(PUB) Investing 2015

Morningstar FundInvestor

April

2015

Morningstar Analyst Rating

03-18-15

Morningstar Pillars

Process

Performance

People

Parent

Price

Neutral

Positive

Neutral

Positive

Morningstar Analyst Rating

Morningstar evaluates mutual funds based on five key pillars, which

its analysts believe lead to funds that are more likely to outperform

over the long term on a risk-adjusted basis.

Analyst Rating Spectrum

Œ „ ´ˇ ¨

Pillar Spectrum

Positive

Negative

Neutral

NAV

25.89

24.22

24.73

20.37

18.83

19.00

15.36

11.11

18.46

17.07

17.51

16.05

Total Return %

6.90

10.86

34.15

14.84

1.17

23.83

38.42

-39.59

14.69

12.72

9.13

11.38

+/-S&P 500

5.95

-2.83

1.76

-1.16

-0.94

8.77

11.96

-2.59

9.20

-3.07

4.22

0.50

+/-Russ MG

-4.51

-1.04

-1.59

-0.97

2.82

-2.55

-7.87

4.73

3.26

2.06

-2.97

-4.10

Income Return %

0.00

0.15

0.03

0.40

0.16

0.13

0.16

0.22

0.36

0.26

0.03

0.00

Capital Return %

6.90

10.71

34.12

14.44

1.01

23.70

38.26

-39.81

14.33

12.46

9.10

11.38

Total Rtn % Rank Cat

Income $

0.00

0.04

0.01

0.08

0.03

0.02

0.04

0.06

0.05

0.01

0.00

Capital Gains $

0.00

3.17

2.49

1.17

0.35

0.00

1.03

2.67

0.00

Expense Ratio %

0.44

0.51

0.54

0.53

0.51

0.58

0.55

0.53

0.47

0.39

0.34

Income Ratio %

0.16

0.19

0.20

0.00

0.16

0.20

0.27

0.26

0.01

-0.05

Turnover Rate %

127

125

159

102

Net Assets $mil

3,935

3,492

3,083

2,201

1,800

1,730

1,359

823

1,255

811

619

512

Performance

03-31-15

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Total

2010

2011

2012

2013

2014

5.40 -9.76 15.13 13.08 23.83

8.37 1.94 -17.39 10.85

1.17

14.82 -4.53

3.92 0.81 14.84

11.39 2.51

8.47 8.31 34.15

1.54 2.79

-1.47 7.81 10.86

Trailing

Total

+/-

+/- Russ %Rank Growth of

Return% S&P 500

Cat

$10,000

3 Mo

6 Mo

1 Yr

3 Yr Avg

5 Yr Avg

10 Yr Avg

15 Yr Avg

6.90 5.95

-4.51

20 10,690

15.24 9.31

-6.58

7 11,524

16.71 3.98

-8.83

8 11,671

16.72 0.61

-8.91

26 15,901

16.76 2.29

-1.75

13 21,701

10.81 2.80

3.19

17 27,912

4.89 0.74

49 20,465

Tax Analysis

Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

3 Yr (estimated)

5 Yr (estimated)

10 Yr (estimated)

13.89

2.43

14.98

1.53

9.55

1.14

Potential Capital Gain Exposure: 23% of assets

Rating and Risk

Time Load-Adj

Morningstar

Period Return % Rtn vs Cat

Risk vs Cat

Risk-Adj Rating

1 Yr

16.71

3 Yr

16.72

+Avg

Avg

5 Yr

16.76

+Avg

-Avg

10 Yr

10.81

+Avg

-Avg

Incept

10.93

Other Measures

Standard Index

Best Fit Index

S&P 500

Russ MG

Alpha

-0.1

-0.8

Beta

1.05

1.02

R-Squared

Standard Deviation

11.44

Mean

16.72

Sharpe Ratio

1.41

Morningstar’s Take

by Alex Bryan 03-18-15

Vanguard Mid-Cap Growth offers low-cost exposure to

two reasonable growth strategies. William Blair and

Chartwell have subadvised this fund since mid-2006,

and each manages half of the portfolio. The William

Blair team targets well-managed, fast-growing

companies with strong returns on capital, low debt,

and durable competitive advantages. It favors firms it

thinks will grow faster than the market expects.

Chartwell also looks for firms with the potential to

exceed the market’s growth expectations, focusing on

each firm’s ability to execute. But it pays more

attention to quarterly results and tends to trade more

frequently than William Blair.

The two strategies complement each other. William

Blair’s approach is more defensive than Chartwell’s

and held up a little better in the bear market from

October 2007 through March 2009. Chartwell’s

strategy fared better in the strong bull market over the

trailing five years through December 2014. Together,

they allowed the fund to edge out the Russell Midcap

Growth Index by 0.3% annually from July 2006 through

February 2015 with slightly less volatility. Vanguard

adjusts its subadvisors’ compensation based on their

performance against this benchmark to encourage

them to make active bets.

