<PAGE> PAGE 1
000 A000000 06/30/98
000 C000000 0000923202
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 VANGUARD TAX-MANAGED FUND
001 B000000 811-07175
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 Y
007 B000000 3
007 C010100 1
007 C020100 GROWTH AND INCOME PORTFOLIO
007 C030100 N
007 C010200 2
007 C020200 CAPITAL APPRECIATION PORTFOLIO
007 C030200 N
007 C010300 3
007 C020300 BALANCED PORTFOLIO
007 C030300 N
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
014 A00AA01 VANGUARD MARKETING CORPORATION
014 B00AA01 8-21570
015 A00AA01 THE CHASE MANHATTAN BANK, N.A.
015 B00AA01 C
015 C01AA01 BROOKLYN
015 C02AA01 NY
015 C03AA01 11245
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 97
019 C00AA00 VANGUARDGR
020 A000001 INVESTMENT TECHNOLOGY GROUP, INC.
<PAGE> PAGE 2
020 B000001 95-4339369
020 C000001 53
020 A000002 PAINEWEBBER INCORPORATED
020 B000002 13-2638166
020 C000002 37
020 A000003 INSTINET CORP.
020 B000003 13-3443395
020 C000003 12
020 A000004 SMITH BARNEY SALOMON
020 B000004 13-1912900
020 C000004 11
020 A000005 BEAR, STEARNS & CO., INC.
020 B000005 13-3299429
020 C000005 9
020 A000006 NOMURA SECURITIES INTL.,INC.
020 B000006 13-2642206
020 C000006 7
020 A000007 WEEDEN & COMPANY
020 B000007 13-3364318
020 C000007 5
020 A000008 MORGAN STANLEY & CO.,INC.
020 B000008 13-2655998
020 C000008 3
020 A000009 CANTOR FITZGERALD & CO.
020 B000009 13-3680184
020 C000009 3
020 A000010 CREDIT SUISSE FIRST BOSTON CORP.
020 B000010 13-5659485
020 C000010 3
021 000000 146
022 A000001 THE VANGUARD GROUP, INC./POOLED CASH ACCT.
022 B000001 23-1945930
022 C000001 187708
022 D000001 190719
022 A000002 TROSTER SINGER
022 B000002 13-5515160
022 C000002 55481
022 D000002 289
022 A000003 VANGUARD SMALL CAPITALIZATION STOCK PORTFOLIO
022 B000003 52-0794097
022 C000003 6415
022 D000003 18733
022 A000004 VANGUARD FLORIDA INSURED TAX FREE FUND
022 B000004 23-2687102
022 C000004 5125
022 D000004 4220
022 A000005 500 PORTFOLIO/VANGUARD INDEX TRUST
022 B000005 23-1999755
022 C000005 331
022 D000005 8392
022 A000006 MONEY MARKET PORTFOLIO/VANGUARD MUNI BOND
<PAGE> PAGE 3
022 B000006 23-2471394
022 C000006 3730
022 D000006 4775
022 A000007 BEAR STERNS SECURITIES CORP.
022 B000007 13-3299429
022 C000007 8179
022 D000007 8
022 A000008 INTERMEDIATE TERM PORTFOLIO/VANGUARD MUNI BD
022 B000008 23-2471389
022 C000008 5567
022 D000008 25
022 A000009 LONG-TERM/VANGUARD MUNI BOND
022 B000009 23-2471391
022 C000009 3015
022 D000009 2515
022 A000010 VANGUARD NEW YORK INSURED TAX FREE FUND
022 B000010 23-2388559
022 C000010 1810
022 D000010 3485
023 C000000 324092
023 D000000 264801
024 00AA00 Y
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 Y
026 H000000 N
027 000000 Y
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
031 A00AA00 0
031 B00AA00 0
032 00AA00 0
033 00AA00 0
034 00AA00 N
035 00AA00 0
036 B00AA00 0
042 A00AA00 0
042 B00AA00 0
042 C00AA00 0
042 D00AA00 0
042 E00AA00 0
042 F00AA00 0
042 G00AA00 0
042 H00AA00 0
<PAGE> PAGE 4
043 00AA00 0
044 00AA00 0
045 00AA00 N
048 00AA00 0.000
048 A01AA00 0
048 A02AA00 0.000
048 B01AA00 0
048 B02AA00 0.000
048 C01AA00 0
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 0
048 K02AA00 0.000
055 A00AA00 N
055 B00AA00 N
056 00AA00 N
057 00AA00 N
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 10000
062 A00AA00 N
062 B00AA00 0.0
062 C00AA00 0.0
062 D00AA00 0.0
062 E00AA00 0.0
062 F00AA00 0.0
062 G00AA00 0.0
062 H00AA00 0.0
062 I00AA00 0.0
062 J00AA00 0.0
062 K00AA00 0.0
062 L00AA00 0.0
062 M00AA00 0.0
062 N00AA00 0.0
062 O00AA00 0.0
062 P00AA00 0.0
<PAGE> PAGE 5
062 Q00AA00 0.0
062 R00AA00 0.0
063 A00AA00 0
063 B00AA00 0.0
077 A000000 Y
077 B000000 N
077 C000000 Y
077 D000000 Y
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 ICI MUTUAL INSURANCE COMPANY
