a. Average annual expense ratios* b. Percentage of all Vanguard funds outperforming the average returns of their peer groups**

(1)

Vanguard S&P 500 Index ETF (3140)

IMPORTANT: Investment involves risk, including the loss of principal. Investors are advised to consider their own investment objectives and circumstances in determining the suitability of an investment in the Vanguard S&P 500 Index ETF, the Vanguard FTSE Developed Europe Index ETF, the Vanguard FTSE Asia ex Japan Index ETF, the Vanguard FTSE Japan Index ETF, and the Vanguard FTSE Asia ex Japan High Dividend Yield Index ETF (the “Funds”). If you are in any doubt, you should seek professional advice. Investors should refer to the Funds’ prospectus for further details, including the product features and risk factors. Investors should not base investment decisions on this marketing material alone. Investors should note:

• The Funds aim to provide investment results that, before fees and expenses, closely correspond to the performance of the S&P 500 Index, the FTSE Developed Europe Index, the FTSE Asia Pacific ex Japan, Australia and New Zealand Index, the FTSE Japan Index, and the FTSE Asia Pacific ex Japan, Australia and New Zealand High Dividend Yield Index.

• The Vanguard S&P 500 Index ETF concentrates its investment in the US securities market which may be more volatile than other securities markets and may be subject to a higher level of risks compared to investing in a more diversified portfolio/ strategy. Investment in the US securities market may involve a greater risk of loss than investing in other markets and may result in a higher risk of loss to the fund. Changes in financial regulations, tax regulations or governmental regulations on trade, decreasing imports or exports, terrorist acts, political movements and/or an economic crisis or recession in the US may have a significant adverse effect on the US economy. Such changes may have a negative impact on the securities held by the fund.

• The Vanguard FTSE Developed Europe Index ETF invests in European securities markets which involve a greater risk of loss than investing in other markets and may result in a higher risk of loss to the fund. Changes in governmental or European Union (the “EU”) regulations on trade, exchange rate of the euro, decreasing imports or exports, the default or threat of default by an EU member country on its sovereign debt, and/or an economic recession in an EU member country may have a significant adverse effect on the EU economy. Further, the Economic and Monetary Union of the EU requires compliance with interest rates, debt levels, restrictions on inflation rates, deficits and fiscal and monetary controls, each of which may significantly affect the EU economy.

• The Vanguard FTSE Asia ex Japan Index ETF and the Vanguard FTSE Asia ex Japan High Dividend Yield Index ETF invest in securities markets that are considered to be emerging markets which involve a greater risk of loss than investing in more developed markets due to, among other factors, greater political, tax, economic, foreign exchange, liquidity and regulatory risks.

• The Vanguard FTSE Japan Index ETF concentrates its investment in the Japanese securities market which may involve a higher level of risks compared to investing in a more diversified portfolio/strategy and a greater risk of loss than investing in other markets and may result in a higher risk of loss to the fund. Changes in governmental regulations on trade, exchange rate of the Japanese yen, decreasing imports or exports, and/or an economic recession in Japan may have a significant adverse effect on the Japanese economy.

• The Vanguard FTSE Asia ex Japan High Dividend Yield Index ETF invests in high dividend yield securities which may offer a higher rate of dividend yield. However, high dividend yield securities are subject to risks that the dividend could be reduced or abolished, or the risks that the value of the securities could decline or have lower-than average potential for price appreciation.

• The Funds invest in financial derivatives instruments (“FDIs”) which are more sensitive to changes in market prices of the underlying assets and investing in FDIs, may expose investors to a higher degree of fluctuations and the Funds may be exposed to credit risk on the counterparties with which they trade FDIs.

• The shares of the Funds are traded on the Stock Exchange of Hong Kong Limited (“SEHK”). Their prices on the SEHK are based on secondary market trading factors and the Funds’ market prices may deviate significantly from the net asset value.

