Vanguard U.S. Sector ETFs Prospectus

During the periods shown in the bar chart, the highest and lowest returns for acalendar quarter were:HighestLowestTotal Return18.16%-15.04%QuarterSeptember 30, 2010September 30, 2011Average Annual Total Returns for Periods Ended December 31, 20191 Year5 Years10 YearsVanguard Communication Services Index FundETF SharesBased on NAVReturn Before Taxes28.03%4.91%8.40%Return After Taxes on DistributionsReturn After Taxes on Distributions and Sale of Fund SharesBased on Market Price27.7416.774.223.747.726.79Return Before TaxesComparative Indexes(reflect no deduction for fees, expenses, or taxes)28.164.908.39MSCI US IMI/Communication ServicesMSCI US IMI/Communication Services 25/50MSCI US Investable Market 2500 —13.488.20Communication Services Spliced Index11Previously the Spliced US IMI/Telecommunication Services 25/50.Actual after-tax returns depend on your tax situation and may differ from thoseshown in the preceding table. When after-tax returns are calculated, it isassumed that the shareholder was in the highest individual federal marginalincome tax bracket at the time of each distribution of income or capital gains orupon redemption. State and local income taxes are not reflected in thecalculations. Please note that after-tax returns are not relevant for a shareholderwho holds fund shares in a tax-deferred account, such as an individual retirementaccount or a 401(k) plan. Also, figures captioned Return After Taxes onDistributions and Sale of Fund Shares may be higher than other figures for thesame period if a capital loss occurs upon redemption and results in an assumedtax deduction for the shareholder.6

Investment AdvisorThe Vanguard Group, Inc. (Vanguard)Portfolio ManagersAwais Khan, CFA, Portfolio Manager at Vanguard. He has co-managed the Fundsince 2017.Walter Nejman, Portfolio Manager at Vanguard. He has co-managed the Fundsince 2015.Purchase and Sale of Fund SharesETF Shares may only be bought and sold in the secondary market through abrokerage firm. The price you pay or receive for ETF Shares will be the prevailingmarket price, which may be more (premium) or less (discount) than the NAV ofthe shares. The brokerage firm may charge you a commission to execute thetransaction. Unless imposed by your brokerage firm, there is no minimum dollaramount you must invest and no minimum number of shares you must buy. ETFShares of the Fund cannot be directly purchased from or redeemed with theFund, except by certain authorized broker-dealers. These broker-dealers maypurchase and redeem ETF Shares only in large blocks (Creation Units), typicallyin exchange for baskets of securities.An investor may incur costs attributable to the difference between the highestprice a buyer is willing to pay to purchase ETF Shares (bid) and the lowest price aseller is willing to accept for ETF Shares (ask) when buying or selling shares inthe secondary market (bid-ask spread). Recent information, including informationon the Fund’s NAV, market price, premiums and discounts, and bid-ask spreads,is available online at www.vanguard.com.Tax InformationThe Fund’s distributions may be taxable as ordinary income or capital gain. If youare investing through a tax-advantaged account, such as an IRA or anemployer-sponsored retirement or savings plan, special tax rules apply.Payments to Financial IntermediariesThe Fund and its investment advisor do not pay financial intermediaries for salesof Fund shares.7

