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Fund Profile Prospectus
for
[VANGUARD LOGO]
INTERNATIONAL
GROWTH
PORTFOLIO
June 5, 1996
The International Growth Portfolio is part of
Vanguard World Fund, which also includes
the U.S. Growth Portfolio.
[VANGUARD GROUP LOGO]
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1 OBJECTIVE
Vanguard International Growth Portfolio seeks to provide long-term capital
growth. The Portfolio may not meet this objective.
2 INVESTMENT STRATEGIES
The Portfolio invests primarily in common stocks of seasoned companies selected
from as many as 30 markets located outside the United States, 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, and futures and options contracts.
3 RISKS
The Portfolio's total return will fluctuate, so an investor could lose money
over short or extended periods. More specifically, 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).
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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 $19 $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.
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6 PAST PERFORMANCE
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Performance Summary
(Periods ended March, 31 1996)
<TABLE>
<CAPTION>
Average Annual Total Return
International EAFE
Growth Portfolio Index*
--------------------------------------------------
<S> <C> <C>
1 Year +21.8% +12.7%
--------------------------------------------------
5 Years +10.6% + 8.8%
--------------------------------------------------
10 Years +11.8% +11.3%
</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.
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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 $105 billion.
Richard Foulkes, Executive Vice President of Schroder Capital, has served as
portfolio manager since the Portfolio's inception in 1981.
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 accounts for
minors).
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.
These distributions may be automatically reinvested or received in cash. All
distributions are taxable to you whether reinvested in additional shares 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).
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This Fund Profile contains key information about the Portfolio.
If you would like more information before you invest, please
consult the Portfolio's prospectus. For details about the Portfolio's
holdings or recent investment strategies, please review the Portfolio's
most recent annual or semi-annual report. The prospectus and
reports may be obtained at no cost by calling 1-800-662-7447.
[GRAPHIC]
[VANGUARD GROUP LOGO]
0696-19B (C) 1996 Vanguard Marketing Corporation, Distributor FP81
