U.S. government obligations income information

1 government obligations income information Important tax information for 2021. This tax update provides information to help you properly report your state and local tax liability on income distributions you received from your mutual fund investments in 2021. On the next page, you'll find a list of vanguard funds that earned a portion of their investment income from obligations of the government . Direct government obligations and certain government agency obligations are generally exempt from taxation in most states.*. Percentage of the fund 's total income derived from government obligations in 2021. Check with your state or local tax office or with your tax advisor to determine whether your state allows you to exclude some or all of the income you earn from mutual funds that invest in government obligations . If your state allows an exclusion, refer to the next page for the percentage of income that may be excluded for each fund in which you're invested.**. Questions? Call us at 877-662-7447 Monday through Friday from 8 to 8 , Eastern time.

2 Our investment professionals can't provide tax advice; consult a qualified tax professional if your tax situation is complex or if you're uncertain about a specific IRS rule. You can also find a variety of general tax-preparation data and tools at **Investments in government obligations may include the following: Banks for Cooperatives, the Commodity Credit Corporation, the Federal Deposit Insurance Corporation, Federal Farm Credit Banks, the Federal Financing Bank, Federal Home Loan Banks, Federal Intermediate Credit Banks, Federal Land Banks and the Federal Land Bank Association, the Federal Savings and Loan Insurance Corporation, the General Insurance fund , the government Services Administration (GSA Public Building Trust Participation Certificates), the Production Credit Association, the Student Loan Marketing Association, the Tennessee Valley Authority, the Postal Service, and the Treasury Department (bonds, notes, bills, certificates, and savings bonds). GNMA securities aren't government obligations .

3 **The percentages provided apply only to income distributions (dividends); they don't apply to capital gains distributions (whether long-term or short-term). (over). Percentage of income Percentage of income from government from government vanguard fund * obligations vanguard fund * obligations 500 index fund Long-Term Treasury fund **, Advice Select Dividend Growth fund Long-Term Treasury index fund **, Advice Select Global Value fund Managed Allocation fund Advice Select International Growth fund Market Neutral fund Alternative Strategies fund Mid-Cap Growth fund Balanced index fund Mid-Cap index fund Capital Opportunity fund Mortgage-Backed Securities index fund Cash Reserves Federal Money Market fund ** Multi-Sector income Bond fund Commodity Strategy fund ** PRIMECAP Core fund Core Bond fund PRIMECAP fund Core-Plus Bond fund Real Estate II index fund Developed Markets index fund Real Estate index fund Diversified Equity fund S&P 500 Growth index fund Emerging Markets Bond fund S&P Mid-Cap 400 Growth index fund Emerging Markets Select Stock fund S&P Mid-Cap 400 Value index fund Emerging Markets Stock index fund S&P Small-Cap 600 index fund Equity income fund Selected Value fund ESG Corporate Bond ETF Short-Term Bond index fund ** ExplorerTM fund Short-Term Corporate Bond index fund Extended Duration Treasury index fund **.

4 Short-Term Federal fund Extended Market index fund Short-Term Inflation-Protected Securities Federal Money Market fund ** index fund **, . Global Capital Cycles fund Short-Term Investment-Grade fund Global Credit Bond fund Short-Term Treasury fund **, Global Equity fund Short-Term Treasury index fund **, Global ESG Select Stock fund Small-Cap Growth index fund Global Wellesley income fund Small-Cap index fund Global WellingtonTM fund STAR fund GNMA fund Strategic Equity fund Growth index fund Strategic Small-Cap Equity fund Health Care fund Target Retirement 2015 fund High-Yield Corporate fund Target Retirement 2020 fund Inflation-Protected Securities fund **, Target Retirement 2025 fund Institutional index fund Target Retirement 2030 fund Institutional Intermediate-Term Bond fund Target Retirement 2035 fund Institutional Short-Term Bond fund Target Retirement 2040 fund Institutional Target Retirement 2015 fund Target Retirement 2045 fund Institutional Target Retirement 2020 fund Target Retirement 2050 fund Institutional Target Retirement 2025 fund Target Retirement 2055 fund Institutional Target Retirement 2030 fund Target Retirement 2060 fund Institutional Target Retirement 2035 fund Target Retirement 2065 fund Institutional Target Retirement 2040 fund Target Retirement income fund Institutional Target Retirement 2045 fund Tax-Managed Capital Appreciation fund Institutional Target Retirement 2050 fund Tax-Managed Small-Cap fund Institutional Target Retirement 2055 fund Total Bond Market index fund Institutional Target Retirement 2060 fund Total Bond Market II index fund Institutional Target Retirement 2065 fund Total Corporate

5 Bond ETF Institutional Target Retirement income fund Total International Bond index fund Intermediate-Term Bond index fund Total International Bond II index fund Intermediate-Term Corporate Bond index fund Total International Stock index fund Intermediate-Term Investment-Grade fund Total Stock Market index fund Intermediate-Term Treasury fund **, Total World Bond ETF Intermediate-Term Treasury index fund **, Treasury Money Market fund **, International Core Stock fund Liquidity Factor ETF International Explorer fund Minimum Volatility ETF International Value fund Momentum Factor ETF Large-Cap index fund Multifactor fund LifeStrategy Conservative Growth fund Quality Factor ETF LifeStrategy Growth fund Ultra-Short Bond ETF LifeStrategy income fund Ultra-Short-Term Bond fund LifeStrategy Moderate Growth fund Wellesley income fund Long-Term Bond index fund Wellington fund Long-Term Corporate Bond index fund WindsorTM fund Long-Term Investment-Grade fund Windsor II fund **This information applies to all share classes of a fund , including ETFs (exchange-traded funds).

6 **This fund meets the threshold requirements for California, Connecticut, and New York, which require that 50% of the fund 's assets at each quarter-end within the tax year consist of government obligations . * This fund meets the requirements for a New Jersey qualified investment fund .. 2022 The vanguard Group, Inc. All rights reserved. vanguard Marketing Corporation, Distributor. USGOIN 012022.