VANGUARD INDEX TRUST
485APOS, 2001-01-11
Previous: US BANCORP \DE\, S-4/A, EX-99.4, 2001-01-11
Next: FIRST UNION REAL ESTATE EQUITY & MORTGAGE INVESTMENTS, 4, 2001-01-11




-------------------------------------------------------------------------------
-------------------------------------------------------------------------------



                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


                                    FORM N-1A

     REGISTRATION STATEMENT (NO. 2-56846) UNDER THE SECURITIES ACT OF 1933


                           PRE-EFFECTIVE AMENDMENT NO.

                        POST-EFFECTIVE AMENDMENT NO. 67

                                       AND

        REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

                                AMENDMENT NO. 69

                              VANGUARD INDEX TRUST

        (EXACT NAME OF REGISTRANT AS SPECIFIED IN DECLARATION OF TRUST)

                     P.O. BOX 2600, VALLEY FORGE, PA 19482
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)

                  REGISTRANT'S TELEPHONE NUMBER (610) 669-1000

                           R. GREGORY BARTON, ESQUIRE
                                  P.O. BOX 876
                             VALLEY FORGE, PA 19482

                 APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:
  AS SOON AS PRACTICABLE AFTER THIS REGISTRATION STATEMENT BECOMES EFFECTIVE.

                IT IS PROPOSED THAT THIS FILING BECOME EFFECTIVE:
           ON FEBRUARY 9, 2001 PURSUANT TO PARAGRAPH (A) OF RULE 485.


<PAGE>


The  Trust's   prospectuses   and  Statement  of  Additional   Information   are
incorporated  by  reference  from the prior  filing  of the 62nd  Post-Effective
Amendment to the Trust's Registration Statement on Form N-1A.


<PAGE>


                                     [SHIP]
                          [THE VANGUARD GROUP(R) LOGO]

                       VANGUARD(R) U.S. STOCK INDEX FUNDS

      VANGUARD TOTAL STOCK MARKET, 500, SMALL-CAP, VALUE, AND GROWTH INDEX
                     FUNDS--INVESTOR AND ADMIRAL(TM) SHARES

              SUPPLEMENT TO THE PROSPECTUS DATED NOVEMBER 1, 2000

Substitute the following text for the text appearing in the box entitled  "Share
Classes" on the inside front cover page.

Each of the  Vanguard  U.S.  Stock  Index  Funds  offers  more than one class of
shares.  This prospectus  offers Investor Shares for all of the Funds as well as
Admiral Shares for six of the Funds. Please note that the Admiral Shares are NOT
available to:

-    SIMPLE IRAs and 403(b)(7) custodial accounts;

-    Other retirement plan accounts  receiving special  administrative  services
     from Vanguard; or

-    Accounts  maintained  by  financial   intermediaries,   except  in  limited
     circumstances.

     Investor Shares and Admiral Shares can be converted into an exchange-traded
class of shares known as VIPER Shares.  A brief  description of VIPER Shares and
how to convert  into them  appears on pages 5-8 of this  supplement.  A separate
prospectus  containing  more  information  about VIPER  Shares is  available  at
Vanguard's website or by calling 1-800-523-1036.

     Please call Vanguard at 1-800-523-1036 to obtain a separate prospectus that
offers  Institutional  Shares  for all of the Funds  (except  500  Index  Fund).
Institutional Shares have an investment minimum of $10 million and generally are
not available  through  financial  intermediaries  or retirement plans receiving
special administrative services from Vanguard.

     This  prospectus is not intended for investors  purchasing  shares  through
employer- sponsored retirement or savings plans. Plan participants should obtain
a separate prospectus designed specifically for them by calling 1-800-523-1188.

--------------------------------------------------------------------------------
<PAGE>

                                                                               2

Substitute  the  following  bar  chart  and  table  for the bar  chart and table
appearing on pages 2-3.

