Vanguard Brokerage Services

[Pages:50]Vanguard Brokerage Services?

Commission and Fee Schedules

As of April 12, 2006

Standard charges apply to clients with up to $250,000 in total Vanguard assets. Discounts and other benefits are available to clients who qualify and are enrolled in Vanguard? Voyager Service? (for clients with total Vanguard assets of $250,000 up to $1 million) or Vanguard FlagshipTM Service (for clients with total Vanguard assets of $1 million or more, of which $500,000 must be in Vanguard funds). Other discounts and fee waivers may be available.

A separate commission is charged for each security bought or sold. This commission and fee schedule is subject to change.

For further information about our commission and fee schedule--as well as about membership in VoyagerTM and Flagship Service--call Vanguard Brokerage Services at 800-992-8327 any business day from 8 a.m. to 8 p.m., Eastern time.

Note: We can't accept written instructions for trades.

Commission Schedule for Bonds and CDs

Vanguard Brokerage Services may act as an agent, executing your order at cost plus a commission, or Vanguard Brokerage may act as a principal and add markups to purchase prices or subtract markdowns from sales prices. When we act as a principal for a primary market issue, Vanguard Brokerage receives a fee concession from the issuer. If a concession is not available, Vanguard Brokerage reserves the right to charge a commission.

Security Type U.S. Treasury

U.S. government agency Mortgage-backed securities Corporate bonds

Municipal bonds Certificates of deposit Commercial paper Unit investment trusts

New Issues

Existing Issues

Associate assistance. Standard rate for auction orders: $25; Voyager: $15; Flagship: $0.

Associate assistance. $1 per $1,000 face amount; $50 min., $125 max. ($40 for Flagship clients).

Online. Standard rate for auction orders: $10; Voyager: $0; Flagship: $0.

Online. $0.75 per $1,000 face amount; $40 min., $75 max. ($40 for Flagship clients).

No commission.*

See table below.

$50 per transaction; GNMA minimum purchase, $25,000.

$50 per transaction; GNMA minimum purchase, $25,000.

No commission.*

Unlisted (over-the-counter). See table below.

Listed. $25 + $2 per bond.

$50 commission if a fee concession is not available; minimum purchase varies.

See table below.

No commission.*

Purchase. See table below.

Sale. $35 per transaction.

$50 per transaction; minimum purchase, $100,000. NA

NA

Sale only. $35 per transaction.

Commission per $1,000 face amount for existing issues, where applicable.

$1,000?$49,000 ($5 per $1,000)

$50 minimum

$50,000 or more ($3 per $1,000)

$500 maximum

*Minimum purchase $10,000, subject to dealer minimum.

Note: Bond and CD prices are available at and are price indications only. Online prices for all secondary market bonds and CDs are before commissions.

Commission and Fee Schedule for FundAccess? Mutual Funds

No-Load Fund Transaction Fees1

No-transaction-fee Transaction fee

(NTF) funds

Minimum initial investment

None. For most funds, $3,000 for nonretirement accounts and $1,000 for IRAs.

Minimum additional investment

$1,000 for any account type.

Redemption fee

$50 minimum, or 1% of proceeds up to $250, for shares held less than six months. The six-month holding period begins on the settlement day of the transaction, which is ususally the next business day or three business days after the trade date. (The redemption fee is waived for shares transferred from another brokerage firm or financial institution.)

Dollar-cost-averaging transactions

No fee; minimum purchase, $100; minimum, two transactions.

Transaction-fee (TF) funds2

Transaction fee

Purchase: $35 per trade regardless of order size.3 Sale: $35 per trade regardless of order size.4

Exchange: $35 per trade regardless of order size.5

Minimum initial and additional investments

Typically based on amount listed in the fund's prospectus.

Dollar-cost-averaging transactions

$3 per transaction; minimum purchase, $100; minimum, two transactions.

1 Individual fund families may impose additional fees or charges for a specific fund or funds. Read the prospectus carefully before investing.

2 Transaction-fee fund trades can be included in the 12 commission-free trades per calendar year available to Flagship clients. No commissions will apply to the first 12 online trades in each calendar year to any combination of stocks (other than stocks priced at less than $1 a share), options, or transactionfee mutual funds. The number of trades is limited to 12 per client, as identified by the primary Social Security number on the account. Vanguard Brokerage reserves the right to terminate the 12 commission-free trades at any time for clients whose account activity can be deemed improper.

3 If you buy $10,000 of a fund, your net total cost will be $10,035.

4 If you sell $10,000 of a fund, your net total proceeds will be $9,965.

5 If you exchange all shares of a fund for another fund in the same fund family and share class, the $35 transaction fee will be paid from your money market settlement account.

Load Fund Charges and Fees

Class A shares

Front-end load (purchase fee): Varies by fund or fund family and may be as high as 5.75%. Review the fund's prospectus carefully before investing.

Discounts (breakpoints) may be available if you make a large purchase, already hold other mutual funds offered by the same fund family (individually or combined with a spouse or other qualifying person), or commit to regularly purchasing the fund's shares.

Class B shares

Back-end load or contingent deferred sales charge (redemption fee): Decreases to zero over a period of years.

Class C shares

Back-end load or contingent deferred sales charge (redemption fee): Smaller than a Class B redemption fee, it decreases to zero after one year.

All share classes Sales charges

The schedule for a specific load fund may vary, perhaps significantly, from the general description shown here. Check a fund's prospectus for the details.

Fees

Vanguard Brokerage charges no additional fee for a purchase, sale, or exchange of

any load fund offered through FundAccess.

Dollar-cost-averaging transactions

Vanguard Brokerage does not charge a fee, but sales charges imposed by the fund still apply. Minimum transaction, $100; minimum, two transactions.

Commission Schedule for Stocks and Options

Client Group

Standard1, 2

Voyager2

Flagship

Stocks Online:

$25 or $0.025 per share, $22.50 or $0.0225 per

whichever is greater

share, whichever is greater

First12 trades: no commission.3 Subsequent trades: $8 each.

AutoBroker?: 800-992-8327

$40 or $0.05 per share, whichever is greater

$36 or $0.045 per share, whichever is greater

$30 or $0.0375 per share, whichever is greater

Associate assistance: 800-992-8327

$45 + $0.05 per share $40.50 + $0.045 per share $33.75 + $0.0375 per share

Stock priced less than $1 a share: Online:

$20 + 2% of principal

$20 + 2% of principal

$20 + 2% of principal

Associate assistance and AutoBroker: 800-992-8327

$30 + 3% of principal

$30 + 3% of principal

$30 + 3% of principal

Options

Online:

$30 + $1.50 per contract $30 + $1.50 per contract $30 + $1.50 per contract3

Associate assistance: 800-992-8327

$30 + $2.50 per contract $30 + $2.50 per contract $30 + $2.50 per contract

A separate commission applies for opening, closing, or exercising a position. Note: Option exercise and assignment require associate assistance. Associate-assisted commission rates for stocks apply.

1 A 10% discount from standard rates for 36?71 stock trades (except for stocks priced at less than $1 per share). Discounts apply to online, AutoBroker, or associate-assisted trades. The first 35 qualifying trades can be made through any combination of online, AutoBroker, or associate-assisted trades during a rolling 12-month period. Qualifying trades include stocks, options, bonds, CDs, and FundAccess funds.

2 A 25% discount from standard rates for 72 or more stock trades (except for stocks priced at less than $1 per share). Discounts apply to online, AutoBroker, or associate-assisted trades. The first 71 qualifying trades can be made through any combination of online, AutoBroker, or associate-assisted trades during a rolling 12-month period. Qualifying trades include stocks, options, bonds, CDs, and FundAccess funds.

3 No commissions will apply to the first 12 online trades in each calendar year to any combination of stocks (other than stocks priced at less than $1 a share), options, or transaction-fee mutual funds. The number of trades is limited to 12 per client, as identified by the primary Social Security number on the account. Vanguard Brokerage reserves the right to terminate the 12 commission-free trades at any time for clients whose account activity can be deemed improper.