Vanguard FTSE Developed Europe Index ETF (3101)

Vanguard FTSE Asia ex Japan Index ETF (2805)

Vanguard FTSE Japan Index ETF (3126)

Vanguard FTSE Asia ex Japan High Dividend

Yield Index ETF (3085)

(2)

A unique client focus

The Vanguard Group, Inc., was founded in the United States

in 1975 with a commitment to serving our clients’ interests

exclusively. Over the years, we have held firm to that

commitment and become the largest mutual fund company

1

and the second largest exchange-traded fund (ETF) provider

2

in the world.

In 1996 we established our first office outside the United

States in Australia. We later expanded into Japan, Europe,

Canada, Singapore and established Hong Kong as our

regional headquarters in 2011. In 2014, we opened a

representative office in Beijing.

What sets us apart

Why have clients from around the world entrusted us

with more than USD 3 trillion in assets?

3

The answer lies

in our core purpose: To take a stand for all investors, to

treat them fairly, and to give them the best chance for

investment success.

What sets us apart – and enables us to deliver on that

promise – is our ownership structure in the United States.

Unlike other investment management companies, we don’t

have public shareholders or private owners expecting

dividends. We are owned by our US-domiciled funds, which

in turn are owned by their investors. As a result, we have no

conflicting interests and can stay focused on doing what’s

best for our clients.

The most tangible benefit to our clients is our low costs. At

year-end 2014, the average expense ratio of our US-domiciled

mutual funds was 0.18%, far lower than the industry average

of 1.02%.

4

As we expand our presence in Asia, we continue to provide

high-quality, low-cost products to our clients, with the goal

of giving them the best chance for investment success.

Our investment philosophy

Vanguard believes successful investing begins with focusing

on what you can control. You can’t control market returns,

but you can set clear goals, stay diversified, keep costs low

and maintain long-term discipline.

These common sense principles guide the decisions we

help our clients make. They also guide the way we manage

our funds and ETFs, producing impressive long-term results.

For the ten years ending 31 March 2015, 92% of Vanguard

US-domiciled funds outperformed their peer group average.

5

An indexing leader

Vanguard is known as a low-cost leader in both passive and

actively managed investments. Although we have deep roots

in active management, we are best known for introducing

the first index fund for individual investors in the United States

in 1976, beginning the era of low-cost indexing. Over the last

decade, we have extended our indexing expertise to ETFs.

1 Source: Morningstar, as at 30 September 2015. Based on global total net assets of mutual funds (including long-term and money market funds). 2 Source: ETFGI, as at 30 September 2015.

3 Source: Vanguard, as at 30 September 2015.

4 Sources: Vanguard; Lipper, a Thomson Reuters Company, as at 31 December 2014. 5 Source: Lipper, a Thomson Reuters Company.

1984 1990 1996 2002 2008 2014 0.00 0.50 1.00 1.50% All funds 1.02% 0.95% 0.62% 0.61% Major fund complexes 0.52% Vanguard 0.18%

89%

86%

85%

92%

One-year Three-year Five-year Ten-year

Figure 1.

The Vanguard cost advantage

a.

Average annual expense ratios*

b.

Percentage of all Vanguard funds outperforming

the average returns of their peer groups**

** Sources: Vanguard and Lipper, a Thomson Reuters Company, as at 31 December 2014. Based on US-domiciled funds only. Annual expense ratios are represented as a percentage of net assets. The 0.52% is the weighted expense ratio of the top 20 management companies excluding Vanguard, based on year-end 2014 total net assets. Vanguard expense ratios range from 0.02% to 1.60%.

(3)

Why indexing?

Index investments provide an easy, low-cost way to

capture broad market returns simply through buying all

(or a representative sample) of the securities in the market

index they seek to track. Because index investments hold

securities until the index itself changes, they typically have

very low costs.

Due mostly to their low costs, index investments have

generally outperformed higher-cost investments over time.

6

In addition to low costs and a potential performance edge,

index investments offer other appealing traits, including:

Diversification.