Vanguard Consumer Discretionary ETFInvestment ObjectiveThe Fund seeks to track the performance of a benchmark index that measuresthe investment return of consumer discretionary stocks.Fees and ExpensesThe following table describes the fees and expenses you may pay if you buy,hold, and sell ETF Shares of the Fund. You may pay other fees, such as brokeragecommissions and other fees to financial intermediaries, which are not reflectedin the table and example below.Shareholder Fees(Fees paid directly from your investment)Transaction Fee on Purchases and SalesTransaction Fee on Reinvested DividendsNone through Vanguard (Broker fees vary)None through Vanguard (Broker fees vary)Transaction Fee on Conversion to ETF SharesNone through Vanguard(Broker fees vary)Annual Fund Operating Expenses(Expenses that you pay each year as a percentage of the value of your investment)Management Fees12b-1 Distribution FeeOther Expenses0.09%None0.01%Total Annual Fund Operating Expenses0.10%ExampleThe following example is intended to help you compare the cost of investing inthe Fund’s ETF Shares with the cost of investing in other funds. It illustrates thehypothetical expenses that you would incur over various periods if you were toinvest 10,000 in the Fund’s shares. This example assumes that the sharesprovide a return of 5% each year and that total annual fund operating expensesremain as stated in the preceding table. You would incur these hypotheticalexpenses whether or not you were to sell your shares at the end of the givenperiod. Although your actual costs may be higher or lower, based on theseassumptions your costs would be:1 Year 1083 Years 325 Years 5610 Years 128

This example does not include the brokerage commissions that you may pay tobuy and sell ETF Shares of the Fund.Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sellssecurities (or “turns over” its portfolio). A higher portfolio turnover rate mayindicate higher transaction costs and may result in more taxes when Fundshares are held in a taxable account. These costs, which are not reflected inannual fund operating expenses or in the previous expense example, reduce theFund’s performance. During the most recent fiscal year, the Fund’s portfolioturnover rate was 10% of the average value of its portfolio.Principal Investment StrategiesThe Fund employs an indexing investment approach designed to track theperformance of the MSCI US Investable Market Index (IMI)/ConsumerDiscretionary 25/50, an index made up of stocks of large, mid-size, and smallU.S. companies within the consumer discretionary sector, as classified under theGlobal Industry Classification Standard (GICS). The GICS consumer discretionarysector is made up of those companies that tend to be the most sensitive toeconomic cycles. Its manufacturing segment includes automotive, householddurable goods, textiles and apparel, and leisure equipment. The servicessegment includes hotels, restaurants and other leisure facilities, mediaproduction and services, and consumer retailing and services.The Fund attempts to replicate the target index by seeking to invest all, orsubstantially all, of its assets in the stocks that make up the Index, in order tohold each stock in approximately the same proportion as its weighting inthe Index.Principal RisksAn investment in the Fund could lose money over short or long periods of time.You should expect the Fund’s share price and total return to fluctuate within awide range. The Fund is subject to the following risks, which could affect theFund’s performance: Stock market risk, which is the chance that stock prices overall will decline.Stock markets tend to move in cycles, with periods of rising prices and periodsof falling prices. The Fund’s target index tracks a subset of the U.S. stock market,which could cause the Fund to perform differently from the overall stock market. Sector risk, which is the chance that significant problems will affect a particularsector, or that returns from that sector will trail returns from the overall stock9

market. Daily fluctuations in specific market sectors are often more extreme orvolatile than fluctuations in the overall market. Because the Fund seeks to investall, or substantially all, of its assets in the consumer discretionary sector, theFund’s performance largely depends—for better or for worse—on the generalcondition of that sector. Companies in the consumer discretionary sector couldbe affected by, among other things, overall economic conditions, interest rates,consumer confidence, and disposable income. Sector risk is expected to be highfor the Fund. Nondiversification risk, which is the chance that the Fund’s performance maybe hurt disproportionately by the poor performance of relatively few stocks oreven a single stock. The Fund is considered nondiversified, which means that itmay invest a greater percentage of its assets in the securities of a small numberof issuers as compared with diversified mutual funds. Because the Fund tendsto invest a relatively high percentage of its assets in its ten largest holdings,fluctuations in the market value of a single Fund holding could cause significantchanges to the Fund’s share price. Nondiversification risk is expected to be highfor the Fund. Investment style risk, which is the chance that returns from the types ofstocks in which the Fund invests will trail returns from the overall stock market.Small-, mid-, and large-cap stocks each tend to go through cycles of doingbetter—or worse—than other segments of the stock market or the stock marketin general. These periods have, in the past, lasted for as long as several years.Historically, small- and mid-cap stocks have been more volatile in price thanlarge-cap stocks. The stock prices of small and mid-size companies tend toexperience greater volatility because, among other things, these companies tendto be more sensitive to changing economic conditions.Because ETF Shares are traded on an exchange, they are subject toadditional risks: The Fund’s ETF Shares are listed for trading on NYSE Arca and are bought andsold on the secondary market at market prices. Although it is expected that themarket price of an ETF Share typically will approximate its net asset value (NAV),there may be times when the market price and the NAV differ significantly. Thus,you may pay more or less than NAV when you buy ETF Shares on the secondarymarket, and you may receive more or less than NAV when you sell those shares. Although the Fund’s ETF Shares are listed for trading on NYSE Arca, it ispossible that an active trading market may not be maintained. Trading of the Fund’s ETF Shares may be halted by the activation of individualor marketwide trading halts (which halt trading for a specific period of time whenthe price of a particular security or overall market prices decline by a specifiedpercentage). Trading of the Fund’s ETF Shares may also be halted if (1) the10

