<PAGE> 1
FUND PROFILE
FOR
VANGUARD
U.S. GROWTH
PORTFOLIO
February 16 , 1996
The U.S. Growth Portfolio is part of
Vanguard World Fund, which also includes
the International Growth Portfolio.
[THE VANGUARD GROUP(R) LOGO]
<PAGE> 2
1 OBJECTIVE
Vanguard U.S. Growth Portfolio seeks to provide long-term capital growth by
investing in common stocks. The Portfolio may not meet this objective.
2 INVESTMENT STRATEGIES
The Portfolio invests primarily in common stocks of seasoned U.S. companies,
emphasizing companies with strong growth records, leading market positions, and
low sensitivity to changing economic conditions. In addition to investing in
common stocks, the Portfolio may also invest, to a limited degree, in
short-term fixed-income securities, futures contracts, and options.
3 RISKS
Investors in the Portfolio are exposed to . . .
- - A HIGH degree of stock market risk (the possibility that stock prices in
general will decline over short or extended periods).
Historical returns for the U.S. stock market (as measured by the Standard &
Poor's 500 Composite Stock Price Index) show some of this market volatility.
From 1926 to 1995, the S&P 500 Index provided an annualized total return of
+10.5%, but provided a negative return--averaging -12.3%--in 20 of these 70
years. Annual returns for the period ranged from a low of -43.3% to a high of
+53.9%.
Because it emphasizes growth stocks, the Portfolio is likely to perform
differently than broader market benchmarks like the S&P 500 Index.
<PAGE> 3
4 APPROPRIATENESS
This Portfolio may be suitable for investors who . . .
- - Are seeking long-term capital growth.
- - Are willing to assume above-average investment risk.
- - Want a growth fund as part of a balanced investment program.
- - Plan to invest for at least five years.
The Portfolio is not suitable for investors who . . .
- - Are seeking current income.
- - Cannot tolerate fluctuating share prices.
5 FEES AND EXPENSES
Vanguard U.S. Growth Portfolio--like all Vanguard Funds--is offered on a pure
no-load basis (that is, the Portfolio has no 12b-1 fees or charges to buy or
sell shares).
The Portfolio's operating expenses are deducted from its total assets before
daily share prices and income distributions are calculated. The Portfolio's
expense ratio for fiscal year 1995 was 0.47% of assets.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
-----------------------------------------------
<S> <C>
Investment Advisory Fees . . . . . . . 0.19%
Distribution Costs . . . . . . . . . . 0.02
Other Expenses . . . . . . . . . . . . 0.26
----
Total Operating Expenses . . . . . . . 0.47%
====
</TABLE>
The following example illustrates the expenses that you would incur on a $1,000
investment over various periods, assuming (1) a 5% annual rate of return and
(2) redemption at the end of each period.
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
------------------------------------------------
<S> <C> <C> <C>
$5 $15 $26 $59
</TABLE>
This example should not be considered a representation of past or future
expenses or performance. Actual expenses may be higher or lower than those
shown.
<PAGE> 4
6 PAST PERFORMANCE
<TABLE>
<CAPTION>
PERFORMANCE
ANNUAL RETURNS (%) 1986-1995
VANGUARD U.S. S&P 500
GROWTH PORTFOLIO INDEX*
<S> <C> <C>
'86 7.8 18.6
'87 -6.1 5.1
'88 9.8 16.6
'89 37.7 31.7
'90 4.6 -3.1
'91 46.8 30.5
'92 2.8 7.6
'93 -1.4 10.1
'94 3.9 1.3
'95 38.4 37.6
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE SUMMARY
(PERIODS ENDED DECEMBER 31, 1995)
AVERAGE ANNUAL TOTAL RETURN
U.S. GROWTH PORTFOLIO S&P 500*
<S> <C> <C>
1 Year +38.44% +37.58%
5 Years +16.41% +16.59%
10 Years +12.99% +14.86%
</TABLE>
Note: In evaluating past performance, it is important to consider that returns
from stocks were close to their highest levels in history during the past ten
years. Past performance is not indicative of future performance.
