WIXLIB

W. Michael Reckmeyer, III, CFA, Senior Managing Director and Equity PortfolioManager of Wellington Management. He has managed the equity portion of theFund since 2007 (co-managed since October 2021).Purchase and Sale of Fund SharesYou 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 bytelephone (800-662-2739). The minimum investment amount required to openand maintain a Fund account for Investor Shares or Admiral Shares is 3,000 or 50,000, respectively. The minimum investment amount required to add to anexisting Fund account is generally 1. Financial intermediaries, institutionalclients, and Vanguard-advised clients should contact Vanguard for information onspecial eligibility rules that may apply to them regarding Admiral Shares. If youare investing through an intermediary, please contact that firm directly for moreinformation regarding your eligibility. If you are investing through anemployer-sponsored retirement or savings plan, your plan administrator or yourbenefits office can provide you with detailed information on how you can investthrough your plan.Tax InformationThe Fund’s distributions may be taxable as ordinary income or capital gain. If youare investing through a tax-advantaged account, such as an IRA or anemployer-sponsored retirement or savings plan, special tax rules apply.Payments to Financial IntermediariesThe Fund and its investment advisor do not pay financial intermediaries for salesof Fund shares.6

More on the FundThis prospectus describes the principal risks you would face as a Fundshareholder. It is important to keep in mind one of the main principles ofinvesting: generally, the higher the risk of losing money, the higher the potentialreward. The reverse, also, is generally true: the lower the risk, the lower thepotential reward. As you consider an investment in any mutual fund, you shouldtake into account your personal tolerance for fluctuations in the securitiesmarkets. Look for thissymbol throughout the prospectus. It is used tomark detailed information about the more significant risks that you wouldconfront as a Fund shareholder. To highlight terms and concepts important tomutual fund investors, we have provided Plain Talk explanations along the way.Reading the prospectus will help you decide whether the Fund is the rightinvestment for you. We suggest that you keep this prospectus forfuture reference.Share Class OverviewThe Fund offers two separate classes of shares: Investor Shares andAdmiral Shares.Both share classes offered by the Fund have the same investment objective,strategies, and policies. However, different share classes have differentexpenses; as a result, their investment returns will differ.Plain Talk About Fund ExpensesAll mutual funds have operating expenses. These expenses, which arededucted from a fund’s gross income, are expressed as a percentage of thenet assets of the fund. Assuming that operating expenses remain as statedin the Fees and Expenses section, Vanguard Wellesley Income Fund’sexpense ratios would be as follows: for Investor Shares, 0.23%, or 2.30 per 1,000 of average net assets; for Admiral Shares, 0.16%, or 1.60 per 1,000 of average net assets. The average expense ratio for mixed-assettarget allocation conservative funds in 2020 was 0.69%, or 6.90 per 1,000of average net assets (derived from data provided by Lipper, a ThomsonReuters Company, which reports on the mutual fund industry).7

Plain Talk About Costs of InvestingCosts are an important consideration in choosing a mutual fund. That isbecause you, as a shareholder, pay a proportionate share of the costs ofoperating a fund and any transaction costs incurred when the fund buys orsells securities. These costs can erode a substantial portion of the grossincome or the capital appreciation a fund achieves. Even seemingly smalldifferences in expenses can, over time, have a dramatic effect on afund’s performance.The following sections explain the principal investment strategies and policiesthat the Fund uses in pursuit of its investment objective. The Fund’s board oftrustees, which oversees the Fund’s management, may change investmentstrategies or policies in the interest of shareholders without a shareholder vote,unless those strategies or policies are designated as fundamental. Note that theFund’s investment objective is not fundamental and may be changed without ashareholder vote.Plain Talk About Balanced FundsBalanced funds are generally investments that seek to provide somecombination of income and capital appreciation by investing in a mix ofstocks and bonds. Because prices of stocks and bonds can responddifferently to economic events and influences, a balanced fund shouldexperience less volatility than a fund investing exclusively in stocks, but mayexperience more volatility than a fund investing exclusively in bonds.Market ExposureBondsThe Fund invests approximately 60% to 65% of its assets in bonds.The Fund is subject to interest rate risk, which is the chance that bondprices overall will decline because of rising interest rates. Interest raterisk for the Fund is expected to be moderate because the averageduration of the Fund’s bond portfolio is intermediate-term and alsobecause the Fund’s equity portfolio consists primarily ofincome-generating stocks, which tend to be moderately sensitive tointerest rate changes.8

