(PUB) Investing 2015

The Independent Adviser for Vanguard Investors

•

November 2015

•

FOR CUSTOMER SERVICE, PLEASE CALL

800-211-7641

PERFORMANCE REV I EW

Vanguard exchange-traded fund shares

can be bought and sold like stocks, anytime markets are open. They are expected to track the performance of

Vanguard’s like-named index funds closely, though not precisely. Price and performance are based on actual closing prices, not net asset value. Individual

investor performance can vary depending on price variability during the trading day. Buy, Sell and Hold ratings may differ from open-end versions of the

same index funds listed in the Investor share section of the Performance Review if an alternative ETF is better or worse.

Admiral shares

are identical to regular, “investor” shares (and my recommendations are the same as those for “investor” shares) except that

their operating expenses are several basis points lower. (One basis point equals one one-hundredth of a percent.) For instance, a fund with an

operating expense ratio of, say, 0.25%, might have Admiral shares available with an operating expense ratio of 0.21%.

VANGUARD EXCHANGE-TRADED FUNDS

Fund

Ticker Advice

10/30

Price

Oct.

Return

YTD

Return

12-Mo.

Return

3-Year

Return

5-Year

Return

12-Mo.

Yield

SEC

Yield Risk

BROAD EQUITY ETFS

SmallCap Growth

VBK

Buy $123.29

4.7% -1.5% 0.2% 13.9% 13.0% 1.6% — 1.16

S&P SmallCap 600 Growth VIOG

Buy $108.84

5.8% 4.5% 6.7% 17.0% 15.3% 1.3% — 1.20

Russell 2000 Growth

VTWG Hold $102.85

5.7% -0.6% 3.5% 16.2% 13.5% 1.1% — 1.41

SmallCap

Hold $114.08

5.7% -1.3% 1.0% 15.1% 13.4% 2.3% — 1.13

S&P SmallCap 600

VIOO Hold $102.73

5.9% 0.1% 2.7% 15.9% 14.2% 1.1% — 1.20

Russell 2000

VTWO Hold $92.52

5.6% -2.5% 0.4% 13.9% 12.0% 1.8% — 1.28

SmallCap Value

VBR

Hold $103.27

6.6% -1.1% 1.7% 15.9% 13.4% 3.0% — 1.12

S&P SmallCap 600 Value VIOV

Hold $95.99

6.3% -4.5% -1.4% 14.7% 13.2% 2.2% — 1.22

Russell 2000 Value

VTWV Hold $82.48

5.7% -5.1% -2.5% 11.7% 10.3% 3.1% — 1.20

Extended Market

VXF

Sell

$86.16

5.5% -1.0% 1.2% 15.5% 13.3% 2.2% — 1.11

Growth

VUG

Hold $109.29

9.0% 5.7% 7.8% 17.5% 15.1% 1.3% — 1.13

S&P 500 Growth

VOOG Buy $105.76

9.4% 7.0% 9.1% 17.9% 15.4% 1.5% — 1.05

Russell 1000 Growth

VONG Hold $103.69

8.7% 6.9% 9.1% 17.8% 15.1% 1.4% — 1.05

MegaCap Growth

MGK

Buy $85.39

9.8% 6.1% 8.3% 17.5% 15.3% 1.4% — 1.12

