a relevant benchmark and peer group. The board concluded that the performance was such that each advisory arrangement should continue. Information about the fund’s most recent performance can be found in the Performance Summary section of this report.

Cost

The board concluded that the fund’s expense ratio was below the average expense ratio charged by funds in its peer group and that the fund’s advisory fee rate was also well below its peer-group average. Information about the fund’s expenses appears in the About Your Fund’s Expenses section of this report as well as in the Financial Statements section, which also includes information about the fund’s advisory fee rate.

The board did not consider the profitability of the fund’s advisors in determining whether to approve the advisory fees because the advisors are independent of Vanguard, and the advisory fees are the result of arm’s-length negotiations.

The benefit of economies of scale

The board concluded that the fund’s shareholders benefit from economies of scale because of breakpoints in the fund’s advisory fee schedules. The breakpoints reduce the effective rate of the fees as the fund’s assets managed by each advisor increase.

The board will consider whether to renew the advisory arrangements again after a one-year period.

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Glossary

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30-Day SEC Yield. A fund’s 30-day SEC yield is derived using a formula specified by the U.S.Securities and Exchange Commission. Under the formula, data related to the fund’s securityholdings in the previous 30 days are used to calculate the fund’s hypothetical net income for thatperiod, which is then annualized and divided by the fund’s estimated average net assets over thecalculation period. For the purposes of this calculation, a security’s income is based on its currentmarket yield to maturity (for bonds), its actual income (for asset-backed securities), or its projecteddividend yield (for stocks). Because the SEC yield represents hypothetical annualized income, it willdiffer—at times significantly—from the fund’s actual experience. As a result, the fund’s incomedistributions may be higher or lower than implied by the SEC yield.

Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups anddowns of a given market index. The index is assigned a beta of 1.00. Compared with a given index,a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12% when theindex rose or fell by 10%. For this report, beta is based on returns over the past 36 months for boththe fund and the index. Note that a fund’s beta should be reviewed in conjunction with its R-squared(see definition). The lower the R-squared, the less correlation there is between the fund and theindex, and the less reliable beta is as an indicator of volatility.

Dividend Yield. Dividend income earned by stocks, expressed as a percentage of the aggregatemarket value (or of net asset value, for a fund). The yield is determined by dividing the amount of theannual dividends by the aggregate value (or net asset value) at the end of the period. For a fund, thedividend yield is based solely on stock holdings and does not include any income produced by otherinvestments.

Earnings Growth Rate. The average annual rate of growth in earnings over the past five years forthe stocks now in a fund.

Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Anyholdings in short-term reserves are excluded.

Expense Ratio. A fund’s total annual operating expenses expressed as a percentage of the fund’saverage net assets. The expense ratio includes management and administrative expenses, but doesnot include the transaction costs of buying and selling portfolio securities.

Foreign Holdings. The percentage of a fund represented by securities or depositary receipts ofcompanies based outside the United States.

Inception Date. The date on which the assets of a fund (or one of its share classes) are firstinvested in accordance with the fund’s investment objective. For funds with a subscription period,the inception date is the day after that period ends. Investment performance is measured from theinception date.

Median Market Cap. An indicator of the size of companies in which a fund invests; the midpoint ofmarket capitalization (market price x shares outstanding) of a fund’s stocks, weighted by theproportion of the fund’s assets invested in each stock. Stocks representing half of the fund’s assetshave market capitalizations above the median, and the rest are below it.

Price/Book Ratio. The share price of a stock divided by its net worth, or book value, per share. For afund, the weighted average price/book ratio of the stocks it holds.

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Price/Earnings Ratio. The ratio of a stock’s current price to its per-share earnings over the pastyear. For a fund, the weighted average P/E of the stocks it holds. P/E is an indicator of marketexpectations about corporate prospects; the higher the P/E, the greater the expectations for acompany’s future growth.

R-Squared. A measure of how much of a fund’s past returns can be explained by the returns fromthe market in general, as measured by a given index. If a fund’s total returns were preciselysynchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore norelationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based onreturns over the past 36 months for both the fund and the index.

Return on Equity. The annual average rate of return generated by a company during the past fiveyears for each dollar of shareholder’s equity (net income divided by shareholder’s equity). For a fund,the weighted average return on equity for the companies whose stocks it holds.

Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities thatcan be readily converted to cash.

Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incurhigher transaction costs and may be more likely to distribute capital gains (which may be taxable toinvestors). The turnover rate excludes in-kind transactions, which have minimal impact on costs.