Most index funds and ETFs hold a broad

range of securities, which can help reduce risk.

Style consistency.

An investor who seeks exposure to a

particular market and selects an index fund that tracks that

market is assured of a consistent allocation.

Transparency.

Because index funds and ETFs are designed

to track an index and hold the same securities (or a

representative sample), index funds and ETFs are

transparent and easy to understand.

ETFs: Another way to index

ETFs have become popular for features that traditional index

funds don’t offer. Like index funds, ETFs offer the benefits

of low costs and diversification. But ETFs have the added

flexibility of trading on a stock exchange. Like individual

stocks, they can be bought and sold through an adviser or a

brokerage account at market-determined prices, whenever

the exchange is open.

Combining indexing with active management

Investors who seek market outperformance, but without the

potentially higher costs and risks of an all active portfolio,

may benefit from combining indexing and active strategies.

The appeal of this approach is that it seeks to provide risk

control through indexing while also offering prospects of

outperformance.

Vanguard ETFs

™

offer low-cost access

to global equity markets

Vanguard ETFs offer you the diversification and transparency

of indexing with the low costs and investment expertise for

which Vanguard is known.

With exposure to broad equity markets in Asia, Europe and

the United States, our ETFs offer you access to close to 80%

of the world’s total equity market capitalisation.

7

And Vanguard’s

low costs mean you keep more of your returns – a benefit

that can compound in your favour over time. The average total

expense ratio (TER) of our five ETFs is just 0.32% annually,

compared with 0.73% for all ETFs listed in Hong Kong.

8

Used together or individually, Vanguard ETFs offer you a

flexible, low-cost and high-quality way to build a globally

diversified equity portfolio.

6 Source: The case for index fund investing for Asian investors, Vanguard, 2013. 7 Vanguard calculations using data from FTSE and S&P as at 31 December 2014. 8 Vanguard calculations using data from Morningstar as at 30 September 2015.

Vanguard S&P 500 Index ETF (3140) 0.25% Vanguard FTSE Developed Europe Index ETF (3101) 0.25% Vanguard FTSE Asia ex Japan Index ETF (2805) 0.38% Vanguard FTSE Japan Index ETF (3126) 0.25% Vanguard FTSE Asia ex Japan 0.45% High Dividend Yield Index ETF (3085)

Offers exposure to higher yielding stocks across Asia ex Japan.

ETF name TER

42.7%

19.6%

7.9%

6.9%

77.1%

Figure 2.

Vanguard ETFs: Low-cost access to close to 80% of global equity markets

Portion of global market capitalisation covered by Vanguard Hong Kong-domiciled ETFs

(4)

9 Source: S&P, as at 30 September 2015.

Source: Vanguard illustration using data from Bloomberg, as at 30 September 2015.

The performance of an index is not an exact representation of any particular investment as you cannot invest directly in the index. The historical performance of the index is for illustrative purposes only. The historical performance of the index is not meant to forecast, imply or guarantee the future performance of the fund. Index performance does not reflect tracking error, charges and expenses associated with the fund, or brokerage commission associated with buying and selling the fund.

About the S&P 500

Benchmark information

Introduced in 1957 by Standard & Poor’s (S&P), the S&P 500 has become a widely recognised

proxy for the US equity market. Globally, there is over USD 7.8 trillion benchmarked to the S&P

500, with indexed assets comprising approximately USD 2.2 trillion of this total.

9

Vanguard uses this index in part because it uses many of the benchmark best practices we

promote (see page 11).

Index methodology

The S&P 500 is float-adjusted and market-cap weighted,

which means it only includes shares that are available in

the open market and the index constituents are weighted

according to market capitalisation. So the influence of each

constituent stock on the index performance is proportional

to its market value.

To be eligible for being included in the index, each

constituent should meet the following criteria:

• US-based companies

• Market capitalisation of USD 5.3 billion or greater

• At least 50% of shares outstanding must be available for

trading on the open market

• Four consecutive quarters of positive earnings

• Highly tradeable common stocks, with active and deep

markets

The index is rebalanced quarterly, after the market close on

the third Friday of the quarter-ending month.