MidCap Growth

VOT

Buy $102.72

5.6% 1.6% 4.5% 16.8% 13.5% 1.2% — 1.06

S&P MidCap 400 Growth IVOG

Buy $102.29

5.3% 4.1% 7.1% 15.6% 13.6% 0.8% — 1.03

MidCap

Hold $123.64

6.0% 1.1% 4.2% 17.4% 14.0% 2.2% — 1.03

S&P MidCap 400

IVOO

Buy $97.00

5.5% 0.5% 3.2% 15.4% 13.2% 2.2% — 1.00

MidCap Value

VOE

Hold $88.49

6.3% 0.4% 3.8% 17.8% 14.4% 3.0% — 0.94

S&P MidCap 400 Value

IVOV

Buy $93.30

6.6% -3.4% -0.7% 15.1% 12.7% 1.5% — 1.07

S&P 500

VOO

Buy $190.56

8.5% 2.7% 5.2% 16.2% 14.3% 2.0% — 1.00

Russell 1000

VONE

Buy $95.56

8.1% 2.2% 4.7% 16.2% 14.1% 1.8% — 0.99

Dividend Appreciation

VIG

Buy $78.71

6.7% -1.3% 2.0% 12.6% 11.9% 2.3% — 1.00

High Dividend Yield

VYM Hold $67.92

8.4% 1.1% 3.0% 14.3% 14.5% 3.1% — 0.97

LargeCap

Buy $95.34

8.3% 2.5% 5.0% 16.1% 14.2% 1.9% — 1.00

MegaCap

MGC

Buy $71.04

8.8% 2.7% 5.1% 15.9% 14.2% 2.0% — 1.02

Total Stock Market

VTI

Hold $106.53

7.9% 1.9% 4.4% 16.0% 14.1% 1.9% — 1.00

Russell 3000

VTHR

Hold $95.69

8.5% 1.8% 4.9% 16.0% 14.0% 1.7% — 1.00

Value

VTV

Hold $82.62

7.6% -0.4% 2.4% 15.7% 13.8% 2.5% — 0.98

S&P 500 Value

VOOV Hold $86.89

7.4% -1.9% 0.9% 14.0% 12.7% 2.2% — 0.99

Russell 1000 Value

VONV Hold $87.88

7.6% -2.1% 0.5% 14.4% 13.1% 2.3% — 0.97

MegaCap Value

MGV

Hold $59.55

7.8% -0.0% 2.5% 14.6% 13.3% 2.5% — 0.96

INTERNATIONAL ETFS

Emerging Markets Stock

VWO Hold $34.84

5.3% -10.8% -15.9% -2.8% -3.0% 3.1% — 1.42

Developed Markets

VEA

Sell

$38.04

6.7% 2.6% -1.3% 7.9% 4.7% 2.9% — 1.10

European

VGK

Hold $52.08

5.9% 2.0% -0.7% 8.0% 5.0% 3.3% — 1.18

Pacific

VPL

Hold $57.75

7.6% 2.8% -3.3% 7.5% 4.5% 2.4% — 1.16

Total International Stock

VXUS

Hold $47.09

6.3% -0.7% -5.1% 5.1% — 2.8% — 1.10

Total World Stock

Hold $59.34

7.3% 0.4% -0.3% 10.2% 7.8% 2.4% — 1.02

World ex-U.S.

VEU

Sell

$45.48

6.7% -1.0% -5.2% 4.9% 2.7% 2.9% — 1.13

World ex-U.S. SmallCap

VSS

Hold $94.96

4.7% 0.9% -3.0% 5.9% 3.0% 2.8% — 1.07

SECTOR ETFS

Consumer Discretionary

VCR

— $126.99

7.8% 9.7% 16.7% 21.4% 19.2% 2.0% — 1.22

Consumer Staples

VDC

— $128.31

5.8% 4.5% 9.5% 15.7% 15.1% 3.8% — 0.98

Energy

VDE

— $94.50 11.5% -13.3% -21.7% -0.7% 3.9% 4.4% — 1.74

Financials

VFH

— $49.03

5.9% -0.1% 3.6% 16.1% 12.4% 1.9% — 0.99

Health Care

VHT

— $130.93

6.8% 5.3% 7.9% 23.9% 20.6% 1.9% — 1.17

Industrials

VIS

— $103.25

8.7% -1.9% 1.0% 16.7% 13.7% 3.0% — 1.12

Information Tech.