shares are delisted from NYSE Arca without first being listed on anotherexchange or (2) NYSE Arca officials determine that such action is appropriate inthe interest of a fair and orderly market or for the protection of investors.An investment in the Fund is not a deposit of a bank and is not insured orguaranteed by the Federal Deposit Insurance Corporation or any othergovernment agency.Annual Total ReturnsThe following bar chart and table are intended to help you understand the risksof investing in the Fund. The bar chart shows how the performance of the Fund‘sETF Shares (based on NAV) has varied from one calendar year to another overthe periods shown. The table shows how the average annual total returns of theETF Shares compare with those of the Fund’s target index and othercomparative indexes, which have investment characteristics similar to those ofthe Fund. The Consumer Discretionary Spliced Index reflects performance of theMSCI US IMI/Consumer Discretionary through February 26, 2010; the MSCI USIMI/Consumer Discretionary 25/50 through May 2, 2018; the MSCI USInvestable Market (IM) Transition Index/Consumer Discretionary 25/50 throughNovember 30, 2018; and the MSCI US IMI/Consumer Discretionary 25/50thereafter. Keep in mind that the Fund’s past performance (before and aftertaxes) does not indicate how the Fund will perform in the future. Updatedperformance information is available on our website atvanguard.com/performance or by calling Vanguard toll-free at 800-662-7447.Annual Total Returns — Vanguard Consumer Discretionary Index Fund ETF 2.839.396.356.64–2.261 The year-to-date return as of the most recent calendar quarter, which ended on September 30, 2020, was 26.45%.During the periods shown in the bar chart, the highest and lowest returns for acalendar quarter were:HighestLowestTotal Return16.84%-16.31%QuarterMarch 31, 2012December 31, 201811

Average Annual Total Returns for Periods Ended December 31, 20191 Year5 Years10 YearsVanguard Consumer Discretionary Index FundETF SharesBased on NAVReturn Before Taxes27.55%11.67%16.50%Return After Taxes on DistributionsReturn After Taxes on Distributions and Sale of Fund SharesBased on Market Price27.1816.5511.319.2416.1914.03Return Before TaxesComparative Indexes(reflect no deduction for fees, expenses, or taxes)27.5811.6716.50MSCI US IMI/Consumer DiscretionaryMSCI US IMI/Consumer Discretionary 25/50MSCI US Investable Market 2500 80%—13.4816.63Consumer Discretionary Spliced Index11Previously the Spliced US IMI/Consumer Discretionary 25/50.Actual after-tax returns depend on your tax situation and may differ from thoseshown in the preceding table. When after-tax returns are calculated, it isassumed that the shareholder was in the highest individual federal marginalincome tax bracket at the time of each distribution of income or capital gains orupon redemption. State and local income taxes are not reflected in thecalculations. Please note that after-tax returns are not relevant for a shareholderwho holds fund shares in a tax-deferred account, such as an individual retirementaccount or a 401(k) plan. Also, figures captioned Return After Taxes onDistributions and Sale of Fund Shares may be higher than other figures for thesame period if a capital loss occurs upon redemption and results in an assumedtax deduction for the shareholder.Investment AdvisorThe Vanguard Group, Inc. (Vanguard)Portfolio ManagersMichael A. Johnson, Portfolio Manager at Vanguard. He has managed the Fundsince 2010 (co-managed since 2015).Awais Khan, CFA, Portfolio Manager at Vanguard. He has co-managed the Fundsince 2017.12

