<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923202
<NAME> VANGUARD TAX-MANAGED FUNDS
<SERIES>
<NUMBER> 022
<NAME> VANGUARD TAX-MANAGED CAPITAL APPRECIATION 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> 1758027
<INVESTMENTS-AT-VALUE> 3041549
<RECEIVABLES> 115261
<ASSETS-OTHER> 557
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3157367
<PAYABLE-FOR-SECURITIES> 123489
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 21978
<TOTAL-LIABILITIES> 145467
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1790994
<SHARES-COMMON-STOCK> 5419
<SHARES-COMMON-PRIOR> 4834
<ACCUMULATED-NII-CURRENT> 3853
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (66469)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1283522
<NET-ASSETS> 190856
<DIVIDEND-INCOME> 6585
<INTEREST-INCOME> 134
<OTHER-INCOME> 374
<EXPENSES-NET> 2429
<NET-INVESTMENT-INCOME> 4664
<REALIZED-GAINS-CURRENT> (14017)
<APPREC-INCREASE-CURRENT> 97243
<NET-CHANGE-FROM-OPS> 87890
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 585
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 468350
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (52452)
<OVERDISTRIB-NII-PRIOR> 811
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 25
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2432
<AVERAGE-NET-ASSETS> 180701
<PER-SHARE-NAV-BEGIN> 34.18
<PER-SHARE-NII> 0.070
<PER-SHARE-GAIN-APPREC> 0.970
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 35.22
<EXPENSE-RATIO> 0.10
</TABLE>
