(PUB) Investing 2015

April 2015

Morningstar FundInvestor

7

Data through March 31, 2015 Vanguard Mid Cap Growth Inv

Ticker

Status Yield Total Assets

Mstar Category Mid-Cap Growth

VMGRX Open

0.1% $3,805 mil

Morningstar Analyst Rating 03-18-15

Investment Style Equity Stock %

Historical Profile Return Risk Rating Above Avg Below Avg Above Avg

91% 91% 96% 94% 94% 95% 95% 95%

´

Manager Change Partial Manager Change

10.0 14.0 18.0 22.8 29.2

Morningstar Pillars Process Performance

Growth of $10,000

¶ ∞ ∞ ¶ ∞ ∞ ∞

Neutral Positive Neutral Positive Positive

Investment Values of Fund Investment Values of S&P 500

People Parent Price

Performance Quartile (within Category) History

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 03-15

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

16.05 11.38 0.50 -4.10 0.00 11.38 0.00 0.00 0.34 -0.05 65

17.51 9.13 4.22 -2.97 0.03 9.10

17.07 12.72 -3.07

18.46

11.11

15.36 38.42 11.96 -7.87

19.00 23.83 8.77 -2.55 0.13 23.70

18.83 1.17 -0.94 2.82 0.16 1.01

20.37 14.84 -1.16 -0.97

24.73 34.15 1.76 -1.59 0.03 34.12

24.22 10.86 -2.83 -1.04

25.89 6.90 5.95 -4.51 0.00 6.90

NAV

-39.59 14.69

Total Return %

9.20 3.26 0.36

-2.59 4.73 0.22

+/-S&P 500 +/-Russ MG

2.06 0.26

0.16

0.40

0.15

Income Return % Capital Return %

12.46

-39.81 14.33

38.26

14.44

10.71

59

23

50

20

57

58

19

44

59

19

20

Total Rtn % Rank Cat

Pillar Spectrum Positive ∞

0.01 0.00 0.39 0.01

0.05 2.67 0.47 0.26 159 811

0.06 1.03 0.53 0.27

0.04 0.00 0.55 0.20

0.02 0.00 0.58 0.16 125

0.02 0.00 0.51 0.00

0.03 0.35 0.53 0.20 127

0.08 1.17 0.54 0.19

0.01 2.49 0.51 0.19

0.04 3.17 0.44 0.16

0.00 0.00

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

. . .

Performance 03-31-15 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

102 512

80

70

85

88

97

83

82

2010 2011 2012 2013 2014

5.40 -9.76 15.13 13.08 23.83 8.37 1.94 -17.39 10.85 1.17 14.82 -4.53 3.92 0.81 14.84 11.39 2.51 8.47 8.31 34.15 1.54 2.79 -1.47 7.81 10.86

619

1,255

823

1,359

1,730

1,800

2,201

3,083

3,492

3,935

Portfolio Analysis 12-31-14 Share change since 09-14 Total Stocks:126 Sector

Rating and Risk Time Load-Adj

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

CMT Market Liquidity Rat SBA Communications Corp Akamai Technologies Inc Synovus Financial Corp Vantiv Inc

5.18

. . .

1 Yr 3 Yr 5 Yr

16.71 16.72 16.76 10.81 10.93

Trailing

Total

+/-

+/- Russ %Rank Growth of

Comm Svs

5.72 2.16

.

Return% S&P 500 6.90 5.95 15.24 9.31 16.71 3.98 16.72 0.61 16.76 2.29 10.81 2.80

MG

Cat

$10,000

+Avg +Avg +Avg

Avg -Avg -Avg

Industrl

59.9 11.14 1.90

3 Mo 6 Mo 1 Yr

-4.51 -6.58 -8.83 -8.91 -1.75 3.19

20 10,690 7 11,524 8 11,671 26 15,901 13 21,701 17 27,912 49 20,465

Technology 38.6 12.84 1.72 Finan Svs 21.1 3.77 1.69

10 Yr Incept

ManpowerGroup

Industrl

16.3 26.38 1.65

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Affiliated Managers Grou

Finan Svs 27.8 1.20 1.60

Other Measures

Standard Index

Best Fit Index

Stericycle Inc

Industrl

37.0 7.13 1.53

S&P 500

Russ MG

O’Reilly Automotive Inc Biomarin Pharmaceutical Dollar General Corp Lazard Ltd Shs "A" Intercontinental Exchang Williams-Sonoma Inc

Cnsmr Cyc 29.5 12.26 1.45

Alpha

-0.1 1.05

-0.8 1.02

4.89 0.74

Hlth care

37.85 1.39

.

.

Beta

Cnsmr Def 21.6 6.62 1.32 Finan Svs 16.5 7.72 1.29 Finan Svs 27.6 6.67 1.29 Cnsmr Cyc 24.6 5.76 1.28 Cnsmr Cyc 25.1 0.61 1.28 Finan Svs 23.9 10.71 1.26 Technology 41.3 -0.43 1.22 Cnsmr Cyc 63.7 13.40 1.20 Technology 59.9 -2.52 1.19 Industrl 31.4 15.36 1.28

R-Squared

78

96

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 13.89 33 2.43 75 14.98 19 1.53 70 9.55 18 1.14 61 Potential Capital Gain Exposure: 23% of assets Morningstar’s Take by Alex Bryan 03-18-15 Vanguard Mid-Cap Growth offers low-cost exposure to two reasonable growth strategies. William Blair and Chartwell have subadvised this fund since mid-2006, and each manages half of the portfolio. The William Blair team targets well-managed, fast-growing companies with strong returns on capital, low debt, and durable competitive advantages. It favors firms it thinks will grow faster than the market expects. Chartwell also looks for firms with the potential to exceed the market’s growth expectations, focusing on each firm’s ability to execute. But it pays more attention to quarterly results and tends to trade more frequently than William Blair. The two strategies complement each other. William Blair’s approach is more defensive than Chartwell’s and held up a little better in the bear market from October 2007 through March 2009. Chartwell’s strategy fared better in the strong bull market over the trailing five years through December 2014. Together, they allowed the fund to edge out the Russell Midcap Growth Index by 0.3% annually from July 2006 through

Standard Deviation

11.44 16.72

Mean

Equifax Inc

Sharpe Ratio

1.41

Brunswick Corp

SEI Investments Company Gartner Inc Class A Six Flags Entertainment Electronics for Imaging

February 2015 with slightly less volatility. Vanguard adjusts its subadvisors’ compensation based on their performance against this benchmark to encourage them to make active bets. The fund isn’t a closet indexer. Both teams rely on bottom-up stock selection and only hold a fraction of the number of holdings in the Russell Midcap Growth Index. At the end of 2014, the fund’s active share--or divergence from the index--was 76%. While the fund doesn’t have much overlap with its benchmark, many of its sector weightings are similar. However, the portfolio is fluid. In each of the past five years, its turnover was 82% or more. Such turnover can create high transaction costs and reduce tax efficiency. Low fees help offset these costs and give the fund a durable advantage over its peers. At just 0.44%, the fund’s expense ratio is 66 basis points less than the median for no-load mid-cap funds. This cost advantage, the subadvisors’ complementary strategies, and the fund’s solid risk/reward profile support its Morningstar Analyst Rating of Bronze.

Current Investment Style

Sector Weightings

% of Stocks

Rel S&P 500 High

3 Year Low

Market Cap % Giant 1.7 Large 19.3 Mid 69.1 Small 9.9 Micro 0.0 Avg $mil: 8,584

Value Blnd Growth

Large Mid Small

Cyclical 39.18 BasicMat 0.57 CnsmrCyc23.49 FinanSvs 13.43 Real Est 1.69 Sensitive 38.37 CommSrvs 2.83 Energy 2.26 Industrl 19.89 Technlgy 13.39 Defensive22.44 CnsmrDef 7.53 Hlthcare 14.91 Utilities 0.00

. .

h r t y u j i o p a k s d f

3 1

. 23 17 . 14 7

2 0

. . . .

3 1 7 2

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

21.85 3.29 2.12 13.98 0.73 13.65 10.54 7.79 12.22 15.19

1.12 1.20 1.25 1.39 0.82 0.96 1.08 1.01 0.91 0.59

. 25 17 . 28 13

. .

8 5

. 17 9

% Rel Category

0 0

.

Composition - Net

Cash 5.3 Stocks 94.7 Bonds 0.0 Other 0.0 Foreign 4.7

Address:

Vanguard Whitehall Funds Valley Forge, PA 19482 800-662-7447 www.vanguard.com

Minimum Purchase: Min Auto Inv Plan:

$3000 $3000

Add: . Add: .

IRA: $3000

Profitability

% Rel Category

Sales Fees:

No-load 0.48% 3Yr:$148 Annually

Return on Equity Return on Assets Net Margin

19.13 8.02 9.72

1.12 1.09 0.96

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

(% of Stock)

12-31-97

Actual Fees:

Mgt:0.43% Dist: .

William Blair & Company LLC

Expense Projections: Income Distribution:

5Yr:$258 10Yr:$579

None

Vanguard NTF

Mutual Funds ß ®

© 2015Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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