VANGUARD INSTITUTIONAL INDEX FUND
NSAR-B, 1998-02-20
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<PAGE>      PAGE  1
000 B000000 12/31/97
000 C000000 0000862084
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
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000 I000000 3.0.a
000 J000000 U
001 A000000 VANGUARD INSTITUTIONAL INDEX FUND
001 B000000 811-6093
001 C000000 6106691000
002 A000000 100 VANGUARD BOULEVARD
002 B000000 MALVERN
002 C000000 PA
002 D010000 19355
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 N
007 B000000  0
014 A000001 VANGUARD MARKETING CORPORATION
014 B000001 8-21570
018  000000 Y
019 A000000 Y
019 B000000   94
019 C000000 VANGUARDGR
020 A000001 PAINEWEBBER INCORPORATED
020 B000001 13-2638166
020 C000001    178
020 A000002 BEAR, STEARNS & CO.
020 B000002 13-3299429
020 C000002    172
020 A000003 SMITH BARNEY/SALOMON
020 B000003 13-1912900
020 C000003    121
020 A000004 INVESTMENT TECHNOLOGY GROUP, INC.
020 B000004 95-4339369
020 C000004    110
020 A000005 INSTINET CORPORATION
020 B000005 13-3443395
020 C000005     71
020 A000006 MERRILL LYNCH PIERCE FENNER & SMITH
020 B000006 13-5674085
020 C000006     32
020 A000007 MORGAN STANLEY & CO., INC.
020 B000007 13-2655998
020 C000007     29
020 A000008 NOMURA SECURITIES INTERNATIONAL INC.
020 B000008 13-2642206
<PAGE>      PAGE  2
020 C000008     28
020 A000009 GOLDMAN SACHS & CO.
020 B000009 13-5108880
020 C000009     12
020 A000010 CANTOR FITZGERALD & CO.
020 B000010 13-3680184
020 C000010     11
021  000000      821
022 A000001 THE VANGUARD GROUP, INC./POOLED CASH ACCOUNT
022 B000001 23-1945930
022 C000001   2239866
022 D000001   1978754
022 A000002 500 PORTFOLIO/VANGUARD INDEX TRUST
022 B000002 23-1999755
022 C000002         0
022 D000002    303599
022 A000003 LEHMAN BROTHERS INC.
022 B000003 13-2518466
022 C000003       649
022 D000003    151583
022 A000004 TROSTER SINGER
022 B000004 13-5515160
022 C000004    134403
022 D000004     13958
022 A000005 NOMURA SECURITIES INTERNATIONAL INC.
022 B000005 13-2642206
022 C000005    132517
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022 C000006     66407
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022 B000007 23-2482430
022 C000007     26563
022 D000007      7066
022 A000008 CONRAIL, INC.
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022 A000009 VALUE PORTFOLIO/VANGUARD INDEX TRUST
022 B000009 23-2695173
022 C000009        25
022 D000009     17838
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022 C000010     17358
022 D000010       499
023 C000000    2650792
023 D000000    2556398
024  000000 Y
025 A000001 MERRILL LYNCH & CO., INC.
<PAGE>      PAGE  3
025 B000001 13-5674085
025 C000001 E
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025 A000002 MORGAN STANLEY, DEAN WITTER, DISCOVER & CO.
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<PAGE>      PAGE  6
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SIGNATURE   GARY P. SOURA                                
TITLE       MANAGER             
 


<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000862084
<NAME> VANGUARD INSTITUTIONAL INDEX FUND
<SERIES>
   <NUMBER> 001
   <NAME> INSTITUTIONAL SHARES
<MULTIPLIER> 1,000
<CURRENCY> US
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               DEC-31-1997
<EXCHANGE-RATE>                                      1
<INVESTMENTS-AT-COST>                         12134784
<INVESTMENTS-AT-VALUE>                        18975217
<RECEIVABLES>                                   578376
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                19553593
<PAYABLE-FOR-SECURITIES>                        510104
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       207682
<TOTAL-LIABILITIES>                             717786
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      11962015
<SHARES-COMMON-STOCK>                           171368
<SHARES-COMMON-PRIOR>                           165942
<ACCUMULATED-NII-CURRENT>                           93
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          33087
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                       6840612
<NET-ASSETS>                                  15347841
<DIVIDEND-INCOME>                               270560
<INTEREST-INCOME>                                10977
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    8915
<NET-INVESTMENT-INCOME>                         272622
<REALIZED-GAINS-CURRENT>                        270779
<APPREC-INCREASE-CURRENT>                      3767863
<NET-CHANGE-FROM-OPS>                          4311264
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                       244664
<DISTRIBUTIONS-OF-GAINS>                        122571
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                          71347
<NUMBER-OF-SHARES-REDEEMED>                      69894
<SHARES-REINVESTED>                               3973
<NET-CHANGE-IN-ASSETS>                         7409392
<ACCUMULATED-NII-PRIOR>                          10130
<ACCUMULATED-GAINS-PRIOR>                        26442
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   8915
<AVERAGE-NET-ASSETS>                          14052122
<PER-SHARE-NAV-BEGIN>                            68.86
<PER-SHARE-NII>                                  1.391
<PER-SHARE-GAIN-APPREC>                         21.415
<PER-SHARE-DIVIDEND>                             1.391
<PER-SHARE-DISTRIBUTIONS>                        0.715
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              89.56
<EXPENSE-RATIO>                                   0.06
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000862084
<NAME> VANGUARD INSTITUTIONAL INDEX FUND
<SERIES>
   <NUMBER> 002
   <NAME> INSTITUTIONAL PLUS SHARES
<MULTIPLIER> 1,000
<CURRENCY> US
       
<S>                             <C>
<PERIOD-TYPE>                   OTHER
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JUL-07-1997
<PERIOD-END>                               DEC-31-1997
<EXCHANGE-RATE>                                      1
<INVESTMENTS-AT-COST>                         12134784
<INVESTMENTS-AT-VALUE>                        18975217
<RECEIVABLES>                                   578376
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                19553593
<PAYABLE-FOR-SECURITIES>                        510104
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       207682
<TOTAL-LIABILITIES>                             717786
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      11962015
<SHARES-COMMON-STOCK>                            38945
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                           93
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          33087
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                       6840612
<NET-ASSETS>                                   3487966
<DIVIDEND-INCOME>                               270560
<INTEREST-INCOME>                                10977
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                    8915
<NET-INVESTMENT-INCOME>                         272622
<REALIZED-GAINS-CURRENT>                        270779
<APPREC-INCREASE-CURRENT>                      3767863
<NET-CHANGE-FROM-OPS>                          4311264
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        27865
<DISTRIBUTIONS-OF-GAINS>                         20702
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                          39499
<NUMBER-OF-SHARES-REDEEMED>                       1113
<SHARES-REINVESTED>                                559
<NET-CHANGE-IN-ASSETS>                         7409392
<ACCUMULATED-NII-PRIOR>                          10130
<ACCUMULATED-GAINS-PRIOR>                        26442
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                   8915
<AVERAGE-NET-ASSETS>                           2469948
<PER-SHARE-NAV-BEGIN>                            84.91
<PER-SHARE-NII>                                  0.681
<PER-SHARE-GAIN-APPREC>                          5.455
<PER-SHARE-DIVIDEND>                             0.866
<PER-SHARE-DISTRIBUTIONS>                        0.620
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              89.56
<EXPENSE-RATIO>                                  0.025
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


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