Although fixed income securities (commonly referred to as bonds) are oftenthought to be less risky than stocks, there have been periods when bond priceshave fallen significantly because of rising interest rates. For instance, prices oflong-term bonds fell by almost 48% between December 1976 andSeptember 1981.To illustrate the relationship between bond prices and interest rates, thefollowing table shows the effect of a 1% and a 2% change (both up and down) ininterest rates on the values of three noncallable bonds (i.e., bonds that cannotbe redeemed by the issuer) of different maturities, each with a face valueof 1,000.How Interest Rate Changes Affect the Value of a 1,000 Bond1After a 1%IncreaseAfter a 1%DecreaseAfter a 2%IncreaseAfter a 2%Decrease 977 1,024 954 1,049Intermediate-Term (10 years)9221,0868511,180Long-Term (20 years)8741,1507691,328Type of Bond (Maturity)Short-Term (2.5 years)1 Assuming a 4% coupon rate.These figures are for illustration only; you should not regard them as anindication of future performance of the bond market as a whole or the Fund inparticular. Also, because bonds make up only a portion of the Fund’s assets,changes in interest rates may not have as dramatic an effect on the Fund as theywould on a fund made up entirely of bonds.9

Plain Talk About Bonds and Interest RatesAs a rule, when interest rates rise, bond prices fall. The opposite is also true:Bond prices go up when interest rates fall. Why do bond prices and interestrates move in opposite directions? Let’s assume that you hold a bondoffering a 4% yield. A year later, interest rates are on the rise and bonds ofcomparable quality and maturity are offered with a 5% yield. Withhigher-yielding bonds available, you would have trouble selling your 4% bondfor the price you paid—you would probably have to lower your asking price.On the other hand, if interest rates were falling and 3% bonds were beingoffered, you should be able to sell your 4% bond for more than you paid.How mortgage-backed securities are different: In general, declining interestrates will not lift the prices of mortgage-backed securities—such as thoseguaranteed by the Government National Mortgage Association—as much asthe prices of comparable bonds. Why? Because when interest rates fall, thebond market tends to discount the prices of mortgage-backed securities forprepayment risk—the possibility that homeowners will refinance theirmortgages at lower rates and cause the bonds to be paid off prior tomaturity. In part to compensate for this prepayment possibility,mortgage-backed securities tend to offer higher yields than other bonds ofcomparable credit quality and maturity. In contrast, when interest rates rise,prepayments tend to slow down, subjecting mortgage-backed securities toextension risk—the possibility that homeowners will repay their mortgagesat slower rates. This will lengthen the duration or average life ofmortgage-backed securities held by a fund and delay the fund’s ability toreinvest proceeds at higher interest rates, making the fund more sensitive tochanges in interest rates.Changes in interest rates can affect bond income as well as bond prices.The Fund is subject to income risk, which is the chance that the Fund’sincome will decline because of falling interest rates. A fund holdingbonds will experience a decline in income when interest rates fallbecause the fund then must invest new cash flow and cash frommaturing bonds in lower-yielding bonds. Income risk for the Fund isexpected to be moderate because the average duration of the Fund’sbond portfolio is intermediate-term.10

