Qualified dividend income—2014 year-end figures

The tables below show the percentage of 2014 dividend and net short-term capital gain distributions, by fund and share class, that are eligible for reduced tax rates as "qualified dividend income" (QDI) under the Jobs and Growth Tax Relief Reconciliation Act of 2003. Equity and balanced funds are likely to distribute QDI to shareholders; money market and bond funds will not distribute QDI.

QDI-eligible amounts, including any net short-term capital gains, are reported to shareholders in Box 1b of Form 1099-DIV. For those shareholders who do not receive a Form 1099-DIV, QDI-eligible amounts can be determined by applying the relevant percentages from the table to the dividend and net short-term capital gain distributions shown on the shareholder's 2014 year-end account statement.

Effective April 4, 2014, Vanguard Developed Markets Index Fund (each share which had qualified dividend income of 100% for 2014) merged into Vanguard Tax-Managed International Fund, and the combined fund was renamed Vanguard Developed Markets Index Fund. Each share class of the post-merger Vanguard Developed Markets Fund had qualified dividend income of 78.07% for 2014.

The Vanguard Market Neutral Fund and Vanguard Precious Metals and Mining Fund did not make a distribution in 2014.