New Vanguard ETF Tracking MSCI EAFE Index Begins Trading

Vanguard® Europe Pacific ETF, which seeks to track the performance of the MSCI EAFE Index (Europe, Australasia, Far East), is now available for investor purchase. The ETF is trading under the ticker symbol VEA on the American Stock Exchange.

Vanguard Europe Pacific ETF holds 1,134 securities and has an expense ratio of 0.15%, making it lower-cost and more broadly diversified than the other ETF available today seeking to track the MSCI EAFE Index.*

The new offering is a share class of Vanguard Tax-Managed International Fund, which was introduced in 1999 and has $2.3 billion in total net assets.

Vanguard ETFsTM feature a novel structure as a separate share class of existing index mutual funds, rather than as stand-alone funds or unit investment trusts. This structure provides for lower expense ratios through economies of scale and broader diversification among securities than competing products, resulting in the potential for more precise benchmark tracking.

MSCI Barra ( develops and maintains equity, hedge fund and REIT indices that serve as benchmarks for an estimated USD 3 trillion on a worldwide basis. MSCI Barras risk models and analytics products help the worlds largest investors analyze, measure and manage portfolio and firm-wide investment risk. MSCI Barra is headquartered in New York, with research and commercial offices around the world. Morgan Stanley, a global financial services firm and a market leader in securities, asset management, and credit services, is the majority shareholder of MSCI Barra, and Capital Group International, Inc. is the minority shareholder.

The Vanguard Group, headquartered in Valley Forge, Pennsylvania, is the nations second-largest mutual fund firm and a leading provider of company-sponsored retirement plan services. Vanguard manages nearly $1.3 trillion in U.S. mutual fund assets, including more than $325 billion in employer-sponsored retirement plans. Vanguard offers more than 140 funds to U.S. investors and more than 40 additional funds in foreign markets.

*Source: Bloomberg, June 21, 2007. The expense ratio for Vanguard Europe Pacific ETF is 0.15%, compared with that of the competitor ETF, at 0.35%. The Europe Pacific ETF has nearly 40% more holdings than the competitor ETF1,134 holdings versus 824 (Source: FactSet, June 30, 2007).

All asset figures are as of June 30, 2007, unless otherwise noted.

Diversification does not ensure a profit or protect against a loss in a declining market.

Vanguard ETF Shares can be bought and sold only through a broker (who will charge a commission) and cannot be redeemed with the issuing fund. The market price of Vanguard ETF Shares may be more or less than net asset value.

All funds and ETF products are subject to stock market risk, which may result in the loss of principal. International funds and ETF products involve additional risks, including currency fluctuations and the potential for adverse developments in specific countries or regions. Stocks of companies in emerging markets are generally more risky than stocks of companies in developed countries.

For more information, visit, or call 800-662-7447 to obtain a fund prospectus. Visit our website, call 800-992-8327, or contact your broker to obtain a product description and prospectus for Vanguard ETF Shares. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. For any such funds or securities, the prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with The Vanguard Group and any related funds.

Vanguard, Vanguard ETFs, and the ship logo are trademarks of The Vanguard Group, Inc. All other marks are the exclusive property of their respective owners.

U.S. Pat. No. 6,879,964 B2.

Vanguard Marketing Corporation, Distributor.


The Vanguard Group
John S. Woerth
Rebecca Cohen
Amy Chain

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