VANGUARD INTERNATIONAL EQUITY INDEX FUND INC
497, 1996-11-25
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                 VANGUARD INTERNATIONAL EQUITY INDEX FUND, INC.
                               VANGUARD STAR FUND
                              PROSPECTUS SUPPLEMENT

                                NOVEMBER 26, 1996

Effective January 1, 1997, the 2% transaction fee deducted from purchases of
shares of the Emerging Markets Portfolio will be reduced to 1.5%; the 1%
transaction fee deducted from purchases of shares of the Total International
Portfolio will be reduced to 0.75%; and the 1% transaction fee deducted from
purchases of shares of the Pacific Portfolio will be reduced to 0.5%. The 1%
transaction fee for the European Portfolio will remain unchanged.
         The transaction fee is paid directly to the Portfolio, not to Vanguard,
to offset the costs of purchasing certain securities; it is not a sales charge.


                                                                           PS72A
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                              VANGUARD INDEX TRUST
                 VANGUARD INTERNATIONAL EQUITY INDEX FUND, INC.
                               VANGUARD STAR FUND

                              PROSPECTUS SUPPLEMENT

                                NOVEMBER 26, 1996

Effective January 1, 1997, the transaction fees for several Vanguard Portfolios
will be reduced:

      -     The 1% transaction fee deducted from purchases of shares of Vanguard
            Index Trust-Small Capitalization Stock Portfolio will be reduced to
            0.5%.

      -     The 1% transaction fee deducted from purchases of shares of Vanguard
            International Equity Index Fund-Pacific Portfolio will be reduced to
            0.5%.

      -     The 2% transaction fee deducted from purchases of shares of Vanguard
            International Equity Index Fund-Emerging Markets Portfolio will be
            reduced to 1.5%.

      -     The 1% transaction fee deducted from purchases of shares of Vanguard
            Total International Portfolio will be reduced to 0.75%.

         The 0.5% transaction fee for Vanguard Index Trust-Extended Market
Portfolio and the 1% transaction fee for Vanguard International Equity Index
Fund-European Portfolio will remain unchanged.

         The transaction fee is paid directly to the Portfolio, not to Vanguard,
to offset the costs of purchasing certain securities; it is not a sales charge.


                                                                           PS009


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