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                             THE VANGUARD GROUP LOGO

                              VANGUARD INDEX FUNDS
   SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED APRIL 28, 2003

Effective  May 14,  2003,  the  following  text  is  added  to page  B-16 of the
Investment Policies section in the Statement of Additional Information:

INVESTMENT  POLICY  RELATING TO THE SALE OF  VANGUARD(R)  GROWTH AND VALUE INDEX
FUNDS IN JAPAN:  Each Fund may borrow money for temporary or emergency  purposes
only in an amount  not to exceed 10% of the  Fund's  net  assets.  Each Fund may
borrow  money  through  banks,  reverse  repurchase  agreements,  or  Vanguard's
interfund  lending program only, and must comply with all applicable  regulatory
conditions.  Each  Fund may not make any  additional  investments  whenever  its
outstanding borrowings exceed 5% of net assets.



























(C)2003 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.                              052003