    ----------------------------------------------------------------------------
    ANNUAL TOTAL RETURNS--VANGUARD TOTAL STOCK MARKET INDEX FUND-INVESTOR SHARES
    ----------------------------------------------------------------------------
      [SCALE -30% to 50%]
                                1993      10.62%
                                1994      -0.17%
                                1995      35.79%
                                1996      20.96%
                                1997      30.99%
                                1998      23.26%
                                1999      23.81%
                                2000     -10.57%
    ----------------------------------------------------------------------------
    Return figures do not reflect the account maintenance fee imposed on
    accounts with balances of less than $10,000 or the transaction fee on
    purchases through 1995.
    ----------------------------------------------------------------------------

      -------------------------------------------------------------------------
          AVERAGE ANNUAL TOTAL RETURNS FOR YEARS ENDED DECEMBER 31, 2000
      -------------------------------------------------------------------------
                                       1 YEAR       5 YEARS    SINCE INCEPTION*
      -------------------------------------------------------------------------
      Vanguard Total Stock Market
       Index Fund--Investor
       Shares**                        -10.57%       16.68%         15.83%
      Wilshire 5000 Index              -10.99        16.66          16.01
      -------------------------------------------------------------------------
       *April 27, 1992.
      **Return figures do not reflect the account maintenance fee imposed on
        accounts with balances of less than $10,000 or the transaction fee on
        purchases through 1995.
      -------------------------------------------------------------------------

Substitute  the  following  bar  chart  and  table  for the bar  chart and table
appearing on pages 5-6.

     --------------------------------------------------------------------
         ANNUAL TOTAL RETURNS--VANGUARD 500 INDEX FUND-INVESTOR SHARES
     --------------------------------------------------------------------
     [SCALE -30% to 50%]
                                1991      30.22%
                                1992       7.42%
                                1993       9.89%
                                1994       1.18%
                                1995      37.45%
                                1996      22.88%
                                1997      33.19%
                                1998      28.62%
                                1999      21.07%
                                2000      -9.06%
     --------------------------------------------------------------------
     Return figures do not reflect the account maintenance fee imposed on
     accounts with balances of less than $10,000.
     --------------------------------------------------------------------

      -------------------------------------------------------------------------
          AVERAGE ANNUAL TOTAL RETURNS FOR YEARS ENDED DECEMBER 31, 2000
      -------------------------------------------------------------------------
                                       1 YEAR       5 YEARS        10 YEARS
      -------------------------------------------------------------------------
      Vanguard 500 Index
       Fund--Investor Shares*           -9.06%       18.31%          17.35%
      S&P 500 Index                     -9.10        18.33           17.46
      -------------------------------------------------------------------------
      *Return figures do not reflect the account maintenance fee imposed on
       accounts with balances of less than $10,000.
      -------------------------------------------------------------------------

<PAGE>

3

Substitute  the  following  bar  chart  and  table  for the bar  chart and table
appearing on pages 14-15.

     --------------------------------------------------------------------
      ANNUAL TOTAL RETURNS--VANGUARD SMALL-CAP INDEX FUND-INVESTOR SHARES
     --------------------------------------------------------------------
     [SCALE -30% to 50%]
                                1991      45.26%
                                1992      18.20%
                                1993      18.70%
                                1994      -0.51%
                                1995      28.74%
                                1996      18.12%
                                1997      24.59%
                                1998      -2.61%
                                1999      23.13%
                                2000      -2.67%
     --------------------------------------------------------------------
     Return figures do not reflect the account maintenance fee imposed on
     accounts with balances of less than $10,000 or the transaction fee
     on purchases through March 31, 2000.
     --------------------------------------------------------------------

      --------------------------------------------------------------------------
          AVERAGE ANNUAL TOTAL RETURNS FOR YEARS ENDED DECEMBER 31, 2000
      --------------------------------------------------------------------------
                                     1 YEAR        5 YEARS         10 YEARS
      --------------------------------------------------------------------------
      Vanguard Small-Cap Index
       Fund--Investor Shares*        -2.67%         11.43%          16.19%
      Russell 2000 Index             -3.03          10.31           15.53
      --------------------------------------------------------------------------
      *Return figures do not  reflect the  account  maintenance  fee imposed on
       accounts with  balances of less than $10,000 or the  transaction  fee on
       purchases through March 31, 2000.
      --------------------------------------------------------------------------

Substitute  the  following  bar  chart  and  table  for the bar  chart and table
appearing on pages 17-18.