The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.

A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 195 Vanguard funds.

The following table provides information for each trustee and executive officer of the fund. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the trustees is in the Statement of Additional Information, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.

Interested Trustee1

F. William McNabb III

Born 1957. Trustee Since July 2009. Chairman of the Board. Principal Occupation(s) During the Past Five Years and Other Experience: Chairman of the Board of The Vanguard Group, Inc., and of each of the investment companies served by The Vanguard Group, since January 2010; Director of The Vanguard Group since 2008; Chief Executive Officer and President of The Vanguard Group, and of each of the investment companies served by The Vanguard Group, since 2008; Director of Vanguard Marketing Corporation; Managing Director of The Vanguard Group (1995–2008).

Independent Trustees

Emerson U. Fullwood

Born 1948. Trustee Since January 2008. Principal Occupation(s) During the Past Five Years and Other Experience: Executive Chief Staff and Marketing Officer for North America and Corporate Vice President (retired 2008) of Xerox Corporation (document manage-ment products and services); Executive in Residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology; Lead Director of SPX FLOW, Inc. (multi-industry manufacturing); Director of the United Way of Rochester, the University of Rochester Medical Center, Monroe Community College Foundation, North Carolina A&T University, and Roberts Wesleyan College.

Rajiv L. Gupta

Born 1945. Trustee Since December 2001.2 Principal Occupation(s) During the Past Five Years and Other Experience: Chairman and Chief Executive Officer (retired 2009) and President (2006–2008) of Rohm and Haas Co. (chemicals); Director of Arconic Inc.

(diversified manufacturer), HP Inc. (printer and personal computer manufacturing), and Delphi Automotive plc (automotive components); Senior Advisor at New Mountain Capital.

Amy Gutmann

Born 1949. Trustee Since June 2006. Principal Occupation(s) During the Past Five Years and Other Experience: President of the University of Pennsylvania; Christopher H. Browne Distinguished Professor of Political Science, School of Arts and Sciences, and Professor of Communication, Annenberg School for Communication, with secondary faculty appointments in the Department of Philosophy, School of Arts and Sciences, and at the Graduate School of Education, University of Pennsylvania; Trustee of the National Constitution Center; Chair of the Presidential Commission for the Study of Bioethical Issues.

JoAnn Heffernan Heisen

Born 1950. Trustee Since July 1998. Principal Occupation(s) During the Past Five Years and Other Experience: Corporate Vice President and Chief Global Diversity Officer (retired 2008) and Member of the Executive Committee (1997–2008) of Johnson & Johnson (pharmaceuticals/medical devices/consumer products); Director of Skytop Lodge Corporation (hotels) and the Robert Wood Johnson Foundation; Member of the Advisory Board of the Institute for Women’s Leadership at Rutgers University.

F. Joseph Loughrey

Born 1949. Trustee Since October 2009. Principal Occupation(s) During the Past Five Years and Other Experience: President and Chief Operating Officer (retired 2009) of Cummins Inc. (industrial machinery); Chairman of the Board of Hillenbrand, Inc. (specialized consumer services), Oxfam America, and the Lumina

Foundation for Education; Director of SKF AB (industrial machinery), Hyster-Yale Materials Handling, Inc. (forklift trucks), and the V Foundation for Cancer Research; Member of the Advisory Council for the College of Arts and Letters and Chair of the Advisory Board to the Kellogg Institute for International Studies, both at the University of Notre Dame.

Mark Loughridge

Born 1953. Trustee Since March 2012. Principal Occupation(s) During the Past Five Years and Other Experience: Senior Vice President and Chief Financial Officer (retired 2013) at IBM (information technology services); Fiduciary Member of IBM’s Retirement Plan Committee (2004–2013); Director of the Dow Chemical Company; Member of the Council on Chicago Booth.

Scott C. Malpass

Born 1962. Trustee Since March 2012. Principal Occupation(s) During the Past Five Years and Other Experience: Chief Investment Officer and Vice President at the University of Notre Dame; Assistant Professor of Finance at the Mendoza College of Business at Notre Dame; Member of the Notre Dame 403(b) Investment Committee, the Board of Advisors for Spruceview Capital Partners, and the Investment Advisory Committee of Major League Baseball; Board Member of TIFF Advisory Services, Inc., and Catholic Investment Services, Inc. (investment advisors); Member of the Board of Superintendence of the Institute for the Works of Religion.

