VANGUARG INTERNATIONAL INDEX PORTFOLIOS
PROSPECTUS SUPPLEMENT
OCTOBER 7, 1997
After the close of business on November 28, 1997, the benchmark indexes for the
Emerging Markets and European Portfolios of Vanguard International Equity Index
Fund will undergo minor changes.
The Emerging Markets Portfolio's benchmark index--the Morgan Stanley
Capital International Select Emerging Markets Free Index--will add securities
from the Czech Republic, Hungary, and Poland to reflect the increased levels of
liquidity and market capitalization achieved by these markets. At the same time,
securities from Portugal will be removed from the MSCI Select Emerging Markets
Free Index and added to the European Portfolio's benchmark index, the MSCI
Europe Index; this change reflects Portugal's economic maturity and stability.
Previously, Portuguese securities had made up approximately 3.5% of the
Emerging Markets Portfolio's benchmark index. Based on market capitalization as
of August 29, 1997, the MSCI Select Emerging Markets Free Index's change and
subsequent rebalancing is expected to give the Index an Eastern European
exposure of approximately 2.6% (1.2%, 0.7%,, and 0.7%, respectively, in stocks
from the Czech Republic, Hungary, and Poland). Portugal's addition to the MSCI
Europe Index will represent approximately 0.77% of the Index's total
capitalization.
PS72A
