NUMBER
[001]
CAPITAL STOCK


             Vanguard Index Participation Equity Receipts ("VIPERs")

                            Vanguard REIT Index Fund
                                 A SERIES of the
                           VANGUARD SPECIALIZED FUNDS
                          (A Delaware Statutory Trust)

     THIS  CERTIFIES  that CEDE & CO. is the holder of the  current  outstanding
number of VIPER Shares issued by the Vanguard REIT Index Fund (the "Fund") shown
from time to time on the records of the Vanguard  Specialized  Funds, a Delaware
statutory trust (the "Trust"),  as represented by this certificate of the Trust,
transferable  only on the books and records of the Trust by the holder hereof in
person or by duly authorized attorney-in-fact upon surrender of this Certificate
properly  endorsed.  This  Certificate is not valid until  countersigned  by the
transfer agent of the Trust.

     The  registered  holder of this  Certificate is entitled to all the rights,
interest  and  privileges  of a  holder  of  VIPER  Shares  as  provided  by the
Declaration of Trust,  the by-laws of the Trust, and the Vanguard Funds Multiple
Class Plan as from time to time  amended,  which are  incorporated  by reference
herein.

     This  Certificate  is executed  on behalf of the Trust and the  obligations
hereof are not binding upon any of the Trustees, officers or shareholders of the
Trust  individually,  but are binding  only upon the assets and  property of the
Fund.

         IN WITNESS WHEREOF, the said Trust has caused this Certificate to be
signed by its duly authorized officer.

Countersigned:                            Dated:__________________

JPMORGAN CHASE BANK                       VANGUARD SPECIALIZED FUNDS
(the Transfer Agent)                     (the Trust)


By:
   ---------------------------           -----------------------------
         Authorized Signature            Chairman and Chief Executive Officer


Unless this  Certificate  is presented by an  authorized  representative  of The
Depository Trust Company,  a New York corporation  ("DTC"),  to the Trust or its
transfer  agent for  registration  of  transfer,  exchange or  payment,  and any
certificate  issued is  registered  in the name of Cede & Co.,  or in such other
name as is requested by an authorized  representative of DTC (and any payment is
made to Cede & Co. or to such  other  entity as is  requested  by an  authorized
representative  of DTC),  ANY TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  inasmuch  as the  registered  owner
hereof, Cede & Co., has an interest herein.