Index characteristics

The S&P 500 includes 500 leading companies in leading

industries of the US economy. Focusing on the large-cap

segment of the market, the index covers approximately

80% of available US market capitalisation.

• Diversified across 10 sectors, with information

technology, the largest sector, accounting for

20.4% of the index.

9

• Strong stock diversification. The 10 largest stocks

represent 17.3% of the index and the largest stock, Apple

Inc., has a weight of just 3.7%.

9

• Highly liquid. The index members have a minimum

3-month average daily traded value of USD 22 million.

9

Sep

1975 1980Sep 1985Sep 1990Sep 1995Sep 2000Sep 2005Sep 2010Sep 2015Sep 0 500 1,000 1,500 2,000 Inde x le vel 2,500

(5)

10 Source: Morningstar, as at 30 September 2015.

11 Source: Vanguard, as at 30 September 2015. Discrepancies due to rounding.

Vanguard S&P 500 Index ETF (3140)

Product highlights

• Employs a passively managed, full replication strategy to gain exposure to large-cap US equities.

• The first Hong Kong-listed ETF that tracks the S&P 500 Index.

10

• TER as low as 0.25%, the lowest in its category of ETFs on the Hong Kong Stock Exchange.

10

Key fund facts

Stock code 3140

Benchmark S&P 500 Index

Total expense ratio 0.25%

Currency HKD

Listing date 21 May 2015

†

Cumulative monthly return.

‡

Annualised return. § Return since fund inception.

* Performance data is shown in HKD, based on the S&P 500 Index (HKD) which was incepted in January 2013.

The performance of an index is not an exact representation of any particular investment as you cannot invest directly in the index. The historical performance of the index is for illustrative purposes only. The historical performance of the index is not meant to forecast, imply or guarantee the future performance of the fund. Index performance does not reflect tracking error, charges and expenses associated with the fund, or brokerage commission associated with buying and selling the fund. Fund performance may be presented only if it has an investment track record of not less than 6 months. The fund’s inception date was 18 May 2015.

Fund top 10 holdings

11

Apple Inc. 3.7%

Google Inc. 2.1%

Microsoft Corp. 2.1%

Exxon Mobil Corp. 1.8%

Johnson & Johnson 1.5%

General Electric Co. 1.5%

Berkshire Hathaway Inc. 1.4%

Wells Fargo & Co. 1.4%

JPMorgan Chase & Co. 1.3%

Facebook Inc. 1.2%

Total 18.0%

Fund sector diversification

11

Information Technology 20.4% Financials 16.5% Health Care 14.7% Consumer Discretionary 13.1% Industrials 10.1% Consumer Staples 9.9% Energy 6.9% Utilities 3.2% Materials 2.8% Telecommunication Services 2.4% Total 100.0%

Vanguard ETFs

Performance history

Total returns for period ending 30 September 2015

3 months† Year to date† 1 year‡ 3 years‡ 5 years‡ inception§Since

Vanguard S&P 500 Index ETF — — — — — —

S&P 500 Index* -6.62% -5.78% -1.42% — — -9.34%

Fund characteristics

11

Number of stocks 503

Median market cap (HKD) 587.2B

Equity yield (dividend)* —

Number of sectors 10

(6)

Index methodology

FTSE uses transparent rules in determining inclusion in its

indices. Committees periodically review the indices to

ensure they remain objective and accurately reflect their

target markets. Stocks are screened for liquidity and

adjusted for free float, so benchmarks reflect the shares

available in the open market.

The FTSE indices that our Hong Kong-domiciled ETFs track

are primarily market-cap weighted. Below is a closer look at

the characteristics of the four FTSE indices.

