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VANGUARD(R) ENERGY FUND
SUPPLEMENT TO THE PROSPECTUS DATED MAY 31, 2000
Effective October 1, 2000, Vanguard Energy Fund will be permitted to invest up
to 50% of its assets in stocks issued outside the United States. Prior to that
date, the Fund has been subject to a 30% limitation on foreign investments. This
change is being implemented due to changes that have taken place in the energy
industry, including an increase in the presence of foreign firms and
consolidation among firms. Raising the limitation from 30% to 50% of Fund assets
will allow the Fund's adviser, Wellington Management Company, LLP, to better
adapt the Fund's investments to the increasingly global character of the energy
industry. Providing additional reasonable investment flexibility to the adviser
should allow it to continue to manage the Fund in a prudent manner and better
protect the long-term interests of Fund shareholders.
(C)2000 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.
PS51N 092000
