N-CSR 1 form078.htm ANNUAL REPORT form078
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549

FORM N-CSR 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT 
INVESTMENT COMPANIES

Investment Company Act file number    811-5883 

Dreyfus Index Funds, Inc.
(Exact name of Registrant as specified in charter) 

c/o The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
(Address of principal executive offices) (Zip code) 
 
Mark N. Jacobs, Esq.
200 Park Avenue
New York, New York 10166
(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 922-6000

Date of fiscal year end: 10/31

Date of reporting period: 10/31/04

FORM N-CSR 

Item 1. Reports to Stockholders.

Dreyfus International Stock Index Fund

  ANNUAL REPORT October 31, 2004

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents
 
    THE FUND 
2    Letter from the Chairman 
3    Discussion of Fund Performance 
6    Fund Performance 
7    Understanding Your Fund’s Expenses 
7    Comparing Your Fund’s Expenses 
With Those of Other Funds
8    Statement of Investments 
40    Statement of Financial Futures 
41    Statement of Assets and Liabilities 
42    Statement of Operations 
43    Statement of Changes in Net Assets 
44    Financial Highlights 
45    Notes to Financial Statements 
54    Report of Independent Registered 
    Public Accounting Firm 
55    Important Tax Information 
56    Board Members Information 
58    Officers of the Fund 
FOR MORE INFORMATION
    Back Cover 

Dreyfus International 
Stock Index Fund 

The Fund

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus International Stock Index Fund, covering the 12-month period from November 1, 2003, through October 31, 2004. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio manager, Susan Ellison.

The global equity markets have remained within a relatively narrow trading range so far in 2004 due to uncertainties related to the potential impact of higher commodity prices, persistent geopolitical tension, a weaker U.S.dollar and the sustainability of China’s tremendous economic expansion.Yet, these factors also have produced what we believe to be attractive valuations among individual stocks in both developed and developing markets, suggesting that improvements in global economic conditions could lead to higher stock prices.

Of course, the specific international investments that may be right for you depend on your current needs, future goals, tolerance for risk and the composition of your overall portfolio. As always, your financial advisor may be in the best position to recommend the specific investments that will satisfy your need for global diversification most effectively.

Thank you for your continued confidence and support.

The Dreyfus Corporation
November 15, 2004
2

DISCUSSION OF FUND PERFORMANCE

Susan Ellison, Portfolio Manager

How did Dreyfus International Stock Index Fund perform relative to its benchmark?

For the 12-month period ended October 31, 2004, the fund produced a total return of 18.40% .1 This compares with an 18.84% total return for the fund’s benchmark, the Morgan Stanley Capital International Europe,Australasia, Far East Free Index (the “MSCI EAFE Free Index” or the “Index”), during the same period.2

An improving global business climate powered by China’s growing economy lifted stock prices throughout the world. International markets also were strongly influenced by rising oil prices. The fund’s return slightly lagged that of the Index, primarily due to fund fees and expenses that are not reflected in the benchmark.

What is the fund’s investment approach?

In managing this fund, our goal is to match the performance of the MSCI EAFE Free Index, a broadly diversified, international index composed of slightly more than 1,000 stocks that trade in 21 major markets outside the United States, including Great Britain, Germany, France, Japan, Hong Kong, Singapore, Australia and New Zealand.

Weighted by market capitalization (the total value of all shares outstanding in a country’s stock market) and share liquidity (a measure of the proportion of a company’s shares actually available to be bought or sold by the public), approximately 72% of the MSCI EAFE Free Index’s total value is represented by its top five countries,which currently are Great Britain, Japan, France, Switzerland and Germany.The MSCI EAFE Free Index is diversified among industry groups, as those groups are represented in individual country markets.

The fund attempts to match the Index return before fees and expenses by aligning the portfolio composition with the composition of the MSCI EAFE Free Index. Beginning by country, the fund invests in

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

proportion to each country’s weighting in the Index.That means that if the British market comprises 25% of the Index, then approximately 25% of the fund’s assets will be invested in Britain. In addition, the fund’s industry allocation also matches that of the Index, in the proper proportion. For example, if a certain percentage of the market value in the Japanese sub-index is composed of financial services firms, that same approximate percentage of the investment in the Japanese markets will also be invested in that sector. The fund also invests in securities that represent the market as a whole, such as stock index futures, and manages its exposure to foreign currencies so that the fund’s currency profile matches the currency makeup of the MSCI EAFE Free Index.

What other factors influenced the fund’s performance?

Surging energy prices were among the primary influences on international stock markets for the reporting period. For example, Austria’s stock market produced higher returns than any other nation in the Index, primarily due to strong results from Statoil, a supplier of crude oil and natural gas. However, companies that are heavily dependent on energy, such as airlines and technology, saw their stock prices fall when higher energy costs eroded their profit margins. In addition, major foreign currencies strengthened against the U.S. dollar, benefiting the fund’s performance in U.S. dollar terms.

Although it is not represented in the Index, China played a major role in supporting the fund’s performance, especially early in the reporting period. However, when the Chinese government announced efforts to slow its economy to avoid runaway inflation, markets that supply China with goods and services such as Japan began to languish. Basic materials stocks throughout the world also lost value as investors became concerned that China’s aggressive consumption of steel and cement might moderate. Many of these stocks began to recover by the end of the reporting period, as investors refocused on China’s longer-term potential. For example, shipping companies that serve China began to gain value as demand for transportation continued to exceed the supply of vessels.

4

Economic and market conditions in Europe also generally improved over the reporting period. However, the fund’s returns from European stocks were constrained by its holdings of pharmaceutical companies that were hurt by rising competitive pressures and generally anemic new-product pipelines.

What is the fund’s current strategy?

As an index fund, we do not actively select stocks based on their individual merits. Instead, we believe that attempting to match the Index’s return is a cost-effective way for our shareholders to gain exposure to European and Asian markets for a portion of their overall investment portfolios.

While high energy prices are not likely to retreat, in our judgment, these costs may be offset by greater global economic growth, which appears to have strengthened recently after hitting a soft patch during the summer of 2004. Although large-cap international stocks have outperformed their U.S. counterparts for some time, international equities generally remained more attractively valued than U.S. stocks as of the end of the reporting period.

November 15, 2004
1    Total return includes reinvestment of dividends and any capital gains paid. Past performance is no 
    guarantee of future results. Share price, yield and investment return fluctuate such that upon 
    redemption, fund shares may be worth more or less than their original cost. Return figure provided 
    reflects the absorption of fund expenses by The Dreyfus Corporation pursuant to an agreement in 
    effect that may be extended, terminated or modified. Had these expenses not been absorbed, the 
    fund’s return would have been lower. 
2    SOURCE: LIPPER INC. — Reflects reinvestment of net dividends and, where applicable, 
    capital gain distributions.The Morgan Stanley Capital International Europe,Australasia, Far 
    East (MSCI EAFE) Free Index is an unmanaged index composed of a sample of companies 
    representative of the market structure of European and Pacific Basin countries.The index reflects 
    actual investable opportunities for global investors for stocks that are free of foreign ownership 
    limits or legal restrictions at the country level. 

The Fund 5

  FUND PERFORMANCE
Average Annual Total Returns    as of 10/31/04         
    Inception            From 
    Date    1 Year    5 Years    Inception 
Fund    6/30/97    18.40%    (2.00)%    1.29% 

† Source: Lipper Inc.

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The above graph compares a $10,000 investment made in Dreyfus International Stock Index Fund on 6/30/97 (inception date) to a $10,000 investment made in the Morgan Stanley Capital International Europe,Australasia, Far East Free Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph takes into account all applicable fees and expenses.The Index is an unmanaged index composed of a sample of companies representative of the market structure of European and Pacific Basin countries and includes net dividends reinvested and reflects actual investable opportunities for global investors for stocks that are free of foreign ownership limits or legal restrictions at the security or country level.The Index does not take into account charges, fees and other expenses. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

  6

U N D E R S TA N D I N G YO U R F U N D ’ S E X P E N S E S ( U n a u d i t e d )

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus International Stock Index Fund from May 1, 2004 to October 31, 2004. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment assuming actual returns for the six months ended October 31, 2004

Expenses paid per $1,000 †    $ 3.10 
Ending value (after expenses)    $1,054.50 

COMPARING YOUR FUND’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended October 31, 2004

Expenses paid per $1,000 †    $ 3.05 
Ending value (after expenses)    $1,022.12 

  • Expenses are equal to the fund’s annualized expense ratio of .60%, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

The Fund 7

STATEMENT OF INVESTMENTS
October 31, 2004
Common Stocks—96.7%    Shares    Value ($) 
Australia—5.0%         
AMP    26,552    126,336 
AXA Asia Pacific    9,888    28,214 
Alumina    15,641    64,257 
Amcor    11,828    67,411 
Ansell    2,300    15,393 
Aristocrat Leisure    4,441    28,495 
Australia & New Zealand Banking    25,772    392,708 
Australian Gas Light    6,147    60,149 
Australian Stock Exchange    1,400    19,356 
BHP Billiton    53,426    552,706 
BlueScope Steel    9,878    57,035 
Boral    8,368    41,503 
Brambles Industries    13,052    69,122 
CFS Gandel Retail Trust (Units)    20,389    23,910 
CSL    2,644    56,878 
CSR    13,310    26,843 
Centro Properties    10,679    38,607 
Coca-Cola Amatil    6,681    36,729 
Cochlear    761    14,097 
Coles Myer    15,749    112,226 
Commonwealth Bank of Australia    17,765    425,953 
Commonwealth Property Office Fund    23,240    22,567 
Computershare    5,800    22,615 
DB PREEF Trust    35,966 a    34,656 
Foster’s    28,824    108,727 
Futuris    7,437    11,110 
General Property Trust (Units)    27,256    75,735 
Harvey Norman    7,600    17,258 
ING Industrial Fund (Units)    9,200    14,500 
Iluka Resources    3,328    12,181 
Insurance Australia    21,520    86,641 
Investa Property    22,018    34,208 
James Hardie Industries    6,600    31,058 
John Fairfax    13,200    42,298 
Leighton    1,803    15,057 
Lend Lease    5,286    45,564 
 
 
8         

Common Stocks (continued)    Shares    Value ($)     
Australia (continued)             
Lion Nathan    4,000    23,544     
Macquarie Bank    2,921    86,379     
Macquarie Goodman Industrial Trust    22,610    33,946     
Macquarie Infrastructure    26,079    72,270     
Mayne    9,055    29,760     
Mirvac    10,961    37,089     
National Australia Bank    21,441    452,754     
Newcrest Mining    4,412    54,904     
News Corporation    20,992    168,873     
OneSteel    7,634    14,997     
Orica    3,618    45,888     
Origin Energy    10,044    50,641     
Pacific Brands    7,100    16,440     
PaperlinX    7,150    25,742     
Patrick    6,571    27,290     
Perpetual Trustees Australia    550    22,883     
Publishing & Broadcasting    1,860    20,326     
QBE Insurance    9,256    94,926     
Rinker    12,790    82,924     
Rio Tinto    4,457    121,847     
Santos    8,800    54,557     
Sonic Healthcare    3,424    25,959     
Southcorp    9,724 a    26,148     
Stockland    17,101    75,236     
Suncorp-Metway    7,265    92,903     
TABCORP    6,834    76,570     
Telstra    29,129    101,609     
Toll    3,318    29,294     
Transurban    7,401    35,104     
WMC Resources    15,600    78,654     
Wesfarmers    5,382    139,698     
Westfield    20,369 a    228,219     
Westpac Banking    25,082    353,717     
Woodside Petroleum    6,327    92,014     
Woolworths    14,608    145,995     
        5,871,203     
 
 
    The Fund        9 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares    Value ($) 
Austria—.3%         
Bank Austria Creditanstalt    550    40,585 
Boehler-Uddeholm    100    9,540 
Erste Bank der oesterreichischen Sparkassen    1,619    71,854 
Flughafen Wien    140    9,179 
Immofinanz Immobilien Anlagen    3,149 a    27,078 
Mayr-Melnhof Karton    60    8,438 
OMV    181    43,341 
Oesterreichische         
Elektrizitaetswirtschafts, Cl. A    87    17,001 
RHI    200 a    4,669 
Telekom Austria    3,696    56,089 
VA Technologie    150 a    9,348 
voestalpine    380    22,061 
Wienerberger    910    36,000 
        355,183 
Belgium—1.3%         
Agfa Gevaert    1,410    44,302 
Barco    180    15,341 
Bekaert    240    15,570 
Belgacom    2,096    76,787 
Cofinimmo    70    10,133 
Colruyt    250    36,126 
Colruyt (Rights)    250 a    366 
Compagnie Maritime Belge    50    10,520 
Delhaize    938    60,256 
Dexia    8,919    178,123 
Electrabel    392    146,103 
Fortis    17,723    448,862 
Groupe Bruxelles Lambert    933    70,022 
InBev    2,329    82,508 
KBC Bankverzekeringsholding    1,559    113,931 
Mobistar    400 a    29,919 
Omega Pharma    300    16,371 
S.A. D’Ieteren    35    6,322 
Solvay    859    86,323 
UCB    1,180    62,172 
Umicore    360    27,728 
        1,537,785 
10         

Common Stocks (continued)    Shares    Value ($) 
Denmark—.8%         
A P Moller-Maersk    16    117,782 
Bang & Olufsen, Cl. B    150    8,885 
Carlsberg, Cl. B    500    23,154 
Coloplast, Cl. B    200    19,790 
DSV    300    17,025 
Danisco    780    43,131 
Danske Bank    6,602    183,945 
East Asiatic    300    12,994 
FLS Industries, Cl. B    500 a    6,848 
GN Store Nord    3,350    33,837 
H. Lundbeck    1,100    19,773 
ISS    632    33,540 
Kobenhavns Lufthavne    75    12,544 
NKT    200    4,691 
Novo Nordisk, Cl. B    3,650    180,897 
Novozymes, Cl. B    825    36,580 
TDC    2,493    91,973 
Topdanmark    300 a    21,083 
Vestas Wind Systems    2,400 a    29,685 
William Demant    400 a    17,496 
        915,653 
Finland—1.4%         
Amer    380    18,223 
Elisa    2,050 a    29,728 
Fortum    4,584    69,973 
KCI Konecranes    200    7,945 
Kesko, Cl. B    840    18,753 
Kone, Cl. B    535    34,232 
Metso    1,410    19,801 
Nokia    66,302    1,019,664 
Nokian Renkaat    150    16,207 
Orion, Cl. B    1,000    14,273 
Outokumpu    1,440 b    24,747 
Pohjola, Cl. D    860    8,992 
Rautaruukki    1,100    11,376 
Sampo, Cl. A    4,451    52,882 
Stora Enso, Cl. R    8,935    127,183 
TietoEnator    1,203    33,666 
    The Fund    11 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares    Value ($) 
Finland (continued)         
UPM-Kymmene    7,484    147,560 
Uponor    500    17,491 
Wartsila, Cl. B    500    13,547 
        1,686,243 
France—8.9%         
Accor    2,569    106,337 
Air France-KLM    1,800    31,254 
Alcatel    17,400 a    253,652 
Alstom    66,048 a    44,529 
Atos Origin    615 a    38,341 
Autoroutes du Sud de la France    927    42,675 
Axa    20,149    432,387 
BNP Paribas    11,328    768,762 
Bouygues    3,177    124,795 
Business Objects    950 a    24,169 
CNP Assurances    495    33,593 
Cap Gemini    1,807 a    45,351 
Carrefour    8,152    355,994 
Casino Guichard-Perrachon    483    33,270 
Compagnie de Saint-Gobain    4,375    239,583 
Compagnie Generale des         
Etablissements Michelin, Cl. B    2,055    111,490 
Credit Agricole    9,445    275,973 
Dassault Systemes    800    40,482 
Essilor International    1,322    89,464 
European Aeronautic Defence and Space    3,307    94,019 
France Telecom    15,789 a    450,694 
Gecina    370    31,911 
Groupe Danone    3,427    285,971 
Hermes International    145    27,888 
Imerys    444    31,120 
Klepierre    340    25,863 
L’Air Liquide    1,552    249,936 
L’Oreal    4,332    294,537 
LVMH Moet Hennessy Louis Vuitton    3,491    238,467 
Lafarge    2,384    216,980 
Lagardere S.C.A.    1,806    116,015 
 
12         

Common Stocks (continued)    Shares    Value ($) 
France (continued)         
PSA Peugeot Citroen    2,433    149,081 
Pernod-Ricard    717    98,958 
Pinault-Printemps-Redoute    912    85,674 
Publicis    1,705    50,708 
Renault    2,641    220,382 
Sagem    256    23,235 
Sanofi-Aventis    12,954    944,197 
Schneider Electric    3,141    207,367 
Societe BIC    450    20,802 
Societe Generale    4,677    432,520 
Societe Television Francaise 1    1,588    47,652 
Sodexho Alliance    1,267    31,928 
Suez    11,447    266,760 
Technip    273    42,679 
Thales    1,028    36,967 
Thomson    3,221    72,686 
Total    8,341    1,729,458 
Unibail    577    75,599 
Valeo    983    36,200 
Veolia Environnement    3,772    113,957 
Vinci    1,043    123,852 
Vivendi Universal    14,481 a    394,384 
Zodiac    560    21,613 
        10,382,161 
Germany—6.3%         
Adidas-Salomon    617    85,942 
Allianz    4,377    464,351 
Altana    944    47,792 
BASF    7,475    465,920 
Bayer    9,364    264,554 
Bayerische Hypo-und Vereinsbank    8,935 a    174,237 
Beiersdorf    237    22,369 
Celesio    482    34,844 
Commerzbank    6,422 a    117,063 
Continental    1,653    89,995 
DaimlerChrysler    12,239    504,112 

The Fund 13

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares    Value ($) 
Germany (continued)         
Deutsche Bank    7,443    564,190 
Deutsche Boerse    1,436    71,514 
Deutsche Lufthansa    3,050 a    40,117 
Deutsche Post    6,373    124,277 
Deutsche Telekom    35,846 a    685,337 
Douglas    440    13,517 
E.ON    8,862    721,466 
Epcos    690 a    10,436 
Fresenius Medical Care    466    35,478 
HeidelbergCement    893    43,825 
Hypo Real Estate    1,758 a    65,567 
Infineon Technologies    8,615 a    93,587 
KarstadtQuelle    380    4,297 
Linde    1,127    67,881 
MAN    1,533    53,080 
MLP    1,065    17,788 
Merck    660    36,688 
Metro    1,976    93,882 
Muenchener         
Rueckversicherungs-Gesellschaft    2,617    255,264 
Puma    219    54,674 
QIAGEN    1,800 a    18,844 
RWE    5,590    295,096 
SAP    2,915    495,133 
Schering    2,357    150,811 
Siemens    11,405    850,153 
Suedzucker    700    13,259 
TUI    1,795    37,310 
ThyssenKrupp    4,180    78,162 
Volkswagen    3,206    142,329 
        7,405,141 
Greece—.5%         
Alpha Bank    2,699    76,562 
Coca-Cola Hellenic Bottling    1,178    26,104 
Cosmote Mobile Telecommunications    1,800    32,330 
EFG Eurobank Ergasias    2,510    68,008 
Emporiki Bank of Greece    750    19,462 
 
14         

Common Stocks (continued)    Shares        Value ($) 
Greece (continued)             
Folli-Follie    200        6,106 
Germanos    370        9,827 
Hellenic Duty Free Shops    300        4,595 
Hellenic Petroleum    1,600        15,346 
Hellenic Technodomiki Tev    1,080        3,819 
Hellenic Telecommunications Organization    3,290        50,807 
Hyatt Regency Hotels and Tourism    600        6,640 
Intracom    1,100        4,506 
National Bank of Greece    3,370        93,452 
OPAP    2,300        46,694 
Piraeus Bank    2,400        31,750 
Public Power    1,500        37,169 
Technical Olympic    1,000        4,732 
Titan Cement    800        20,984 
Viohalco, Hellenic Copper and Aluminum Industry    1,550        12,027 
            570,920 
Hong Kong—1.6%             
ASM Pacific Technology    2,500        8,078 
BOC Hong Kong    50,000        91,220 
Bank of East Asia    17,391        49,826 
CLP    24,788        142,357 
Cathay Pacific Airways    14,000        24,282 
Cheung Kong    21,000        174,024 
Cheung Kong Infrastructure    6,000        16,073 
Esprit    11,000        58,792 
Giordano International    20,000        11,049 
Hang Lung Properties    18,000        26,711 
Hang Seng Bank    10,900        145,643 
Henderson Land Development    11,000        51,160 
Hong Kong & China Gas    49,772        95,920 
Hong Kong Electric    18,500        82,952 
Hongkong Exchanges & Clearing    16,000        36,385 
Hopewell    10,000        21,520 
Hopewell Highway Infrastructure (Warrants)    800    a    129 
Hutchison Whampoa    30,800        237,428 
Hysan Development    9,000        14,916 

The Fund 15

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Hong Kong (continued)         
Johnson Electric    19,900    19,815 
Kerry Properties    7,000    13,490 
Kingboard Chemical    6,600    13,822 
Kingboard Chemical (Warrants)    600 a    278 
Li & Fung    24,000    35,614 
MTR    19,500    29,187 
New World Development    31,191    27,250 
Orient Overseas International    3,000    10,889 
PCCW    49,207    29,872 
SCMP    11,759    4,721 
Shangri-La Asia    14,000    16,098 
Sino Land    14,664    12,529 
SmarTone Telecommunications    4,000    4,266 
Sun Hung Kai Properties    18,699    172,974 
Swire Pacific, Cl. A    13,500    95,829 
Techtronic Industries    12,000    23,897 
Television Broadcasts    4,000    17,113 
Texwinca    8,000    7,246 
Wharf    18,171    59,999 
Yue Yuen Industrial    6,800    17,080 
        1,900,434 
Ireland—.9%         
Allied Irish Bank    12,243    212,581 
Bank of Ireland    13,781    188,449 
CRH    7,561    179,856 
DCC    1,145    23,158 
Depfa Bank    4,768    72,782 
Eircom    6,800 a    14,186 
Elan    5,525 a    141,967 
Fyffes    4,100    9,648 
Grafton    3,100 a    27,801 
Greencore    2,474    9,096 
Independent News & Media    8,990    26,073 
Irish Life & Permanent    3,629    60,935 
Kerry, Cl. A    1,733    38,799 
Kingspan    1,760    13,769 
 
