[SHIP]
[THE VANGUARD GROUP LOGO]
VANGUARD(R) CAPITAL OPPORTUNITY FUND
SUPPLEMENT TO THE PROSPECTUS DATED FEBRUARY 18, 2000
IMPORTANT CHANGES AS OF MARCH 20, 2000
FUND TEMPORARILY CLOSED TO NEW ACCOUNTS
Effective as of the close of business on March 20, 2000, Vanguard Capital
Opportunity Fund will no longer accept new accounts. The Fund will remain closed
for at least six months. Vanguard expects to reopen the Fund to new accounts
within one year.
LIMITS ON ADDITIONAL INVESTMENTS BY EXISTING SHAREHOLDERS
Existing shareholders of the Capital Opportunity Fund may invest up to an
additional $25,000 in the Fund during the closed period. This $25,000 limit
applies to the total amount invested in all Fund accounts registered to the same
Social Security or Taxpayer Identification Number. Investments made on or before
March 20, 2000, do not count toward the $25,000 limit, nor do dividend and
capital gains reinvestments.
ELECTRONIC TRANSACTIONS
During the closed period, it will not be possible to purchase Capital
Opportunity Fund shares through Vanguard's website or Tele-Account(R) service.
However, shareholders may continue to redeem Fund shares using these electronic
methods.
Vanguard Capital Opportunity Fund may modify these policies at any time without
giving advance notice to shareholders. Please call Vanguard's Investor
Information Department at 1-800-662-7447 for more detailed information about the
Fund's transaction policies.
XXXX-03/20/2000