     --------------------------------------------------------------------
        ANNUAL TOTAL RETURNS--VANGUARD VALUE INDEX FUND-INVESTOR SHARES
     --------------------------------------------------------------------
     [SCALE -30% to 50%]
                                1993      18.35%
                                1994      -0.73%
                                1995      36.94%
                                1996      21.86%
                                1997      29.77%
                                1998      14.64%
                                1999      12.57%
                                2000       6.08%
     --------------------------------------------------------------------
     Return figures do not reflect the account maintenance fee imposed on
     accounts with balances of less than $10,000.
     --------------------------------------------------------------------

<PAGE>

                                                                               4

      --------------------------------------------------------------------------
            AVERAGE ANNUAL TOTAL RETURNS FOR YEARS ENDED DECEMBER 31, 2000
      --------------------------------------------------------------------------
                                        1 YEAR      5 YEARS    SINCE INCEPTION*
      --------------------------------------------------------------------------
      Vanguard Value Index
       Fund--Investor Shares**           6.08%       16.70%         17.04%
      S&P 500/BARRA Value Index          6.08        16.81          17.17
      --------------------------------------------------------------------------
       *November 2, 1992.
      **Return  figures do not reflect the  account  maintenance  fee imposed on
        accounts with balances of less than $10,000.
      --------------------------------------------------------------------------

Substitute the following bar chart, text, and table for the bar chart, text, and
table appearing on pages 23-24.

     --------------------------------------------------------------------
       ANNUAL TOTAL RETURNS--VANGUARD GROWTH INDEX FUND-INVESTOR SHARES
     --------------------------------------------------------------------
     [SCALE -30% to 50%]
                                1993       1.53%
                                1994       2.89%
                                1995      38.06%
                                1996      23.74%
                                1997      36.34%
                                1998      42.21%
                                1999      28.76%
                                2000     -22.21%
     --------------------------------------------------------------------
     Return figures do not reflect the account maintenance fee imposed on
     accounts with balances of less than $10,000.
     --------------------------------------------------------------------

     During the period shown in the bar chart, the highest return for a calendar
quarter was 24.64% (quarter ended December 31, 1998),  and the lowest return for
a quarter was -16.88% (quarter ended December 31, 2000).

     ---------------------------------------------------------------------------
           AVERAGE ANNUAL TOTAL RETURNS FOR YEARS ENDED DECEMBER 31, 2000
     ---------------------------------------------------------------------------

                                 1 YEAR         5 YEARS        SINCE INCEPTION*
     ---------------------------------------------------------------------------
     Vanguard Growth Index
      Fund--Investor Shares**    -22.21%         19.17%             16.90%
     S&P 500/BARRA Growth        -22.08          19.18              17.01
      Index
     ---------------------------------------------------------------------------
      *November 2, 1992.
     **Return  figures do not reflect the  account  maintenance  fee imposed on
       accounts with balances of less than $10,000.
     ---------------------------------------------------------------------------

--------------------------------------------------------------------------------
<PAGE>

5

This description of VIPER Shares follows "Investing With Vanguard."

                                  VIPER SHARES

In addition to Investor Shares and Admiral Shares,  certain Vanguard funds offer
a class of shares,  known as VIPER  Shares,  that are listed for  trading on the
American Stock Exchange.  If you own Investor Shares or Admiral Shares issued by
one of these funds,  you may convert  those shares into VIPER Shares of the same
fund.

Note:  Vanguard  reserves  the  right to  modify  or  terminate  the  conversion
privilege in the future.

     Five Vanguard funds currently offer a VIPER Share class:

-------------------------------------------------------------------------------
FUND                                 VIPER SHARES                TICKER SYMBOL
-------------------------------------------------------------------------------
Vanguard Total Stock Market Index    Total Stock Market VIPERs       VTI
 Fund
Vanguard 500 Index Fund              VIPERs                          VV
Vanguard Small-Cap Index Fund        Small-Cap VIPERs                VB
Vanguard Growth Index Fund           Growth VIPERs                   VLP
Vanguard Value Index Fund            Value VIPERs                    VRY

-------------------------------------------------------------------------------

     Although  VIPER Shares  represent an  investment  in the same  portfolio of
securities  as  Investor   Shares  or  Admiral   Shares,   they  have  different
characteristics  and  may  appeal  to a  different  group  of  investors.  It is
important that you understand the differences before deciding whether to convert
your shares to VIPER Shares. The following  material  summarizes key information
about VIPER Shares. A separate  prospectus with more complete  information about
VIPER Shares is also available.  Investors should review that prospectus  before
deciding whether to convert.