 
16         

Common Stocks (continued)    Shares    Value ($) 
Ireland (continued)         
Ryanair    2,000 a    10,405 
Waterford Wedgwood (Units)    21,509 a    2,462 
        1,031,967 
Italy—4.0%         
Alleanza Assicurazioni    6,291    74,023 
Assicurazioni Generali    13,613    402,953 
Autogrill    1,808 a    26,540 
Autostrade    3,478    75,875 
Banca Antonveneta    3,111 a    65,178 
Banca Fideuram    4,720    23,716 
Banca Intesa    46,430    189,587 
Banca Intesa (RNC)    14,212    47,727 
Banca Monte dei Paschi di Siena    14,742    43,881 
Banca Nazionale del Lavoro    16,035 a,b    37,021 
Banca Popolare di Milano    5,450    38,199 
Banche Popolari Unite Scrl    4,557    80,806 
Banco Popolare di Verona e Novara Scri    5,016    88,690 
Benetton    730    8,404 
Bulgari    1,900    19,601 
Capitalia    19,386    74,227 
Edison    11,700 a,b    23,143 
Enel    48,689    439,118 
Eni    37,006    837,908 
Fiat    6,986 a    50,653 
FinecoGroup    2,228 a    16,013 
Finmeccanica    88,330    70,000 
Gruppo Editoriale L’Espresso    2,400    12,822 
Italcementi    1,065    16,311 
Luxottica    1,930    35,525 
Mediaset    8,006    91,045 
Mediobanca    6,326    87,390 
Mediolanum    4,030    25,222 
Mondadori (Arnoldo) Editore    1,650    16,350 
Pirelli & C.    28,626    31,753 
Riunione Adriatica di Sicurta    4,086    86,072 
SanPaolo IMI    13,448    170,039 

The Fund 17

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Italy (continued)         
Seat Pagine Gialle    57,670    19,477 
Snam Rete Gas    11,836    59,923 
Telecom Italia    117,316    389,495 
Telecom Italia (RNC)    82,666    205,053 
Telecom Italia Media    19,085 a,b    6,992 
Telecom Italia Mobile    54,027    317,510 
Terna    14,984    36,405 
Tiscali    2,550 a    10,380 
UniCredito Italiano    62,714    335,854 
        4,686,881 
Japan—21.7%         
ACOM    970    60,745 
ADERANS    600    12,402 
ADVANTEST    1,000    69,781 
AEON    8,800    140,548 
AEON CREDIT SERVICE    320    20,944 
AIFUL    650    64,761 
AISIN SEIKI    2,400    53,677 
ALL NIPPON AIRWAYS    7,000    21,819 
ALPS ELECTRIC    2,000    24,051 
AMADA    4,000    21,245 
ANRITSU    1,000    7,138 
AOYAMA TRADING    800    17,403 
ARIAKE JAPAN    320    8,091 
ASAHI BREWERIES    5,600    57,587 
ASAHI KASEI    16,900    71,935 
ASATSU-DK    500    14,173 
AUTOBACS SEVEN    400    10,735 
Ajinomoto    8,800    97,290 
Alfresa    300    10,877 
Amano    1,000    8,268 
Asahi Glass    10,800    99,060 
BANDAI    1,100    24,032 
BANK OF FUKUOKA    8,000    45,428 
BELLSYSTEM24    40    10,283 
BRIDGESTONE    9,400    169,960 
Bank of Yokohama    15,000    89,557 
 
18         

Common Stocks (continued)    Shares    Value ($) 
Japan (continued)         
Benesse    900    25,002 
CANON    12,000    591,016 
CAPCOM    600    5,040 
CASIO COMPUTER    3,000    35,568 
CHUGAI PHARMACEUTICAL    4,028    62,967 
COCA-COLA WEST JAPAN    600    14,521 
COMSYS    2,000    15,124 
CSK    1,000    40,399 
Central Glass    3,000    20,171 
Central Japan Railway    14    113,118 
Chiba Bank    10,000    64,130 
Chubu Electric Power    9,500    206,211 
Circle K Sunkus    600    14,380 
Citizen Watch    4,000    37,518 
Credit Saison    2,000    63,848 
DAI NIPPON PRINTING    8,800    120,245 
DAICEL CHEMICAL INDUSTRIES    4,000    18,872 
DAIDO STEEL    200    503 
DAIICHI PHARMACEUTICAL    3,300    64,173 
DAIKIN INDUSTIES    3,000    72,888 
DAINIPPON INK & CHEMICALS    9,000    20,256 
DAINIPPON SCREEN MANUFACTURING    2,000 b    10,321 
DAITO TRUST CONSTRUCTION    1,300    54,845 
DENSO    7,600    181,787 
DENTSU    21    56,164 
DOWA MINING    4,000    24,108 
Daimaru    3,000    22,262 
Daiwa House Industry    7,400    75,540 
Daiwa Securities    17,000    104,059 
EBARA    4,000 b    18,458 
East Japan Railway    48    251,775 
Eisai    3,600    103,400 
Electric Power Development    1,900    49,562 
FANUC    2,000    120,539 
FAST RETAILING    800    50,777 
FUJI ELECTRIC    7,000    17,930 
FUJI SOFT ABC    400    12,657 
 
    The Fund    19 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares    Value ($) 
Japan (continued)         
FUJISAWA PHARMACEUTICAL    3,800    99,124 
FUJITSU    23,800    141,424 
FamilyMart    900    24,112 
Fuji Photo Film    6,200    211,357 
Fuji Television Network    6    13,504 
Fujikura    5,000    21,942 
Furukawa Electric    8,000 a    33,449 
GUNZE    3,000    13,730 
Goodwill Group    5    9,747 
Gunma Bank    5,000    25,426 
HANKYU DEPARTMENT STORES    2,000    13,937 
HINO MOTORS    3,000    19,945 
HIROSE ELECTRIC    400    39,589 
HONDA MOTORS    11,060    533,263 
HOUSE FOODS    1,020    13,947 
HOYA    1,500    153,687 
Hitachi    45,900    288,307 
Hitachi Cable    3,000    11,724 
Hitachi Capital    700    11,411 
Hitachi Chemical    1,600    25,223 
Hitachi Construction Machinery    1,000    12,186 
Hitachi Software Engineering    400    7,816 
Hokkaido Electric Power    2,400    44,411 
Hokuhoku Financial Group    14,000    31,773 
ISHIHARA SANGYO KAISHA    4,000    8,362 
ITO EN    400    18,043 
ITO YOKADO    4,800    171,768 
ITOCHU    18,500    79,443 
ITOCHU TECHNO-SCIENCE    500    20,153 
Isetan    2,600    26,443 
Ishikawajima-Harima Heavy Industries    17,000 a    22,253 
JAFCO    300    15,397 
JAPAN TOBACCO    13    113,975 
JFE Holdings    7,560    202,545 
JGC    3,000    31,726 
JS    3,424    60,812 
JSR    2,600    47,206 
 
20         

Common Stocks (continued)    Shares    Value ($) 
Japan (continued)         
Japan Airlines    9,600    26,217 
Japan Real Estate Investment    3    23,957 
Japan Retail Fund Investment    2    15,953 
Joyo Bank    10,462    46,502 
KABUSHIKI KAISHA    5,600    16,981 
KAJIMA    12,800    48,215 
KAKEN PHARMACEUTICAL    1,000    5,839 
KANDENKO    105    534 
KANEBO    600 a,b    6,368 
KANEKA    4,000    41,624 
KANSAI PAINT    3,000    17,205 
KATOKICHI    600    11,261 
KEIO ELECTRIC    8,000    42,264 
KEYENCE    440    98,947 
KIKKOMAN    2,000    17,553 
KINDEN    2,000    13,542 
KIRIN BREWERY    10,000    89,651 
KOKUYO    1,000    10,641 
KOMATSU    13,600    90,803 
KOMORI    1,000    13,758 
KONAMI    1,200    27,008 
KONICA MINOLTA    6,500    86,552 
KOYO SEIKO    1,000    11,263 
KUBOTA    14,000    63,678 
KYOCERA    2,300    166,560 
KYOWA HAKKO KOGYO    5,000    34,937 
Kamigumi    3,400    24,078 
Kansai Electric Power    10,299    192,809 
Kao    7,000    161,173 
Kawasaki Heavy Industries    17,000 b    26,895 
Kawasaki Kisen Kaisha    7,000    46,605 
Keihin Electric Express Railway    5,000    28,816 
Kintetsu    22,354    70,942 
Kobe Steel    32,000    44,599 
Kuraray    5,500    42,885 
Kurita Water Industries    1,400    20,620 
Kyushu Electric Power    5,500    108,767 
 
    The Fund    21 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares        Value ($) 
Japan (continued)             
LAWSON    900        30,003 
LEOPALACE21    1,800        32,817 
MABUCHI MOTOR    400        29,645 
MAEDA ROAD CONSTRUCTION    200        1,431 
MARUHA    400        866 
MARUI    4,200        52,564 
MEDICEO    1,200        11,391 
MEITEC    500        18,787 
MINEBEA    5,000        21,188 
MITSUBISHI GAS CHEMICAL    5,000        21,377 
MITSUBISHI MATERIALS    14,000        28,082 
MITUSI & CO.    18,400        154,387 
MITSUMI ELECTRIC    900        10,103 
MURATA MANUFACTURING    3,200        152,180 
Makita    2,000        27,498 
Marubeni    17,000        44,505 
Matsumotokiyoshi    500        12,548 
Matsushita Electric Industrial    31,195        451,518 
Matsushita Electric Works    4,000        32,922 
Meiji Dairies    3,000        17,064 
Meiji Seika Kaisha    4,000        16,423 
Millea    21        276,862 
Mitsubishi    16,000        176,438 
Mitsubishi Chemical    22,200        64,181 
Mitsubishi Electric    25,000        116,772 
Mitsubishi Estate    14,000        147,528 
Mitsubishi Heavy Industries    38,700        108,603 
Mitsubishi Logistics    2,000        17,798 
Mitsubishi Rayon    7,000        22,281 
Mitsubishi Tokyo Financial    64        542,424 
Mitsui Chemicals    9,000        43,902 
Mitsui Engineering & Shipbuilding    9,000    b    15,256 
Mitsui Fudosan    10,000        105,942 
Mitsui Mining & Smelting    8,000        31,566 
Mitsui O.S.K. Lines    12,000        70,967 
Mitsui Sumitomo Insurance    18,230        149,356 
Mitsui Trust    7,380        50,664 
 
22             

Common Stocks (continued)    Shares    Value ($) 
Japan (continued)         
Mitsukoshi    5,000    22,130 
Mizuho Financial    110    423,675 
NAMCO    1,000    11,658 
NEC    22,800    126,249 
NEC Electronics    500    24,390 
NGK INSULATORS    4,000    32,244 
NGK SPARK PLUG    2,000    19,625 
NICHII GAKKAN    320    8,619 
NICHIREI    4,000    13,749 
NIDEC    600    64,865 
NIKON    3,600 b    35,291 
NIPPON MEAT PACKERS    2,000    24,899 
NIPPON MINING    11,300    53,632 
NIPPON KAYAKU    2,000    10,434 
NIPPON SHOKUBAI    2,000    14,465 
NIPPON STEEL    87,100    203,417 
NIPPON TELEGRAPH & TELEPHONE    74    313,589 
NISSAN MOTOR    35,400    398,371 
NISSHINBO INDUSTRIES    2,000    13,203 
NITTO DENKO    2,400    113,683 
NOK    1,400    42,452 
NSK    7,000    30,059 
NTN    6,000    31,472 
NTT Data    17    46,586 
NTT DoCoMo    285    501,883 
Net One Systems    7    26,632 
Nikko Cordial    21,000    93,738 
Nintendo    1,450    163,311 
Nippon Building Fund    4    33,600 
Nippon Express    12,000    57,746 
Nippon Light Metal    5,400    13,069 
Nippon Oil    17,800    112,811 
Nippon Paper    13    57,661 
Nippon Sheet Glass    5,000    16,810 
Nippon Yusen Kabushiki Kaisha    12,800    64,247 
Nishimatsu Construction    3,000    9,323 
Nissan Chemical Industries    2,000    16,216 
 
    The Fund    23 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares    Value ($) 
Japan (continued)         
Nisshin Seifun    2,000    19,945 
Nisshin Steel    12,000    26,217 
Nissin Food Products    1,200    29,212 
Nitori    250    13,537 
Nomura    26,000    318,297 
Nomura Research Institute    300    26,161 
OBAYASHI    9,000    48,310 
OBIC    100    18,731 
OJI PAPER    11,000    62,671 
OKUMARA    3,000    14,436 
OLYMPUS    3,000    58,056 
OMRON    2,900    65,679 
ONWARD KASHIYAMA    2,000    25,991 
ORACLE CORPORATION JAPAN    500    25,049 
ORIENTAL LAND    700    41,661 
ORIX    1,140    133,442 
OSAKA GAS    27,000    78,058 
Odakyu Electric Railway    9,000    47,886 
Oki Electric Industry    8,000 a    27,347 
PIONEER    2,200    39,757 
Promise    1,300    82,513 
Q.P.    1,500    12,784 
RICOH    10,000    186,458 
RINNAI    500    13,584 
ROHM    1,500    153,687 
RYOHIN KEIKAKU    400    17,855 
Rakuten    7 b    52,406 
Resona    62,000 a    102,175 
SAIZERIYA    400    6,829 
SANDEN    2,000    13,033 
SANKYO    700    27,950 
SANKYO COMPANY    5,400    111,875 
SANYO ELECTRIC    22,000    70,233 
SAPPORO    4,000 b    15,934 
SECOM    3,000    108,767 
SEGA SAMMY    992    45,961 
SEVEN ELEVEN JAPAN    5,300    153,225 
 
24         

Common Stocks (continued)    Shares        Value ($) 
Japan (continued)             
SHIMACHU    700        16,249 
SHIMAMURA    300        21,951 
SHIMANO    1,000        24,532 
SHIMIZU    8,000        33,902 
SHIZUOKA BANK    8,400        69,927 
SHOWA SHELL SEKIYU    2,100        18,787 
SKYLARK    1,000        16,536 
SMC    800        85,507 
SOFTBANK    3,300        149,167 
SONY    13,180        457,992 
SUMITOMO    13,000        96,591 
SUMITOMO CHEMICAL    18,000        87,127 
SUMITOMO HEAVY INDUSTRIES    7,000    a    20,303 
SUZUKEN    720        15,290 
Sanken Electric    1,000        11,658 
Sanwa Shutter    2,200        11,229 
Seiko Epson    1,300        53,621 
Seino Transportation    2,000        18,081 
Sekisui Chemical    6,000        38,083 
Sekisui House    7,000        72,116 
77 Bank    4,000        23,769 
Sharp    13,000        179,226 
Shin-Etsu Chemical    5,100        193,549 
Shinsei Bank    8,000        51,982 
Shionogi & Co.    4,000        61,964 
Shiseido    5,000        65,119 
Showa Denko    14,000        33,751 
Snow Brand Milk Products    1,750    a,b    5,142 
Sojitz    2,600    a    11,630 
Sompo Japan Insurance    11,000        95,715 
Stanley Electric    2,200        33,873 
Sumitomo Bakelite    2,000        11,753 
Sumitomo Electric Industries    9,800        92,749 
Sumitomo Metal Industries    49,000        59,064 
Sumitomo Metal Mining    7,000        47,133 
Sumitomo Mitsui Financial    58        376,325 
Sumitomo Osaka Cement    5,000        10,971 
 
    The Fund    25 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares    Value ($) 
Japan (continued)         
Sumitomo Realty & Development    5,000    54,855 
Sumitomo Trust & Banking    16,000    93,116 
Suruga Bank    3,000    23,025 
T&D    2,450    107,976 
TAIHEIYO CEMENT    12,000    27,121 
TAISEI    11,000    39,260 
TAISHO PHARMACEUTICAL    2,000    36,049 
TAIYO NIPPON SANSO    3,000    14,917 
TAKARA    2,000 b    12,920 
TAKEFUJI    890    56,154 
TAKUMA    1,000    7,345 
TDK    1,700    117,827 
TEIJIN    12,000    46,558 
TEIKOKU OIL    3,000    16,442 
TERUMO    2,500    62,153 
THK    1,500    26,019 
TIS    500    16,857 
TOBU RAILWAY    10,000    35,502 
TODA    3,000    11,866 
TOHO    1,900    27,322 
TOKYO BROADCASTING SYSTEM    500    7,995 
TOKYO GAS    36,000    133,911 
TOKYO STYLE    1,000    10,886 
TOKYU    14,820    66,989 
TOKYU LAND    5,000    14,973 
TOPPAN PRINTING    8,000    77,145 
TORAY INDUSTRIES    16,000    74,583 
TOSHIBA    41,000    164,865 
TOSOH    7,000    29,598 
TOTO    4,000    35,785 
TOYO SEIKAN KAISHA    2,000    31,095 
TOYO SUISAN KAISHA    1,000    11,687 
TOYOBO    8,200    18,378 
TOYODA GOSEI    800    15,218 
TOYOTA INDUSTRIES    2,600    58,885 
Taiyo Yuden    1,100    11,457 
Takashimaya    4,000    34,203 
 
26         

Common Stocks (continued)    Shares    Value ($) 
Japan (continued)         
Takeda Pharmaceutical    12,600    607,515 
Tohoku Electric Power    5,800    98,806 
Tokyo Electric Power    16,372    370,024 
Tokyo Electron    2,500    135,371 
TonenGeneral Sekiyu    4,000    34,806 
Toyota Motor    41,014    1,595,139 
Trend Micro    1,500    71,758 
UFJ    54 a    250,193 
UNI-CHARM    600    30,285 
UNIDEN    1,000    21,612 
UNY    2,000    19,983 
USHIO    2,000    34,580 
USS    350    28,247 
Ube Industries    10,600    15,572 
WACOAL    1,000    11,301 
WORLD    500    14,596 
West Japan Railway    23    91,619 
YAKULT HONSHA    2,000    31,585 
YAMADA DENKI    1,100    38,949 
YAMAHA    2,400    36,591 
YAMATO TRANSPORT    5,400    72,668 
YAMAZAKI BAKING    2,000    17,610 
YOKOGAWA ELECTRIC    2,900    37,742 
Yahoo Japan    28 a,b    126,302 
Yamaha Motor    2,400    36,455 
Yamanouchi Pharamaceutical    4,400    161,183 
ZEON    2,000    15,745 
    25,365,979 
Luxembourg—.1%         
Arcelor    6,866    127,865 
Oriflame Cosmetics    280    5,668 
        133,533 
Netherlands—4.6%         
ABN AMRO    22,191    529,276 
ASML    6,545 a    92,997 
Aegon    19,437    212,139 
Akzo Nobel    3,886    145,775 
 
    The Fund    27 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares    Value ($) 
Netherlands (continued)         
Corio    576    28,700 
DSM    1,018    55,242 
Euronext    1,420    41,003 
Getronics    7,200 a    14,837 
Hagemeyer    6,642 a    12,082 
Heineken    3,511    110,046 
IHC Caland    432    24,668 
ING Groep    25,554    674,499 
Koninklijke Ahold    22,189 a    153,547 
Koninklijke (Royal) KPN    28,408    226,575 
Koninklijke (Royal) Philips Electronics    18,716    441,633 
Oce    1,200    16,623 
Randstad    660    22,173 
Reed Elsevier    10,046    131,624 
Rodamco Europe    598    40,544 
Royal Dutch Petroleum    29,595    1,603,357 
Royal Numico    2,019 a    67,854 
STMicroelectronics    8,404 a    154,475 
TPG    4,238    102,105 
Unilever    8,127    471,410 
VNU    3,221    87,723 
Vedior    2,320    33,997 
Wereldhave    310    27,603 
Wolters Kluwer    3,743    68,039 
        5,590,546 
New Zealand—.2%         
Auckland International Airport    3,347    16,440 
Carter Holt Harvey    8,850    13,017 
Contact Energy    4,100    16,745 
Fisher & Paykel Appliances    3,468    9,490 
Fisher & Paykel Healthcare    6,500    12,895 
Fletcher Building    5,822    21,706 
Independent Newspapers    1,500    5,192 
NGC    3,200    6,742 
Sky City Entertainment    5,800    17,776 
Sky Network Television    1,300 a    4,954 
Telecom Corporation of New Zealand    27,752    109,544 
 
28         

Common Stocks (continued)    Shares    Value ($) 
New Zealand (continued)         
Tenon    1,240 a    1,866 
Tower    5,000 a    8,107 
Warehouse    2,700    7,536 
Waste Management    1,400    5,143 
        257,153 
Norway—.6%         
DNB NOR    8,934    75,477 
Frontline    600    29,475 
Norsk Hydro    2,075    152,252 
Norske Skogindustrier    1,680    30,489 
Orkla    2,602    73,885 
Petroleum Geo-Services    270 a    12,398 
Schibsted    700    15,223 
Ship Finance    60    1,206 
Smedvig, Cl. A    400    4,975 
Statoil    7,840    113,150 
Storebrand    3,350    25,419 
Tandberg    2,000    18,774 
Telenor    11,003    87,362 
Tomra Systems    2,550    11,210 
Yara International    2,974 a    31,755 
        683,050 
Portugal—.4%         
Banco BPI    5,214    20,229 
Banco Comercial Portugues    24,079    56,665 
Banco Espirito Santo    1,444    24,632 
Brisa-Auto Estradas de Portugal    5,100    41,585 
CIMPOR-Cimentos de Portugal    2,845    15,164 
EDP    27,180    80,212 
Jeronimo Martins    525 a    6,164 
PT Multimedia    780    18,137 
Portugal Telecom    11,665    131,024 
Sonae    13,560    16,559 
        410,371 
Singapore—.8%         
Allgreen Properties    6,000    3,711 
Ascendas Real Estate Investment Trust    7,000    6,558 
 