Benchmark of 2805 versus 3085

Both FTSE indices provide exposure to the Asia ex Japan

equity markets. The key difference is that the 2805

benchmark weights its stocks in proportion to market

capitalisation, whereas the 3085 benchmark tilts towards

higher dividend yielding stocks, hence complementing the

Asia ex Japan exposure with additional dividend income.

About the FTSE indices

Benchmark information

FTSE Group (“FTSE”) calculates and manages a comprehensive range of equity, fixed income, real

estate and investment strategy indices, on both a standard and custom basis. The FTSE Global Equity

Index Series forms the foundation of FTSE’s global, regional, country and sector indices. It covers more

than 7,400 securities in 47 countries and captures 98% of the world’s investable market capitalisation.

Vanguard uses FTSE indices in part because FTSE uses many of the benchmark best practices we

promote (see page 11).

A closer look at four FTSE indices

Index name

FTSE Developed

Europe Index

FTSE Asia Pacific ex

Japan, Australia and

New Zealand Index

FTSE Japan Index

FTSE Asia Pacific ex

Japan, Australia and

New Zealand High

Dividend Yield Index

Vanguard ETF (stock code)

3101

2805

3126

3085

Number of countries

updated for benchmark index

16

11

1

11

Number of stocks

523

851

477

389

Number of sectors

10

9

Median market cap (HKD)

328.9B

128.4B

125.7B

143.5B

Equity yield (dividend)

3.6%

2.6%

1.9%

3.9%

(7)

Vanguard FTSE Developed Europe Index ETF (3101)

Product highlights

• Employs a passively managed, index sampling strategy to gain exposure to the broad equity markets of

developed European countries.

• The first Europe equity ETF listed on the Hong Kong Stock Exchange.

12

Key fund facts

Stock code 3101

Benchmark FTSE Developed Europe Index

Currency HKD

Listing date 13 June 2014

13

Equity yield (dividend) 3.6%

Number of countries 16

Fund country diversification

13

United Kingdom 31.7% Switzerland 14.4% France 14.4% Germany 13.3% Spain 5.1% Netherlands 4.5% Sweden 4.4% Italy 3.9% Denmark 2.9% Belgium 2.0%

Total (top 10 markets) 96.6%

Fund sector diversification

13

Financials 23.0% Consumer Goods 18.9% Health Care 12.8% Industrials 12.0% Consumer Services 7.7% Basic Materials 7.1%

Oil & Gas 6.3%

Telecommunications 4.9%

Utilities 4.0%

Technology 3.3%

Total 100.0%

Fund top 10 holdings

13

Nestle SA 3.0%

Novartis AG 2.5%

Roche Holding AG 2.4%

Royal Dutch Shell plc 1.9%

HSBC Holdings plc 1.9%

Unilever 1.4%

Sanofi 1.4%

Bayer AG 1.3%

British American Tobacco plc 1.3%

Novo Nordisk A/S 1.3%

Total 18.4%

†

‡

Performance history

Vanguard FTSE Developed Europe Index ETF -8.64% -4.97% -9.26% — — -12.72%

FTSE Developed Europe Index -8.57% -4.96% -9.14% 6.24% 4.25% -12.62%

(8)

Vanguard FTSE Asia ex Japan Index ETF (2805)

Product highlights

• Employs a passively managed, index sampling strategy to gain exposure to developed and emerging

equity markets across Asia, excluding Japan.

14

Key fund facts

Stock code 2805

Benchmark FTSE Asia Pacific ex Japan, Australia and New Zealand Index

Currency HKD

Listing date 15 May 2013

Fund top 10 holdings

15

Samsung Electronics Co. Ltd. 3.8%

Taiwan Semiconductor Manufacturing Co. Ltd. 3.1%

Tencent Holdings Ltd. 2.9%

China Mobile Ltd. 2.1%

AIA Group Ltd. 2.0%

China Construction Bank Corp. 2.0%

Industrial & Commercial Bank of China Ltd. 1.4% Hon Hai Precision Industry Co. Ltd. 1.2%

