Vanguard Tax-Managed Small-Cap Fund
Summary Prospectus
April 26, 2024
Admiral™ Shares
Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX)
The Fund’s statutory Prospectus and Statement of Additional
Information dated April 26, 2024, as may be amended or
supplemented, are incorporated into and made part of this Summary
Prospectus by reference.
Before you invest, you may want to review the Fund’s Prospectus,
which contains more information about the Fund and its risks. You can
find the Fund’s Prospectus and other information about the Fund
online at www.vanguard.com/prospectus and
https://personal.vanguard.com/us/literature/reports/MFs. You can also
obtain this information at no cost by calling 800-662-7447 or by
sending an email request to online@vanguard.com.
The Securities and Exchange Commission (SEC) has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any representation to the contrary
is a criminal offense.
Investment Objective
The Fund seeks to provide a tax-efficient investment return consisting of
long-term capital appreciation.
Fees and Expenses
The following tables describe the fees and expenses you may pay if you buy,
hold, and sell Admiral Shares of the Fund. You may pay other fees, such as
brokerage commissions and other fees to financial intermediaries, which
are not reflected in the tables and example below.
Shareholder Fees
(Fees paid directly from your investment)
Sales Charge (Load) Imposed on Purchases None
Purchase Fee None
Sales Charge (Load) Imposed on Reinvested Dividends None
Redemption Fee None
Account Service Fee Per Year
(for certain fund account balances below $5,000,000) $25
Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)
Management Fees 0.08%
12b-1 Distribution Fee None
Other Expenses 0.01%
Total Annual Fund Operating Expenses 0.09%
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Example
The following example is intended to help you compare the cost of investing in
the Fund’s Admiral Shares with the cost of investing in other mutual funds. It
illustrates the hypothetical expenses that you would incur over various periods if
you were to invest $10,000 in the Fund’s shares. This example assumes that the
shares provide a return of 5% each year and that total annual fund operating
expenses remain as stated in the preceding table. You would incur these
hypothetical expenses whether or not you were to redeem your investment at the
end of the given period. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
$9 $29 $51 $115
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in more taxes when Fund shares
are held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the previous expense example, reduce the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 20% of the average value of its portfolio.
Principal Investment Strategies
The Fund purchases stocks included in the S&P SmallCap 600 Index (the
Index)—an index that is made up of stocks of smaller U.S. companies—in
approximately the same proportions as in the Index. To improve tax efficiency,
the Fund may limit investments in Index securities that have undesirable tax
characteristics and may continue to hold securities no longer included in
the Index.
Principal Risks
An 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 a
wide range. The Fund is subject to the following risks, which could affect the
Fund’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 periods of
falling prices. The Fund’s benchmark index tracks a subset of the U.S. stock
market, which could cause the Fund to perform differently from the overall stock
market. In addition, the Fund’s benchmark index may, at times, become focused
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in stocks of a particular market sector, which would subject the Fund to
proportionately higher exposure to the risks of that sector.
• Investment style risk, which is the chance that returns from small-capitalization
stocks will trail returns from the overall stock market. Historically, small-cap
stocks have been more volatile in price than the large-cap stocks that dominate
the overall market, and they often perform quite differently. The stock prices of
small companies tend to experience greater volatility because, among other
things, these companies tend to be more sensitive to changing
economic conditions.
An investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Annual Total Returns
The following bar chart and table are intended to help you understand the risks of
investing in the Fund. The bar chart shows how the performance of the Fund’s
Admiral Shares has varied from one calendar year to another over the periods
shown. The table shows how the average annual total returns of the Admiral
Shares compare with those of the Fund’s benchmark index and another
comparative index, which have investment characteristics similar to those of the
Fund. Keep in mind that the Fund’s past performance (before and after taxes)
does not indicate how the Fund will perform in the future. Updated performance
information is available on our website at vanguard.com/performance or by
calling Vanguard toll-free at 800-662-7447.
Annual Total Returns — Vanguard Tax-Managed Small-Cap Fund Admiral Shares
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
40%
25.73 27.08
30% 23.28
20% 13.05 15.95
11.05
10% 6.23
0%
-10% –1.85
–8.62
-20% –16.14
-30%
During the periods shown in the bar chart, the highest and lowest returns for a
calendar quarter were:
Total Return Quarter
Highest 30.76% December 31, 2020
Lowest -32.24% March 31, 2020
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Average Annual Total Returns for Periods Ended December 31, 2023
1 Year 5 Years 10 Years
Vanguard Tax-Managed Small-Cap Fund Admiral Shares
Return Before Taxes 15.95% 11.09% 8.64%
Return After Taxes on Distributions 15.46 10.69 8.30
Return After Taxes on Distributions and Sale of Fund Shares 9.67 8.75 6.98
S&P SmallCap 600 Index
(reflects no deduction for fees, expenses, or taxes) 16.05% 11.03% 8.66%
Dow Jones U.S. Total Stock Market Float Adjusted Index
(reflects no deduction for fees, expenses, or taxes) 26.06 15.05 11.40
Actual after-tax returns depend on your tax situation and may differ from those
shown in the preceding table. When after-tax returns are calculated, it is
assumed that the shareholder was in the highest individual federal marginal
income tax bracket at the time of each distribution of income or capital gains or
upon redemption. State and local income taxes are not reflected in the
calculations. Please note that after-tax returns are not relevant for a shareholder
who holds fund shares in a tax-deferred account, such as an individual
retirement account or a 401(k) plan. Also, figures captioned Return After Taxes
on Distributions and Sale of Fund Shares may be higher than other figures for
the same period if a capital loss occurs upon redemption and results in an
assumed tax deduction for the shareholder.