    The Fund    29 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares    Value ($) 
Singapore (continued)         
Capitaland    14,000    15,553 
CapitaMall Trust    8,000    8,119 
Chartered Semiconductor Manufacturing    14,000 a    8,491 
City Developments    7,000    26,482 
ComfortDelGro    23,700    20,352 
Creative Technology    750    8,467 
DBS    16,059    150,440 
Datacraft Asia    3,000 a    2,370 
Fraser & Neave    2,430    19,992 
Haw Par    1,658    4,938 
Jardine Cycle & Carriage    1,422    6,831 
Keppel    8,500    40,835 
Keppel Land    5,000    5,435 
Neptune Orient Lines    8,000    14,268 
Oversea-Chinese Banking    15,143    125,491 
Overseas Union Enterprise    1,000    4,384 
Parkway    7,000    6,011 
SMRT    8,000    3,435 
STATS ChipPAC    15,000 a    8,963 
SembCorp Industries    13,037    11,978 
SembCorp Logistics    4,000    5,549 
SembCorp Marine    7,000    4,414 
Singapore Airlines    8,000    51,404 
Singapore Exchange    9,000    9,512 
Singapore Land    2,000    5,357 
Singapore Post    18,000    8,701 
Singapore Press    21,075    59,482 
Singapore Technologies Engineering    20,000    25,101 
Singapore Telecommunications    78,265    113,737 
United Overseas Bank    17,112    138,725 
United Overseas Land    5,000    6,756 
Venture    3,000    28,464 
Wing Tai    6,000    3,279 
        963,585 
Spain—3.7%         
ACS    3,573    69,039 
Abertis Infraestructuras (Rights)    3,724    69,493 
 
30         

Common Stocks (continued)    Shares        Value ($) 
Spain (continued)             
Acciona    400        28,138 
Acerinox    2,680        37,125 
Altadis    3,945        144,375 
Amadeus Global Travel Distribution    4,313        35,277 
Antena 3 de Television    288    a    18,446 
Banco Bilbao Vizcaya Argentaria    45,840        717,222 
Banco Popular Espanol    2,278        128,891 
Banco Santander Central Hispano    60,977        678,701 
Corporacion Mapfre    1,385        17,442 
Endesa    13,573        274,695 
Fomento de Construcciones y Contratas    631        23,984 
Gamesa    1,542        21,204 
Gas Natural SDG    2,107        57,142 
Grupo Ferrovial    900        39,738 
Iberdrola    10,922        238,410 
Iberia Lineas Aereas de Espana    6,314        17,830 
Indra Sistemas    2,010        29,710 
Industria de Diseno Textil    2,949        74,725 
Metrovacesa    525        22,800 
NH Hoteles    1,165        13,901 
Promotora de Informaciones    1,230        23,172 
Repsol-YPF    13,039        281,800 
Sacyr Vallehermoso    1,506        23,065 
Sociedad General de Aguas de Barcelona    839        14,803 
Sogecable    538    a,b    21,215 
Telefonica    63,405        1,043,667 
Telefonica Publicidad e Informacion    2,277        16,713 
Union Fenosa    2,879        69,948 
Zeltia    2,069    b    14,475 
            4,267,146 
Sweden—2.4%             
AB SKF, Cl. B    1,255        48,519 
Alfa Laval    1,200        16,786 
Assa Abloy, Cl. B    3,959        53,292 
Atlas Copco, Cl. A    1,508        62,223 
Atlas Copco, Cl. B    1,000        38,098 
Axfood    420        12,724 
 
    The Fund    31 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares        Value ($) 
Sweden (continued)             
Billerud    800        12,203 
Capio    1,120    a    11,258 
Castellum    600        17,208 
D. Carnegie & Co.    870        8,806 
Electrolux, Cl. B    3,828        70,768 
Elekta, Cl. B    400    a    10,628 
Eniro    2,173        18,329 
Gambro, Cl. A    2,742        31,899 
Gambro, Cl. B    1,300        14,666 
Getinge, Cl. B    2,400        26,739 
Hennes & Mauritz, Cl. B    6,772        196,596 
Hoganas, Cl. B    400        9,588 
Holmen, Cl. B    700        21,650 
Lundin Petroleum    2,300    a    14,259 
Modern Times Group, Cl. B    700    a    15,499 
Nordea Bank    31,286        269,398 
OMX    1,050    a    12,363 
SAS    1,050    a    7,787 
SSAB Svenskt Stal, Ser. A    400        7,704 
SSAB Svenskt Stal, Ser. B    900        17,777 
Sandvik    3,166        118,172 
Scania, Cl. B    1,272        46,047 
Securitas, Cl. B    3,977        54,233 
Skandia Forsakrings    14,860        55,152 
Skandinaviska Enskilda Banken, Cl. A    6,759        112,125 
Skanska, Cl. B    4,952        53,780 
Svenska Cellulosa, Cl. B    2,641        98,019 
Svenska Handelsbanken, Cl. A    7,888        170,221 
Swedish Match    4,764        52,408 
Telefonaktiebolaget LM Ericsson, Cl. B    208,930    a    605,071 
Tele2, Cl. B    1,415        46,847 
TeliaSonera    26,734        142,819 
Trelleborg, Cl. B    1,040        14,548 
Volvo, Cl. A    1,422        51,877 
Volvo, Cl. B    3,253        122,791 

32
Common Stocks (continued)    Shares    Value ($) 
Sweden (continued)         
WM-data, Cl. B    5,000    9,841 
Wihlborgs Fastigheter    1,323    22,784 
        2,803,502 
Switzerland—6.8%         
ABB    26,601 a    153,214 
Adecco    1,775    85,171 
Ciba Specialty Chemicals    923 a    63,264 
Clariant    3,300    44,496 
Compagnie Financiere Richemont    7,444    210,349 
Credit Suisse    16,152 a    550,522 
Geberit    47    30,513 
Givaudan    97    60,520 
Holcim    2,630    140,097 
Kudelski    435 a    13,143 
Kuoni Reisen    41    15,493 
Logitech International    672 a    34,762 
Lonza    530    25,806 
Micronas Semiconductor    450 a    17,604 
Nestle    5,733    1,351,594 
Nobel Biocare    356    58,017 
Novartis    33,824    1,607,516 
Phonak    600    18,727 
Rieter    65    17,177 
Roche    9,988    1,017,546 
SGS    65    41,279 
Schindler    83    26,476 
Serono, Cl. B    87    53,911 
Straumann    110    22,706 
Sulzer    57    19,167 
Swatch (Bearer)    451    60,248 
Swatch (Reg’d)    920    25,271 
Swiss Re    4,587    280,615 
Swisscom    379    136,039 
Syngenta    1,529 a    145,334 
Synthes    621 a    65,954 

The Fund 33

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Switzerland (continued)         
UBS    15,197    1,091,599 
Unaxis    160    13,237 
Valora    61    13,912 
Zurich Financial Services    2,051 a    291,061 
        7,802,340 
United Kingdom—24.4%         
AMEC    4,108    23,861 
ARM    15,550    27,709 
Aegis    15,640    29,230 
Aggreko    4,440    12,203 
Alliance Unichem    3,600    43,964 
Amvescap    9,801    52,977 
Arriva    2,750    22,650 
Associated British Ports    4,620    39,109 
AstraZeneca    23,831    974,615 
Aviva    32,134    320,891 
BAA    15,300    160,776 
BAE Systems    43,666    190,622 
BBA    5,966    28,859 
BG    50,288    327,107 
BHP Billiton    35,116    356,139 
BOC    7,131    114,590 
BP    309,928    2,995,573 
BPB    6,629    51,045 
BT    121,959    415,087 
Balfour Beatty    6,400    31,809 
Barclays    91,488    891,810 
Barratt Developments    3,370    31,245 
Bellway    1,579    19,587 
Berkeley    1,555    33,906 
Boots    10,957    132,103 
Brambles Industries    9,689    46,691 
British Airways    8,441 a    33,292 
British American Tobacco    21,816    327,782 
British Land    6,605    90,162 
British Sky Broadcasting    17,994    167,655 
Bunzl    6,015    45,490 
 
34         

Common Stocks (continued)    Shares    Value ($) 
United Kingdom (continued)         
Cable & Wireless    32,117    61,496 
Cadbury Schweppes    29,555    245,045 
Capita    8,949    57,677 
Carnival    2,433    128,479 
Cattles    5,170    33,724 
Centrica    52,580    231,944 
Close Brothers    1,734    21,097 
Cobham    1,478    37,454 
Compass    30,835    127,123 
Cookson    26,800 a    15,714 
Corus    63,020 a    56,292 
Daily Mail and General Trust    4,433    58,848 
Davis Service    2,756    18,280 
De La Rue    2,707    16,021 
Diageo    43,447    579,944 
Dixons    26,377    83,008 
EMAP    3,715    53,503 
EMI    10,558    40,964 
Electrocomponents    6,726    35,832 
Enterprise Inns    4,685    53,137 
Exel    4,332    56,158 
FKI    8,710    19,071 
FirstGroup    6,290    33,135 
Friends Provident    25,579    63,741 
GKN    10,550    41,319 
GUS    14,454    235,973 
George Wimpey    5,600    35,913 
GlaxoSmithKline    83,958    1,764,502 
Great Portland Estates    1,720    9,533 
Group 4 Securicor    15,091    32,214 
HBOS    55,318    739,415 
HMV    5,431    23,858 
HSBC    156,426    2,520,817 
Hammerson    3,708    49,801 
Hanson    9,962    73,379 
Hays    23,349    55,082 
Hilton    21,487    101,478 
 
    The Fund    35 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares    Value ($) 
United Kingdom (continued)         
ICAP    6,519    27,951 
IMI    5,185    33,157 
ITV    59,564    116,779 
Imperial Chemical Industries    16,062    61,657 
Imperial Tobacco    10,392    242,205 
Inchcape    1,088    29,465 
InterContinental Hotels    10,256    125,249 
International Power    19,790 a    58,290 
Intertek    2,193    27,645 
Invensys    80,022 a    22,360 
Johnson Matthey    2,948    51,261 
Kelda    5,039    51,658 
Kesa Electricals    7,049    35,131 
Kidde    13,130    40,418 
Kingfisher    33,291    184,370 
Land Securities    6,661    145,605 
Legal & General    92,868    168,460 
Liberty International    3,235    51,036 
Lloyds TSB    79,512    627,923 
LogicaCMG    10,537    34,077 
London Stock Exchange    3,609    24,137 
MFI Furniture    9,710    18,236 
Man    3,786    90,668 
Marconi    2,864 a    27,813 
Marks & Spencer    22,697    149,300 
Meggit    5,999    26,985 
Misys    8,027    31,659 
Mitchells & Butlers    7,640    39,861 
National Express    1,927    24,504 
National Grid Transco    43,799    379,998 
Next    3,752    114,809 
Novar    6,100    13,301 
Pearson    11,485    125,843 
Peninsular and Oriental Steam Navigation    10,773    52,901 
Persimmon    3,651    41,342 
Pilkington    14,452    22,839 
Premier Farnell    5,140    18,412 
 
36         

Common Stocks (continued)    Shares    Value ($) 
United Kingdom (continued)         
Provident Financial    3,853    41,265 
Prudential    27,619    202,678 
Prudential (Rights)    4,603 a    7,759 
Punch Taverns    3,527    35,738 
RMC    3,796    59,156 
Rank    8,646    45,308 
Reckitt Benckiser    8,473    231,945 
Reed Elsevier    18,170    161,970 
Rentokil Initial    24,531    69,670 
Reuters    20,494    139,221 
Rexam    7,403    58,395 
Rio Tinto    15,183    396,154 
Rolls-Royce    22,835    108,472 
Royal & Sun Alliance Insurance    38,823    53,174 
Royal Bank of Scotland    42,357    1,245,652 
SABMiller    11,431    164,523 
SSL International    2,600    12,910 
Sage    17,203    57,841 
Sainsbury (J)    18,416    86,974 
Schroders    1,845    21,670 
Scottish & Newcastle    10,889    80,456 
Scottish & Southern Energy    12,237    187,110 
Scottish Power    26,519    213,678 
Serco    6,722    26,850 
Severn Trent    4,664    78,237 
Shell Transport & Trading    137,285    1,078,509 
Signet    23,136    45,042 
Slough Estates    5,597    46,585 
Smith & Nephew    12,685    107,498 
Smiths    7,617    104,047 
Stagecoach    11,495    18,693 
Tate & Lyle    6,102    47,434 
Taylor Woodrow    8,350    35,419 
Tesco    109,737    577,074 
3i    8,317    88,769 
Tomkins    11,360    51,829 
Trinity Mirror    3,937    46,529 
 
    The Fund    37 

S T A T E M E N T O F I N V E S T M E N T S (continued)

Common Stocks (continued)    Shares    Value ($) 
United Kingdom (continued)         
Unilever    39,369    331,103 
United Business Media    4,483    39,182 
United Utilities    7,530    79,196 
United Utilities, Cl. A    4,746    33,828 
Vodafone    953,163    2,436,340 
WPP    16,113    161,348 
Whitbread    4,008    59,632 
William Hill    5,610    50,266 
Wolseley    8,331    143,644 
Yell    9,401    63,045 
        28,618,633 
Total Common Stocks         
(cost $91,820,219)        113,239,409 
 
Preferred Stocks—.5%         
Australia—.3%         
News Corporation    41,119    322,495 
Germany—.2%         
Fresenius Medical Care    400    21,625 
Henkel KGaA    801    59,963 
Porsche    106    67,419 
ProSiebenSat.1 Media    1,125    20,106 
RWE    546    24,587 
Volkswagen    1,406    44,981 
        238,681 
New Zealand—.0%         
Tenon    3,250 a    4,847 
Total Preferred Stocks         
(cost $479,890)        566,023 
 
Other Investments—2.1%         
Registered Investment Company;         
Dreyfus Institutional Preferred Plus Money Market Fund     
(cost $2,500,000)    2,500,000 c    2,500,000 

38
    Principal     
Short-Term Investments—.2%    Amount ($)    Value ($) 
U.S.Treasury Bill;         
1.64%, 12/23/2004         
(cost $259,385)    260,000 d    259,337 
Investment of Cash Collateral         
for Securities Loaned—.3%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Fund         
(cost $327,683)    327,683 c    327,683 
Total Investments (cost $95,387,177)    99.8%    116,892,452 
Cash and Receivables (Net)    .2%    273,762 
Net Assets    100.0%    117,166,214 
a Non—income producing.         

b    All or a portion of these securities are on loan.At October 31, 2004, the total market value of the portfolio’s 
    securities on loan is $307,729 and the total market value of the collateral held by the portfolio is $327,683. 
c    Investments in affiliated money market mutual funds.         
d    Partially held by the broker in a segregated account as collateral for open financial futures positions. 
 
 
 
Portfolio Summary (Unaudited) †         
 
        Value (%)        Value (%) 
Banks    15.6    Diversified Financials    4.8 
Energy    8.6    Technology Hardware     
Pharmaceuticals & Biotechnology    7.5    & Equipment    4.3 
Telecommunication Services    7.4    Automobiles & Components    4.1 
Materials    6.9    Insurance    4.0 
Capital Goods    6.1    Other    20.2 
Utilities    5.2    Futures Contracts    .0 
Food, Beverage & Tobacco    5.1        99.8 
 
†    Based on net assets.             
See notes to financial statetments.             

The Fund 39

STATEMENT OF FINANCIAL FUTURES

October 31, 2004

                Unrealized 
        Market Value        Appreciation/ 
        Covered by        (Depreciation) 
    Contracts    Contracts ($)    Expiration    at 10/31/2004 ($) 
Financial Futures Long                 
DJ Euro STOXX 50    36    1,290,927    December 2004    23,279 
Financial Times 100    13    1,104,886    December 2004    9,383 
TOPIX    7    711,931    December 2004    (39,059) 
                (6,397) 

See notes to financial statements.
40

STATEMENT OF ASSETS AND LIABILITIES

October 31, 2004

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of         
Investments (including securities on loan,         
valued at $307,729)—Note 1(c):         
Unaffiliated issuers    92,559,494    114,064,769 
Affiliated issuers    2,827,683    2,827,683 
Cash        260,562 
Cash denominated in foreign currencies    477,066    488,769 
Receivable for shares of Common Stock subscribed    3,472,926 
Dividend and interest receivable        212,440 
Receivable for investment securities sold        100,228 
Net unrealized appreciation on forward         
currency exchange contracts—Note 4        80,651 
        121,508,028 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    58,230 
Payable for investment securities purchased        3,720,326 
Liability for securities on loan—Note 1(c)        327,683 
Payable for shares of Common Stock redeemed    221,848 
Payable for futures variation margin—Note 4        9,108 
Net unrealized depreciation on forward         
currency exchange contracts—Note 4        4,619 
        4,341,814 
Net Assets ($)        117,166,214 
Composition of Net Assets ($):         
Paid-in capital        114,466,986 
Accumulated undistributed investment income—net    2,090,993 
Accumulated net realized gain (loss) on investments    (20,987,543) 
Accumulated net unrealized appreciation (depreciation)     
on investments and foreign currency transactions [including     
($6,397) net unrealized (depreciation) on financial futures]    21,595,778 
Net Assets ($)        117,166,214 
Shares Outstanding         
(200 million shares of $.001 par value Common Stock authorized)    9,317,767 
Net Asset Value, offering and redemption price per share—Note 3(c) ($)    12.57 

See notes to financial statements.

The Fund 41

STATEMENT OF OPERATIONS
Year Ended October 31, 2004
Investment Income ($):     
Income:     
Cash dividends (net of $308,657 foreign taxes withheld at source):     
Unaffiliated issuers    2,879,599 
Affiliated issuers    29,307 
Interest    11,465 
Income on securities lending    4,713 
Total Income    2,925,084 
Expenses:     
Management fee—Note 3(a)    383,792 
Shareholder servicing costs—Note 3(b)    274,138 
Loan commitment fees—Note 2    570 
Total Expenses    658,500 
Investment Income—Net    2,266,584 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    (1,955,815) 
Net realized gain (loss) on forward currency exchange contracts    162,517 
Net realized gain (loss) on financial futures    245,584 
Net Realized Gain (Loss)    (1,547,714) 
Net unrealized appreciation (depreciation) on investments     
and foreign currency transactions [including ($19,845)     
net unrealized (depreciation) on financial futures]    16,665,140 
Net Realized and Unrealized Gain (Loss) on Investments    15,117,426 
Net Increase in Net Assets Resulting from Operations    17,384,010 

See notes to financial statements.
42

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended October 31, 
    2004    2003 
Operations ($):         
Investment income—net    2,266,584    1,648,192 
Net realized gain (loss) on investments    (1,547,714)    (3,829,289) 
Net unrealized appreciation         
(depreciation) on investments    16,665,140    21,513,616 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    17,384,010    19,332,519 
Dividends to Shareholders from ($):         
Investment income—net    (2,598,401)    (1,799,886) 
Capital Stock Transactions ($):         
Net proceeds from shares sold    49,003,241    115,901,585 
Dividends reinvested    2,173,964    1,503,823 
Cost of shares redeemed    (40,527,316)    (125,298,419) 
Increase (Decrease) in Net Assets         
from Capital Stock Transactions    10,649,889    (7,893,011) 
Total Increase (Decrease) in Net Assets    25,435,498    9,639,622 
Net Assets ($):         
Beginning of Period    91,730,716    82,091,094 
End of Period    117,166,214    91,730,716 
Undistributed investment income—net    2,090,993    2,191,324 
Capital Share Transactions (Shares):         
Shares sold    4,094,263    12,967,368 
Shares issued for dividends reinvested    197,095    173,853 
Shares redeemed    (3,381,139)    (13,968,800) 
Net Increase (Decrease) in Shares Outstanding    910,219    (827,579) 

See notes to financial statements.

The Fund 43

FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

            Year Ended October 31,     
        2004    2003    2002    2001    2000 
Per Share Data ($):                     
Net asset value, beginning of period    10.91    8.89    10.60    14.18    14.95 
Investment Operations:                     
Investment income—net a    .25    .18    .15    .15    .19 
Net realized and unrealized                     
gain (loss) on investments    1.72    2.04    (1.73)    (3.74)    (.78) 
Total from Investment Operations    1.97    2.22    (1.58)    (3.59)    (.59) 
Distributions:                     
Dividends from investment income—net    (.31)    (.20)    (.13)    —    (.18) 
Redemption fee reimbursement    .00b    .00b    .00b    .01    .00b 
Net asset value, end of period    12.57    10.91    8.89    10.60    14.18 
Total Return (%)    18.40    25.49    (15.12)    (25.25)    (4.09) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .60    .60    .60    .60    .60 
Ratio of net investment income                     
to average net assets    2.07    1.98    1.44    1.26    1.21 
Portfolio Turnover Rate    14.80    11.37    24.12    30.02    15.32 
Net Assets, end of period ($ x 1,000)    117,166    91,731    82,091    72,344    51,619 
 
a    Based on average shares outstanding at each month end.                 
b    Amount represents less than $.01 per share.                 
See notes to financial statements.                     

44

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus International Stock Index Fund (the “fund”) is a separate non-diversified series of Dreyfus Index Funds, Inc. (the “Company”) which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering three series including the fund. The fund’s investment objective is to provide investment results that correspond to the net dividend and total return performance of equity securities of international issuers in the aggregate, as represented by the Morgan Stanley Capital International Europe,Australia, Far East (Free) Index. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser.The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used

The Fund 45

NOTES TO FINANCIAL STATEMENTS (continued)

for valuation purposes. Bid price is used when no asked price is avail-able.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward currency exchange contracts are valued at the forward rate. Financial futures are valued at the last sales price.

(b) Foreign currency transactions: The fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in exchange

46

rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the fund may lend securities to qualified institutions.At origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager. The fund will be entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the fund would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(d) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with incomes tax regulations, which may differ from U.S. generally accepted accounting principles.

The Fund 47

NOTES TO FINANCIAL STATEMENTS (continued)

(f) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

At October 31, 2004, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $2,519,360, accumulated capital losses $14,062,054 and unrealized appreciation $14,241,922.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to October 31, 2004. If not applied, $58,106 of the carryover expires in fiscal 2005, $167,514 expires in fiscal 2006, $2,874,348 expires in fiscal 2009, $5,891,135 expires in fiscal 2010, $4,292,311 expires in fiscal 2011 and $778,640 expires in fiscal 2012.

The tax character of distributions paid to shareholders during the fiscal periods ended October 31, 2004 and October 31, 2003, were as follows: ordinary income $2,598,401 and $1,799,886, respectively.

During the period ended October 31, 2004, as a result of permanent book to tax differences primarily due to the tax treatment for the passive foreign investment companies and foreign currency exchange gains and losses, the fund increased accumulated undistributed investment income-net by $231,486, decreased accumulated net realized gain (loss) on investments by $221,699 and decreased paid-in capital by $9,787. Net assets were not affected by this reclassification.

NOTE 2—Bank Line Of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund

48

based on prevailing market rates in effect at the time of borrowings. During the period ended October 31, 2004, the fund did not borrow under the Facility.

