VANGUARD INSTITUTIONAL INDEX FUND
NSAR-B, 1999-02-23
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<PAGE>      PAGE  1
000 B000000 12/31/98
000 C000000 0000862084
000 D000000 N
000 E000000 NF
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013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 PHILADELPHIA
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014 A000001 VANGUARD MARKETING CORPORATION
014 B000001 8-21570
015 A000001 FIRST UNION BANK
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020 A000001 BEAR, STEARNS & CO.
020 B000001 13-3299429
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020 A000002 SMITH BARNEY INC.
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020 A000003 INVESTMENT TECHNOLOGY GROUP, INC.
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020 A000006 INSTINET CORPORATION
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020 C000006     83
020 A000007 WEEDEN & COMPANY
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020 A000008 CREDIT SUISSE FIRST BOSTON CORPORATION
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SIGNATURE   GARY P. SOURA                                
TITLE       MANAGER             
 


<TABLE> <S> <C>

<ARTICLE> 6
<RESTATED> 
<CIK> 0000862084
<NAME> VANGUARD INSTITUTIONAL INDEX FUND
<SERIES>
   <NUMBER> 001
   <NAME> VANGUARD INSTITUTIONAL INDEX FUND INSTITUTIONAL SHARES
<MULTIPLIER> 1000
<CURRENCY> US
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               DEC-31-1998
<EXCHANGE-RATE>                                      1
<INVESTMENTS-AT-COST>                         15892268
<INVESTMENTS-AT-VALUE>                        27290519
<RECEIVABLES>                                   411409
<ASSETS-OTHER>                                      75
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                27702003
<PAYABLE-FOR-SECURITIES>                        207985
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       205378
<TOTAL-LIABILITIES>                             413363
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      15782964
<SHARES-COMMON-STOCK>                           197950
<SHARES-COMMON-PRIOR>                           171368
<ACCUMULATED-NII-CURRENT>                         3386
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                         102885
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                      11399405
<NET-ASSETS>                                  22338137
<DIVIDEND-INCOME>                               332038
<INTEREST-INCOME>                                 9477
<OTHER-INCOME>                                     324
<EXPENSES-NET>                                   12055
<NET-INVESTMENT-INCOME>                         329784
<REALIZED-GAINS-CURRENT>                        973438
<APPREC-INCREASE-CURRENT>                      4558793
<NET-CHANGE-FROM-OPS>                          5862015
<EQUALIZATION>                                       0
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<DISTRIBUTIONS-OF-GAINS>                        173026
<DISTRIBUTIONS-OTHER>                                0
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<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  12055
<AVERAGE-NET-ASSETS>                          18260140
<PER-SHARE-NAV-BEGIN>                            89.56
<PER-SHARE-NII>                                  1.429
<PER-SHARE-GAIN-APPREC>                         24.177
<PER-SHARE-DIVIDEND>                             1.416
<PER-SHARE-DISTRIBUTIONS>                        0.900
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                             112.85
<EXPENSE-RATIO>                                   0.06
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<RESTATED> 
<CIK> 0000862084
<NAME> VANGUARD INSTITUTIONAL INDEX FUND
<SERIES>
   <NUMBER> 002
   <NAME> VANGUARD INSTITUTIONAL INDEX FUND PLUS SHARES
<MULTIPLIER> 1000
<CURRENCY> US
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               DEC-31-1998
<EXCHANGE-RATE>                                      1
<INVESTMENTS-AT-COST>                         15892268
<INVESTMENTS-AT-VALUE>                        27290519
<RECEIVABLES>                                   411409
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<TOTAL-ASSETS>                                27702003
<PAYABLE-FOR-SECURITIES>                        207985
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       205378
<TOTAL-LIABILITIES>                             413363
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                      15782964
<SHARES-COMMON-STOCK>                            43868
<SHARES-COMMON-PRIOR>                            38945
<ACCUMULATED-NII-CURRENT>                         3386
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                         102885
<OVERDISTRIBUTION-GAINS>                             0
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<NET-ASSETS>                                   4950503
<DIVIDEND-INCOME>                               332038
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<OTHER-INCOME>                                     324
<EXPENSES-NET>                                   12055
<NET-INVESTMENT-INCOME>                         329784
<REALIZED-GAINS-CURRENT>                        973438
<APPREC-INCREASE-CURRENT>                      4558793
<NET-CHANGE-FROM-OPS>                          5862015
<EQUALIZATION>                                       0
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<DISTRIBUTIONS-OTHER>                                0
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<NUMBER-OF-SHARES-REDEEMED>                      12964
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<AVERAGE-NET-ASSETS>                           4156492
<PER-SHARE-NAV-BEGIN>                            89.56
<PER-SHARE-NII>                                  1.464
<PER-SHARE-GAIN-APPREC>                         24.177
<PER-SHARE-DIVIDEND>                             1.451
<PER-SHARE-DISTRIBUTIONS>                        0.900
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<EXPENSE-RATIO>                                  0.025
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<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


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