Fund Description: Vanguard FTSE All-World ex US Small Cap Index Fund ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Vanguard International Equity Index Funds, an investment management company. INVESTMENT OBJECTIVE: Vanguard FTSE All-World ex US Small Cap Index Fund ETF seeks to track the performance of the FTSE Global Small Cap ex US Index. INDEX DESCRIPTION: The FTSE Global Small Cap ex US Index is a free- float-adjusted, market-capitalization-weighted Index designed to measure equity market performance of international small-capitalization stocks. The Index includes approximately 3,300 stocks of companies located in 47 countries, including both developed and emerging markets. As of October 31, 2008, the largest markets covered in the Index were the United Kingdom, Japan, Canada, France, and Switzerland. FUND STRATEGY: The Fund, utilizing a passive or indexing investment approach, attempts to approximate the investment performance of the Index by investing in a portfolio of securities that generally replicates the Index. Generally the Fund will hold all of the securities that comprise the Index in proportion to their weightings in the Index. However, under various circumstances, it may not be possible or practicable to purchase all of those securities in these weightings. In these circumstances, the Fund may purchase a sample of securities in the Index. FUND MANAGEMENT: The Vanguard Group, Inc. serves as the investment advisor to the Fund.