VANGUARD/TRUSTEES' EQUITY FUND-U.S. PORTFOLIO
PROSPECTUS SUPPLEMENT
MAY 21, 1998
The Board of Trustees of Vanguard/Trustees' Equity Fund-U.S. Portfolio
has proposed a tax-free merger of the U.S. Portfolio into Vanguard Growth and
Income Portfolio. In anticipation of a possible merger, the following changes
have been made:
1. The U.S. Portfolio has been closed to new accounts.
2. Franklin Portfolio Associates, investment adviser to the Growth
and Income Portfolio, has replaced Geewax, Terker & Company as
investment adviser to the U.S. Portfolio. Pending approval and
implementation of the proposed merger, Franklin has agreed to
manage the U.S. Portfolio for an annualized fee of 0.08% of its
average net assets.
Both changes are effective May 21, 1998.
