<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000734383
<NAME> VANGUARD SPECIALIZED FUNDS
<SERIES>
<NUMBER> 07
<NAME> VANGUARD REIT INDEX FUND
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-2001
<PERIOD-START> FEB-01-2000
<PERIOD-END> JUL-31-2000
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1022898
<INVESTMENTS-AT-VALUE> 1065602
<RECEIVABLES> 7816
<ASSETS-OTHER> 183
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1073601
<PAYABLE-FOR-SECURITIES> 3529
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1863
<TOTAL-LIABILITIES> 5392
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1091919
<SHARES-COMMON-STOCK> 90650
<SHARES-COMMON-PRIOR> 89552
<ACCUMULATED-NII-CURRENT> 320
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (66734)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 42704
<NET-ASSETS> 1068209
<DIVIDEND-INCOME> 29251
<INTEREST-INCOME> 551
<OTHER-INCOME> 27
<EXPENSES-NET> 1535
<NET-INVESTMENT-INCOME> 28294
<REALIZED-GAINS-CURRENT> (18756)
<APPREC-INCREASE-CURRENT> 179541
<NET-CHANGE-FROM-OPS> 189079
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 27459
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16597
<NUMBER-OF-SHARES-REDEEMED> 17722
<SHARES-REINVESTED> 2223
<NET-CHANGE-IN-ASSETS> 180587
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (45297)
<OVERDISTRIB-NII-PRIOR> 515
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1537
<AVERAGE-NET-ASSETS> 917651
<PER-SHARE-NAV-BEGIN> 9.91
<PER-SHARE-NII> 0.33
<PER-SHARE-GAIN-APPREC> 1.86
<PER-SHARE-DIVIDEND> 0.32
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.78
<EXPENSE-RATIO> 0.34
</TABLE>