Performance figures include the reinvestment of all dividends and any capital
gains distributions. All returns are net of expenses. The performance data
quoted represent past performance. The investment return and principal value of
an investment will fluctuate so that investors' shares, when redeemed, may be
worth more or less than their original cost.
*The Standard & Poor's 500 Composite Stock Price Index is a diversified group
of 500 securities used to measure U.S. stock market performance. An index is
unmanaged; you cannot invest in an index.
"Standard & Poor's(R)" and "S&P 500(R)" are trademarks of The McGraw-Hill
Companies, Inc.
<PAGE> 5
7 INVESTMENT ADVISER
The Portfolio has been managed by Lincoln Capital Management Company since
August 1987. Lincoln manages total assets of more than $33 billion.
8 PURCHASES
You may purchase shares by mail, wire, or exchange from another Vanguard Fund.
The minimum initial investment is $3,000 ($1,000 for IRAs and custodial
accounts).
9 REDEMPTIONS
You may redeem shares by sending a letter to or calling Vanguard. The
Portfolio's share price is expected to fluctuate and, at redemption, may be
higher or lower than at the time of initial purchase, resulting in a gain or
loss.
10 DISTRIBUTIONS
The Portfolio expects to pay dividend and capital gains distributions annually
in December. These distributions may be automatically reinvested or received in
cash.
11 OTHER SERVICES
- - Vanguard Fund Express(R)--electronic transfers between your bank account and
the Portfolio.
- - Vanguard Tele-Account(R)--around-the-clock access to Vanguard Fund
information, account balances, and some transactions by calling 1-800-
662-6273 (ON-BOARD).
- - Investor Information--toll-free access to Vanguard Associates by calling
1-800-662-7447 (SHIP).
<PAGE> 6
[SHIP LOGO]
This Fund Profile contains key
information about the Portfolio. More details appear
in the Portfolio's accompanying prospectus.
0296-5B (C) 1996 Vanguard Marketing Corporation, Distributor FP23
<PAGE> 7
FUND PROFILE
FOR
VANGUARD
INTERNATIONAL
GROWTH
PORTFOLIO
February 16 , 1996
The International Growth Portfolio is part of
Vanguard World Fund, which also includes
the U.S. Growth Portfolio.
[THE VANGUARD GROUP(R) LOGO]
<PAGE> 8
1 OBJECTIVE
Vanguard International Growth Portfolio seeks to provide long-term capital
growth by investing in common stocks of companies located outside the United
States. The Portfolio may not meet this objective.
2 INVESTMENT STRATEGIES
The Portfolio invests primarily in common stocks of companies selected from as
many as 30 foreign markets, including Japan, the United Kingdom, Germany,
France, Switzerland, the Netherlands, Sweden, Australia, Hong Kong, and
Singapore. In addition to investing in common stocks, the Portfolio may also
invest, to a limited degree, in short-term fixed-income securities, futures
contracts, and options.
3 RISKS
Investors in the Portfolio are exposed to . . .
- - A HIGH degree of stock market risk (the possibility that stock prices in
general will decline over short or extended periods).
Historical returns for foreign stock markets (as measured by the Morgan
Stanley Capital International Europe, Australia, and Far East Index, or EAFE
Index) show some of this market volatility. From 1969 to 1995, the EAFE Index
provided an annualized total return of +13.1%. During that period, the worst
year saw a return of -23.2%; the best year, a +69.9% return.
- - A HIGH degree of currency risk (the possibility that a "strong" dollar will
reduce Americans' returns on foreign investments).
- - A HIGH degree of country risk (the possibility that a country's economy could
be hurt by political events or natural disasters).
<PAGE> 9
4 APPROPRIATENESS
This Portfolio may be suitable for investors who . . .
- - Are seeking long-term capital growth.
- - Want investment opportunities outside the United States.
- - Are willing to assume above-average investment risk in addition to the risks
(currency risk, country risk) associated with international investing.
- - Plan to invest for at least five years.
The Portfolio is not suitable for investors who . . .
- - Are seeking current income.
- - Cannot tolerate fluctuating share prices.
5 FEES AND EXPENSES
Vanguard International Growth Portfolio--like all Vanguard Funds--is offered on
a pure no-load basis (that is, the Portfolio has no 12b-1 fees or charges to
buy or sell shares).
The Portfolio's operating expenses are deducted from its total assets before
daily share prices and income distributions are calculated. The Portfolio's
expense ratio for fiscal year 1995 was 0.59% of assets.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
-----------------------------------------------
<S> <C>
Investment Advisory Fees . . . . . . . 0.16%
Distribution Costs . . . . . . . . . . 0.02
Other Expenses . . . . . . . . . . . . 0.41
----
Total Operating Expenses . . . . . . . 0.59%
====
</TABLE>
The following example illustrates the expenses that you would incur on a $1,000
investment over various periods, assuming (1) a 5% annual rate of return and
(2) redemption at the end of each period.
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
------------------------------------------------
<S> <C> <C> <C>
$6 $9 $33 $74
</TABLE>
This example should not be considered a representation of past or future
expenses or performance. Actual expenses may be higher or lower than those
shown.
<PAGE> 10
6 PAST PERFORMANCE
<TABLE>
<CAPTION>
PERFORMANCE
ANNUAL RETURNS (%) 1986-1995
VANGUARD INTERNATIONAL MSC EAFE
GROWTH PORTFOLIO INDEX*
<S> <C> <C>
'86 66.7 69.8
'87 12.5 24.9
'88 10.6 28.6
'89 24.8 10.8
'90 -12.0 -23.2
'91 4.7 12.5
'92 -8.8 -11.8
'93 44.7 32.9
'94 0.8 8.1
'95 14.9 11.6
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE SUMARY
(PERIODS ENDED DECEMBER 31, 1995)
AVERAGE ANNUAL TOTAL RETURN
INTERNATIONAL EAFE
GROWTH PORTFOLIO INDEX*
<S> <C> <C>
1 Year +14.89% +11.55%
5 Years +10.58% + 9.71%
10 Years +13.57% +13.95%
</TABLE>
Note: In evaluating past performance, it is important to consider that returns
from foreign stocks were close to their highest levels in history during the
past ten years. Past performance is not indicative of future performance.
Performance figures include the reinvestment of all dividends and any capital
gains distributions. All returns are net of expenses. The performance data
quoted represent past performance. The investment return and principal value of
an investment will fluctuate so that investors' shares, when redeemed, may be
worth more or less than their original cost.
*The Morgan Stanley Capital International Europe, Australia, and Far East
(EAFE) Index is a diversified group of more than 900 foreign securities used to
measure international stock performance. An index is unmanaged; you cannot
invest in an index.
<PAGE> 11
7 INVESTMENT ADVISER
The Portfolio is managed by Schroder Capital Management International. Schroder
is part of a worldwide group of banks and financial services companies that
manages total assets of more than $102 billion.
8 PURCHASES
You may purchase shares by mail, wire, or exchange from another Vanguard Fund.
The minimum initial investment is $3,000 ($1,000 for IRAs and custodial
accounts).
9 REDEMPTIONS
You may redeem shares by sending a letter to or calling Vanguard. The
Portfolio's share price is expected to fluctuate and, at redemption, may be
higher or lower than at the time of initial purchase, resulting in a gain or
loss.
10 DISTRIBUTIONS
The Portfolio expects to pay dividend and capital gains distributions annually
in December. These distributions may be automatically reinvested or received in
cash.
11 OTHER SERVICES
- - Vanguard Fund Express(R)--electronic transfers between your bank account and
the Portfolio.
- - Vanguard Tele-Account(R)--around-the-clock access to Vanguard Fund
information, account balances, and some transactions by calling 1-800-
662-6273 (ON-BOARD).
- - Investor Information--toll-free access to Vanguard Associates by calling
1-800-662-7447 (SHIP).
<PAGE> 12
[SHIP LOGO]
This Fund Profile contains key
information about the Portfolio. More details appear
in the Portfolio's accompanying prospectus.
0296-5B (C) 1996 Vanguard Marketing Corporation, Distributor FP81