The fund isn’t a closet indexer. Both teams rely on

bottom-up stock selection and only hold a fraction of

the number of holdings in the Russell Midcap Growth

Index. At the end of 2014, the fund’s active share--or

divergence from the index--was 76%. While the fund

doesn’t have much overlap with its benchmark, many

of its sector weightings are similar. However, the

portfolio is fluid. In each of the past five years, its

turnover was 82% or more. Such turnover can create

high transaction costs and reduce tax efficiency.

Low fees help offset these costs and give the fund

a durable advantage over its peers. At just 0.44%, the

fund’s expense ratio is 66 basis points less than the

median for no-load mid-cap funds. This cost

advantage, the subadvisors’ complementary

strategies, and the fund’s solid risk/reward profile

support its Morningstar Analyst Rating of Bronze.

Address:

Vanguard Whitehall Funds

Valley Forge, PA 19482

800-662-7447

Web Address:

www.vanguard.com

Inception:

12-31-97

Advisor:

William Blair & Company LLC

Subadvisor:

None

NTF Plans:

Vanguard NTF

Minimum Purchase:

$3000

Add:

IRA: $3000

Min Auto Inv Plan:

$3000

Add:

Sales Fees:

No-load

Management Fee:

0.48%

Actual Fees:

Mgt:0.43% Dist:

Expense Projections:

3Yr:$148

5Yr:$258 10Yr:$579

Income Distribution:

Annually

Data through March 31, 2015

Vanguard Mid Cap Growth Inv

Ticker

Status Yield Total Assets

Mstar Category

VMGRX Open

0.1% $3,805 mil

Mid-Cap Growth

91% 91% 96% 94% 94% 95% 95% 95%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 03-15

Historical Profile

Return

Risk

Rating

Above Avg

Below Avg

Above Avg

Investment Style

Equity

Stock %

Manager Change

Partial Manager Change

Growth of $10,000

Investment Values of

Fund

Investment Values of

S&P 500

Performance Quartile

(within Category)

History

10.0

14.0

18.0

22.8

29.2

Portfolio Analysis

12-31-14

Share change since 09-14 Total Stocks:126 Sector

PE Tot Ret% % Assets

CMT Market Liquidity Rat

. . .

5.18

SBA Communications Corp

Comm Svs

5.72 2.16

Vantiv Inc

Industrl

59.9 11.14 1.90

Akamai Technologies Inc

Technology 38.6 12.84 1.72

Synovus Financial Corp

Finan Svs 21.1 3.77 1.69

ManpowerGroup

Industrl

16.3 26.38 1.65

Affiliated Managers Grou

Finan Svs 27.8 1.20 1.60

Stericycle Inc

Industrl

37.0 7.13 1.53

O’Reilly Automotive Inc

Cnsmr Cyc 29.5 12.26 1.45

Biomarin Pharmaceutical

Hlth care

37.85 1.39

Dollar General Corp

Cnsmr Def 21.6 6.62 1.32

Lazard Ltd Shs "A"

Finan Svs 16.5 7.72 1.29

Intercontinental Exchang

Finan Svs 27.6 6.67 1.29

Williams-Sonoma Inc

Cnsmr Cyc 24.6 5.76 1.28

Equifax Inc

Industrl

31.4 15.36 1.28

Brunswick Corp

Cnsmr Cyc 25.1 0.61 1.28

SEI Investments Company

Finan Svs 23.9 10.71 1.26

Gartner Inc Class A

Technology 41.3 -0.43 1.22

Six Flags Entertainment

Cnsmr Cyc 63.7 13.40 1.20

Electronics for Imaging

Technology 59.9 -2.52 1.19

Current Investment Style

Market Cap %

Giant

1.7

Large

19.3

Mid

69.1

Small

9.9

Micro

0.0

Avg $mil:

8,584

Value Blnd Growth

Large Mid Small

Value Measures

Rel Category

Price/Earnings

Price/Book

Price/Sales

Price/Cash Flow

Dividend Yield %

21.85

3.29

2.12

13.98

0.73

1.12

1.20

1.25

1.39

0.82

Growth Measures

% Rel Category

Long-Term Erngs

Book Value

Sales

Cash Flow

Historical Erngs

13.65

10.54

7.79

12.22

15.19

0.96

1.08

1.01

0.91

0.59

Profitability

% Rel Category

Return on Equity

Return on Assets

Net Margin

19.13

8.02

9.72

1.12

1.09

0.96

Sector

Weightings

% of

Stocks

Rel

S&P 500 High

3 Year

Low

Cyclical 39.18

BasicMat 0.57

3 1

CnsmrCyc23.49

23 17

FinanSvs 13.43

14 7

Real Est 1.69

2 0

Sensitive 38.37

CommSrvs 2.83

3 1

Energy 2.26

7 2

Industrl 19.89

25 17

Technlgy 13.39

28 13

Defensive22.44

CnsmrDef 7.53

8 5

Hlthcare 14.91

17 9

Utilities 0.00

0 0

Composition - Net

(% of Stock)

Cash

5.3

Stocks 94.7

Bonds 0.0

Other

0.0

Foreign 4.7

timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at

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