Notes to Financial Statements
Vanguard Energy 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 Specialized
Funds. The fund may invest in securities of foreign issuers, which may subject it to investment risks not
normally associated with investing in securities of United States corporations. The fund offers two classes of
shares, Investor Shares and Admiral Shares. Investor Shares are available to any investor who meets the fund’s
minimum purchase requirements. Admiral Shares are designed for investors who meet certain administrative,
service, tenure, and account-size criteria.
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 affected by events occurring before the fund’s
pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated
according to procedures adopted by the board of trustees. These procedures include obtaining quotations from
an independent pricing service, monitoring news to identify significant market- or security-specific events, and
evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-
traded funds), between the time the foreign markets close and the fund’s pricing time