<PAGE> 1
VANGUARD INDEX TRUST
Total Stock Market Portfolio
Extended Market Portfolio
Small Capitalization Stock Portfolio
Prospectus Supplement
July 7, 1997
The Total Stock Market Portfolio, Extended Market Portfolio, and Small
Capitalization Stock Portfolio each offers two separate classes of shares. This
prospectus describes the "Investor Shares" of these Portfolios, which have a
minimum initial investment requirement of $3,000 ($1,000 for IRAs). The
Portfolios' "Institutional Shares," which we offer through a separate
prospectus, are designed for investors who are able to meet a minimum initial
investment requirement of $10 million and generally do not require special
employee benefit plan services. To obtain a prospectus for the Institutional
Shares, please call Vanguard's Institutional Investor Group at 1-800-523-1036.
Note that the Portfolios' separate share classes have different expenses; as a
result, their investment performance will vary.
PS40