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Management Agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .35 of 1% of the value of the fund’s average daily net assets, and is payable monthly. Under the terms of the Agreement, the Manager has agreed to pay all the expenses of the fund, except management fees, brokerage commissions, taxes, commitment fees, interest, Shareholder Services Plan fees, fees and expenses of non-interested Board Members (including counsel fees) and extraordinary expenses. In addition, the Manager is required to reduce its fee in an amount equal to the fund’s allocable portion of fees and expenses of the non-interested Board Members (including counsel fees). Each Board member also serves as a Board Member of other funds within the Dreyfus complex (collectively, the “Fund Group”). Each Board member receives an annual fee of $25,000, an attendance fee of $4,000 for each in-person meeting and $500 for telephone meetings. The chairman of the Board receives an additional 25% of such compensation (with the exception of reimbursable amounts). Subject to the Company’s Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the Company’s annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status. Amounts required to be paid by the Company directly to the non-interested Board members, that were applied to offset a portion of the management fee payable to the Manager were in fact paid directly by the Manager to the non-interested Board members. All Board fees are allocated among the funds in the Fund Group in proportion to each fund’s relative net assets.

(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services, a fee at the annual rate of .25 of

The Fund 49

NOTES TO FINANCIAL STATEMENTS (continued)

1% of the value of the fund’s average daily net assets.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts.The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services.The Distributor determines the amounts to be paid to Service Agents. During the period ended October 31, 2004, the fund was charged $274,138 pursuant to the Shareholder Services Plan.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: management fees $33,968 and shareholder services plan fees $24,262.

(c) A 1% redemption fee is charged and retained by the fund on shares redeemed within six months following the date of issuance, including redemptions made through the use of the fund’s exchange privilege. During the period ended October 31, 2004, redemption fees charged and retained by the fund amounted to $9,787.

(d) Pursuant to an exemptive order from the Securities and Exchange Commission, the fund invests it’s available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by the Manager.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, forward currency exchange contracts and financial futures, during the period ended October 31, 2004, amounted to $25,360,527 and $15,641,019, respectively.

The fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings and to settle foreign currency transactions. When executing forward currency exchange contracts, the fund is

50

obligated to buy or sell a foreign currency at a specified rate on a certain date in the future. With respect to sales of forward currency exchange contracts, the fund would incur a loss if the value of the contract increases between the date the forward contract is opened and the date the forward contract is closed.The fund realizes a gain if the value of the contract decreases between those dates.With respect to purchases of forward currency exchange contracts, the fund would incur a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed. The fund realizes a gain if the value of the contract increases between those dates. The fund is also exposed to credit risk associated with counter party nonperformance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract.

The following summarizes open forward currency exchange contracts at October 31, 2004:

    Foreign            Unrealized 
Forward Currency    Currency            Appreciation/ 
Exchange Contracts    Amounts    Cost ($)    Value ($)    (Depreciation) ($) 
Purchases:                 
Australian Dollar,                 
expiring 11/4/2004    174,990    130,686    130,709    23 
British Pound,                 
expiring 11/2/2004    466,746    854,613    855,220    607 
British Pound,                 
expiring 12/16/2004    579,430    1,038,597    1,058,051    19,454 
Danish Krone,                 
expiring 11/2/2004    139,623    23,945    23,903    (42) 
Euro,                 
expiring 11/1/2004    192,979    245,952    245,479    (473) 
Euro,                 
expiring 11/2/2004    712,874    908,558    906,811    (1,747) 
Euro,                 
expiring 11/3/2004    100,015    127,223    127,224    1 
Euro,                 
expiring 12/16/2004    1,019,810    1,260,352    1,297,147    36,795 
Hong Kong Dollar,                 
expiring 11/2/2004    348,103    44,724    44,724    — 
Japanese Yen,                 
expiring 11/4/2004    90,631,208    853,570    853,482    (88) 

The Fund 51

NOTES TO FINANCIAL STATEMENTS (continued)
    Foreign            Unrealized 
Forward Currency    Currency            Appreciation/ 
Exchange Contracts    Amounts    Cost ($)    Value ($)    (Depreciation) ($) 
Purchases (continued):             
Japanese Yen,                 
expiring 12/16/2004    79,785,000    729,752    753,328    23,576 
New Zealand Dollar,                 
expiring 11/3/2004    8,415    5,756    5,757    1 
Norwegian Krone,                 
expiring 11/2/2004    82,919    12,956    12,972    16 
Singapore Dollar,                 
expiring 11/3/2004    39,983    24,011    24,010    (1) 
Swedish Krona,                 
expiring 11/1/2004    537,390    75,742    75,549    (193) 
Swiss Franc,                 
expiring 11/2/2004    312,106    260,305    259,774    (531) 
Sales:            Proceeds ($)     
British Pound,                 
expiring 11/1/2004    42,622    78,275    78,097    178 
Euro,                 
expiring 12/16/2004    27,400    33,307    34,851    (1,544) 
Total                76,032 

The fund may invest in financial futures contracts in order to gain exposure to or protect against changes in the market. The fund is exposed to market risk as a result of changes in the value of the underlying financial instruments. Investments in financial futures require the fund to “mark to market” on a daily basis, which reflects the change in the market value of the contract at the close of each day’s trading. Typically, variation margin payments are received or made to reflect daily unrealized gains or losses.When the contracts are closed, the fund recognizes a realized gain or loss.These investments require initial margin deposits with a broker, which consist of cash or cash equivalents.The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open as of October 31, 2004, are set forth in the Statement of Financial Futures.

At October 31, 2004, the cost of investments for federal income tax purposes was $102,662,753; accordingly, accumulated net unrealized appreciation on investments was $14,229,699, consisting of $26,082,771 gross unrealized appreciation and $11,853,072 gross unrealized depreciation.

52
NOTE 5—Legal Matters:

Two class actions have been filed against Mellon Financial, Mellon Bank, N.A., Dreyfus, Founders Asset Management LLC and the directors of all or substantially all of the Dreyfus Funds, on behalf of a purported class and derivatively on behalf of said funds, alleging violations of the Investment Company Act of 1940, the Investment Advisers Act of 1940, and the common law. The complaints alleged, among other things, (i) that 12b-1 fees and directed brokerage were improperly used to pay brokers to recommend Dreyfus funds over other funds, (ii) that such payments were not disclosed to investors, (iii) that economies of scale and soft-dollar benefits were not passed on to investors, and (iv) that 12b-1 fees charged to certain funds that were closed to new investors were also improper. The complaints sought compensatory and punitive damages, rescission of the advisory contracts and an accounting and restitution of any unlawful fees, as well as an award of attorneys’ fees and litigation expenses. On April 22, 2004, the actions were consolidated under the caption In re Dreyfus Mutual Funds Fee Litigation, and a consolidated amended complaint was filed on September 13, 2004.While adding new parties and claims under state and federal law, the allegations in the consolidated amended complaint essentially track the allegations in the prior complaints pertaining to 12b-1 fees, directed brokerage, soft dollars and revenue sharing. Dreyfus and the funds believe the allegations to be totally without merit and intend to defend the action vigorously.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Dreyfus funds believe that any of the pending actions will have a material adverse effect on the Dreyfus funds or Dreyfus’ ability to perform its contracts with the Dreyfus funds.

The Fund 53

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Dreyfus International Stock Index Fund

In our opinion, the accompanying statement of assets and liabilities, including the statements of investments and financial futures, and the related statements of operations and of changes in net assets and financial highlights present fairly, in all material respects, the financial position of Dreyfus International Stock Index Fund (the “Fund”) (one of the series constituting Dreyfus Index Funds, Inc.), at October 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.We believe that our audits, which included confirmation of securities owned at October 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
New York, New York
December 14, 2004
54

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the fund elects to provide each shareholder with their portion of the fund’s foreign taxes paid and the income sourced from foreign countries. Accordingly, the fund hereby makes the following designations regarding its fiscal year ended October 31, 2004:

—the total amount of taxes paid to foreign countries was $308,657

—the total amount of income sourced from foreign countries was $2,623,803

As required by Federal tax law rules, shareholders will receive notification of their proportionate share of foreign taxes paid and foreign sourced income for the 2004 calendar year with Form 1099-DIV which will be mailed by January 31, 2005.

For the fiscal year ended October 31, 2004, certain dividends paid by the fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, $232,956 represents the maximum amount that may be considered qualified dividend income.

The Fund 55

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (61)
Chairman of the Board (1995)
Principal Occupation During Past 5 Years:
• Corporate Director and Trustee
Other Board Memberships and Affiliations:
  • The Muscular Dystrophy Association, Director
  • Levcor International, Inc., an apparel fabric processor, Director
  • Century Business Services, Inc., a provider of outsourcing functions for small and medium size companies, Director
  • The Newark Group, a provider of a national market of paper recovery facilities, paperboard mills and paperboard converting plants, Director
  • Azimuth Trust, an institutional asset management firm, Member of Board of Managers and Advisory Board

No. of Portfolios for which Board Member Serves: 186

———————
David P. Feldman (64)
Board Member (1989)
Principal Occupation During Past 5 Years:
• Corporate Director & Trustee
Other Board Memberships and Affiliations:

  • BBH Mutual Funds Group (11 funds), Director
  • The Jeffrey Company, a private investment company, Director
  • QMED, a medical device company, Director

No. of Portfolios for which Board Member Serves: 51

———————

Ehud Houminer (64) Board Member (1996)

Principal Occupation During Past 5 Years:
  • Executive-in-Residence at the Columbia Business School, Columbia University
  • Principal of Lear,Yavitz and Associates, a management consulting firm (1996 to 2001)
Other Board Memberships and Affiliations:
  • Avnet Inc., an electronics distributor, Director
  • International Advisory Board to the MBA Program School of Management, Ben Gurion University, Chairman
  • Explore Charter School, Brooklyn, NY, Chairman
No. of Portfolios for which Board Member Serves: 30
56
Gloria Messinger (74)
Board Member (1996)
Principal Occupation During Past 5 Years:
  • Arbitrator for American Arbitration Association and National Association of Securities Dealers, Inc.
  • Consultant in Intellectual Property
Other Board Memberships and Affiliations:
  • Yale Law School Fund, Director
  • Theater for a New Audience, Inc., Director
  • Brooklyn Philharmonic, Director
  • New York Women’s Agenda Music Performance Trust Fund, Director
No. of Portfolios for which Board Member Serves: 19

———————

T. John Szarkowski (78) Board Member (1991)

Principal Occupation During Past 5 Years:

• Consultant in Photography

Other Board Memberships and Affiliations:

• Photography Department at The Museum of Modern Art, Director Emeritus

No. of Portfolios for which Board Member Serves: 19

———————
Anne Wexler (74)
Board Member (1991)
Principal Occupation During Past 5 Years:

  • Chairman of the Wexler & Walker Public Policy Associates, consultants specializing in government relations and public affairs
Other Board Memberships and Affiliations:
  • Wilshire Mutual Funds (5 funds), Director
  • Methanex Corporation, a methanol producing company, Director
  • Member of the Council of Foreign Relations
  • Member of the National Park Foundation
No. of Portfolios for which Board Member Serves: 29

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.

John M. Fraser, Jr., Emeritus Board Member

The Fund 57

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 93 investment companies (comprised of 186 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 59 years old and has been an employee of the Manager since May 1995.

STEPHEN R. BYERS, Executive Vice President since November 2002.

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 93 investment companies (comprised of 186 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 51 years old and has been an employee of the Manager since January 2000. Prior to joining the Manager, he served as an Executive Vice President-Capital Markets, Chief Financial Officer and Treasurer at Gruntal & Co., L.L.C.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 58 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Secretary since March 2000.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 195 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since October 1991.

STEVEN F. NEWMAN, Assistant Secretary since March 2000.

Associate General Counsel and Assistant Secretary of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 55 years old and has been an employee of the Manager since July 1980.

JAMES WINDELS, Treasurer since November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 46 years old and has been an employee of the Manager since April 1985.

RICHARD CASSARO, Assistant Treasurer since August 2003.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 26 investment companies (comprised of 101 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since September 1982.

58

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 27 investment companies (comprised of 106 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1990.

KENNETH J. SANDGREN, Assistant Treasurer since November 2001.

Mutual Funds Tax Director of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 50 years old and has been an employee of the Manager since June 1993.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (94 investment companies, comprising 202 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 47 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since October 2002.

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 89 investment companies (comprised of 197 portfolios) managed by the Manager. He is 33 years old and has been an employee of the Distributor since October 1998.

The Fund 59

NOTES

For More    Information 
 
Dreyfus International    Transfer Agent & 
Stock Index Fund    Dividend Disbursing Agent 
200 Park Avenue    Dreyfus Transfer, Inc. 
New York, NY 10166    200 Park Avenue 
Manager    New York, NY 10166 
The Dreyfus Corporation    Distributor 
200 Park Avenue    Dreyfus Service Corporation 
New York, NY 10166    200 Park Avenue 
Custodian    New York, NY 10166 
Boston Safe Deposit and     
Trust Company     
One Boston Place     
Boston, MA 02109     
 
 
Telephone 1-800-645-6561     

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 E-mail Send your request to info@dreyfus.com Internet Information can be viewed online or downloaded at: http://www.dreyfus.com

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the 12-month period ended June 30, 2004, is available through the fund’s website at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

®

© 2004 Dreyfus Service Corporation 0079AR1004

Dreyfus     
Smallcap     
Stock Index    Fund 

  ANNUAL REPORT October 31, 2004

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents
 
    THE FUND 
2    Letter from the Chairman 
3    Discussion of Fund Performance 
6    Fund Performance 
7    Understanding Your Fund’s Expenses 
7    Comparing Your Fund’s Expenses 
With Those of Other Funds
8    Statement of Investments 
27    Statement of Financial Futures 
28    Statement of Assets and Liabilities 
29    Statement of Operations 
30    Statement of Changes in Net Assets 
31    Financial Highlights 
32    Notes to Financial Statements 
39    Report of Independent Registered 
    Public Accounting Firm 
40    Important Tax Information 
41    Board Members Information 
43    Officers of the Fund 
FOR MORE INFORMATION
    Back Cover 

Dreyfus 
Smallcap Stock Index Fund 

The Fund

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Smallcap Stock Index Fund, covering the 12-month period from November 1, 2003, through October 31, 2004. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio manager,Tom Durante, CFA.

The Federal Reserve Board has raised short-term interest rates three times since the beginning of the summer, the rate of corporate earnings growth appears to have slowed dramatically and high energy prices threaten to erode the rate of economic growth.Though these factors may suggest the U.S. economy is moving toward a new phase of the business cycle, we believe the current economic cycle still favors higher-quality stocks, which currently offer favorable relative and absolute valuations.

Of course, the specific investments that may be right for you in today’s economic and market environment depend on your current needs, future goals, tolerance for risk and the composition of your overall portfolio.As always, your financial advisor may be in the best position to recommend the specific asset classes and investments that will satisfy your financial needs most effectively.

Thank you for your continued confidence and support.

The Dreyfus Corporation
November 15, 2004
2

DISCUSSION OF FUND PERFORMANCE

Tom Durante, CFA, Portfolio Manager

How did Dreyfus Smallcap Stock Index Fund perform relative to its benchmark?

For the 12-month period ended October 31, 2004, Dreyfus Smallcap Stock Index Fund produced a total return of 16.35% .1 The Standard & Poor’s SmallCap 600 Index (the “S&P 600 Index”), produced a 16.78% return for the same period.2,3

We attribute the fund’s performance to the effects of stronger U.S. and global economies, which were driven by improved corporate earnings, low interest rates and low inflation. Small-cap stocks generally posted higher returns than mid- and large-cap stocks as investors continued to favor companies with higher potential growth rates.The difference between the fund’s return and the S&P 600 Index’s return was primarily due to transaction costs and other fund expenses.

What is the fund’s investment approach?

The fund seeks to match the total return of the S&P 600 Index. To reach this goal, the fund generally invests in a representative sample of the stocks listed in the S&P 600 Index.While the portfolio manager strives to own the vast majority of the stocks in the S&P 600 Index, he may avoid some very small, less liquid names. Often considered a barometer for the small-cap stock market in general, the S&P 600 Index is composed of 600 domestic stocks across 10 economic sectors. Each stock is weighted by its market capitalization; that is, larger companies have greater representation in the S&P 600 Index than smaller ones.The fund may also use stock index futures as a substitute for the sale or purchase of stocks.

As an index fund, the fund uses a passive management approach: all investment decisions are made based on the composition of the S&P 600 Index.The fund does not attempt to manage market volatility.

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

Small-cap stocks are often those of new and entrepreneurial companies and tend to grow faster than large-cap companies.They also typically use any profits for expansion rather than for paying dividends. Compared to larger, more established companies, small companies are subject to more erratic market movements and may carry additional risks because, among other things, their revenues and earnings also tend to be less predictable.As a result, their stocks tend to be less liquid and more volatile.

What other factors influenced the fund’s performance?

When the reporting period began, the U.S. economy already had begun to show signs of strengthening in an environment characterized by low inflation and low interest rates. Many U.S. companies took advantage of the low interest-rate environment to refinance their outstanding debt at lower rates. At the same time, reductions in personal and corporate income tax rates provided support for consumer and business spending. Stronger global economic activity, especially in China and India, helped further boost U.S. business conditions, especially for exporters. Partially offsetting these favorable influences were a number of forces that weighed heavily on investor sentiment during the reporting period’s second half, including surging oil prices, rising short-term interest rates, the presidential election and the insurgency in Iraq.

In this environment, energy stocks posted higher returns than any other market sector within the S&P 600 Index. Small-cap refineries and oil services companies benefited from higher oil prices and rising global demand from developing nations, such as China, that are building out their industrial infrastructures. In the producer goods sector, coal producers, mining and metals companies, industrial parts manufacturers, chemical manufacturers and electrical equipment makers exercised greater pricing power as global demand for their products and services intensified, and their stock prices rose.

In the financials area, small-cap banking stocks fared relatively well.As the economy improved, businesses and consumers took out new loans and refinanced existing ones at lower interest rates, helping to boost

4

banks’ earnings. Some small-cap banks were acquired by larger competitors during the reporting period, a trend that benefited the group overall. Finally, in the health care area, medical products companies posted higher revenues and earnings as they responded to the medical needs of the aging baby-boom generation.

On the other hand, semiconductor stocks represented the single largest detractor from the fund’s performance. Semiconductor producers and semiconductor equipment manufacturers suffered from higher expenses and unexpectedly weak customer demand, which led to higher inventories of unsold goods.Weakness among airline stocks also hurt the fund’s performance, as higher fuel prices and terrorism concerns intensified the industry’s losses.

What is the fund’s current strategy?

As an index fund, our strategy remains the same: to replicate the returns of the small-cap market by investing in a representative sample of the stocks that compose the S&P 600 Index. In our view, broadly diversified index funds, such as Dreyfus Smallcap Stock Index Fund, can help investors participate in the performance of broad areas of the overall stock market while managing the risks of unexpected losses in any single industry group or holding.

November 15, 2004
1    Total return includes reinvestment of dividends and any capital gains paid. Past performance is no 
    guarantee of future results. Share price and investment return fluctuate such that upon redemption, 
    fund shares may be worth more or less than their original cost. Return figure provided reflects the 
    absorption of fund expenses by The Dreyfus Corporation pursuant to an agreement in effect that 
    may be extended, terminated or modified. Had these expenses not been absorbed, the fund’s return 
    would have been lower. 
2    SOURCE: LIPPER INC. — Reflects the reinvestment of dividends and, where applicable, 
    capital gain distributions.The Standard & Poor’s SmallCap 600 Index is a broad-based index 
    and a widely accepted, unmanaged index of overall small-cap stock market performance. 
3    Standard & Poor’s®,”“S&P®,” and “Standard & Poor’s SmallCap 600 Index” are trademarks 
    of The McGraw-Hill Companies, Inc., and have been licensed for use by the fund.The fund is 
    not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no 
    representation regarding the advisability of investing in the fund. 

The Fund 5

  FUND PERFORMANCE

† Source: Lipper Inc.