080 C00AA00 300000
081 A00AA00 Y
081 B00AA00 106
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
025 A000101 MORGAN STANLEY DEAN WITTER & CO.
025 B000101 13-2655998
025 C000101 E
<PAGE> PAGE 6
025 D000101 6112
025 A000102 MERRILL LYNCH & CO.
025 B000102 13-5674085
025 C000102 E
025 D000102 3551
025 A000103 J.P. MORGAN
025 B000103 13-3224016
025 C000103 E
025 D000103 2314
025 D000104 0
025 D000105 0
025 D000106 0
025 D000107 0
025 D000108 0
028 A010100 47145
028 A020100 0
028 A030100 0
028 A040100 7651
028 B010100 50343
028 B020100 0
028 B030100 0
028 B040100 5178
028 C010100 63002
028 C020100 1607
028 C030100 0
028 C040100 1525
028 D010100 60687
028 D020100 0
028 D030100 0
028 D040100 1235
028 E010100 37072
028 E020100 0
028 E030100 0
028 E040100 1428
028 F010100 54534
028 F020100 2241
028 F030100 0
028 F040100 1247
028 G010100 312783
028 G020100 3848
028 G030100 0
028 G040100 18264
028 H000100 0
037 000100 Y
038 000100 170
039 000100 N
040 000100 N
066 A000100 Y
066 B000100 N
066 C000100 N
066 D000100 N
<PAGE> PAGE 7
066 E000100 Y
066 F000100 N
066 G000100 N
067 000100 N
068 A000100 N
068 B000100 N
069 000100 Y
070 A010100 Y
070 A020100 Y
070 B010100 Y
070 B020100 N
070 C010100 N
070 C020100 N
070 D010100 Y
070 D020100 N
070 E010100 N
070 E020100 N
070 F010100 Y
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 Y
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 N
070 K010100 Y
070 K020100 N
070 L010100 Y
070 L020100 Y
070 M010100 N
070 M020100 N
070 N010100 Y
070 N020100 Y
070 O010100 Y
070 O020100 N
070 P010100 Y
070 P020100 Y
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 315426
071 B000100 16902
071 C000100 788528
071 D000100 2
072 A000100 6
072 B000100 110
072 C000100 5860
072 D000100 0
<PAGE> PAGE 8
072 E000100 0
072 F000100 9
072 G000100 310
072 H000100 0
072 I000100 178
072 J000100 40
072 K000100 0
072 L000100 8
072 M000100 1
072 N000100 0
072 O000100 28
072 P000100 0
072 Q000100 0
072 R000100 4
072 S000100 0
072 T000100 90
072 U000100 0
072 V000100 1
072 W000100 0
072 X000100 669
072 Y000100 0
072 Z000100 5301
072AA000100 1203
072BB000100 3508
072CC010100 118644
072CC020100 0
072DD010100 4843
072DD020100 0
072EE000100 0
073 A010100 0.1300
073 A020100 0.0000
073 B000100 0.0000
073 C000100 0.0000
074 A000100 46
074 B000100 3720
074 C000100 0
074 D000100 0
074 E000100 0
074 F000100 995102
074 G000100 0
074 H000100 0
074 I000100 175
074 J000100 107
074 K000100 0
074 L000100 4300
074 M000100 0
074 N000100 1003450
074 O000100 8161
074 P000100 111
074 Q000100 0
074 R010100 0
<PAGE> PAGE 9
074 R020100 0
074 R030100 0
074 R040100 722
074 S000100 0
074 T000100 994456
074 U010100 40674
074 U020100 0
074 V010100 24.45
074 V020100 0.00
074 W000100 0.0000
074 X000100 16937
074 Y000100 0
075 A000100 0
075 B000100 788457
076 000100 0.00
025 A000201 MORGAN STANLEY DEAN WITTER & CO.
025 B000201 13-2655998
025 C000201 E
025 D000201 7712
025 A000202 MERRILL LYNCH & CO.
025 B000202 13-5674085
025 C000202 E
025 D000202 5369
025 A000203 LEHMAN BROTHERS HOLDINGS,INC.
025 B000203 13-2518466
025 C000203 E
025 D000203 2497
028 A010200 35948
028 A020200 0
028 A030200 0
028 A040200 6062
028 B010200 32733
028 B020200 0
028 B030200 0
028 B040200 3020
028 C010200 36250
028 C020200 0
028 C030200 0
028 C040200 2042
028 D010200 39883
028 D020200 0
028 D030200 0
028 D040200 2419
028 E010200 26778
028 E020200 0
028 E030200 0
028 E040200 1855
028 F010200 24933
028 F020200 0
028 F030200 0
028 F040200 1536
<PAGE> PAGE 10
028 G010200 196525
028 G020200 0
028 G030200 0
028 G040200 16934
028 H000200 0
037 000200 Y
038 000200 186
039 000200 N
040 000200 N
066 A000200 Y
066 B000200 N
066 C000200 Y
066 D000200 N
066 E000200 N
066 F000200 N
066 G000200 N
067 000200 N
068 A000200 N
068 B000200 N
069 000200 Y
070 A010200 Y
070 A020200 Y
070 B010200 Y
070 B020200 N
070 C010200 N
070 C020200 N
070 D010200 Y
070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 Y
070 F020200 N
070 G010200 Y
070 G020200 N
070 H010200 Y
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 N
070 K010200 Y
070 K020200 N
070 L010200 Y
070 L020200 Y
070 M010200 N
070 M020200 N
070 N010200 Y
070 N020200 Y
070 O010200 Y
070 O020200 N
070 P010200 Y
<PAGE> PAGE 11
070 P020200 Y
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 226538
071 B000200 40480
071 C000200 1083922
071 D000200 4
072 A000200 6
072 B000200 260
072 C000200 4134
072 D000200 0
072 E000200 0
072 F000200 9
072 G000200 525
072 H000200 0
072 I000200 189
072 J000200 19
072 K000200 0
072 L000200 10
072 M000200 1
072 N000200 0
072 O000200 40
072 P000200 0
072 Q000200 0
072 R000200 4
072 S000200 0
072 T000200 124
072 U000200 0
072 V000200 1
072 W000200 0
072 X000200 922
072 Y000200 0
072 Z000200 3472
072AA000200 5608
072BB000200 13095
072CC010200 170684
072CC020200 0
072DD010200 0
072DD020200 0
072EE000200 0
073 A010200 0.0000
073 A020200 0.0000
073 B000200 0.0000
073 C000200 0.0000
074 A000200 0
074 B000200 17484
074 C000200 0
074 D000200 0
074 E000200 0
<PAGE> PAGE 12
074 F000200 1241401
074 G000200 0
074 H000200 0
074 I000200 231
074 J000200 18910
074 K000200 0
074 L000200 3356
074 M000200 0
074 N000200 1281382
074 O000200 26360
074 P000200 192
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 16063
074 S000200 0
074 T000200 1238767
074 U010200 52307
074 U020200 0
074 V010200 23.68
074 V020200 0.00
074 W000200 0.0000
074 X000200 15337
074 Y000200 0
075 A000200 0
075 B000200 1083313
076 000200 0.00
025 A000301 MORGAN STANLEY DEAN WITTER & CO.
025 B000301 13-2655998
025 C000301 E
025 D000301 464
025 A000302 MERRILL LYNCH & CO.,INC.
025 B000302 13-5674085
025 C000302 E
025 D000302 221
028 A010300 6911
028 A020300 0
028 A030300 0
028 A040300 318
028 B010300 5657
028 B020300 0
028 B030300 0
028 B040300 442
028 C010300 7375
028 C020300 663
028 C030300 0
028 C040300 431
028 D010300 6743
028 D020300 0
028 D030300 0
<PAGE> PAGE 13
028 D040300 724
028 E010300 6627
028 E020300 0
028 E030300 0
028 E040300 486
028 F010300 6336
028 F020300 739
028 F030300 0
028 F040300 374
028 G010300 39649
028 G020300 1402
028 G030300 0
028 G040300 2775
028 H000300 0
037 000300 Y
038 000300 26
039 000300 N
040 000300 N
066 A000300 Y
066 B000300 N
066 C000300 N
066 D000300 N
066 E000300 Y
066 F000300 N
066 G000300 N
067 000300 Y
068 A000300 N
068 B000300 N
069 000300 N
070 A010300 Y
070 A020300 N
070 B010300 Y
070 B020300 N
070 C010300 Y
070 C020300 N
070 D010300 Y
070 D020300 N
070 E010300 Y
070 E020300 N
070 F010300 Y
070 F020300 N
070 G010300 Y
070 G020300 N
070 H010300 Y
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 N
070 K010300 Y
070 K020300 N
<PAGE> PAGE 14
070 L010300 Y
070 L020300 Y
070 M010300 N
070 M020300 N
070 N010300 Y
070 N020300 Y
070 O010300 Y
070 O020300 N
070 P010300 Y
070 P020300 Y
070 Q010300 N
070 Q020300 N
070 R010300 N
070 R020300 N
071 A000300 40427
071 B000300 3444
071 C000300 137801
071 D000300 3
072 A000300 6
072 B000300 1783
072 C000300 250
072 D000300 0
072 E000300 0
072 F000300 13
072 G000300 39
072 H000300 0
072 I000300 37
072 J000300 5
072 K000300 0
072 L000300 2
072 M000300 0
072 N000300 0
072 O000300 5
072 P000300 0
072 Q000300 0
072 R000300 4
072 S000300 0
072 T000300 18
072 U000300 0
072 V000300 0
072 W000300 0
072 X000300 123
072 Y000300 0
072 Z000300 1910
072AA000300 328
072BB000300 1064
072CC010300 11715
072CC020300 0
072DD010300 1588
072DD020300 0
072EE000300 0
<PAGE> PAGE 15
073 A010300 0.1600
073 A020300 0.0000
073 B000300 0.0000
073 C000300 0.0000
074 A000300 4
074 B000300 0
074 C000300 10768
074 D000300 79713
074 E000300 0
074 F000300 81230
074 G000300 0
074 H000300 0
074 I000300 28
074 J000300 1384
074 K000300 0
074 L000300 2193
074 M000300 0
074 N000300 175320
074 O000300 5438
074 P000300 50
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 490
074 S000300 0
074 T000300 169342
074 U010300 10640
074 U020300 0
074 V010300 15.92
074 V020300 0.00
074 W000300 0.0000
074 X000300 3311
074 Y000300 0
075 A000300 0
075 B000300 145396
076 000300 0.00
SIGNATURE GARY P. SOURA
TITLE MANAGER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923202
<NAME> VANGUARD TAX MANAGED FUND
<SERIES>
<NUMBER> 1
<NAME> GROWTH & INCOME PORTFOLIO
<MULTIPLIER> 1000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 726764
<INVESTMENTS-AT-VALUE> 998822
<RECEIVABLES> 4407
<ASSETS-OTHER> 221
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1003450
<PAYABLE-FOR-SECURITIES> 8161
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 833
<TOTAL-LIABILITIES> 8994
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 725967
<SHARES-COMMON-STOCK> 40674
<SHARES-COMMON-PRIOR> 27742
<ACCUMULATED-NII-CURRENT> 392
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3961)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 272058
<NET-ASSETS> 994456
<DIVIDEND-INCOME> 5860
<INTEREST-INCOME> 110
<OTHER-INCOME> 0
<EXPENSES-NET> 669
<NET-INVESTMENT-INCOME> 5301
<REALIZED-GAINS-CURRENT> (2305)
<APPREC-INCREASE-CURRENT> 118644
<NET-CHANGE-FROM-OPS> 121640
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4843
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13632
<NUMBER-OF-SHARES-REDEEMED> 860
<SHARES-REINVESTED> 160
<NET-CHANGE-IN-ASSETS> 415164
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1656)
<OVERDISTRIB-NII-PRIOR> 66
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 669
<AVERAGE-NET-ASSETS> 788457
<PER-SHARE-NAV-BEGIN> 20.88
<PER-SHARE-NII> 0.14
<PER-SHARE-GAIN-APPREC> 3.56
<PER-SHARE-DIVIDEND> 0.13
