Vanguard Dividend Appreciation ETF (the Fund) is an exchange-traded share class of Vanguard Dividend Appreciation Index Fund, which employs a passive management or indexing investment approach designed to track the performance of the Dividend Achievers Select Index (the Index). The Index is a subset of the Broad Dividend Achievers Index and is administered exclusively for Vanguard by Mergent, Inc. The Fund attempts to replicate the target Index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index. The Fund may invest, to a limited extent, in stock futures and options contracts, warrants, convertible securities and swap agreements. The Fund’s obligation under futures contracts will not exceed 20% of its assets. The Fund’s investment advisor is The Vanguard Group, Inc.