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The above graph compares a $10,000 investment made in Dreyfus Smallcap Stock Index Fund on 6/30/97 (inception date) to a $10,000 investment made in the Standard & Poor’s SmallCap 600 Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph takes into account all applicable fees and expenses.The Index is a broad-based index and a widely accepted, unmanaged index of overall small-cap stock market performance and does not take into account charges, fees and other expenses. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

  6
Average Annual Total Returns    as of 10/31/04         
    Inception            From 
    Date    1 Year    5 Years    Inception 
Fund    6/30/97    16.35%    11.45%    9.10% 

UNDERSTANDING YOUR FUND ’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Smallcap Stock Index Fund from May 1, 2004 to October 31, 2004. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment assuming actual returns for the six months ended October 31, 2004

Expenses paid per $1,000 †    $ 2.61 
Ending value (after expenses)    $1,076.30 

COMPARING YOUR FUND’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended October 31, 2004

Expenses paid per $1,000 †    $ 2.54 
Ending value (after expenses)    $1,022.62 

  • Expenses are equal to the fund’s annualized expense ratio of .50%, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

The Fund 7

STATEMENT OF INVESTMENTS
October 31, 2004
Common Stocks—99.5%    Shares    Value ($) 
Consumer Cyclical—16.0%         
Action Performance Cos.    14,600 a    135,050 
Advanced Marketing Services    15,000    157,500 
Albany International, Cl. A    32,300    969,646 
Angelica    10,900    261,600 
Applica    22,500 b    91,350 
Arctic Cat    23,000    577,530 
Argosy Gaming    31,300 b    1,239,167 
Ashworth    12,300 b    103,320 
Aztar    33,100 b    1,024,445 
Bally Total Fitness Holdings    29,200 a,b    116,800 
Bassett Furniture    12,600    233,100 
Brown Shoe    22,400    611,520 
Burlington Coat Factory Warehouse    39,200    865,144 
CEC Entertainment    38,425 b    1,460,919 
CPI    10,400    127,920 
Casey’s General Stores    50,600    900,680 
Cato, Cl. A    22,900    525,784 
Children’s Place Retail Stores    25,700 b    793,359 
Christopher & Banks    36,775    597,594 
Coachmen Industries    12,400    179,428 
Cost Plus    18,700 b    604,010 
Department 56    18,300 b    276,147 
Dress Barn    32,600 b    522,578 
Electronics Boutique Holdings    23,400 b    798,876 
Enesco Group    10,300 b    66,847 
Ethan Allen Interiors    37,800    1,439,802 
FLYi    41,600 a,b    58,240 
Fedders    13,670    49,075 
Fleetwood Enterprises    50,000 b    629,500 
Fossil    69,625 b    2,072,039 
Fred’s    32,800 a    574,984 
Frontier Airlines    26,800 b    224,048 
Genesco    22,500 b    576,000 
Goody’s Family Clothing    35,200    309,408 
Great Atlantic & Pacific    25,600 b    166,400 
Group 1 Automotive    22,500 b    636,525 
Guitar Center    24,600 b    1,097,898 
 
8         

Common Stocks (continued)    Shares        Value ($)     
Consumer Cyclical (continued)                 
Gymboree    27,900    b    337,590     
Haggar    7,000        113,680     
Hancock Fabrics    15,300        157,131     
Haverty Furniture    29,000        489,520     
Hibbett Sporting Goods    27,200    b    608,192     
Hot Topic    47,100    a,b    968,376     
IHOP    19,900        762,170     
Insight Enterprises    46,100    b    855,386     
Interface, Cl. A    37,200    b    323,268     
J. Jill Group    21,700    b    381,486     
JAKKS Pacific    26,900    a,b    423,944     
Jack in the Box    37,300    b    1,244,701     
Jo-Ann Stores    22,960    b    566,194     
K-Swiss    37,400        935,000     
K2    46,300    b    750,986     
Kellwood    27,800        874,588     
Landry’s Restaurants    27,900        755,532     
La-Z Boy    53,400        704,346     
Linens ‘n Things    43,100    b    1,037,848     
Lone Star Steakhouse & Saloon    22,600        544,886     
Longs Drug Stores    34,100        842,270     
Marcus    30,100        639,926     
Men’s Wearhouse    35,400    b    1,100,232     
Mesa Air Group    43,000    b    246,820     
Midas    16,000    b    302,880     
Monaco Coach    31,250        554,688     
Movie Gallery    36,200        585,716     
Multimedia Games    30,000    b    396,000     
NBTY    69,800    b    1,922,292     
National Presto Industries    6,800        273,428     
Nautilus Group    34,800    a    683,820     
O’Charleys    22,300    b    346,096     
OshKosh B’Gosh    11,500        208,840     
Oshkosh Truck    36,500        2,149,849     
Oxford Industries    16,500        611,985     
P.F. Chang’s China Bistro    24,900    a,b    1,265,916     
Panera Bread, Cl. A    28,600    a,b    998,998     
 
    The Fund        9 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Consumer Cyclical (continued)         
Papa John’s International    20,000 a,b    645,600 
Pep Boys-Manny, Moe & Jack    62,400    887,328 
Phillips-Van Heusen    30,500    695,095 
Pinnacle Entertainment    28,300 b    416,010 
Polaris Industries    44,600    2,647,010 
Quiksilver    55,000 b    1,498,750 
RARE Hospitality International    33,650 b    932,442 
Russ Berrie & Co.    20,800    433,680 
Russell    33,300    575,757 
Ryan’s Restaurant Group    41,500 b    580,585 
SCP Pool    53,230    1,553,784 
School Specialty    24,200 b    990,264 
Select Comfort    40,000 b    684,800 
ShopKo Stores    28,000 b    482,720 
Shuffle Master    23,549 a,b    991,177 
SkyWest    55,000    939,400 
Sonic    60,555 b    1,648,913 
Standard Motor Products    20,800    316,992 
Steak n Shake    28,678 b    472,613 
Stein Mart    46,900 b    779,478 
Stride Rite    39,600    409,860 
Sturm Ruger    28,400    250,488 
TBC    20,900 b    464,607 
Too    34,500 b    759,690 
Toro    24,400    1,665,300 
Tractor Supply    39,300 b    1,425,804 
Triarc, Cl. B    59,300    677,799 
WMS Industries    27,600 b    807,300 
Wabash National    34,800 b    855,384 
Winnebago Industries    35,900 a    1,127,260 
Wolverine World Wide    41,500    1,263,260 
Zale    52,600 b    1,500,152 
        76,418,115 
Consumer Staples—2.4%         
American Italian Pasta, Cl. A    15,500 a    314,650 
Corn Products International    37,900    1,864,680 
DIMON    44,300    257,826 
 
10         

Common Stocks (continued)    Shares    Value ($) 
Consumer Staples (continued)         
Delta & Pine Land    38,633    1,016,820 
Flowers Foods    45,050    1,142,468 
Hain Celestial Group    32,200 b    520,996 
J & J Snack Foods    9,000 b    398,070 
Lance    29,800    503,024 
Libbey    14,500    263,175 
Nash Finch    16,200    499,932 
Nature’s Sunshine Products    15,500    234,515 
Performance Food Group    44,700 b    1,039,722 
Ralcorp Holdings    28,600    1,051,050 
Sanderson Farms    21,600    701,784 
United Natural Foods    38,400 b    1,044,096 
WD-40    17,000    480,505 
    11,333,313 
Energy—8.0%         
American States Water    13,350    328,410 
Atmos Energy    76,100    1,964,141 
Atwood Oceanics    14,600 b    700,070 
Cabot Oil & Gas    33,400    1,413,154 
Cal Dive International    38,800 b    1,373,908 
Carbo Ceramics    16,200    1,170,450 
Cascade Natural Gas    10,400    210,704 
Cimarex Energy    42,500 b    1,524,900 
Dril-Quip    17,700 b    396,480 
Energen    38,000    2,043,640 
Frontier Oil    28,000    688,240 
Headwaters    34,400 b    1,083,600 
Hydril    24,200 b    1,064,558 
Laclede Group    20,200    609,030 
NUI    16,400    220,744 
New Jersey Resources    28,100    1,155,191 
Northwest Natural Gas    27,600    874,920 
Oceaneering International    25,700 b    913,635 
Patina Oil & Gas    70,150    2,006,290 
Petroleum Development    16,600 b    584,652 
Piedmont Natural Gas    38,700    1,762,011 
Remington Oil & Gas    29,500 b    750,480 
 
    The Fund    11 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Energy (continued)         
Southern Union    79,841 b    1,754,098 
Southwest Gas    35,800    874,594 
Southwestern Energy    35,300 b    1,621,682 
Spinnaker Exploration    33,800 b    1,078,896 
St. Mary Land & Exploration    29,000    1,143,470 
Stone Energy    26,800 b    1,103,356 
Swift Energy    28,000 b    679,000 
TETRA Technologies    22,750 b    681,135 
UGI    52,700    2,035,801 
Unit    45,900 b    1,702,431 
Veritas DGC    33,100 b    698,410 
Vintage Petroleum    64,500    1,354,500 
W-H Energy Services    24,000 b    488,400 
        38,054,981 
Health Care—10.4%         
Accredo Health    47,325 b    1,089,895 
Advanced Medical Optics    35,900 a,b    1,403,690 
Alpharma, Cl. A    55,800    945,810 
Amedisys    14,100 b    426,243 
American Healthways    31,800 a,b    959,724 
American Medical Systems Holdings    33,100 b    1,228,010 
Amerigroup    25,200 b    1,512,000 
AmSurg    31,600 b    739,124 
ArQule    17,900 b    80,550 
ArthroCare    19,600 a,b    603,876 
BioLase Technology    18,200 a    124,124 
Biosite    16,400 a,b    800,484 
Bradley Pharmaceuticals    16,200 a,b    268,272 
CONMED    31,600 b    887,012 
Cambrex    27,500    615,175 
Cooper Cos.    32,500    2,286,375 
CryoLife    12,650 a,b    87,159 
Curative Health Services    15,500 b    85,870 
Cyberonics    21,200 a,b    397,924 
DJ Orthopedics    20,800 b    354,640 
Datascope    15,100    490,146 
Diagnostic Products    30,000    1,324,500 
 
12         

Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
Enzo Biochem    35,217 b    622,989 
Haemonetics    25,500 b    837,675 
Hologic    20,800 b    417,664 
Hooper Holmes    65,000    341,250 
ICU Medical    14,200 a,b    318,790 
IDEXX Laboratories    36,000 b    1,794,240 
Immucor    31,300 b    965,605 
Integra LifeSciences Holdings    27,000 b    866,160 
Invacare    32,200    1,486,996 
Kensey Nash    11,800 a,b    337,480 
LabOne    17,800 a,b    534,000 
MGI Pharma    68,000 b    1,813,560 
Medicis Pharmaceutical, Cl. A    57,900    2,354,793 
Mentor    41,200    1,433,760 
Merit Medical Systems    26,200 b    271,170 
Noven Pharmaceuticals    22,800 b    514,140 
OCA    52,300 a,b    215,999 
Odyssey Healthcare    36,850 a,b    284,482 
Osteotech    12,500 b    56,625 
Owens & Minor    39,500    1,034,505 
Pediatrix Medical Group    24,800 b    1,395,000 
PolyMedica    27,400    959,000 
Possis Medical    19,000 b    210,520 
Priority Healthcare, Cl. B    43,318 b    782,323 
Province Healthcare    47,950 b    1,028,048 
Regeneron Pharmaceuticals    49,000 b    356,230 
RehabCare Group    17,600 b    404,096 
ResMed    33,200 b    1,560,400 
Respironics    35,700 b    1,823,913 
Savient Pharmaceuticals    65,500 b    129,035 
Sierra Health Services    27,500 b    1,312,300 
Sola International    34,800 b    667,464 
Sunrise Senior Living    21,700 b    826,987 
Sybron Dental Specialties    40,699 b    1,325,566 
Techne    41,400 b    1,491,228 
Theragenics    29,000 b    106,720 
United Surgical Partners International    27,200 b    952,272 
 
    The Fund    13 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
Viasys Healthcare    34,300 b    586,187 
Vital Signs    13,400    463,975 
        49,593,750 
Interest Sensitive—16.2%         
Anchor Bancorp Wisconsin    22,800    591,432 
BankAtlantic Bancorp, Cl. A    63,400    1,108,866 
BankUnited Financial, Cl. A    30,700 b    913,325 
Boston Private Financial Holdings    26,400    647,856 
Brookline Bancorp    54,500    844,205 
Capital Automotive    38,500 a    1,242,010 
Cash America International    29,300    741,290 
Centene    19,000 b    901,170 
Chittenden    43,637    1,235,800 
Colonial Properties Trust    29,100 a    1,134,318 
Commercial Federal    37,800    1,051,218 
Commercial Net Lease Realty    52,000    999,960 
Community Bank System    27,300    753,753 
Community First Bankshares    37,000    1,192,140 
Delphi Financial Group, Cl. A    31,317    1,279,926 
Dime Community Bancshares    36,850    591,811 
Downey Financial    28,280    1,562,753 
East West Bancorp    48,300    1,933,932 
Entertainment Properties Trust    26,400    1,053,360 
Essex Property Trust    22,400    1,757,504 
Financial Federal    17,100 b    638,001 
First Bancorp    40,650    2,216,645 
First Midwest Bancorp    44,474    1,552,587 
First Republic Bank    18,000    867,600 
FirstFed Financial    18,300 b    940,620 
Flagstar Bancorp    62,100    1,297,269 
Fremont General    79,400    1,707,100 
Gables Residential Trust    27,700    1,011,050 
Glenborough Realty Trust    32,000    672,000 
Gold Banc    42,400    616,920 
Hilb, Rogal & Hobbs    36,100 a    1,144,370 
Hudson United Bancorp    45,280    1,802,144 
Investment Technology Group    40,300 b    620,620 
 
14         

Common Stocks (continued)    Shares    Value ($) 
Interest Sensitive (continued)         
Irwin Financial    32,400    807,732 
Kilroy Realty    27,500    1,093,125 
LandAmerica Financial Group    19,200    939,840 
Lexington Corporate Properties Trust    49,000    1,099,560 
MAF Bancorp    32,400    1,388,988 
NCO Group    30,800 b    823,900 
Nara Bancorp    23,700    452,907 
New Century Financial    48,250    2,660,987 
Philadelphia Consolidated Holding    22,300 b    1,292,954 
Piper Jaffray    21,100 b    922,703 
Presidential Life    30,600    488,988 
PrivateBancorp    24,300    786,105 
ProAssurance    29,800 b    1,063,562 
Provident Bankshares    32,324    1,122,613 
RLI    24,000    912,720 
Republic Bancorp    63,980    1,069,106 
Rewards Network    26,000 b    143,780 
Riggs National    28,500    601,635 
SCPIE Holdings    6,000    51,900 
SWS Group    17,871    343,123 
Selective Insurance Group    28,300    1,105,964 
Shurgard Storage Centers, Cl. A    43,500    1,726,950 
South Financial Group    70,200    2,107,403 
Southwest Bancorporation of Texas    65,500    1,535,320 
Sovran Self Storage    15,700 a    613,399 
Sterling Bancshares    42,000    595,140 
Sterling Financial    22,690 b    852,463 
Stewart Information Services    18,500    784,770 
Susquehanna Bancshares    45,100    1,121,637 
Trustco Bank    71,344    955,296 
UCBH Holdings    48,000    2,068,320 
UICI    47,500    1,405,050 
Umpqua Holdings    48,300    1,201,704 
United Bankshares    41,200    1,510,804 
Waypoint Financial    33,865    929,933 
Whitney Holding    40,980    1,787,138 
Wintrust Financial    21,800    1,242,600 
 
    The Fund    15 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Interest Sensitive (continued)         
World Acceptance    19,000 b    444,600 
Zenith National Insurance    21,100    866,577 
        77,544,851 
Producer Goods & Services—22.4%         
A. Schulman    31,500    625,275 
A.M. Castle    13,200 b    148,632 
A.O. Smith    28,550    757,717 
AAR    32,450 b    381,288 
AMCOL International    32,500    571,675 
Acuity Brands    44,000    1,167,320 
Apogee Enterprises    29,100    372,771 
Applied Industrial Technologies    19,800    736,560 
AptarGroup    36,900    1,731,348 
Arch Chemicals    24,200    686,070 
Arkansas Best    25,000    977,250 
Armor Holdings    33,000 b    1,221,660 
Astec Industries    20,700 b    299,943 
Baldor Electric    34,133    799,736 
Barnes Group    23,700    616,200 
Belden    45,712 a    1,016,178 
Brady, Cl. A    23,900    1,296,097 
Briggs & Stratton    25,600    1,838,336 
Brush Engineered Materials    15,500 b    241,800 
Buckeye Technologies    32,200 b    339,710 
Building Materials Holding    14,100    407,490 
C&D Technologies    23,900    427,810 
CLARCOR    26,650    1,313,845 
CUNO    16,000 b    920,000 
Caraustar Industries    23,900 b    355,393 
Carpenter Technology    25,000    1,186,500 
Century Aluminum    33,000 b    763,620 
Champion Enterprises    67,699 b    737,242 
Chesapeake    24,600    570,966 
Cleveland-Cliffs    11,100 a,b    809,190 
Commercial Metals    27,400    990,510 
Commonwealth Industries    21,200 b    198,008 
Cubic    23,200    510,400 
 
16         

Common Stocks (continued)    Shares    Value ($) 
Producer Goods & Services (continued)         
Curtiss-Wright    22,500    1,255,725 
DRS Technologies    27,200 b    985,184 
Deltic Timber    12,700    505,333 
EDO    17,200    481,256 
EGL    42,900 b    1,371,942 
ElkCorp    19,300    543,295 
Emcor Group    14,200 b    561,894 
Engineered Support Systems    26,200    1,258,648 
Florida Rock Industries    44,925    2,320,376 
Forward Air    22,900 b    942,793 
Gardner Denver    20,400 b    611,592 
GenCorp    38,600 a    536,540 
Georgia Gulf    35,600    1,611,612 
Griffon    30,700 b    683,075 
H.B. Fuller    29,400    790,860 
Heartland Express    78,456    1,605,210 
Hughes Supply    64,500    1,832,445 
IDEX    52,000    1,918,800 
IMCO Recycling    12,300 b    144,156 
Insituform Technologies, Cl. A    22,400 b    443,968 
Intermagnetics General    24,575 b    626,417 
Ionics    18,800 b    535,800 
JLG Industries    38,000 a    633,840 
Kaman, Cl. A    24,200    266,200 
Kansas City Southern    58,900 b    998,355 
Kaydon    28,700    849,520 
Kirby    25,000 b    1,050,000 
Knight Transportation    56,700 b    1,331,883 
Landstar System    31,600 b    2,146,904 
Lawson Products    12,400    536,920 
Lennox International    59,000    853,140 
Lindsay Manufacturing    10,700    252,306 
Lone Star Technologies    26,400 b    696,960 
Lydall    16,000 b    150,560 
M.D.C. Holdings    33,311    2,556,618 
MacDermid    31,300    987,828 
MagneTek    21,000 b    129,150 
 
    The Fund    17 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Producer Goods & Services (continued)         
Manitowoc    28,075    991,048 
Massey Energy    73,500    1,979,355 
Material Sciences    10,800 b    140,508 
Maverick Tube    42,600 b    1,123,362 
Meritage    14,100 b    1,250,670 
Milacron    25,500 b    70,125 
Moog, Cl. A    27,250 b    1,022,693 
Mueller Industries    36,200 b    965,092 
Myers Industries    34,009    361,516 
NVR    6,500 b    4,075,499 
OM Group    31,700 b    1,045,783 
Offshore Logistics    23,200 b    838,912 
Omnova Solutions    28,000 b    146,720 
Parkway Properties    10,300    523,034 
Penford    10,500    164,010 
PolyOne    89,000 b    673,730 
Pope & Talbot    12,500    188,500 
Quaker Chemical    9,000    203,220 
Quanex    18,500    937,950 
RTI International Metals    21,400 b    428,642 
Rayovac    33,500 b    834,485 
Regal Beloit    25,500    596,700 
Reliance Steel & Aluminum    33,000    1,132,560 
Robins & Myers    13,300    277,305 
Rock-Tenn, Cl. A    36,500    567,575 
Ryerson Tull    23,000    375,360 
SEACOR Holdings    17,050 b    811,751 
Schweitzer-Mauduit International    15,000    473,400 
Simpson Manufacturing    24,200    1,555,576 
Skyline    9,200    368,736 
Standard Pacific    33,300    1,869,794 
Standex International    15,200    398,088 
Steel Dynamics    50,600 a    1,679,920 

18
Common Stocks (continued)    Shares    Value ($) 
Producer Goods & Services (continued)         
Steel Technologies    17,600    421,696 
Stewart & Stevenson Services    26,000    442,000 
SurModics    14,400 a,b    386,640 
Technitrol    38,700 b    631,584 
Teledyne Technologies    33,800 b    864,266 
Texas Industries    20,200 a    1,028,786 
Thomas Industries    17,550    593,190 
Timken    93,100    2,234,400 
Tredegar    37,400    626,450 
Triumph Group    16,000 b    549,760 
URS    40,900 b    1,128,840 
USF    28,000    1,003,520 
United Stationers    33,500 b    1,490,750 
Universal Forest Products    18,900    693,158 
Valmont Industries    23,300    506,775 
Watsco    28,600    813,956 
Watts Water Technologies    31,300    811,922 
Wausau-Mosinee Paper    52,300    817,972 
Wellman    26,300    194,094 
Wilson Greatbatch Technologies    18,400 b    311,880 
Wolverine Tube    9,100 b    90,545 
Woodward Governor    12,700    768,985 
Yellow Roadway    48,746 b    2,339,321 
        106,845,754 
Services—8.2%         
ABM Industries    50,200    1,041,650 
ADVO    30,750    982,463 
Aaron Rents    46,597    1,011,155 
Administaff    28,500 b    326,325 
Arbitron    32,100 b    1,161,057 
Boston Communications Group    20,500 b    186,550 
Bowne & Co.    34,800    432,564 
CACI International, Cl. A    29,300 b    1,786,420 

The Fund 19

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Services (continued)         
CDI    21,000    346,500 
Central Parking    31,510    426,961 
Cerner    36,200 a,b    1,634,430 
Chemed    11,999    725,340 
Ciber    60,800 b    549,632 
Consolidated Graphics    14,200 b    606,340 
Cross Country Healthcare    32,400 b    480,492 
Daktronics    20,500 b    505,940 
Digital Insight    35,100 b    549,666 
eFunds    50,400 b    992,376 
4Kids Entertainment    14,400 b    263,376 
FactSet Research Systems    32,400    1,614,816 
FindWhat.com    29,800 b    597,490 
G & K Services, Cl. A    23,000    903,670 
Gentiva Health Services    23,600 b    400,374 
Global Payments    38,620    2,114,830 
Heidrick & Struggles International    22,300 b    638,561 
Information Holdings    19,000 b    520,410 
Insurance Auto Auction    12,300 b    236,283 
Intrado    17,500 b    236,950 
John H. Harland    29,000    934,670 
Kronos    31,250 b    1,532,813 
Labor Ready    42,350 b    607,723 
MAXIMUS    23,100 b    627,858 
MICROS Systems    20,500 b    1,211,960 
ManTech International, Cl. A    31,800 b    687,516 
MemberWorks    9,500 a,b    283,100 
Mobile Mini    12,600 b    357,336 
NDCHealth    34,400    577,576 
On Assignment    10,000 b    50,200 
PAREXEL International    27,000 b    519,750 
PRG-Schultz International    42,850 b    221,963 
Paxar    39,925 b    880,346 

20
Common Stocks (continued)    Shares    Value ($) 
Services (continued)         
Pegasus Solutions    15,500 b    161,355 
Pharmaceutical Product Development    56,200 a,b    2,373,325 
Pre-Paid Legal Services    20,200 a,b    563,378 
Shaw Group    54,400 b    663,136 
Sourcecorp    16,500 b    276,870 
Spherion    52,500 b    377,475 
Standard Register    25,600    271,872 
StarTek    14,700    406,455 
Tetra Tech    56,456 b    741,832 
Thomas Nelson    17,500    387,450 
Viad    22,900    493,037 
Volt Information Sciences    16,500 b    479,325 
Waste Connections    47,950 b    1,511,384 
Watson Wyatt & Company Holdings    35,000    929,250 
        39,401,576 
Technology—14.3%         
ANSYS    34,700 b    957,720 
ATMI    28,700 b    670,145 
Actel    23,500 b    356,495 
Adaptec    110,300 b    860,340 
Advanced Energy Industries    33,200 b    327,352 
Aeroflex    72,700 b    806,970 
Agilysys    36,500    623,785 
Alliance Semiconductor    19,600 b    67,620 
Analogic    13,400    570,103 
Anixter International    37,400    1,445,135 
Applied Signal Technology    12,300    372,567 
Artesyn Technologies    40,200 b    389,940 
Audiovox, Cl. A    22,300 b    321,120 
Avid Technology    34,700 a,b    1,838,406 
Axcelis Technologies    103,000 b    885,800 
BEI Technologies    16,200    484,218 
Bel Fuse, Cl. B    14,700    493,185 

