NOTES TO FINANCIAL STATEMENTS
Vanguard 500 Index, Growth Index, Value Index, and Total Stock Market Index Funds are registered under the
Investment Company Act of 1940 as open-end investment companies, or mutual funds.
A. The following significant accounting policies conform to generally accepted accounting principles for mutual
funds. The funds consistently follow such policies in preparing their financial statements.
1. SECURITY VALUATION: Equity securities are valued at the latest quoted sales prices as of the close of
trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time) on the valuation date; such
securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices.
Prices are taken from the primary market in which each security trades. Temporary cash investments acquired
over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system
(which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent
pricing services. Other temporary cash investments are valued at amortized cost, which approximates market
value. Securities for which market quotations are not readily available are valued by methods deemed by the
Board of Trustees to represent fair value.
2. FEDERAL INCOME TAXES: Each fund intends to continue to qualify as a regulated investment company
and distribute all of its taxable income. Accordingly, no provision for federal income taxes is required in the
3. REPURCHASE AGREEMENTS: The funds, along with other members of The Vanguard Group, transfer
uninvested cash balances to a Pooled Cash Account, which is invested in repurchase agreements secured by
U.S. government securities. Securities pledged as collateral for repurchase agreements are held by a custodian
bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to
cover payments of interest and