André F. Perold

Born 1952. Trustee Since December 2004. Principal Occupation(s) During the Past Five Years and Other Experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011); Chief Investment Officer and Co-Managing Partner of HighVista Strategies LLC (private investment firm); Overseer of the Museum of Fine Arts Boston.

Peter F. Volanakis

Born 1955. Trustee Since July 2009. Principal Occupation(s) During the Past Five Years and Other Experience: President and Chief Operating Officer (retired 2010) of Corning Incorporated (communications equipment); Chairman of the Board of Trustees of Colby-Sawyer College; Member of the Board of Hypertherm, Inc. (industrial cutting systems, software, and consumables).

Executive Officers

Glenn Booraem

Born 1967. Investment Stewardship Officer Since February 2017. Principal Occupation(s) During the Past Five Years and Other Experience: Principal of The Vanguard Group, Inc.; Treasurer (2015–2017),

Controller (2010–2015), and Assistant Controller (2001–2010) of each of the investment companies served by The Vanguard Group.

Thomas J. Higgins

Born 1957. Chief Financial Officer Since September 2008. Principal Occupation(s) During the Past Five Years and Other Experience: Principal of The Vanguard Group, Inc.; Chief Financial Officer of each of the investment companies served by The Vanguard Group; Treasurer of each of the investment companies served by The Vanguard Group (1998–2008).

Peter Mahoney

Born 1974. Controller Since May 2015. Principal Occupation(s) During the Past Five Years and Other Experience: Principal of The Vanguard Group, Inc.; Controller of each of the investment companies served by The Vanguard Group; Head of International Fund Services at The Vanguard Group (2008–2014).

Anne E. Robinson

Born 1970. Secretary Since September 2016. Principal Occupation(s) During the Past Five Years and Other Experience: Managing Director of The Vanguard Group, Inc.; General Counsel of The Vanguard Group; Secretary of The Vanguard Group and of each of the investment companies served by The Vanguard Group; Director and Senior Vice President of Vanguard Marketing Corporation; Managing Director and General Counsel of Global Cards and Consumer Services at Citigroup (2014–2016); Counsel at American Express (2003–2014).

Michael Rollings

Born 1963. Treasurer Since February 2017. Principal Occupation(s) During the Past Five Years and Other Experience: Managing Director of The Vanguard Group, Inc.; Treasurer of each of the investment companies served by The Vanguard Group; Executive Vice President and Chief Financial Officer of MassMutual Financial Group (2006–2016).

Vanguard Senior Management Team

Mortimer J. Buckley James M. Norris

John James Thomas M. Rampulla

Martha G. King Glenn W. Reed

John T. Marcante Karin A. Risi

Chris D. McIsaac

Chairman Emeritus and Senior Advisor

John J. Brennan

Chairman, 1996–2009Chief Executive Officer and President, 1996–2008

Founder

John C. Bogle

Chairman and Chief Executive Officer, 1974–1996

1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

2 December 2002 for Vanguard Equity Income Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.

P.O. Box 2600Valley Forge, PA 19482-2600

Connect with Vanguard® > vanguard.com

Fund Information > 800-662-7447

Direct Investor Account Services > 800-662-2739

Institutional Investor Services > 800-523-1036

Text Telephone for PeopleWho Are Deaf or Hard of Hearing > 800-749-7273

This material may be used in conjunctionwith the offering of shares of any Vanguardfund only if preceded or accompanied bythe fund’s current prospectus.

All comparative mutual fund data are from Lipper, aThomson Reuters Company, or Morningstar, Inc., unlessotherwise noted.

You can obtain a free copy of Vanguard’s proxy votingguidelines by visiting vanguard.com/proxyreporting or bycalling Vanguard at 800-662-2739. The guidelines arealso available from the SEC’s website, sec.gov. Inaddition, you may obtain a free report on how your fundvoted the proxies for securities it owned during the 12months ended June 30. To get the report, visit eithervanguard.com/proxyreporting or sec.gov.

You can review and copy information about your fund atthe SEC’s Public Reference Room in Washington, D.C. Tofind out more about this public service, call the SEC at202-551-8090. Information about your fund is alsoavailable on the SEC’s website, and you can receivecopies of this information, for a fee, by sending arequest in either of two ways: via email addressed topublicinfo@sec.gov or via regular mail addressed to thePublic Reference Section, Securities and ExchangeCommission, Washington, DC 20549-1520.

CFA® is a registered trademark owned by CFA Institute.

© 2017 The Vanguard Group, Inc.All rights reserved.Vanguard Marketing Corporation, Distributor.

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