The Fund 21

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Technology (continued)         
Bell Microproducts    27,700 b    243,206 
Benchmark Electronics    40,500 b    1,375,785 
Black Box    19,100    750,248 
Brooks Automation    41,100 b    611,568 
Brooktrout Technology    12,300 b    113,529 
C-COR.net    47,200 b    354,944 
CTS    35,800    472,918 
Captaris    31,500 b    144,900 
Carreker    25,300 b    228,459 
Catapult Communications    15,000 b    368,400 
Checkpoint Systems    37,800 b    646,380 
Cognex    45,200    1,157,120 
Coherent    30,100 b    726,313 
Cohu    21,600    338,688 
Coinstar    22,500 b    581,175 
Concord Communications    15,800 b    129,876 
Cymer    36,400 b    1,038,128 
DSP Group    29,500 b    584,985 
Dendrite International    42,300 b    619,695 
Digi International    23,500 b    321,715 
Dionex    22,850 b    1,279,600 
DuPont Photomasks    17,300 b    453,606 
Electro Scientific Industries    31,400 b    532,544 
EPIQ Systems    18,400 a,b    275,632 
ESS Technology    44,000 b    287,760 
Esterline Technologies    22,000 b    695,200 
Exar    38,200 b    573,764 
FEI    27,900 b    540,144 
FLIR Systems    33,100 b    1,761,251 
FileNet    40,000 b    1,113,200 
Gerber Scientific    24,000 b    187,680 
Global Imaging Systems    23,500 b    827,200 
Harmonic    58,000 b    482,560 
Helix Technology    26,700    374,868 

22
Common Stocks (continued)    Shares    Value ($) 
Technology (continued)         
Hutchinson Technology    26,500 b    890,665 
Hyperion Solutions    39,375 b    1,580,119 
Imagistics International    16,900 b    581,698 
Input/Output    72,000 b    503,280 
Inter-Tel    28,900    780,300 
Internet Security Systems    48,200 b    1,048,832 
InVision Technologies    19,400 b    895,892 
Itron    19,000 b    397,860 
JDA Software Group    26,000 b    291,980 
j2 Global Communications    26,900 b    811,035 
Keithley Instruments    17,500    306,075 
Kopin    53,800 b    196,908 
Kulicke & Soffa Industries    57,000 b    406,980 
Littelfuse    23,200 b    756,784 
MRO Software    25,500 b    277,950 
Manhattan Associates    30,300 b    623,271 
MapInfo    20,400 b    201,756 
Meade Instruments    22,500 b    79,425 
Mercury Computer Systems    21,500 b    542,983 
Methode Electronics, Cl. A    39,400    529,142 
Microsemi    59,700 b    927,738 
NYFIX    31,500 b    150,570 
Netegrity    37,500 b    399,375 
Network Equipment Technologies    21,000 b    179,130 
PC-Tel    22,600 b    174,246 
Park Electrochemical    21,250    446,463 
Pericom Semiconductor    21,500 b    193,393 
Phoenix Technologies    25,000 b    152,450 
Photon Dynamics    14,800 b    270,840 
Photronics    37,100 b    651,105 
Pinnacle Systems    59,050 b    275,173 
Planar Systems    16,400 b    159,408 
Power Integrations    28,300 b    605,620 
Progress Software    36,900 b    732,834 

The Fund 23

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Technology (continued)         
Radiant Systems    24,000 b    122,880 
RadiSys    18,800 b    249,664 
Rogers    16,200 b    695,304 
Roper Industries    37,400    2,306,083 
Roxio    23,000 a,b    140,070 
Rudolph Technologies    13,900 b    209,612 
SBS Technologies    16,100 b    214,613 
SCM Microsystems    11,600 b    42,804 
SPSS    17,800 b    240,478 
ScanSource    12,700 b    786,511 
Serena Software    42,600 b    755,724 
Skyworks Solutions    155,800 b    1,385,062 
Sonic Solutions    23,500 a,b    466,475 
Standard Microsystems    25,100 b    552,702 
Supertex    17,900 b    384,045 
Symmetricom    40,450 b    343,421 
Synaptics    25,000 b    791,000 
THQ    40,350 b    762,615 
Take-Two Interactive Software    43,600 b    1,437,056 
Talx    14,500    411,075 
Three-Five Systems    9,949 b    22,385 
Tollgrade Communications    12,800 b    121,728 
Trimble Navigation    51,000 b    1,463,190 
Ultratech    21,000 b    357,420 
Varian Semiconductor Equipment Associates    37,300 b    1,290,953 
Veeco Instruments    28,400 b    554,936 
Verity    37,300 b    481,916 
ViaSat    24,500 b    462,805 
Vicor    43,000    399,470 
WebEx Communications    44,600 b    981,200 
Websense    24,200 b    981,794 
X-Rite    25,400    334,772 
Zix    22,700 a,b    122,580 
        68,557,565 

24
Common Stocks (continued)    Shares    Value ($) 
Utilities—1.6%         
ALLETE    30,000    1,019,400 
Avista    49,800    885,444 
Central Vermont Public Service    12,300    270,354 
CH Energy Group    16,300    727,469 
Cleco    47,500    865,450 
Commonwealth Telephone Enterprises    21,000 b    958,230 
El Paso Electric    47,400 b    789,210 
General Communication, Cl. A    51,300 b    469,908 
Green Mountain Power    5,700    147,630 
UIL Holdings    14,600    739,928 
UniSource Energy    34,700    853,273 
        7,726,296 
Total Common Stocks         
(cost $395,738,415)        475,476,201 
    Principal     
Bonds and Notes—.1%    Amount ($)    Value ($) 
Metal Fabricating—.1%         
Mueller Industries         
Sub. Notes, 6%, 11/1/2014         
(cost $302,000)    302,000    298,640 
 
Short-Term Investments—.6%         
Repurchase Agreement—.5%         
Greenwich Capital Markets, Tri-Party Repurchase     
Agreement, 1.77%, dated 10/29/2004,     
due 11/1/2004 in the amount of $2,500,369     
(fully collateralized by $2,430,000 of Federal     
Home Loan Mortgage Corp.,         
5%, 7/15/2014 value $2,550,566)    2,500,000    2,500,000 
U.S. Treasury Bills—.1%         
1.61%, 12/2/2004    160,000 c    159,763 
1.65%, 12/9/2004    100,000 c    99,818 
        259,581 
Total Short-Term Investments         
(cost $2,759,604)        2,759,581 

The Fund 25

STATEMENT OF INVESTMENTS (continued)

Investment of Cash Collateral         
for Securities Loaned—4.4%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Plus Fund     
(cost $ 20,998,308)        20,998,308 d    20,998,308 
 
Total Investments (cost $419,798,327)    104.6%    499,532,730 
 
Liabilities, Less Cash and Receivables    (4.6%)    (21,886,388) 
 
Net Assets        100.0%    477,646,342 
 
a    All or a portion of these securities are on loan.At October 31, 2004, the total market values of the fund’s securities 
    on loan is $19,902,369 and the total market value of the collateral held by the fund is $20,998,308. 
b    Non-income producing.             
c    Partially held by a broker in a segregated account as collateral for open financial futures positions. 
d    Investment in affiliated money market mutual fund.         
 
 
 
Portfolio Summary (Unaudited) †         
 
        Value (%)        Value (%) 
Producer Goods & Services    22.4    Energy    8.0 
Interest Sensitive    16.2    Short-Term/     
Consumer Cyclical    16.0    Money Market Instruments    5.0 
Technology    14.3    Other    4.1 
Health Care    10.4    Futures Contracts    .0 
Services    8.2        104.6 
 
†    Based on net assets.             
See notes to financial statements.             

26

STATEMENT OF FINANCIAL FUTURES

October 31, 2004

        Market Value        Unrealized 
        Covered by        Appreciation 
    Contracts    Contracts ($)    Expiration    at 10/31/2004 ($) 
 
Financial Futures Long                 
Russell 2000    6    1,753,500    December 2004    29,375 

See notes to financial statements.

The Fund 27

STATEMENT OF ASSETS AND LIABILITIES

October 31, 2004

    Cost    Value 
Assets ($):         
Investments in securities—         
See Statement of Investments (including securities     
on loan, valued at $19,902,369)—Note 1(b):     
Unaffiliated issuers    398,800,019    478,534,422 
Affiliated issuers    20,998,308    20,998,308 
Cash        1,754,354 
Receivable for shares of Common Stock subscribed    592,718 
Dividends and interest receivable        303,438 
Receivable for investment securities sold    66,064 
        502,249,304 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    197,018 
Liability for securities on loan—Note 1(b)    20,998,308 
Payable for investment securities purchased    3,130,221 
Payable for shares of Common Stock redeemed    276,915 
Payable for futures variation margin—Note 4    500 
        24,602,962 
Net Assets ($)        477,646,342 
Composition of Net Assets ($):         
Paid-in capital        385,302,071 
Accumulated undistributed investment income—net    2,095,125 
Accumulated net realized gain (loss) on investments    10,485,368 
Accumulated net unrealized appreciation (depreciation)     
on investments (including $29,375 net unrealized     
appreciation on financial futures)        79,763,778 
Net Assets ($)        477,646,342 
Shares Outstanding         
(200 million shares of $.001 par value Common Stock authorized)    25,257,804 
Net Asset Value, offering and redemption price per share—Note 3(c) ($)    18.91 

See notes to financial statements.
28
STATEMENT OF OPERATIONS
Year Ended October 31, 2004
Investment Income ($):     
Income:     
Cash dividends (net of $1,357 foreign taxes withheld at source)    4,141,238 
Income on securities lending    121,606 
Interest    25,454 
Total Income    4,288,298 
Expenses:     
Management fee—Note 3(a)    962,760 
Shareholder servicing costs—Note 3(b)    962,760 
Loan commitment fees—Note 2    2,830 
Interest expense—Note 2    1,369 
Total Expenses    1,929,719 
Investment Income—Net    2,358,579 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    13,707,693 
Net realized gain (loss) on financial futures    (29,579) 
Net Realized Gain (Loss)    13,678,114 
Net unrealized appreciation (depreciation) on investments     
(including $17,675 net unrealized appreciation on financial futures)    39,677,338 
Net Realized and Unrealized Gain (Loss) on Investments    53,355,452 
Net Increase in Net Assets Resulting from Operations    55,714,031 

See notes to financial statements.

The Fund 29

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended October 31, 
    2004    2003 
Operations ($):         
Investment income—net    2,358,579    869,423 
Net realized gain (loss) on investments    13,678,114    (1,480,917) 
Net unrealized appreciation         
(depreciation) on investments    39,677,338    61,004,529 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    55,714,031    60,393,035 
Dividends to Shareholders from ($):         
Investment income—net    (899,274)    (595,185) 
Net realized gain on investments    —    (385,518) 
Total Dividends    (899,274)    (980,703) 
Capital Stock Transactions ($):         
Net proceeds from shares sold    262,829,833    122,541,246 
Dividends reinvested    707,153    747,608 
Cost of shares redeemed    (117,659,086)    (67,636,361) 
Increase (Decrease) in Net Assets         
from Capital Stock Transactions    145,877,900    55,652,493 
Total Increase (Decrease) in Net Assets    200,692,657    115,064,825 
Net Assets ($):         
Beginning of Period    276,953,685    161,888,860 
End of Period    477,646,342    276,953,685 
Undistributed investment income—net    2,095,125    650,357 
Capital Share Transactions (Shares):         
Shares sold    14,861,346    8,819,812 
Shares issued for dividends reinvested    42,651    58,682 
Shares redeemed    (6,641,176)    (4,978,794) 
Net Increase (Decrease) in Shares Outstanding    8,262,821    3,899,700 

See notes to financial statements.
30
FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

        Year Ended October 31,     
    2004    2003    2002    2001    2000 
Per Share Data ($):                     
Net asset value, beginning of period    16.30    12.36    12.98    15.49    13.03 
Investment Operations:                     
Investment income—net a    .11    .06    .04    .04    .03 
Net realized and unrealized                     
gain (loss) on investments    2.55    3.95    (.53)    (1.06)    3.06 
Total from Investment Operations    2.66    4.01    (.49)    (1.02)    3.09 
Distributions:                     
Dividends from investment income—net    (.05)    (.04)    (.04)    (.03)    (.04) 
Dividends from net realized                     
gain on investments    —    (.03)    (.09)    (1.46)    (.59) 
Total Distributions    (.05)    (.07)    (.13)    (1.49)    (.63) 
Net asset value, end of period    18.91    16.30    12.36    12.98    15.49 
Total Return (%)    16.35    32.63    (3.92)    (6.95)    24.64 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .50    .50    .50    .51    .51 
Ratio of net investment income                     
to average net assets    .67    .44    .30    .28    .21 
Portfolio Turnover Rate    15.54    13.52    12.35    42.01    36.89 
Net Assets, end of period ($ x 1,000)    477,646    276,954    161,889    83,182    59,628 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

The Fund 31

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Smallcap Stock Index Fund (the “fund”) is a separate non-diversified series of Dreyfus Index Funds, Inc. (the “Company”) which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering three series including the fund.The fund’s investment objective is to match the performance of the Standard & Poor’s Small Cap 600 Index.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is avail-able.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events

32

after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the fund may lend securities to qualified institutions. At origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager.The fund will be entitled to receive all income on securities loaned, in addition to income earned as a result of the leading transaction. Such income earned is included in interest income.Although each security loaned is fully collateralized, the fund would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

The Fund 33

NOTES TO FINANCIAL STATEMENTS (continued)

The fund may engage in repurchase agreement transactions. Under the terms of a typical repurchase agreement, the fund, through its custodian and sub-custodian, takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and the fund to resell, the obligation at an agreed-upon price and time, thereby determining the yield during the fund’s holding period.This arrangement results in a fixed rate of return that is not subject to market fluctuations during the fund’s holding period.The value of the collateral is at least equal, at all times, to the total amount of the repurchase obligation, including interest. In the event of a counter party default, the fund has the right to use the collateral to offset losses incurred. There is potential loss to the fund in the event the fund is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the fund seeks to assert its rights. The Manager, acting under the supervision of the Board of Directors, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the fund enters into repurchase agreements to evaluate potential risks.

(c) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, if any, it is the policy of the fund not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(e) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable pro-

34

visions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

At October 31, 2004, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $4,456,461, undistributed realized gains $12,192,510 and unrealized appreciation $75,695,300.

The tax character of distributions paid to shareholders during the fiscal periods ended October 31, 2004 and October 31, 2003, were as follows: ordinary income $899,274 and $595,185 and long-term capital gain $0 and $385,518, respectively.

During the period ended October 31, 2004, as a result of permanent book to tax differences primarily due to the tax treatment for real estate investment trusts, the fund decreased accumulated undistributed investment income-net by $14,937 and increased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings.

The average daily amount of borrowings outstanding under the Facility during the period ended October 31, 2004, was approximately $94,100 with a related weighted average annualized interest rate of 1.45% .

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Management Agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .25 of 1% of the value of the fund’s average daily net assets, and is payable

The Fund 35

NOTES TO FINANCIAL STATEMENTS (continued)

monthly. Under the terms of the Agreement, the Manager has agreed to pay all the expenses of the fund, except management fees, brokerage commissions, taxes, interest, commitment fees, Shareholder Services Plan fees, fees and expenses of non-interested Board members (including counsel fees) and extraordinary expenses. In addition, the Manager is required to reduce its fee in an amount equal to the fund’s allocable portion of fees and expenses of the non-interested Board members (including counsel fees). Each Board member also serves as a Board member of other funds within the Dreyfus complex (collectively, the “Fund Group”). Each Board member receives an annual fee of $25,000, an attendance fee of $4,000 for each in-person meeting and $500 for telephone meetings.The chairman of the Board receives an additional 25% of such compensation (with the exception of reimburseable amounts). Subject to the Company’s Emeritus Program Guidelines,Emeritus Board Members, if any, receive 50% of the annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status.Amounts required to be paid by the Company directly to the non-interested Board members, that were applied to offset a portion of the management fee payable to the Manager, were in fact paid directly by the Manager to the non-interested Board members. All Board fees are allocated among the funds in the Fund Group in proportion to each fund’s relative net assets.

(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services at the annual rate of .25 of 1% of the value of the fund’s average daily net assets.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (a securities dealer, bank or other financial institution) in respect of these services.The Distributor determines the amounts to be paid to Service Agents. During the period ended October 31, 2004, the fund was charged an aggregate of $962,760 pursuant to the Shareholder Services Plan.

36

The components of Due to The Dreyfus Corporation and affiliates in the Statements of Assets and Liabilities consist of: management fees $98,509 and shareholders services plan fees $98,509.

(c) A 1% redemption fee is charged and retained by the fund on shares redeemed within six months following the date of issuance, including redemptions made through the use of the fund’s exchange privilege. During the period ended October 31, 2004, redemption fees charged and retained by the fund amounted to $24,788.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and financial futures, during the period ended October 31, 2004, amounted to $207,335,310 and $59,717,656, respectively.

The fund may invest in financial futures contracts in order to gain exposure to or protect against changes in the market.The fund is exposed to market risk as a result of changes in the value of the underlying financial instruments. Investments in financial futures require the fund to “mark to market” on a daily basis, which reflects the change in the market value of the contract at the close of each day’s trading.Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses.When the contracts are closed, the fund recognizes a realized gain or loss.These investments require initial margin deposits with a broker, which consist of cash or cash equivalents.The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open at October 31, 2004, are set forth in the Statement of Financial Futures.

At October 31, 2004, the cost of investments for federal income tax purposes was $423,837,430; accordingly, accumulated net unrealized appreciation on investments was $75,695,300,consisting of $104,679,045 gross unrealized appreciation and $28,983,745 gross unrealized depreciation.

The Fund 37

NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 5—Legal Matters:

Two class actions have been filed against Mellon Financial, Mellon Bank, N.A., Dreyfus, Founders Asset Management LLC and the directors of all or substantially all of the Dreyfus Funds, on behalf of a purported class and derivatively on behalf of said funds, alleging violations of the Investment Company Act of 1940, the Investment Advisers Act of 1940, and the common law. The complaints alleged, among other things, (i) that 12b-1 fees and directed brokerage were improperly used to pay brokers to recommend Dreyfus funds over other funds, (ii) that such payments were not disclosed to investors, (iii) that economies of scale and soft-dollar benefits were not passed on to investors, and (iv) that 12b-1 fees charged to certain funds that were closed to new investors were also improper. The complaints sought compensatory and punitive damages, rescission of the advisory contracts and an accounting and restitution of any unlawful fees, as well as an award of attorneys’ fees and litigation expenses. On April 22, 2004, the actions were consolidated under the caption In re Dreyfus Mutual Funds Fee Litigation, and a consolidated amended complaint was filed on September 13, 2004.While adding new parties and claims under state and federal law, the allegations in the consolidated amended complaint essentially track the allegations in the prior complaints pertaining to 12b-1 fees, directed brokerage, soft dollars and revenue sharing. Dreyfus and the funds believe the allegations to be totally without merit and intend to defend the action vigorously.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Dreyfus funds believe that any of the pending actions will have a material adverse effect on the Dreyfus funds or Dreyfus’ ability to perform its contracts with the Dreyfus funds.

38

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Dreyfus Smallcap Stock Index Fund

In our opinion, the accompanying statement of assets and liabilities, including the statements of investments and financial futures and the related statements of operations and of changes in net assets and financial highlights present fairly, in all material respects the financial position of Dreyfus Smallcap Stock Index Fund (the “Fund”) (one of the Series constituting Dreyfus Index Funds, Inc.), at October 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.We believe that our audits, which included confirmation of securities owned at October 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
  New York, New York
December 14, 2004

The Fund 39

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the fund hereby designates 93.40% of the ordinary dividends paid during the fiscal year ended October 31, 2004 as qualifying for the corporate dividends received deduction. For the fiscal year ended October 31, 2004, certain dividends paid by the fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, $899,274 represents the maximum amount that may be considered qualified dividend income. Shareholders will receive notification in January 2005 of the percentage applicable to the preparation of their 2004 income tax returns.

40

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (61)
Chairman of the Board (1995)
Principal Occupation During Past 5 Years:
• Corporate Director and Trustee
Other Board Memberships and Affiliations:
  • The Muscular Dystrophy Association, Director
  • Levcor International, Inc., an apparel fabric processor, Director
  • Century Business Services, Inc., a provider of outsourcing functions for small and medium size companies, Director
  • The Newark Group, a provider of a national market of paper recovery facilities, paperboard mills and paperboard converting plants, Director
  • Azimuth Trust, an institutional asset management firm, Member of Board of Managers and Advisory Board

No. of Portfolios for which Board Member Serves: 186

———————
David P. Feldman (64)
Board Member (1989)
Principal Occupation During Past 5 Years:
• Corporate Director & Trustee
Other Board Memberships and Affiliations:

  • BBH Mutual Funds Group (11 funds), Director
  • The Jeffrey Company, a private investment company, Director
  • QMED, a medical device company, Director

No. of Portfolios for which Board Member Serves: 51

———————

Ehud Houminer (64) Board Member (1996)

Principal Occupation During Past 5 Years:
  • Executive-in-Residence at the Columbia Business School, Columbia University
  • Principal of Lear,Yavitz and Associates, a management consulting firm (1996 to 2001)
Other Board Memberships and Affiliations:
  • Avnet Inc., an electronics distributor, Director
  • International Advisory Board to the MBA Program School of Management, Ben Gurion University, Chairman
  • Explore Charter School, Brooklyn, NY, Chairman
No. of Portfolios for which Board Member Serves: 30

The Fund 41

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Gloria Messinger (74)
Board Member (1996)
Principal Occupation During Past 5 Years:
  • Arbitrator for American Arbitration Association and National Association of Securities Dealers, Inc.
  • Consultant in Intellectual Property
Other Board Memberships and Affiliations:
  • Yale Law School Fund, Director
  • Theater for a New Audience, Inc., Director
  • Brooklyn Philharmonic, Director
  • New York Women’s Agenda Music Performance Trust Fund, Director
No. of Portfolios for which Board Member Serves: 19

———————

T. John Szarkowski (78) Board Member (1991)

Principal Occupation During Past 5 Years:

• Consultant in Photography

Other Board Memberships and Affiliations:

• Photography Department at The Museum of Modern Art, Director Emeritus

No. of Portfolios for which Board Member Serves: 19

———————
Anne Wexler (74)
Board Member (1991)
Principal Occupation During Past 5 Years:

  • Chairman of the Wexler & Walker Public Policy Associates, consultants specializing in government relations and public affairs
Other Board Memberships and Affiliations:
  • Wilshire Mutual Funds (5 funds), Director
  • Methanex Corporation, a methanol producing company, Director
  • Member of the Council of Foreign Relations
  • Member of the National Park Foundation
No. of Portfolios for which Board Member Serves: 29

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.