Plain Talk About Bond MaturitiesA bond is issued with a specific maturity date—the date when the issuermust pay back the bond’s principal (face value). Bond maturities range fromless than 1 year to more than 30 years. Typically, the longer a bond’s maturity,the more price risk you, as a bond investor, will face as interest ratesrise—but also the higher the potential yield you could receive. Longer-termbonds are generally more suitable for investors willing to take a greater riskof price fluctuations to get higher and more stable interest income.Shorter-term bond investors should be willing to accept lower yields andgreater income variability in return for less fluctuation in the value of theirinvestment. The stated maturity of a bond may differ from the effectivematurity of a bond, which takes into consideration that an action such as acall or refunding may cause bonds to be repaid before their statedmaturity dates.Because bond and stock prices often move in different directions, the Fund’sstock holdings help to reduce—but not eliminate—some of the bond pricefluctuations caused by changes in interest rates. Likewise, stock market volatilitymay not have as dramatic an effect on the Fund as it would on a fund made upentirely of stocks.StocksThe remaining 35% to 40% of the Fund’s assets are invested in stocks.The Fund is subject to stock market risk, which is the chance that stockprices overall will decline. Stock markets tend to move in cycles, withperiods of rising prices and periods of falling prices.Stocks of publicly traded companies are often classified according to marketcapitalization, which is the market value of a company’s outstanding shares.These classifications typically include small-cap, mid-cap, and large-cap. It isimportant to understand that there are no “official” definitions of small-, mid-,and large-cap, even among Vanguard fund advisors, and that marketcapitalization ranges can change over time. The asset-weighted median marketcapitalization of the Fund’s stock holdings as of September 30, 2021, was 130 billion.Market disruptions can adversely affect local and global markets as well asnormal market conditions and operations. Any such disruptions could have anadverse impact on the value of the Fund’s investments and Fund performance.11

Security SelectionWellington Management, advisor to the Fund, invests approximately 60% to65% of the Fund’s assets in investment-grade bonds and approximately 35% to40% of the Fund’s assets in dividend-paying common stocks. Although the mixof stocks and bonds varies from time to time, depending on the advisor’s view ofeconomic and market conditions, generally bonds can be expected to representat least 60% of the Fund’s holdings.The Fund is managed according to traditional methods of active investmentmanagement. Securities are bought and sold based on the advisor’s judgmentsabout companies and their financial prospects and about bond issuers and thegeneral level of interest rates. The Fund’s advisor may, at times, select securitiesthat cause the Fund to focus in a particular market sector, which would subjectthe Fund to proportionately higher exposure to the risks of that sector.The Fund is subject to manager risk, which is the chance that poorsecurity selection will cause the Fund to underperform relevantbenchmarks or other funds with a similar investment objective.BondsWellington Management selects investment-grade bonds that it believes willgenerate a reasonable and sustainable level of current income. These mayinclude short-, intermediate-, and long-term corporate, U.S. Treasury, governmentagency, and asset-backed bonds, as well as mortgage-backed securities. Thebonds are bought and sold according to the advisor’s judgment about bondissuers and the general direction of interest rates, within the context of theeconomy in general. Although the Fund does not have specific maturityguidelines, the average duration of the Fund’s bond portfolio as ofSeptember 30, 2021, was 8 years.Plain Talk About Types of BondsBonds are issued (sold) by many sources: Corporations issue corporatebonds; the federal government issues U.S. Treasury bonds; agencies of thefederal government issue agency bonds; financial institutions issueasset-backed bonds; and mortgage holders issue “mortgage-backed”pass-through certificates. Each issuer is responsible for paying back thebond’s initial value as well as for making periodic interest payments. Manybonds issued by government agencies and entities are neither guaranteednor insured by the U.S. government.12

A breakdown of the Fund’s bond holdings (which amounted to approximately60% of the Fund’s net assets) as of September 30, 2021, follows:Type of BondIndustrialFinanceTreasury/AgencyPercentage of Fund’sBond vernment Mortgage-BackedAsset-Backed4.22.51.5Commercial Mortgage-Backed0.4Keep in mind that, because the bond makeup of the Fund can change daily, thislisting is only a “snapshot” at one point in time.The Fund is subject to credit risk, which is the chance that a bond issuerwill fail to pay interest or principal in a timely manner or that negativeperceptions of the issuer’s ability to make such payments will cause theprice of that bond to decline.The advisor purchases bonds that are of investment-grade quality—that is,bonds rated at least Baa3 by Moody‘s Investors Service, Inc., or BBB– byStandard & Poor‘s—or, if unrated, are determined to be of comparable quality bythe advisor.The U.S. government guarantees the timely payment of interest and principal forits U.S. Treasury bonds; some (but not all) agency bonds have the sameguarantee. The government does not, however, guarantee its bonds’ prices. Inother words, although U.S. Treasury and agency bonds may enjoy among thehighest credit ratings, their prices—like the prices of other bonds in theFund—will fluctuate with changes in interest rates.13