CK Hutchison Holdings Ltd. 1.2%

Infosys Ltd. 1.1%

Total 20.8%

†

‡

Performance history

Vanguard FTSE Asia ex Japan Index ETF -16.89% -12.43% -12.52% — — -3.97%

FTSE Asia Pacific ex Japan, Australia and New

Zealand Index -16.93% -12.41% -12.47% 0.20% 0.60% -3.36%

15

Fund country diversification

15

China 26.4% Korea 17.1% Hong Kong 14.4% Taiwan 13.8% India 12.7% Singapore 5.3% Malaysia 3.8% Thailand 2.6% Indonesia 2.1% Philippines 1.8% Total 100.0%

15

Financials 32.5%

Consumer Goods 15.0%

Technology 13.1%

Industrials 13.0%

Oil & Gas 5.1%

Basic Materials 4.3% Consumer Services 4.3% Utilities 3.9% Health Care 2.5% Total 100.0%

Vanguard ETFs

(9)

Vanguard FTSE Japan Index ETF (3126)

Vanguard ETFs

Product highlights

• Employs a passively managed, index sampling strategy to gain exposure to the broad equity market in Japan.

• The first physical, market-cap-weighted Japan equity ETF listed on the Hong Kong Stock Exchange.

16

Key fund facts

Stock code 3126

Benchmark FTSE Japan Index

Currency HKD

†

‡

Performance history

Vanguard FTSE Japan Index ETF -11.52% 1.11% -1.39% — — 0.01%

FTSE Japan Index -11.54% 1.21% -1.26% 9.50% 5.29% 0.15%

Fund top 10 holdings

17

Toyota Motor Corp. 5.2%

Mitsubishi UFJ Financial Group Inc. 2.8%

Honda Motor Co. Ltd. 1.8%

Sumitomo Mitsui Financial Group Inc. 1.6%

Mizuho Financial Group Inc. 1.6%

KDDI Corp. 1.4%

SoftBank Group Corp. 1.4%

Seven & I Holdings Co. Ltd. 1.2%

Takeda Pharmaceutical Co. Ltd. 1.2%

East Japan Railway Co. 1.1%

Total 19.3%

Fund characteristics

17

Consumer Goods 25.0% Industrials 19.3% Financials 18.4% Consumer Services 11.9% Health Care 7.2% Basic Materials 5.7% Technology 4.5% Telecommunications 4.4% Utilities 2.8%

Oil & Gas 0.8%

(10)

Vanguard FTSE Asia ex Japan

High Dividend Yield Index ETF (3085)

Vanguard ETFs

Product highlights

• Employs a passively managed, index sampling strategy to gain exposure to stocks that are characterised by

higher than-average dividend yields in emerging and developed equity markets across Asia, excluding Japan.

• The first physical Asia ex Japan equity high dividend yield ETF listed on the Hong Kong Stock Exchange.

18

• TER as low as 0.45%, among the lowest in its category of ETFs on the Hong Kong Stock Exchange.

18

Key fund facts

Stock code 3085

Benchmark FTSE Asia Pacific ex Japan, Australia and New Zealand High Dividend Yield Index

Currency HKD

Fund characteristics

19

Number of sectors 9

Fund country diversification

19

China 28.9% Taiwan 22.2% Hong Kong 18.6% Singapore 9.3% Malaysia 6.5% Korea 4.9% Thailand 4.0% India 2.9% Indonesia 1.8% Philippines 0.9% Total 100.0%