John M. Fraser, Jr., Emeritus Board Member

42

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 93 investment companies (comprised of 186 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 59 years old and has been an employee of the Manager since May 1995.

STEPHEN R. BYERS, Executive Vice President since November 2002.

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 93 investment companies (comprised of 186 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 51 years old and has been an employee of the Manager since January 2000. Prior to joining the Manager, he served as an Executive Vice President-Capital Markets, Chief Financial Officer and Treasurer at Gruntal & Co., L.L.C.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 58 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Secretary since March 2000.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 195 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since October 1991.

STEVEN F. NEWMAN, Assistant Secretary since March 2000.

Associate General Counsel and Assistant Secretary of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 55 years old and has been an employee of the Manager since July 1980.

JAMES WINDELS, Treasurer since November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 46 years old and has been an employee of the Manager since April 1985.

RICHARD CASSARO, Assistant Treasurer since August 2003.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 26 investment companies (comprised of 101 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since September 1982.

KENNETH J. SANDGREN, Assistant Treasurer since November 2001.

Mutual Funds Tax Director of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 50 years old and has been an employee of the Manager since June 1993.

The Fund 43

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 27 investment companies (comprised of 106 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1990.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (94 investment companies, comprising 202 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 47 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since October 2002.

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 89 investment companies (comprised of 197 portfolios) managed by the Manager. He is 33 years old and has been an employee of the Distributor since October 1998.

  44
  OFFICERS OF THE FUND (Unaudited) (continued)
For More    Information 
 
Dreyfus    Transfer Agent & 
Smallcap Stock    Dividend Disbursing Agent 
Index Fund    Dreyfus Transfer, Inc. 
200 Park Avenue    200 Park Avenue 
New York, NY 10166    New York, NY 10166 
Manager    Distributor 
The Dreyfus Corporation    Dreyfus Service Corporation 
200 Park Avenue    200 Park Avenue 
New York, NY 10166    New York, NY 10166 
Custodian     
Boston Safe Deposit and     
Trust Company     
One Boston Place     
Boston, MA 02109     
 
Telephone 1-800-645-6561     

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 E-mail Send your request to info@dreyfus.com Internet Information can be viewed online or downloaded at: http://www.dreyfus.com

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the 12-month period ended June 30, 2004, is available through the fund’s website at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

®

© 2004 Dreyfus Service Corporation 0077AR1004

  Dreyfus
S&P 500
Index Fund
  ANNUAL REPORT October 31, 2004

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents
 
    THE FUND 
2    Letter from the Chairman 
3    Discussion of Fund Performance 
6    Fund Performance 
7    Understanding Your Fund’s Expenses 
7    Comparing Your Fund’s Expenses 
With Those of Other Funds
8    Statement of Investments 
23    Statement of Financial Futures 
24    Statement of Assets and Liabilities 
25    Statement of Operations 
26    Statement of Changes in Net Assets 
27    Financial Highlights 
28    Notes to Financial Statements 
36    Report of Independent Registered 
    Public Accounting Firm 
37    Important Tax Information 
38    Board Members Information 
40    Officers of the Fund 
FOR MORE INFORMATION
    Back Cover 

Dreyfus 
S&P 500 Index Fund 

The Fund

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus S&P 500 Index Fund, covering the 12-month period from November 1, 2003, through October 31, 2004. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio manager,Tom Durante, CFA.

The Federal Reserve Board has raised short-term interest rates three times since the beginning of the summer, the rate of corporate earnings growth appears to have slowed dramatically and high energy prices threaten to erode the rate of economic growth.Though these factors may suggest the U.S. economy is moving toward a new phase of the business cycle, we believe the current economic cycle still favors higher-quality stocks, which currently offer favorable relative and absolute valuations.

Of course, the specific investments that may be right for you in today’s economic and market environment depend on your current needs, future goals, tolerance for risk and the composition of your overall portfolio.As always, your financial advisor may be in the best position to recommend the specific asset classes and investments that will satisfy your financial needs most effectively.

Thank you for your continued confidence and support.

The Dreyfus Corporation
November 15, 2004
2

DISCUSSION OF FUND PERFORMANCE

Tom Durante, CFA, Portfolio Manager

How did Dreyfus S&P 500 Index Fund perform relative to its benchmark?

For the 12-month period ended October 31, 2004, the fund produced a total return of 8.93% .1 The Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”), the fund’s benchmark, produced a 9.42% return for the same period.2,3

We attribute the fund’s performance to a gradually improving U.S. economy, which benefited from stronger global growth, low interest rates and low inflation.The difference between the fund’s return and the S&P 500 Index’s return was primarily the result of transaction costs and other operating expenses that are not reflected by the S&P 500 Index.

What is the fund’s investment approach?

The fund seeks to match the total return of the S&P 500 Index. To pursue this goal, the fund generally invests in all 500 stocks in the S&P 500 Index in proportion to their weighting in the S&P 500 Index. Often considered a barometer for the stock market in general, the S&P 500 Index is made up of 500 widely held common stocks across 10 economic sectors.The S&P 500 Index is dominated by large-cap, blue-chip stocks that comprise nearly 75% of total U.S. market capitalization.

However, it is important to note that the S&P 500 Index is not composed of the 500 largest companies; rather, it is designed to reflect the industries of the U.S. economy. Each stock is weighted by its market capitalization; that is, larger companies have greater representation in the S&P 500 Index than smaller ones. The fund may also use stock index futures as a substitute for the sale or purchase of stocks.

As an index fund, the fund uses a passive management approach; all investment decisions are made based on the composition of the S&P 500 Index.The fund does not attempt to manage market volatility.

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

What other factors influenced the fund’s performance?

When the reporting period began, the U.S. economy already had begun to show signs of strengthening in an environment characterized by low inflation and low interest rates. Many U.S. companies took advantage of the low interest-rate environment to strengthen their balance sheets by refinancing their outstanding debt at lower rates.At the same time, reductions in personal and corporate income tax rates provided support for consumer and business spending. Stronger global economic activity, especially in China and India, helped further boost U.S. business conditions, especially for exporters.

Offsetting these favorable influences were a number of forces that weighed heavily on investor sentiment, including surging oil prices, moves by the Federal Reserve Board toward higher interest rates, the presidential election and the insurgency in Iraq. As a result, investors became more concerned about the sustainability of the economic recovery, and they focused primarily on value-oriented stocks that they believed were likely to produce competitive results even if the economy weakened.

In this environment, the market’s best returns of the reporting period stemmed from the energy sector, where the major integrated oil companies benefited from record oil prices.The fund received particularly strong results from oil refineries, which achieved greater pricing power as a result of limited refining capacity and rising global demand. Large banks and financial services companies also fared well as the improving economy supported higher loan origination volumes, fewer defaults and greater securities trading and investment banking activity.

In the industrials group, a number of companies attempted to meet rising global demand by building new factories in the United States and abroad. Demand from China and other emerging markets for the commodities and services used in creating a larger industrial infrastructure particularly benefited U.S. industrial parts manufacturers, construction

4

companies, mining businesses, chemical producers and electrical equipment manufacturers. Defense stocks also performed well during the reporting period, mainly due to the war in Iraq, and many electric utilities boosted earnings by refinancing their debt at lower interest rates.

On the other hand, semiconductor stocks represented the single largest detractor from the S&P 500 Index’s performance over the reporting period. Unexpectedly low customer demand led to higher inventories of unsold goods and higher expenses, which eroded profit margins. Large pharmaceutical stocks also lagged market averages, primarily due to investors’ concerns regarding competition from generic drug makers and an apparent lack of new products under development.

What is the fund’s current strategy?

As an index fund, our strategy is to attempt to replicate the returns of the S&P 500 Index.Accordingly, as of the end of the reporting period, the percentage of the fund’s assets invested in each market sector closely approximated its representation in the S&P 500 Index.

November 15, 2004
1    Total return includes reinvestment of dividends and any capital gains paid. Past performance is no 
    guarantee of future results. Share price and investment return fluctuate such that upon redemption, 
    fund shares may be worth more or less than their original cost. Return figure provided reflects the 
    absorption of fund expenses by The Dreyfus Corporation pursuant to an agreement in effect that 
    may be extended, terminated or modified. Had these expenses not been absorbed, the fund’s return 
    would have been lower. 
2    SOURCE: LIPPER INC. — Reflects reinvestment of dividends daily and, where applicable, 
    capital gain distributions.The Standard & Poor’s 500 Composite Stock Price Index is a widely 
    accepted, unmanaged index of U.S. stock market performance. 
3    Standard & Poor’s®,”“S&P®,”“Standard & Poor’s 500” and “S&P 500®” are trademarks of 
    The McGraw-Hill Companies, Inc., and have been licensed for use by the fund.The fund is not 
    sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no 
    representation regarding the advisability of investing in the fund. 

The Fund 5

FUND PERFORMANCE
Average Annual Total Returns as of 10/31/04         
    1 Year    5 Years    10 Years 
Fund    8.93%    (2.71)%    10.42% 
† Source: Lipper Inc.             

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The above graph compares a $10,000 investment made in Dreyfus S&P 500 Index Fund on 10/31/94 to a $10,000 investment made in the Standard & Poor’s 500 Composite Stock Price Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph takes into account all applicable fees and expenses.The Index is a widely accepted, unmanaged index of U.S. stock market performance and reflects the reinvestment of dividends daily.The Index does not take into account charges, fees and other expenses. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

6

UNDERSTANDING YOUR FUND ’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus S&P 500 Index Fund from May 1, 2004 to October 31, 2004. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment assuming actual returns for the six months ended October 31, 2004

Expenses paid per $1,000 †    $ 2.55 
Ending value (after expenses)    $1,027.50 

COMPARING YOUR FUND’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended October 31, 2004

Expenses paid per $1,000 †    $ 2.54 
Ending value (after expenses)    $1,022.62 

  • Expenses are equal to the fund’s annualized expense ratio of .50%, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

The Fund 7

STATEMENT OF INVESTMENTS
October 31, 2004
Common Stocks—98.9%    Shares    Value ($) 
Consumer Cyclical—9.7%         
Albertson’s    107,672    2,455,998 
Autonation    78,000 a    1,343,940 
AutoZone    24,400 a    1,996,164 
Bed Bath & Beyond    88,000 a    3,589,520 
Best Buy    95,150    5,634,783 
Big Lots    33,700 a    417,543 
Brunswick    28,000    1,313,760 
CVS    117,000    5,084,820 
Circuit City Stores—Circuit City Group    58,200    945,750 
Coach    55,100 a    2,569,313 
Cooper Tire & Rubber    21,900    426,612 
Costco Wholesale    135,000    6,471,900 
Dana    43,659    650,956 
Darden Restaurants    46,150    1,130,675 
Delphi    164,269    1,381,502 
Delta Air Lines    36,800 a,b    200,560 
Dillard’s, Cl. A    24,500    502,005 
Dollar General    96,108    1,850,079 
Eastman Kodak    83,900    2,540,492 
Eaton    44,300    2,832,985 
Family Dollar Stores    49,300    1,456,815 
Federated Department Stores    52,700    2,658,715 
Ford Motor    535,692    6,980,067 
Gap    264,525    5,285,209 
General Motors    165,300 b    6,372,315 
Genuine Parts    51,300    2,046,357 
Harley-Davidson    86,400    4,974,048 
Harrah’s Entertainment    32,800    1,919,456 
Hasbro    51,800    916,342 
Hilton Hotels    112,700    2,242,730 
Home Depot    642,703    26,402,239 
International Game Technology    100,900    3,333,736 
J. C. Penney    84,400 b    2,919,396 
Johnson Controls    55,700    3,194,395 
Jones Apparel Group    36,500    1,288,450 
Kohl’s    100,000 a    5,076,000 
Kroger    216,400 a    3,269,804 
 
8         

Common Stocks (continued)    Shares    Value ($) 
Consumer Cyclical (continued)             
Limited Brands    138,300    3,427,074     
Liz Claiborne    31,500    1,287,720     
Lowe’s Cos    228,200    12,843,096     
Marriott International, Cl. A    67,000    3,650,830     
Mattel    121,200    2,122,212     
May Department Stores    85,350    2,224,221     
Maytag    23,100    401,940     
McDonald’s    367,800    10,721,370     
NIKE, Cl. B    77,100    6,269,001     
Navistar International    20,500 a    708,275     
Nordstrom    41,100    1,774,698     
Office Depot    91,700 a    1,484,623     
PACCAR    50,850    3,524,414     
RadioShack    46,700    1,397,731     
Reebok International    17,400    643,800     
Safeway    130,800 a    2,385,792     
Sears, Roebuck & Co    62,100 b    2,173,500     
Southwest Airlines    231,318    3,647,885     
Staples    145,650    4,331,631     
Starbucks    116,400 a    6,155,232     
Starwood Hotels & Resorts Worldwide    60,900    2,906,757     
TJX Cos    143,100    3,431,538     
Target    264,400    13,225,288     
Tiffany & Co    42,700    1,252,391     
Toys R Us    62,600 a    1,127,426     
V. F.    32,300    1,738,709     
Visteon    37,915    269,576     
Wal-Mart Stores    1,241,900    66,963,248     
Walgreen    299,900    10,763,411     
Wendy’s International    33,200    1,107,884     
Whirlpool    19,500    1,145,625     
Winn-Dixie Stores    41,600 b    143,104     
Yum! Brands    85,120    3,702,720     
        302,628,153     
Consumer Staples—7.6%             
Adolph Coors, Cl. B    10,900 b    727,030     
Alberto-Culver, Cl. B    26,600    1,193,276     
 
    The Fund    9 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Consumer Staples (continued)         
Altria Group    600,600    29,105,076 
Anheuser-Busch Cos    234,400    11,708,280 
Archer-Daniels-Midland    190,560    3,691,147 
Avon Products    138,372    5,472,612 
Brown-Forman, Cl. B    35,500    1,593,950 
Campbell Soup    120,200    3,226,168 
Clorox    62,400    3,407,040 
Coca-Cola    710,200    28,876,732 
Coca-Cola Enterprises    137,300    2,870,943 
Colgate-Palmolive    155,500    6,938,410 
ConAgra Foods    154,700    4,084,080 
Fortune Brands    42,100    3,065,722 
General Mills    111,300    4,925,025 
Gillette    293,300    12,166,084 
H. J. Heinz    102,300    3,718,605 
Hershey Foods    72,100    3,654,749 
International Flavors & Fragrances    27,600    1,077,780 
Kellogg    121,000    5,203,000 
Kimberly-Clark    144,800    8,640,216 
McCormick & Co    40,100    1,420,743 
Newell Rubbermaid    80,562    1,736,917 
Pactiv    44,000 a    1,042,360 
Pepsi Bottling Group    74,400    2,086,176 
PepsiCo    495,900    24,586,722 
Procter & Gamble    744,300    38,093,274 
Reynolds American    43,300    2,981,638 
SUPERVALU    39,800    1,173,702 
Sara Lee    232,200    5,405,616 
Sysco    187,200    6,040,944 
UST    48,400    1,992,144 
Wm. Wrigley Jr    65,800    4,303,320 
        236,209,481 
Energy—7.5%         
Amerada Hess    26,700    2,154,957 
Anadarko Petroleum    73,232    4,939,498 
Apache    95,450    4,839,315 
BJ Services    47,200    2,407,200 
 
10         

Common Stocks (continued)    Shares    Value ($) 
Energy (continued)         
Baker Hughes    97,690    4,184,063 
Burlington Resources    115,590    4,796,985 
ChevronTexaco    623,636    33,090,126 
ConocoPhillips    201,620    16,998,582 
Devon Energy    70,700    5,229,679 
Dynegy, Cl. A    111,200 a    548,216 
EOG Resources    34,500    2,296,320 
El Paso    187,675    1,677,815 
Exxon Mobil    1,904,376    93,733,387 
Halliburton    129,200    4,785,568 
Kerr-McGee    44,165    2,615,451 
KeySpan    46,800    1,869,660 
Kinder Morgan    36,100    2,323,757 
Marathon Oil    101,300    3,860,543 
Nabors Industries    43,500 a    2,136,720 
Nicor    12,900    484,008 
NiSource    77,100    1,653,795 
Noble    39,200 a    1,790,656 
Occidental Petroleum    114,700    6,403,701 
Peoples Energy    11,000    470,580 
Rowan Cos    31,300 a    799,089 
Schlumberger    172,800    10,876,032 
Sempra Energy    67,866    2,276,226 
Sunoco    22,100    1,643,356 
Transocean    93,900 a    3,309,975 
Unocal    77,500    3,235,625 
Valero Energy    74,800    3,214,156 
Williams Cos    162,500    2,032,875 
        232,677,916 
Health Care—12.4%         
Abbott Laboratories    457,000    19,481,910 
Aetna    44,879    4,263,505 
Allergan    38,500    2,755,060 
AmerisourceBergen    32,900    1,810,816 
Amgen    370,612 a    21,050,761 
Anthem    40,800 a    3,280,320 
Applera—Applied Biosystems Group    59,100    1,127,628 
 
    The Fund 11 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
Bausch & Lomb    15,500    944,880 
Baxter International    180,000    5,536,800 
Becton, Dickinson & Co    73,300    3,848,250 
Biogen Idec    99,085 a    5,762,784 
Biomet    74,375 b    3,471,825 
Boston Scientific    246,600 a    8,704,980 
Bristol-Myers Squibb    569,400    13,341,042 
C. R. Bard    30,700    1,743,760 
Cardinal Health    126,025    5,891,669 
Caremark Rx    136,400 a    4,087,908 
Chiron    55,000 a    1,783,100 
Eli Lilly & Co    330,900    18,169,719 
Express Scripts    22,700 a    1,452,800 
Fisher Scientific International    33,600 a    1,927,296 
Forest Laboratories    108,400 a    4,834,640 
Genzyme    66,700 a    3,499,749 
Gilead Sciences    126,000 a    4,363,380 
Guidant    92,100    6,135,702 
HCA    141,250    5,188,112 
Health Management Associates, Cl. A    71,200    1,470,992 
Hospira    45,670 a    1,457,330 
Humana    46,600 a    892,390 
Johnson & Johnson    868,818    50,721,595 
King Pharmaceuticals    70,666 a    770,966 
Manor Care    25,600    838,144 
McKesson    85,977    2,292,147 
Medco Health Solutions    79,691 a    2,702,322 
MedImmune    72,900 a,b    2,071,818 
Medtronic    354,000    18,092,940 
Merck & Co    649,600    20,338,976 
Millipore    14,500 a    666,855 
Mylan Laboratories    78,600 b    1,353,492 
Pfizer    2,210,409    63,991,340 
Quest Diagnostics    29,800    2,608,692 
Schering-Plough    431,100    7,807,221 
St. Jude Medical    51,900 a    3,973,983 
Stryker    117,500    5,063,075 
 
12         

Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
Tenet Healthcare    136,450 a    1,462,744 
Thermo Electron    47,800 a    1,386,200 
UnitedHealth Group    194,600    14,089,040 
Waters    34,600 a    1,428,634 
Watson Pharmaceuticals    32,000 a    896,960 
WellPoint Health Networks    45,900 a    4,482,594 
Wyeth    390,400    15,479,360 
Zimmer Holdings    71,720 a    5,564,755 
        386,362,961 
Interest Sensitive—23.8%         
ACE    83,200    3,166,592 
AFLAC    148,500    5,328,180 
Allstate    202,800    9,752,652 
Ambac Financial Group    31,750    2,478,405 
American Express    371,200    19,699,584 
American International Group    762,679    46,302,242 
AmSouth Bancorporation    103,500    2,731,365 
Aon    92,475    1,887,415 
Apartment Investment & Management, Cl. A    27,700    1,016,313 
BB&T    162,300    6,672,153 
Bank of America    1,190,808    53,336,290 
Bank of New York    227,700    7,391,142 
Bear Stearns Cos    30,172    2,858,797 
CIGNA    40,200    2,551,092 
CIT Group    61,900    2,500,760 
Capital One Financial    70,700    5,214,832 
Charles Schwab    400,100    3,660,915 
Chubb    55,900    4,032,067 
Cincinnati Financial    49,305    2,058,484 
Citigroup    1,516,517    67,287,859 
Comerica    50,200    3,087,802 
Countrywide Financial    164,800    5,262,064 
E*TRADE Financial    109,200 a    1,408,680 
Equity Office Properties Trust    118,000    3,318,160 
Equity Residential    82,200    2,741,370 
Fannie Mae    283,300    19,873,495 
Federated Investors, Cl. B    31,700    918,983 
 
    The Fund 13 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Interest Sensitive (continued)         
Fifth Third Bancorp    166,767    8,203,269 
First Horizon National    36,100    1,562,408 
Franklin Resources    73,000    4,425,260 
Freddie Mac    201,100    13,393,260 
General Electric    3,090,800    105,458,096 
Golden West Financial    44,700    5,226,324 
Goldman Sachs Group    142,300    13,999,474 
H&R Block    48,300    2,296,665 
Hartford Financial Services Group    85,900    5,023,432 
Huntington Bancshares    67,274    1,611,212 
J.P. Morgan Chase & Co    1,042,741    40,249,803 
Janus Capital Group    70,100    1,069,025 
Jefferson-Pilot    39,925    1,927,978 
KeyCorp    119,100    4,000,569 
Lehman Brothers Holdings    79,500    6,530,925 
Lincoln National    51,600    2,260,080 
Loews    54,300    3,252,570 
M&T Bank    34,300    3,532,900 
MBIA    41,900    2,424,334 
MBNA    374,037    9,586,568 
MGIC Investment    28,800    1,852,128 
Marsh & McLennan Cos    152,400    4,215,384 
Marshall & Ilsley    65,200    2,736,444 
Mellon Financial    124,100    3,586,490 
Merrill Lynch    275,000    14,833,500 
MetLife    219,600    8,421,660 
Morgan Stanley    321,560    16,428,500 
National City    194,000    7,560,180 
North Fork Bancorporation    91,200    4,021,920 
Northern Trust    64,300    2,735,322 
PNC Financial Services Group    82,700    4,325,210 
Plum Creek Timber    53,700    1,948,773 
Principal Financial Group    91,800    3,466,368 
Progressive    58,600    5,482,030 
ProLogis    53,300    2,077,634 
Providian Financial    85,700 a    1,332,635 
Prudential Financial    152,000    7,063,440 
 
