Notes to Financial Statements
Vanguard Mega Cap 300 Index Fund is registered under the Investment Company Act of 1940 as an open-end
investment company, or mutual fund. The fund files reports with the SEC under the company name Vanguard
World Funds. The fund offers two classes of shares: Institutional Shares and ETF Shares. Institutional Shares
were first issued on February 22, 2008, and are designed for investors who meet certain administrative and
service criteria and invest a minimum of $5 million. ETF Shares were first issued on December 17, 2007, and first
offered to the public on December 21, 2007. ETF Shares are listed for trading on the NYSE Arca, Inc.; they can be
purchased and sold through a broker.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S.
mutual funds. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally
4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official
closing prices taken from the primary market in which each security trades; such securities not traded on the
valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market
quotations are not readily available, or whose values have been materially affected by events occurring before
the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by
the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that
fund’s net asset value.
2. Federal Income Taxes: The fund intends to qualify as a regulated investment company and distribute all of its
taxable income. Management has analyzed the fund’s tax positions taken for the period from inception to
February 29, 2008, and has concluded that no provision for federal income tax is