Investment Advisor
The Vanguard Group, Inc. (Vanguard)
Portfolio Managers
Kenny Narzikul, CFA, Portfolio Manager at Vanguard. He has co-managed the
Fund since 2023.
Walter Nejman, Portfolio Manager at Vanguard. He has co-managed the Fund
since 2023.
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Purchase and Sale of Fund Shares
You may purchase or redeem shares online through our website
(vanguard.com), by mail (The Vanguard Group, P.O. Box 982901, El Paso, TX
79998-2901), or by telephone (800-662-2739). The minimum investment amount
required to open and maintain a Fund account for Admiral Shares is $10,000.
The minimum investment amount required to add to an existing account is
generally $1. Financial intermediaries, institutional clients, and Vanguard-advised
clients should contact Vanguard for information on special eligibility rules that
may apply to them regarding Admiral Shares. If you are investing through an
intermediary, please contact that firm directly for more information regarding your
eligibility. If you are investing through an employer-sponsored retirement or
savings plan, your plan administrator or your benefits office can provide you with
detailed information on how you can invest through your plan.
Tax Information
The Fund’s distributions may be taxable as ordinary income or capital gain.
Payments to Financial Intermediaries
The Fund and its investment advisor do not pay financial intermediaries for sales
of Fund shares.
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CFA® is a registered trademark owned by CFA Institute.
The “S&P SmallCap 600 Index” (the “Index”) is a product of S&P Dow Jones Indices LLC, a
division of S&P Global, or its affiliates (“SPDJI”), and has been licensed for use by Vanguard.
Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial
Services LLC, a division of S&P Global (“S&P”) and Dow Jones® is a registered trademark of
Dow Jones Trademark Holdings LLC (“Dow Jones”). The trademarks have been licensed to
SPDJI and have been sublicensed for use for certain purposes by Vanguard. Vanguard
Tax-Managed Small-Cap Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow
Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P
Dow Jones Indices make no representation or warranty, express or implied, to the owners of
Vanguard Tax-Managed Small-Cap Fund or any member of the public regarding the advisability
of investing in securities generally or in Vanguard Tax-Managed Small-Cap Fund particularly or
the ability of the S&P SmallCap 600 Index to track general market performance. S&P Dow
Jones Indices’ only relationship to Vanguard with respect to the S&P SmallCap 600 Index is the
licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow
Jones Indices and/or its licensors. The S&P SmallCap 600 Index is determined, composed and
calculated by S&P Dow Jones Indices without regard to Vanguard or Vanguard Tax-Managed
Small-Cap Fund. S&P Dow Jones Indices have no obligation to take the needs of Vanguard or
the owners of Vanguard Tax-Managed Small-Cap Fund into consideration in determining,
composing or calculating the S&P SmallCap 600 Index. S&P Dow Jones Indices are not
responsible for and have not participated in the determination of the prices, and amount of
Vanguard Tax-Managed Small-Cap Fund or the timing of the issuance or sale of Vanguard
Tax-Managed Small-Cap Fund or in the determination or calculation of the equation by which
Vanguard Tax-Managed Small-Cap Fund is to be converted into cash, surrendered or
redeemed, as the case may be. S&P Dow Jones Indices have no obligation or liability in
connection with the administration, marketing or trading of Vanguard Tax-Managed Small-Cap
Fund. There is no assurance that investment products based on the S&P SmallCap 600 Index
will accurately track index performance or provide positive investment returns. S&P Dow Jones
Indices LLC is not an investment advisor. Inclusion of a security within an index is not a
recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it
considered to be investment advice.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY,
TIMELINESS AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED
THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR
WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH
RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY
DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P
DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY
DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY VANGUARD, OWNERS OF
VANGUARD TAX-MANAGED SMALL-CAP FUND, OR ANY OTHER PERSON OR ENTITY
FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO.
WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P
DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE,
OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS,
TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT
LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY
AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND
VANGUARD, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
Vanguard Tax-Managed Small-Cap Fund Admiral Shares—Fund Number 116
To request additional information about the Fund, please visit vanguard.com or contact us at 800-662-7447.
© 2024 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.
SP 116 042024