19

Financials 37.6%

Technology 11.2%

Industrials 10.2%

Consumer Goods 8.2%

Oil & Gas 6.5%

Utilities 5.8%

Basic Materials 5.3%

Consumer Services 4.3%

Total 100.0%

Fund top 10 holdings

19

Taiwan Semiconductor Manufacturing Co. Ltd. 6.4%

China Mobile Ltd. 4.3%

China Construction Bank Corp. 4.1%

Industrial & Commercial Bank of China Ltd. 2.8%

CK Hutchison Holdings Ltd. 2.5%

Bank of China Ltd. 2.2%

Hong Kong Exchanges and Clearing Ltd. 1.9%

Sun Hung Kai Properties Ltd. 1.5%

Cheung Kong Property Holdings Ltd. 1.4%

DBS Group Holdings Ltd. 1.4%

Total 28.5%

†

‡

Performance history

3 months†

Year to

date†

1 year‡

3 years‡

5 years‡

inception§Since

Vanguard FTSE Asia ex Japan

High Dividend Yield Index ETF

-18.85%

-14.49%

-13.03%

—

-9.91%

FTSE Asia Pacific ex Japan, Australia,

(11)

What Vanguard looks for in benchmarks

Index products – and the benchmarks they seek to track

– have proliferated over the last few years, posing a

challenge to investors seeking to choose appropriate

investments.

Over the last 35 years, Vanguard has developed a rigorous

process for screening, evaluating and selecting

benchmarks for its index funds and ETFs.

Selecting an appropriate benchmark is crucial to providing a

best-in-class ETF. We use market-capitalisation-weighted

indices from FTSE and S&P because they accurately

represent the markets our Hong Kong-domiciled ETFs seek

to track.

Best practices for benchmark construction

Many index providers are adopting benchmark construction

best practices that Vanguard has promoted for years,

including:

•

Objectivity

. Benchmark construction is transparent and

determined objectively.

•

Accurate reflection of the market

. The benchmark is

the best representation of the target market or market

segment and is free-float adjusted, which means it only

includes securities that are available in the open market.

Free float is important for efficient asset allocation and

for limiting overlap among funds.

•

Market-cap buffer zones

. Market capitalisation divisions

overlap, with no hard cutoff points. Buffer zones can

reduce turnover, and lower transaction costs.

•

Multi-factor style analysis

. Growth and value stocks are

categorised using multiple criteria, offering a better style

representation within the index.

•

Timely and efficient construction

. The benchmark’s

rebalancing approach reflects market changes in an

orderly fashion.

Benchmark

selection expertise

Benefits of appropriate

benchmark selection

Using best practices to construct benchmarks can

deliver benefits to investors, including:

• Low portfolio turnover, which leads to lower

transaction costs

• Better reflection of targeted markets, which

can make index funds and ETFs efficient asset

allocation tools

• Comparability among index products, allowing

investors to choose benchmarks based on

preference, cost and accessibility

(12)

Vanguard Investments Hong Kong Limited

48/F, The Center,

99 Queen’s Road Central, Hong Kong Phone: 3409 8333

Email: sales@vanguard.com.hk

Connect with Vanguard™

vanguard.com.hk

The contents of this document and any attachments/links contained in

this document are for general information only and are not advice. The

information does not take into account your specific investment objectives,

financial situation and individual needs and is not designed as a substitute

for professional advice. You should seek independent professional advice

regarding the suitability of an investment product, taking into account your

specific investment objectives, financial situation and individual needs

before making an investment.

The contents of this document and any attachments/links contained in this

document have been prepared in good faith. The Vanguard Group, Inc., and

all of its subsidiaries and affiliates (collectively, the “Vanguard Entities”)

accept no liability for any errors or omissions. Please note that the

information may also have become outdated since its publication.

The Vanguard Entities make no representation that such information is

accurate, reliable or complete. In particular, any information sourced from

third parties is not necessarily endorsed by the Vanguard Entities, and the

Vanguard Entities have not checked the accuracy or completeness of such

third party information.

This document contains links to materials which may have been prepared

in the United States and which may have been commissioned by the

Vanguard Entities. They are for your information and reference only and

they may not represent our views. The materials may include incidental

references to products issued by the Vanguard Entities. The information

contained in this document does not constitute an offer or solicitation and

may not be treated as an offer or solicitation in any jurisdiction where such

an offer or solicitation is against the law, or to anyone to whom it is

unlawful to make such an offer or solicitation, or if the person making the

offer or solicitation is not qualified to do so. The Vanguard Entities may be

unable to facilitate investment for you in any products which may be

offered by The Vanguard Group, Inc.