Plain Talk About Credit QualityA bond’s credit quality rating is an assessment of the issuer’s ability to payinterest on the bond and, ultimately, to repay the principal. The lower thecredit quality, the greater the perceived chance that the bond issuer willdefault, or fail to meet its payment obligations. All things being equal, thelower a bond’s credit quality, the higher its yield should be to compensateinvestors for assuming additional risk.Although falling interest rates tend to strengthen bond prices, they can causeanother problem for bond fund investors—bond calls.The Fund is subject to call risk, which is the chance that during periods offalling interest rates, issuers of callable bonds may call (redeem)securities with higher coupon rates or interest rates before their maturitydates. The Fund would then lose any price appreciation above the bond’scall price and would be forced to reinvest the unanticipated proceeds atlower interest rates, resulting in a decline in the Fund‘s income. Suchredemptions and subsequent reinvestments would also increase theFund’s portfolio turnover rate. For mortgage-backed securities, this risk isknown as prepayment risk. Call/prepayment risk is expected to be low tomoderate for the Fund because it invests only a limited portion of itsassets in callable bonds and mortgage-backed securities.Bond issuers take advantage of falling interest rates by calling corporate bonds.With mortgage-backed securities, it is the mortgage holder—such as the U.S.homeowner—who benefits from lower rates.The Fund is subject to liquidity risk, which is the chance that the Fundmay not be able to sell a security in a timely manner at a desired price.Corporate bonds are traded among dealers and brokers that connect buyers withsellers. Liquidity in the corporate bond market may be challenged depending onoverall economic conditions and credit tightening. There may be little trading inthe secondary market for particular bonds and other debt securities, which maymake them more difficult to value or sell.StocksThe Fund’s stocks are chosen primarily for their dividend-paying capabilities, butthey must also have the potential for moderate long-term capital appreciation.The advisor looks for stocks of companies that either offer significant dividendsnow or expect to increase their dividends in the future. This income orientation14

leads the Fund to invest in stocks with higher-than-market-average dividendyields. As a result, the Fund’s equity holdings are expected to have more of avalue orientation than a growth orientation.Plain Talk About Growth Funds and Value FundsGrowth investing and value investing are two styles employed by stock-fundmanagers. Growth funds generally invest in stocks of companies believed tohave above-average potential for growth in revenue, earnings, cash flow, orother similar criteria. These stocks typically have low dividend yields, if any,and above-average prices in relation to measures such as earnings and bookvalue. Value funds typically invest in stocks whose prices are below averagein relation to those measures; these stocks often have above-averagedividend yields. Value stocks also may remain undervalued by the market forlong periods of time. Growth and value stocks have historically producedsimilar long-term returns, though each category has periods when itoutperforms the other.The Fund is subject to investment style risk, which is the chance thatreturns from mid- and large-capitalization dividend-paying value stockswill trail returns from the overall stock market. Mid- and large-cap stockseach tend to go through cycles of doing better—or worse—than othersegments of the stock market or the stock market in general. Theseperiods have, in the past, lasted for as long as several years. Historically,mid-cap stocks have been more volatile in price than large-cap stocks.The stock prices of mid-size companies tend to experience greatervolatility because, among other things, these companies tend to be moresensitive to changing economic conditions.Other Investment Policies and RisksIn addition to investing in bonds and stocks, the Fund may make other kinds ofinvestments to achieve its investme

Vanguard Wellesley Income Fund Supplement Dated July 1, 2022, to the Prospectus and Summary Prospectus Dated January 31, 2022 Important Changes toVanguard Wellesley Income Fund Effective immediately, W. Michael Reckmeyer, III has retired from Wellington Management Company LLP and no longer serves as a co-portfolio manager of