Brokerage Account Maintenance Fee and Other Fees

Annual maintenance fee

Standard: $30, charged annually. Voyager and Flagship: no charge.

Foreign securities

$75 for each execution (not applicable to American Depositary Receipts) plus commission.

Limited partnerships (LPs)

For private LPs, a $35 annual maintenance fee and, if reregistered, a $50 Vanguard Brokerage fee plus any third-party fees that we incur.

For private and public LPs that are held in a brokerage IRA and earn unrelated business taxable income ($1,000 or more), a $200 tax-filing fee.

Note: Private LPs are illiquid. Vanguard Brokerage can hold, but not trade, private LPs in IRA accounts.

Wire transfers

$20 from your brokerage account.

$5 from your settlement account (if less than $5,000).

Note: Your bank may charge for receiving wires from your brokerage or settlement account.

VIPER? Shares

$50 per conversion of conventional Vanguard index fund shares to VIPER Shares. Flagship: no charge. (Fees may vary at other brokerage firms.)

VanguardAdvantage?

Voyager fee: $30. Flagship: no charge. Also: insufficient funds ($20), stop payment ($15), checkbook reorder (Voyager: $9.95; Flagship: no charge), VanguardAdvantage Billpay? service (Voyager: $4.95 per month; Flagship: no charge). Possibly, fees at automated teller machines not affiliated with PNC Bank.

Miscellaneous fees

Other securities transaction fees may apply. Call us for additional information.

Vanguard Brokerage Services A Division of Vanguard Marketing Corporation, member of NASD and SIPC P.O. Box 1170 Valley Forge, PA 19482-1170

Since 1983, Vanguard Brokerage Services has provided superior service and exceptional value to investors. Our clients enjoy online, automated phone, and associate-assisted access to stocks, exchange-traded funds, bonds, CDs, and options, plus thousands of funds from other mutual fund families. Standard services include cost basis accounting, comprehensive statements, free dividend reinvestment, and many other services designed to maximize investment convenience at a reasonable cost.

World Wide Web

Vanguard Brokerage Services 800-992-8327

For more information, visit , or call 800-662-7447 for Vanguard funds and 800-992-8327 for non-Vanguard funds offered through Vanguard Brokerage Services, to obtain a prospectus. Visit our website, call 866-499-VIPER, or contact your broker to obtain a product description and prospectus for Vanguard VIPER Shares. Investment objectives, risks, charges, expenses, and other important information are contained in these documents; read and consider them carefully before investing.

? 2006 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor.

CMSCH 042006

The VanguardAdvantage? Account

A flexible and convenient cash management service

Vanguard Brokerage Services? A Division of Vanguard Marketing Corporation

A cash management service with The Vanguard Difference?

If you're looking for a brokerage account that also offers cash management services, consider the VanguardAdvantage Account. Offered through Vanguard Brokerage Services, this exceptional account offers checkwriting with no minimum dollar amount, a Visa? Gold debit card, online bill payment, and overdraft protection through a margin account.

You can even simplify your finances by transferring assets you hold elsewhere to your VanguardAdvantage Account. And you can review your account information on one simple statement--or online if you prefer.

Better yet, accountholders experience The Vanguard Difference. You'll see it in everything we do at Vanguard. We focus only on your needs and on continuing our long record of serving all clients with integrity. We're committed to keeping costs as low as possible, providing a high level of service, and offering a wide range of sound financial products aimed at helping you meet your needs.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund.

The VanguardAdvantage Account puts you in control

Our cash management service offers no-minimum checkwriting and easy-to-use features that allow you to better manage your finances.

? Take advantage of our commitment to provide competitive money market fund returns on cash balances.

? Access your account anywhere with a Visa Gold debit card.

? Pay your bills online with the VanguardAdvantage Billpay? service.

? Enjoy low-interest-rate overdraft protection (through an approved margin account that contains eligible securities).

? Expand your investment possibilities at Vanguard. Hold individual stocks, ETFs, bonds, CDs, options, and even non-Vanguard mutual funds through our FundAccess? program.

? Have regular payments deposited directly into your account automatically.

? Manage your account online--24 hours a day, seven days a week--at .

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