VANGUARD SPECIALIZED PORTFOLIOS
PROSPECTUS SUPPLEMENT
FEBRUARY 8, 1994
IMPORTANT NOTE FOR INVESTORS CONSIDERING PURCHASING SHARES OF THE
TECHNOLOGY OR THE SERVICE ECONOMY PORTFOLIO
The Fund's Board of Directors has proposed, for shareholder approval, the
following: 1) the acquisition of all of the outstanding shares of the
Technology Portfolio, in a tax-free reorganization, by Vanguard Explorer Fund
("Explorer") and 2) the acquisition of all of the outstanding shares of the
Service Economy Portfolio, in a tax-free merger, by Vanguard/Morgan Growth
Fund ("Morgan Growth"). If the reorganizations are approved by the Portfolios'
shareholders at a Special Meeting to be held on or about May 12, 1994, the
Portfolios will be merged into Vanguard Explorer Fund and Vanguard/Morgan
Growth Fund, respectively, on or about May 16, 1994.
A distribution for each Portfolio of income dividends and realized capital
gains, if any, would be distributed prior to the proposed merger. For more
information about Explorer and Morgan Growth, please call Vanguard's Investor
Information Department (800-662-7447).
