Vanguard International Growth Fund Prospectus Investor and Admiral

Schroder Investment Management North America Inc. (Schroders), which manages
approximately 40% of the Fund’s assets, seeks high-quality, reasonably priced,
securities of international companies with strong growth prospects and a sustainable
competitive advantage. Schroders believes that in-depth fundamental research,
incorporating a comprehensive macroeconomic viewpoint, is the most reliable means
of finding those companies and identifying where their growth is undervalued by the
market. Schroders relies on a team-oriented “matrix approach” to drive research,
security selection, and portfolio construction. Initial local research draws on the
extensive knowledge of, and recommendations generated by, more than 70 regional
equity analysts located in 11 countries. The strongest ideas of these local analysts are
then overlaid with the global perspective of an international team of global sector
specialists and regionally focused managers. In Schroders’ view, this knowledge
“matrix” (global sector/regional expertise) provides an optimal framework for
identifying strong investment candidates and building high-quality portfolios across
multiple regions and sectors. While the input of the team’s Global Sector Specialists is
an important source of investment ideas and research, the investment “decision
making” for the Fund rests with the Fund’s portfolio managers.
M&G Investment Management Limited (M&G), which manages approximately 10%
of the Fund’s assets, uses a long-term, bottom-up approach to portfolio management
that focuses on quality companies with scarce assets that deliver high returns and
exhibit growth potential. Scarce assets can include traditional tangible assets (such as
land or property), intangible assets (such as a strong brand or reputation), and
organizational assets (such as a unique corporate culture). The team seeks to identify
companies that fall into three categories: quality—high quality companies with scarce
assets that support sustainable superior returns; growth—companies that use scarce
assets to grow faster than their competitors; and transforming—companies that are
emerging from a heavy investment cycle that may lead to a strong rebound in returns.
The Vanguard Group, Inc. (Vanguard) manages a small portion (approximately 3%) of
the Fund’s assets to facilitate cash flows to and from the Fund’s advisors. Vanguard
typically invests its portion of the Fund’s assets in stock index futures and/or shares of
exchange-traded funds. For more details, see “Other Investment Policies and Risks.”
The Fund is subject to manager risk, which is the chance that poor security
selection or focus on securities in a particular sector, category, or group of
companies will cause the Fund to underperform relevant benchmarks or other
funds with a similar investment objective.
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