DIFFERENCES BETWEEN VIPER SHARES AND CONVENTIONAL MUTUAL FUND SHARES

Investor Shares and Admiral Shares are "conventional"  mutual fund shares;  that
is, they can be purchased  from and redeemed with the issuing fund for cash at a
net asset value (NAV) calculated once a day. VIPER Shares,  by contrast,  cannot
be purchased from or redeemed with the issuing fund, except as noted below.

     An  organized  market  is  expected  to  exist  for  VIPER  Shares,  unlike
conventional mutual fund shares, because VIPER Shares will be listed for trading
on the American Stock Exchange.  Investors can purchase and sell VIPER Shares on
the open market  through a broker.  Open market  transactions  will not occur at
NAV, but at market prices that change throughout the day based on changes in the
prices of the fund's portfolio securities and the supply of and demand for VIPER
Shares.  The market price of a fund's VIPER Shares will vary  somewhat  from the
NAV of those shares.  The variation  between market price and NAV is expected to
be small  most of the  time,  but in  times of  extreme  market  volatility  the
difference may become significant.

BUYING AND SELLING VIPER SHARES

Note:  VIPER  Shares  must be held in a  brokerage  account.  Therefore,  before
acquiring  VIPER  Shares,  you must have an existing,  or open a new,  brokerage
account with a full-service or discount broker.

     You buy and sell  VIPER  Shares  in the same way you buy and sell any other
exchange-traded  security--on the open market,  through a broker. In most cases,
the broker  will charge you a  commission  to execute  the  transaction.  Unless
imposed by your broker, there is no minimum dollar amount you must invest and no
minimum number of VIPER Shares

<PAGE>

                                                                               6

you must purchase.  Because open market transactions occur at market prices, you
may pay more than NAV when you buy VIPER  Shares and receive  less than NAV when
you sell those shares.

     If you  own  conventional  shares  (Investor  Shares,  Admiral  Shares,  or
Institutional  Shares) of a Vanguard  fund that  issues  VIPER  Shares,  you can
convert  those  shares  into VIPER  Shares of  equivalent  value (but you cannot
convert back). See below under the heading "Conversions" for a discussion of the
conversion process.

     There is one other way to buy and sell VIPER Shares. Investors can purchase
and redeem VIPER Shares  directly from the issuing fund at NAV if they do so (i)
through  certain  authorized  broker-dealers,  (ii) in large blocks of 30,000 or
60,000 VIPERs  (depending on the fund),  known as Creation  Units,  and (iii) in
exchange for baskets of securities rather than cash.  However,  because Creation
Units will be worth millions of dollars,  and because most  investors  prefer to
transact in cash rather than with securities, it is expected that only a limited
number of  institutional  investors  will  purchase and redeem VIPER Shares this
way.

RISKS

VIPER  Shares  issued by a fund are  subject to the same  risks as  conventional
shares of the same fund.  In  addition,  VIPER  Shares  are also  subject to the
following risks:

-    The market price of a fund's VIPER Shares will vary  somewhat  from the NAV
     of those  shares.  Therefore,  you may pay more than NAV when buying  VIPER
     Shares and you may receive less than NAV when selling them.

-    VIPER  Shares  cannot be redeemed  with the Fund,  except in Creation  Unit
     aggregations.  Therefore,  if you no longer wish to own VIPER  Shares,  you
     must sell them on the open market. Although VIPER Shares will be listed for
     trading on the AMEX, it is possible that an active  trading  market may not
     develop or be maintained.

-    Trading  of a  fund's  VIPER  Shares  on the  AMEX  may be  halted  if AMEX
     officials  deem such action  appropriate,  the shares are delisted from the
     AMEX, or the activation of marketwide "circuit breakers" (which are tied to
     large decreases in stock prices) halts stock trading generally.

FEES AND EXPENSES

When you buy and sell  VIPER  Shares  through  a  brokerage  firm,  you will pay
commissions  in an amount that will vary  depending  on the firm.  You also will
incur the cost of the "bid-asked  spread,"  which is the difference  between the
price a dealer will pay for a security  and the  somewhat  higher price at which
the dealer will sell the same security.  If you convert from conventional shares
to VIPER Shares, you will not pay a brokerage  commission or a bid-asked spread.
However,  Vanguard charges $50 for each conversion transaction,  and your broker
may impose its own conversion fees as well.

