[SHIP]
[THE VANGUARD GROUP LOGO]
VANGUARD(R) TAX-MANAGED SMALL-CAP FUND
VANGUARD(R) TAX-MANAGED INTERNATIONAL FUND
SUPPLEMENT TO THE PROSPECTUS DATED AUGUST 18, 1999
Effective April 1, 2000, the Funds have reduced their purchase transaction fees
as follows:
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FORMER PURCHASE NEW PURCHASE
FUND TRANSACTION FEE TRANSACTION FEE
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Tax-Managed Small-Cap Fund 1.00% 0.50%
Tax-Managed International Fund 0.75 0.25%
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The Funds may raise their transaction fees in the future if their costs of
buying and selling securities increase under future market conditions.
(C) 2000 The Vanguard Group, Inc. All rights reserved. PS87N-04/01/2000
Vanguard Marketing Corporation, Distributor
