<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923202
<NAME> VANGUARD TAX-MANAGED FUNDS
<SERIES>
<NUMBER> 012
<NAME> VANGUARD TAX-MANAGED GROWTH & INCOME FUND-INSTITUTIONAL SHARES
<MULTIPLIER> 1000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> JUN-30-2000
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1797690
<INVESTMENTS-AT-VALUE> 2547894
<RECEIVABLES> 6305
<ASSETS-OTHER> 482
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2554681
<PAYABLE-FOR-SECURITIES> 7159
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8328
<TOTAL-LIABILITIES> 15487
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1832433
<SHARES-COMMON-STOCK> 3459
<SHARES-COMMON-PRIOR> 3389
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 102
<ACCUMULATED-NET-GAINS> (43341)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 750204
<NET-ASSETS> 109080
<DIVIDEND-INCOME> 13810
<INTEREST-INCOME> 65
<OTHER-INCOME> 23
<EXPENSES-NET> 2126
<NET-INVESTMENT-INCOME> 11772
<REALIZED-GAINS-CURRENT> (18880)
<APPREC-INCREASE-CURRENT> 747
<NET-CHANGE-FROM-OPS> (6361)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 521
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 128
<NUMBER-OF-SHARES-REDEEMED> 63
<SHARES-REINVESTED> 5
<NET-CHANGE-IN-ASSETS> 190981
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (24461)
<OVERDISTRIB-NII-PRIOR> 792
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 25
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2126
<AVERAGE-NET-ASSETS> 106795
<PER-SHARE-NAV-BEGIN> 31.81
<PER-SHARE-NII> 0.170
<PER-SHARE-GAIN-APPREC> (0.289)
<PER-SHARE-DIVIDEND> 0.151
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 31.54
<EXPENSE-RATIO> 0.11
</TABLE>