     For the current  fiscal year,  the total  annual  operating  expenses  (the
expense ratio) for each type of VIPER Share are expected to be:

---------------------------------------------------
FUND                        EXPECTED EXPENSE RATIO
---------------------------------------------------
Total Stock Market VIPERs           0.15%
VIPERs                              0.12%
Small-Cap VIPERs                    0.20%
Growth VIPERs                       0.17%
Value VIPERs                        0.17%
---------------------------------------------------

<PAGE>

7

ACCOUNT SERVICES

Because you hold VIPER Shares through a brokerage account, Vanguard will have no
record of your ownership unless you hold the shares through  Vanguard  Brokerage
Service(R).  Your broker will service your account. For example, the broker will
provide account  statements,  confirmations of your purchases and sales of VIPER
Shares,  and year-end tax information.  It also will be responsible for ensuring
that you  receive  shareholder  reports and other  communications  from the fund
whose VIPER Shares you own. You will receive certain  services  (e.g.,  dividend
reinvestment  and average  cost  information)  only if your broker  offers those
services.

CONVERSIONS

Owners of  conventional  shares  issued by one of the  Vanguard  Index Funds may
convert  those  shares into VIPER Shares of  equivalent  value of the same fund.
Note:  Investors who own conventional shares of a Vanguard fund through a 401(k)
plan or other  employer-sponsored  retirement  or benefit  plan may not  convert
those  shares  into  VIPER  Shares.   Vanguard   imposes  a  fee  on  conversion
transactions,  and  your  broker  may  impose  a fee of its  own  to  process  a
conversion  request.  Vanguard  reserves the right,  in the future,  to limit or
terminate the conversion privilege or to raise the amount of the conversion fee.

     To initiate a conversion of conventional shares into VIPER Shares, you must
contact your broker;  your broker, in turn, will contact  Vanguard.  For brokers
that can handle fractional shares,  each full and fractional  conventional share
will be converted into full and fractional VIPER Shares of equivalent value. For
example, if you own 300.250 conventional shares, and this is equivalent in value
to 90.750 VIPER Shares, you will receive 90.750 VIPER Shares.

     Some brokers cannot handle  fractional  shares.  If you intend to hold your
VIPER Shares  through one of these brokers,  the conversion  would be handled in
such a way that you would receive a whole number of VIPER Shares. In the example
above, for instance,  you would convert full and fractional  conventional shares
equivalent  in value to  exactly 90 VIPER  Shares.  The  remaining  conventional
shares  would be  redeemed,  and you would  receive  the cash  proceeds  of that
redemption.  You will realize a gain or loss on the  redemption (in no case more
than the  value of a single  VIPER  Share)  that  must be  reported  on your tax
return. Please consult your broker to determine whether it can handle fractional
VIPER Shares.

     Here are some important points to keep in mind when converting conventional
shares of a Vanguard fund into VIPER Shares:

-    The conversion  transaction is tax-free  except to the extent  conventional
     shares must be sold to avoid the creation of fractional VIPER Shares.

-    The  conversion  process can take  anywhere  from  several  days to several
     weeks, depending on your broker. Vanguard generally will process conversion
     requests,  once  received,  on the  same or  next  business  day,  although
     processing  may  take up to  three  business  days  depending  on when  the
     conversion request is received.

-    Until the conversion process is complete, you will remain fully invested in
     the fund's  conventional  shares,  and your  investment  will  increase  or
     decrease in value in tandem with the net asset value of those shares.

-    During the conversion process, you will be able to liquidate all or part of
     your  investment by instructing  Vanguard or your broker  (depending on who
     maintains  records of your share  ownership)  to redeem  your  conventional
     shares.  After the conversion process is complete,  you would liquidate all
     or part of your  investment by  instructing  your broker to sell your VIPER
     Shares.

<PAGE>

                                                                               8

-    VIPER  Shares,  whether  acquired  through a conversion or purchased on the
     open market, cannot be converted into conventional shares of the same fund.
     Similarly, VIPER Shares of one fund cannot be exchanged for VIPER Shares of
     another fund.

(C)2001 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.                        PS040 022001




© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission