Fund Description: Vanguard FTSE All-World ex-US Index Fundis an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Vanguard International Equity Index Funds, an open-end investment management company. INVESTMENT OBJECTIVE: The Vanguard FTSE All-World ex-US ETF seeks to track the performance of the FTSE All-World ex US Index. INDEX DESCRIPTION: The FTSE All-World ex US Index is a free-floatadjusted, market-capitalization-weighted index designed to measure equity market performance of international markets. The Index includes approximately 2,200 stocks of companies located in 47 countries, including both developed and emerging markets. As of October 31, 2006, the United Kingdom, Japan, France, Germany, and Switzerland made up 18%, 17%, 8%, 6%, and 5%, respectively, of the Index’s market capitalization. FUND STRATEGY: Under normal circumstances, the Fund will invest at least 80% of their assets in the stocks included in the Index. The Fund tpically holds 1,200 to 1,300 stocks in the Index (covering nearly 95% of the Index’s total market capitalization) and a representative sample of the remaining stocks. The Fund holds a range of securities that, in the aggregate, approximate the full Index in terms of key characteristics. These key characteristics include industry weightings and market capitalization, as well as certain financial measures, such as price/earnings ratio and dividend yield. The Fund uses the sampling method of indexing, meaning that the Fund’s advisor, using sophisticated computer programs, selects from the target index a representative sample of securities that will resemble the target index in terms of key risk factors and other characteristics. These include industry weightings, country weightings, market capitalization, and other financial characteristics of stocks. FUND MANAGEMENT: The Vanguard Group, Inc. serves as advisor to the Fund through its Quantitative Equity Group.