VGT

— $110.46 10.5% 6.8% 10.6% 18.9% 14.6% 2.0% — 1.21

Materials

VAW — $98.61 12.9% -6.5% -5.7% 9.1% 7.9% 3.5% — 1.47

REIT

VNQ

Hold $79.89

5.8% 1.2% 5.2% 11.8% 12.1% 3.9% — 1.37

Global ex-U.S. Real Estate VNQI

Hold $53.55

5.1% 1.3% -2.3% 4.7% — 3.8% — 1.11

Telecom Services

VOX

— $85.74

8.8% 4.2% 1.7% 10.7% 10.3% 5.4% — 1.01

Utilities

VPU

— $94.83

1.9% -4.8% -0.8% 10.2% 11.1% 3.5% — 1.20

INCOME ETFS

Short-Term Government

VGSH Sell

$61.08

-0.1% 0.8% 0.7% 0.6% 0.6% 0.6% 0.52% 0.20

Short-Term Inflation Bond VTIP

Hold $48.42

0.1% 0.4% -1.2% -0.7% — 0.8% 0.31% 0.64

Short-Term Corporate

VCSH

Buy $79.68

0.1% 1.5% 1.5% 1.6% 2.5% 1.9% 1.93% 0.44

Short-Term Bond

BSV

Hold $80.24

-0.1% 1.4% 1.4% 1.0% 1.4% 1.3% 1.06% 0.42

Int.-Term Government Bond VGIT

Sell

$65.02

-0.6% 2.0% 2.7% 1.3% 2.5% 1.6% 1.39% 1.17

Int.-Term Corporate

VCIT

Buy $85.43

0.3% 1.6% 2.1% 2.3% 4.6% 3.2% 3.39% 1.33

Int.-Term Bond

BIV

Hold $84.71

0.1% 2.1% 2.9% 1.8% 3.8% 2.7% 2.43% 1.35

Total Bond Market

BND

Hold $81.79

0.0% 1.1% 2.0% 1.5% 2.9% 2.4% 2.14% 1.03

Mortgage-Backed Securities VMBS Hold $53.28

-0.0% 1.6% 2.4% 1.9% 2.7% 1.4% 1.63% 0.72

Long-Term Government

VGLT

Sell

$75.97

-0.4% -0.3% 5.3% 2.6% 6.7% 2.7% 2.71% 3.88

Long-Term Corporate

VCLT

Hold $86.52

1.0% -3.3% -1.0% 1.6% 6.2% 4.5% 4.80% 2.86

Long-Term Bond

BLV

Sell

$89.66

0.7% -2.0% 1.8% 2.2% 6.6% 4.0% 4.00% 3.16

Ext. Duration Treasury

EDV

Sell $118.00

-0.4% -2.7% 6.9% 3.4% 11.1% 3.0% 2.95% 6.40

Emerging Mkts. Gov’t Bond VWOB

Buy $75.95

2.8% 3.0% -0.3% — — 4.7% 4.78% 1.88

Total International Bond

BNDX Hold $53.18

0.6% 1.1% 3.1% — — 1.5% 0.86% 0.95

Tax-Exempt Bond

VTEB

Hold $50.42

0.5% — — — — — 1.77% —

DISTRIBUTIONS

Fund

Dist.

OCTOBER REGULAR

Ultra-Short-Term Bond

$0.01

Short-Term Treasury

$0.01

Short-Term Federal

$0.01

Short-Term Investment-Grade

$0.02

Short-Term Bond Index

$0.01

Intermediate-Term Treasury

$0.02

Intermediate-Term Investment-Grade $0.03

Intermediate-Term Bond Index

$0.03

Total Bond Market Index

$0.02

GNMA

$0.02

Long-Term Treasury

$0.03

Long-Term Investment-Grade

$0.04

Long-Term Bond Index

$0.05

High-Yield Corporate

$0.03

Emerging Markets Gov't Bond

$0.04

Total International Bond

$0.02

Admiral Treasury MM

$0.00001

Federal MM

$0.00005

Prime MM

$0.00006

Tax-Exempt MM

$0.00001

CA Tax-Exempt MM

$0.00001

NJ Tax-Exempt MM

$0.00001

NY Tax-Exempt MM

$0.00001

OH Tax-Exempt MM

$0.00001

PA Tax-Exempt MM

$0.00001

Short-Term Tax-Exempt

$0.01

Limited-Term Tax-Exempt

$0.01

Intermediate-Term Tax-Exempt

$0.03

Tax-Exempt Bond Index

$0.01

Long-Term Tax-Exempt

$0.04

High-Yield Tax-Exempt

$0.03

CA Int.-Term Tax-Exempt

$0.03

CA Long-Term Tax-Exempt

$0.04

MA Tax-Exempt

$0.03

NJ Long-Term Tax-Exempt

$0.04

NY Long-Term Tax-Exempt

$0.03

OH Long-Term Tax-Exempt

$0.04

PA Long-Term Tax-Exempt

$0.04

ETF DISTRIBUTIONS

Short-Term Government Bond

$0.04

Short-Term Corporate Bond

$0.13

Short-Term Bond

$0.09

Intermed.-Term Government Bond

$0.09

Intermed.-Term Corporate Bond

$0.24

Intermediate-Term Bond

$0.18

Total Bond Market

$0.16

Mortgage-Backed Securities Bond

$0.07

Long-Term Government Bond

$0.18

Long-Term Corporate Bond

$0.33

Long-Term Bond

$0.29

Emerging Markets Gov't Bond

$0.29

Total International Bond

$0.06

Tax-Exempt Bond

$0.08

Distributions

are per share. All distributions are

reinvested at month-end Net Asset Value unless

otherwise noted.