<PAGE> 1
VANGUARD SPECIALIZED PORTFOLIOS
PROSPECTUS SUPPLEMENT
MARCH 18, 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 shareholders of each
Portfolio at a Special Meeting to be held on or about June 1, 1994, the
Portfolios will be merged into Vanguard Explorer Fund and Vanguard/Morgan Growth
Fund, respectively, on or about June 2, 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 (800-622-7447).
Due to the reorganization, beginning April 18, 1994, the Technology and Service
Economy Portfolios will no longer accept new accounts or purchases.
PVSP