Purchase and Sale of Fund SharesETF Shares may only be bought and sold in the secondary market through abrokerage firm. The price you pay or receive for ETF Shares will be the prevailingmarket price, which may be more (premium) or less (discount) than the NAV ofthe shares. The brokerage firm may charge you a commission to execute thetransaction. Unless imposed by your brokerage firm, there is no minimum dollaramount you must invest and no minimum number of shares you must buy. ETFShares of the Fund cannot be directly purchased from or redeemed with theFund, except by certain authorized broker-dealers. These broker-dealers maypurchase and redeem ETF Shares only in large blocks (Creation Units), typicallyin exchange for baskets of securities.An investor may incur costs attributable to the difference between the highestprice a buyer is willing to pay to purchase ETF Shares (bid) and the lowest price aseller is willing to accept for ETF Shares (ask) when buying or selling shares inthe secondary market (bid-ask spread). Recent information, including informationon the Fund’s NAV, market price, premiums and discounts, and bid-ask spreads,is available online at www.vanguard.com.Tax InformationThe Fund’s distributions may be taxable as ordinary income or capital gain. If youare investing through a tax-advantaged account, such as an IRA or anemployer-sponsored retirement or savings plan, special tax rules apply.Payments to Financial IntermediariesThe Fund and its investment advisor do not pay financial intermediaries for salesof Fund shares.13

Vanguard Consumer Staples ETFInvestment ObjectiveThe Fund seeks to track the performance of a benchmark index that measuresthe investment return of consumer staples stocks.Fees and ExpensesThe following table describes the fees and expenses you may pay if you buy,hold, and sell ETF Shares of the Fund. You may pay other fees, such as brokeragecommissions and other fees to financial intermediaries, which are not reflectedin the table and example below.Shareholder Fees(Fees paid directly from your investment)Transaction Fee on Purchases and SalesTransaction Fee on Reinvested DividendsNone through Vanguard (Broker fees vary)None through Vanguard (Broker fees vary)Transaction Fee on Conversion to ETF SharesNone through Vanguard(Broker fees vary)Annual Fund Operating Expenses(Expenses that you pay each year as a percentage of the value of your investment)Management Fees12b-1 Distribution FeeOther Expenses0.09%None0.01%Total Annual Fund Operating Expenses0.10%ExampleThe following example is intended to help you compare the cost of investing inthe Fund’s ETF Shares with the cost of investing in other funds. It illustrates thehypothetical expenses that you would incur over various periods if you were toinvest 10,000 in the Fund’s shares. This example assumes that the sharesprovide a return of 5% each year and that total annual fund operating expensesremain as stated in the preceding table. You would incur these hypotheticalexpenses whether or not you were to sell your shares at the end of the givenperiod. Although your actual costs may be higher or lower, based on theseassumptions your costs would be:1 Year 10143 Years 325 Years 5610 Years 128

This example does not include the brokerage commissions that you may pay tobuy and sell ETF Shares of the Fund.Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sellssecurities (or “turns over” its portfolio). A higher portfolio turnover rate mayindicate higher transaction costs and may result in more taxes when Fundshares are held in a taxable account. These costs, which are not reflected inannual fund operating expenses or in the previous expense example, reduce theFund’s performance. During the most recent fiscal year, the Fund’s portfolioturnover rate was 3% of the average value of its portfolio.Principal Investment S

Vanguard U.S. Sector ETFs Prospectus December 22, 2020 Exchange-traded fund shares that are not individually redeemable and are . or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this prospectus