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 24.45
<EXPENSE-RATIO> 0.17
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923202
<NAME> VANGUARD TAX MANAGED FUND
<SERIES>
<NUMBER> 2
<NAME> CAPITAL APPRECIATION PORTFOLIO
<MULTIPLIER> 1000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 799859
<INVESTMENTS-AT-VALUE> 1258885
<RECEIVABLES> 22266
<ASSETS-OTHER> 231
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1281382
<PAYABLE-FOR-SECURITIES> 26360
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 16255
<TOTAL-LIABILITIES> 42615
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 801558
<SHARES-COMMON-STOCK> 52307
<SHARES-COMMON-PRIOR> 44231
<ACCUMULATED-NII-CURRENT> 3144
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (24961)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 459026
<NET-ASSETS> 1238767
<DIVIDEND-INCOME> 4134
<INTEREST-INCOME> 260
<OTHER-INCOME> 0
<EXPENSES-NET> 922
<NET-INVESTMENT-INCOME> 3472
<REALIZED-GAINS-CURRENT> (7487)
<APPREC-INCREASE-CURRENT> 170684
<NET-CHANGE-FROM-OPS> 166669
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8869
<NUMBER-OF-SHARES-REDEEMED> 793
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 346260
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (17474)
<OVERDISTRIB-NII-PRIOR> 328
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 922
<AVERAGE-NET-ASSETS> 1083313
<PER-SHARE-NAV-BEGIN> 20.18
<PER-SHARE-NII> 0.07
<PER-SHARE-GAIN-APPREC> 3.43
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 23.68
<EXPENSE-RATIO> 0.17
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923202
<NAME> VANGUARD TAX MANAGED FUND
<SERIES>
<NUMBER> 3
<NAME> BALANCED PORTFOLIO
<MULTIPLIER> 1000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 138020
<INVESTMENTS-AT-VALUE> 171711
<RECEIVABLES> 3577
<ASSETS-OTHER> 32
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 175320
<PAYABLE-FOR-SECURITIES> 5438
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 540
<TOTAL-LIABILITIES> 5978
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 136911
<SHARES-COMMON-STOCK> 10640
<SHARES-COMMON-PRIOR> 8163
<ACCUMULATED-NII-CURRENT> 270
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1530)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 33691
<NET-ASSETS> 169342
<DIVIDEND-INCOME> 250
<INTEREST-INCOME> 1783
<OTHER-INCOME> 0
<EXPENSES-NET> 123
<NET-INVESTMENT-INCOME> 1910
<REALIZED-GAINS-CURRENT> (736)
<APPREC-INCREASE-CURRENT> 11715
<NET-CHANGE-FROM-OPS> 12889
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1588
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2569
<NUMBER-OF-SHARES-REDEEMED> 181
<SHARES-REINVESTED> 89
<NET-CHANGE-IN-ASSETS> 49577
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (794)
<OVERDISTRIB-NII-PRIOR> 52
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 13
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 123
<AVERAGE-NET-ASSETS> 145396
<PER-SHARE-NAV-BEGIN> 14.67
<PER-SHARE-NII> 0.20
<PER-SHARE-GAIN-APPREC> 1.21
<PER-SHARE-DIVIDEND> 0.16
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.92
<EXPENSE-RATIO> 0.17
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