No part of this document or any attachments/links contained in this

document may be reproduced in any form, or referred to in any other

publication, without express written consent from the Vanguard Entities.

Any attachments and any information in the links contained in this

document may not be detached from this document and/or be separately

made available for distribution.

This document is being made available in Hong Kong by Vanguard

Investments Hong Kong Limited (CE No.:AYT820), a Hong Kong company

licensed with the Securities and Futures Commission (“SFC”) in Hong Kong.

Investment involves risks, including the loss of principal. Investors are

advised to consider their own investment objectives and circumstances in

determining the suitability of an investment in the ETFs. If you are in any

doubt, you should seek professional advice. Investors should refer to the

ETFs’ prospectus for further details, including product features, risk factors

and restrictions on owning and holding the ETFs. Investors should not base

investment decisions on this document alone. Further details of the ETFs

can be found at www.vanguard.com.hk. The ETFs are traded on the SEHK

at market price, which may be different from their net asset value. Past

performance is not an indication of future performance. The contents of

this document have not been reviewed by the SFC and SFC authorisation

is not an official recommendation of the ETFs. This document does not

constitute an offer, an invitation to offer or a recommendation to enter

into any investment products.

In China, the information contained in this document does not constitute a

public offer of any investment products in the People’s Republic of China

(the “PRC”). No Vanguard fund is being offered or sold directly or indirectly

in the PRC to the PRC public. Further, no legal or natural persons of the PRC

may directly or indirectly purchase any of Vanguard funds or any beneficial

interest therein without obtaining all prior governmental approvals that are

required by the PRC (which includes conducting due approval or registration

or filing formalities under the PRC laws), whether statutorily or otherwise.

Persons who come into possession of this document are required by the

issuer to observe these restrictions.

In Taiwan, Vanguard funds are not registered and may not be sold, issued

or offered. No person or entity in Taiwan has been authorised to offer, sell,

give advice regarding or otherwise intermediate the offering and sale of

any Vanguard funds in Taiwan.

London Stock Exchange Group companies include FTSE International

Limited (“FTSE”), Frank Russell Company (“Russell”), MTS Next Limited

(“MTS”), and FTSE TMX Global Debt Capital Markets Inc. (“FTSE TMX”).

®

”, “Russell

®

”, “MTS

®

”, “FTSE TMX

®

” and “FTSE

Russell” and other service marks and trademarks related to the FTSE or

Russell indexes are trademarks of the London Stock Exchange Group

companies and are used by FTSE, MTS, FTSE TMX and Russell under

licence. All information is provided for information purposes only. No

responsibility or liability can be accepted by the London Stock Exchange

Group companies nor its licensors for any errors or for any loss from use of

this publication. Neither the London Stock Exchange Group companies nor

any of its licensors make any claim, prediction, warranty or representation

whatsoever, expressly or impliedly, either as to the results to be obtained

from the use of the FTSE Asia Pacific ex Japan, Australia and New Zealand

Index, FTSE Developed Europe Index, FTSE Japan Index, FTSE Asia Pacific

ex Japan, Australia and New Zealand High Dividend Yield Index (the

“Indices”) or the fitness or suitability of the Indices for any particular

purpose to which they might be put.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“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

(“S&P”); Dow Jones

®

is a registered trademark of Dow Jones Trademark

Holdings LLC (“Dow Jones”); S&P

®

and S&P 500

®

are trademarks of S&P;

and these trademarks have been licensed for use by SPDJI and sublicensed

for certain purposes by Vanguard. Vanguard S&P 500 Index ETF is not

sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their

respective affiliates and none of such parties make any representation

regarding the advisability of investing in such product(s) nor do they have

any liability for any errors, omissions, or interruptions of the S&P 500 Index.