14         

Common Stocks (continued)    Shares    Value ($) 
Interest Sensitive (continued)         
Regions Financial    135,290    4,745,973 
SLM    127,600    5,775,176 
Safeco    36,900    1,706,256 
Simon Property Group    64,700    3,773,304 
SouthTrust    97,400    4,243,718 
Sovereign Bancorp    100,500    2,175,825 
St. Paul Travelers Cos    195,712    6,646,380 
State Street    98,400    4,432,920 
SunTrust Banks    104,700    7,368,786 
Synovus Financial    90,550    2,462,055 
T. Rowe Price Group    37,200    2,074,644 
Torchmark    32,100    1,734,042 
U.S. Bancorp    550,053    15,737,016 
UnumProvident    86,795    1,185,620 
Wachovia    383,290    18,861,701 
Washington Mutual    255,390    9,886,147 
Wells Fargo    494,400    29,525,568 
XL Capital, Cl. A    40,500    2,936,250 
Zions Bancorporation    26,200    1,733,654 
        741,664,498 
Producer Goods & Services—10.0%         
Air Products & Chemicals    66,500    3,536,470 
Alcoa    254,648    8,276,060 
Allegheny Technologies    27,877    468,612 
American Power Conversion    58,700    1,131,736 
American Standard Cos    62,600 a    2,289,282 
Ashland    20,800    1,198,496 
Avery Dennison    32,300    1,965,132 
Ball    32,900    1,311,065 
Bemis    31,300    828,511 
Black & Decker    23,500    1,886,580 
Boeing    245,798    12,265,320 
Boise Cascade    25,800 a    761,616 
Burlington Northern Santa Fe    109,000    4,557,290 
CSX    62,900    2,295,850 
Caterpillar    100,300    8,078,162 
Centex    36,200    1,880,228 
 
    The Fund 15 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares        Value ($) 
Producer Goods & Services (continued)             
Cooper Industries, Cl. A    27,700        1,770,030 
Crane    17,325        482,848 
Cummins    12,900        904,032 
Deere & Co    72,600        4,340,028 
Dover    59,500        2,336,565 
Dow Chemical    275,063        12,361,331 
E. I. du Pont de Nemours    292,112        12,522,841 
Eastman Chemical    22,800        1,082,316 
Ecolab    75,300        2,548,905 
Emerson Electric    123,000        7,878,150 
Engelhard    36,400        1,030,120 
FedEx    87,920    b    8,011,270 
Fluor    24,400        1,133,136 
Freeport-McMoRan Copper & Gold, Cl. B    51,900        1,879,818 
General Dynamics    58,500        5,974,020 
Georgia-Pacific    75,567        2,613,863 
Goodrich    34,700        1,069,801 
Goodyear Tire & Rubber    51,400    a,b    518,112 
Great Lakes Chemical    14,800        379,176 
Hercules    32,700    a    466,956 
Honeywell International    251,625        8,474,730 
ITT Industries    27,000        2,190,780 
Illinois Tool Works    88,500        8,166,780 
Ingersoll-Rand, Cl. A    50,800        3,476,752 
International Paper    142,353        5,482,014 
KB HOME    13,500    b    1,110,375 
Leggett & Platt    56,100        1,578,093 
Lockheed Martin    130,200        7,172,718 
Louisiana-Pacific    32,000        784,320 
Masco    126,800        4,344,168 
MeadWestvaco    59,111        1,863,770 
Molex    55,500        1,641,135 
Monsanto    78,164        3,341,511 
Newmont Mining    129,825        6,169,284 
Norfolk Southern    115,300        3,914,435 
Nucor    46,300        1,955,249 
PPG Industries    50,300        3,206,625 
 
16             

Common Stocks (continued)    Shares        Value ($) 
Producer Goods & Services (continued)         
Pall    36,600        946,476 
Parker-Hannifin    34,950        2,468,519 
Phelps Dodge    27,495        2,406,912 
Praxair    95,100        4,013,220 
Pulte Homes    37,100        2,036,048 
Raytheon    132,000        4,815,360 
Rockwell Automation    54,000        2,251,260 
Rockwell Collins    51,900        1,840,893 
Rohm & Haas    65,715        2,785,659 
Sealed Air    24,632    a    1,220,269 
Sherwin-Williams    41,600        1,777,152 
Sigma-Aldrich    20,300    b    1,129,492 
Snap-On    17,000        499,460 
Stanley Works    24,013        1,069,059 
3M    229,100        17,771,287 
Temple-Inland    16,400        969,568 
Textron    40,500        2,760,075 
Tyco International    588,071        18,318,412 
Union Pacific    75,800        4,773,126 
United Parcel Service, Cl. B    329,100        26,058,138 
United States Steel    33,200        1,219,104 
United Technologies    149,800        13,904,436 
Vulcan Materials    29,900        1,488,422 
W.W. Grainger    26,700        1,564,353 
Weyerhaeuser    70,100        4,391,064 
Worthington Industries    25,600        508,160 
            309,892,391 
Services—6.3%             
ALLTEL    90,300        4,960,179 
Affiliated Computer Services, Cl. A    37,400    a    2,040,170 
Allied Waste Industries    93,200    a    760,512 
Apollo Group, Cl. A    56,500    a,b    3,729,000 
Automatic Data Processing    171,000        7,419,690 
Carnival    185,300        9,368,768 
Cendant    309,070        6,363,751 
Cintas    50,200        2,165,628 
Clear Channel Communications    172,700        5,768,180 
 
    The Fund 17 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Services (continued)         
Comcast, Cl. A    654,218 a    19,299,431 
Computer Sciences    55,300 a    2,746,751 
Convergys    41,700 a    542,517 
Deluxe    14,600    556,114 
Dow Jones & Co    24,000    1,062,000 
Electronic Data Systems    150,000    3,190,500 
Equifax    39,900    1,043,385 
First Data    251,046    10,363,179 
Fiserv    57,150 a    2,031,111 
Gannett    77,900    6,461,805 
IMS Health    68,400    1,448,712 
Interpublic Group of Companies    123,600 a    1,515,336 
Knight-Ridder    22,700 b    1,555,631 
McGraw-Hill Cos    55,600    4,795,500 
Meredith    14,700    720,300 
Monster Worldwide    34,700 a    973,335 
Moody’s    43,300    3,369,173 
NEXTEL Communications, Cl. A    326,000 a    8,635,740 
New York Times, Cl. A    42,900    1,718,145 
Omnicom Group    54,800    4,323,720 
Paychex    110,775    3,632,755 
R. R. Donnelley & Sons    64,100    2,015,945 
Robert Half International    50,500    1,339,765 
Ryder System    18,900    946,890 
SunGard Data Systems    84,500 a    2,238,405 
Time Warner    1,338,550 a    22,273,472 
Tribune    93,200    4,026,240 
Unisys    98,000 a    1,040,760 
Univision Communications, Cl. A    94,400 a    2,922,624 
Viacom, Cl. B    507,824    18,530,498 
Walt Disney    601,500    15,169,830 
Waste Management    169,700    4,833,056 
        197,898,503 
Technology—16.1%         
ADC Telecommunications    236,700 a    523,107 
Adobe Systems    70,200    3,933,306 
Advanced Micro Devices    103,900 a    1,747,598 
 
18         

Common Stocks (continued)    Shares    Value ($) 
Technology (continued)         
Agilent Technologies    142,216 a    3,563,933 
Altera    108,800 a    2,473,024 
Analog Devices    110,800    4,460,808 
Andrew    47,050 a    657,759 
Apple Computer    113,600 a    5,967,408 
Applied Materials    497,200 a    8,004,920 
Applied Micro Circuits    91,700 a    333,788 
Autodesk    33,200    1,751,300 
Avaya    132,480 a    1,907,712 
BMC Software    65,300 a    1,235,476 
Broadcom, Cl. A    94,300 a    2,550,815 
CIENA    166,600 a    411,502 
Cisco Systems    1,979,400 a    38,024,274 
Citrix Systems    49,600 a    1,196,848 
Computer Associates International    171,350    4,748,108 
Compuware    113,100 a    654,849 
Comverse Technology    57,300 a    1,182,672 
Corning    408,000 a    4,671,600 
Danaher    90,300    4,978,239 
Dell    730,800 a    25,621,848 
EMC    703,900 a    9,059,193 
eBay    193,500 a    18,887,535 
Electronic Arts    88,900 a    3,993,388 
Gateway    109,100 a    638,235 
Hewlett-Packard    884,066    16,496,672 
Intel    1,877,900    41,802,054 
International Business Machines    490,400    44,013,400 
Intuit    56,100 a    2,544,696 
JDS Uniphase    421,600 a,b    1,336,472 
Jabil Circuit    58,800 a,b    1,429,428 
KLA-Tencor    57,500 a    2,617,975 
LSI Logic    112,700 a    512,785 
Laboratory Corporation of America Holdings    40,900 a    1,873,220 
Lexmark International    37,900 a    3,149,869 
Linear Technology    90,000    3,409,200 
Lucent Technologies    1,261,570 a,b    4,478,573 

The Fund 19

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Technology (continued)         
Maxim Integrated Products    95,100    4,183,449 
Mercury Interactive    27,300 a    1,185,639 
Micron Technology    179,000 a    2,180,220 
Microsoft    3,182,900    89,089,371 
Motorola    691,595    11,936,930 
NCR    27,600 a    1,555,260 
NVIDIA    48,800 a    706,136 
National Semiconductor    104,800    1,750,160 
Network Appliance    104,700 a    2,562,009 
Northrop Grumman    104,890    5,428,058 
Novell    113,200 a    813,908 
Novellus Systems    41,800 a,b    1,083,038 
Oracle    1,513,700 a    19,163,442 
PMC-Sierra    51,800 a    531,468 
Parametric Technology    78,700 a    408,453 
PeopleSoft    107,400 a    2,230,698 
PerkinElmer    37,500    770,250 
Pitney Bowes    67,600    2,957,500 
Power-One    24,600 a    172,692 
QLogic    27,100 a    880,750 
QUALCOMM    476,500    19,922,465 
Sabre Holdings    40,121    863,003 
Sanmina-SCI    152,600 a    1,220,800 
Scientific-Atlanta    44,800    1,227,072 
Siebel Systems    148,000 a    1,406,000 
Solectron    281,500 a    1,469,430 
Sun Microsystems    973,700 a    4,410,861 
Symantec    92,300 a    5,255,562 
Symbol Technologies    70,000    1,028,300 
Tektronix    26,900    815,877 
Tellabs    121,900 a    975,200 
Teradyne    56,800 a    940,608 
Texas Instruments    506,800    12,391,260 
VERITAS Software    126,682 a    2,771,802 
Xerox    245,700 a,b    3,628,989 
Xilinx    101,600    3,108,960 
Yahoo!    398,300 a    14,414,477 
        502,283,686 
20         

Common Stocks (continued)    Shares    Value ($) 
Utilities—5.5%         
AES    189,200 a    2,062,280 
AT&T    232,640    3,980,470 
Allegheny Energy    40,100 a,b    734,231 
Ameren    56,900    2,731,200 
American Electric Power    115,860    3,815,270 
BellSouth    535,900    14,292,453 
CMS Energy    55,600 a    520,416 
Calpine    156,000 a,b    388,440 
CenterPoint Energy    90,066    946,594 
CenturyTel    39,500    1,267,555 
Cinergy    52,900    2,090,608 
Citizens Communications    97,100    1,301,140 
Consolidated Edison    70,700    3,071,915 
Constellation Energy Group    51,400    2,087,868 
DTE Energy    50,900 b    2,173,939 
Dominion Resources    96,708    6,220,258 
Duke Energy    274,588    6,735,644 
Edison International    95,400    2,909,700 
Energy    66,400    4,339,904 
Exelon    193,250    7,656,565 
FPL Group    54,300    3,741,270 
FirstEnergy    96,502    3,988,428 
PG&E    117,400 a    3,761,496 
PPL    55,300    2,875,600 
Pinnacle West Capital    26,700    1,137,954 
Progress Energy    72,169    2,980,580 
Public Service Enterprise Group    69,400    2,955,746 
Qwest Communications International    531,400 a    1,817,388 
SBC Communications    970,098    24,504,675 
Southern    216,100    6,826,599 
Sprint (FON Group)    425,150    8,906,892 
TECO Energy    58,200 b    814,800 
TXU    86,897    5,319,834 
Verizon Communications    810,456    31,688,830 
Xcel Energy    117,110    2,002,581 
        172,649,123 
Total Common Stocks         
(cost $2,366,342,041)        3,082,266,712 
    The Fund 21 

STATEMENT OF INVESTMENTS (continued)

    Principal     
Short-Term Investments—1.1%    Amount ($)    Value ($) 
Repurchase Agreement—1.0%         
Greenwich Capital Markets, Tri-Party Repurchase         
Agreement, 1.77%, dated 10/29/2004, due         
11/1/2004 in the amount of $31,104,587         
(fully collateralized by $30,190,000 of various         
U.S. Government Agency Obligations,         
value $31,724,248)    31,100,000    31,100,000 
U.S. Treasury Bills—.1%         
1.65%, 12/30/2004    200,000 c    199,406 
1.66%, 1/6/2005    3,000,000 c    2,990,040 
        3,189,446 
Total Short-Term Investments         
(cost $34,290,358)        34,289,446 
 
Investment of Cash Collateral         
for Securities Loaned—.8%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Plus Fund         
(cost $23,340,820)    23,340,820 d    23,340,820 
 
Total Investments (cost $2,423,973,219)    100.8%    3,139,896,978 
Liabilities, Less Cash and Receivables    (.8%)    (23,719,596) 
Net Assets    100.0%    3,116,177,382 

a Non-income producing. 
b All or a portion of these securities are on loan.At October 31 2004, the total market value of the fund’s securities on 
loan is $22,159,933 and the total market value of the collateral held by the fund is $23,340,820. 
c Partially held by a broker in a segregated account as collateral for open financial futures positions. 
d Investment in affiliated money market mutual fund. 

Portfolio Summary †             
 
    Value (%)        Value (%) 
Interest Sensitive    23.8    Energy    7.5 
Technology    16.1    Services    6.3 
Health Care    12.4    Other    7.4 
Producer Goods & Services    10.0    Futures contracts    .0 
Consumer Cyclical    9.7         
Consumer Staples    7.6        100.8 
 
† Based on net assets.             
See notes to financial statements.             
 
22             

STATEMENT OF FINANCIAL FUTURES

October 31, 2004

        Market Value        Unrealized 
        Covered by        Appreciation 
    Contracts    Contracts ($)    Expiration    at 10/31/2004 ($) 
 
Financial Futures Long                 
Standard & Poor’s 500    131    37,017,325    December 2004    309,175 

See notes to financial statements.

The Fund 23

STATEMENT OF ASSETS AND LIABILITIES

October 31, 2004

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of         
Investments (including securities on loan,         
valued at $22,159,933)—Note 1(b,d):         
Unaffiliated issuers    2,400,632,399    3,116,556,158 
Affiliated issuers    23,340,820    23,340,820 
Cash        1,400,840 
Dividends and interest receivable        3,969,006 
Receivable for shares of Common Stock subscribed    1,027,963 
Receivable for futures variation margin—Note 4    89,658 
        3,146,384,445 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    1,305,339 
Liability for securities on loan—Note 1(b)        23,340,820 
Payable for shares of Common Stock redeemed    3,586,782 
Payable for investment securities purchased        1,974,122 
        30,207,063 
Net Assets ($)        3,116,177,382 
Composition of Net Assets ($):         
Paid-in capital        2,565,123,299 
Accumulated undistributed investment income—net    28,785,724 
Accumulated net realized gain (loss) on investments    (193,964,575) 
Accumulated net unrealized appreciation (depreciation)     
on investments (including $309,175 net unrealized     
appreciation on financial futures)        716,232,934 
Net Assets ($)        3,116,177,382 
Shares Outstanding         
(200 million shares of $.001 par value Common Stock authorized)    93,586,040 
Net Asset Value, offering and redemption price per share—Note 3(c) ($)    33.30 

See notes to financial statements.
24
STATEMENT OF OPERATIONS
Year Ended October 31, 2004
Investment Income ($):     
Income:     
Cash dividends    50,947,610 
Interest    543,597 
Income on securities lending    60,927 
Total Income    51,552,134 
Expenses:     
Management fee—Note 3(a)    7,554,217 
Shareholder servicing costs—Note 3(b)    7,554,217 
Loan commitment fees—Note 2    23,415 
Total Expenses    15,131,849 
Investment Income—Net    36,420,285 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    (6,432,706) 
Net realized gain (loss) on financial futures    10,212,733 
Net Realized Gain (Loss)    3,780,027 
Net unrealized appreciation (depreciation) on     
investments [including ($1,894,738) net     
unrealized (depreciation) on financial futures]    210,684,606 
Net Realized and Unrealized Gain (Loss) on Investments    214,464,633 
Net Increase in Net Assets Resulting from Operations    250,884,918 

See notes to financial statements.

The Fund 25

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended October 31, 
    2004    2003 
Operations ($):         
Investment income—net    36,420,285    30,344,798 
Net realized gain (loss) on investments    3,780,027    (13,696,628) 
Net unrealized appreciation         
(depreciation) on investments    210,684,606    442,005,324 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    250,884,918    458,653,494 
Dividends to Shareholders from ($):         
Investment income—net    (31,500,224)    (26,194,132) 
Capital Stock Transactions ($):         
Net proceeds from shares sold    845,857,923    763,177,089 
Dividends reinvested    30,880,377    25,656,957 
Cost of shares redeemed    (783,225,642)    (603,393,097) 
Increase (Decrease) in Net Assets         
from Capital Stock Transactions    93,512,658    185,440,949 
Total Increase (Decrease) in Net Assets    312,897,352    617,900,311 
Net Assets ($):         
Beginning of Period    2,803,280,030    2,185,379,719 
End of Period    3,116,177,382    2,803,280,030 
Undistributed investment income—net    28,785,724    24,190,670 
Capital Share Transactions (Shares):         
Shares sold    25,942,195    27,846,119 
Shares issued for dividends reinvested    990,390    958,422 
Shares redeemed    (24,026,262)    (22,142,457) 
Net Increase (Decrease) in Shares Outstanding    2,906,323    6,662,084 

See notes to financial statements.
26
FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

        Year Ended October 31,     
    2004    2003    2002    2001    2000 
Per Share Data ($):                     
Net asset value,                     
beginning of period    30.91    26.01    31.08    41.95    40.55 
Investment Operations:                     
Investment income—net a    .39    .35    .32    .32    .31 
Net realized and unrealized                     
gain (loss) on investments    2.35    4.86    (5.08)    (10.88)    1.92 
Total from Investment Operations    2.74    5.21    (4.76)    (10.56)    2.23 
Distributions:                     
Dividends from                     
investment income—net    (.35)    (.31)    (.31)    (.31)    (.32) 
Dividends from net realized                     
gain on investments    —    —    —    —    (.51) 
Total Distributions    (.35)    (.31)    (.31)    (.31)    (.83) 
Net asset value, end of period    33.30    30.91    26.01    31.08    41.95 
Total Return (%)    8.93    20.22    (15.54)    (25.31)    5.50 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .50    .52    .50    .50    .50 
Ratio of net investment income                     
to average net assets    1.21    1.27    1.05    .88    .73 
Portfolio Turnover Rate    1.87    2.17    4.42    1.89    7.64 
Net Assets, end of period                     
($ x 1,000)    3,116,177    2,803,280    2,185,380    2,514,308    3,072,253 

a Based on average shares outstanding at each month end.
See notes to financial statements.

The Fund 27

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus S&P 500 Index Fund (the “fund”) is a separate non-diversified series of Dreyfus Index Funds, Inc. (the “Company”) which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering three series including the fund. The fund’s investment objective is to match the performance of the Standard & Poor’s 500 Composite Stock Price Index.The Dreyfus Corporation (“the Manager” or “Dreyfus”) serves as the fund’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is avail-able.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events

28

after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the fund may lend securities to qualified institutions.At origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager. The fund will be entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the fund would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

The Fund 29

NOTES TO FINANCIAL STATEMENTS (continued)

The fund may engage in repurchase agreement transactions. Under the terms of a typical repurchase agreement, the fund, through its custodian and sub-custodian, takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and the fund to resell, the obligation at an agreed-upon price and time, thereby determining the yield during the fund’s holding period.This arrangement results in a fixed rate of return that is not subject to market fluctuations during the fund’s holding period.The value of the collateral is at least equal, at all times, to the total amount of the repurchase obligation, including interest. In the event of a counter party default, the fund has the right to use the collateral to offset losses incurred.There is potential loss to the fund in the event the fund is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the fund seeks to assert its rights.The Manager, acting under the supervision of the Board of Directors, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the fund enters into repurchase agreements to evaluate potential risks.

(c) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain, if any, can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gain. Income and capital gain distributions are determined in accordance with incomes tax regulations, which may differ from U.S. generally accepted accounting principles.

(e) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the

30

best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

At October 31, 2004, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $28,673,640, accumulated capital losses $142,539,901 and unrealized appreciation $664,920,344.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to October 31, 2004. If not applied, $16,218,557 of the carryover expires in fiscal 2008, $42,517,790 expires in fiscal 2009, $82,176,122 expires in fiscal 2010 and $1,627,432 expires in fiscal 2011.

The tax character of distributions paid to shareholders during the fiscal periods ended October 31, 2004 and October 31, 2003, were as follows: ordinary income $31,500,224 and $26,194,132, respectively.

During the period ended October 31, 2004, as a result of permanent book to tax differences primarily due to the tax treatment for real estate investment trusts, the fund decreased accumulated undistributed investment income-net by $325,007 and increased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings. During the period ended October 31, 2004, the fund did not borrow under the Facility.

The Fund 31

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Management Agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .25 of 1% of the value of the fund’s average daily net assets, and is payable monthly. Under the terms of the Agreement, the Manager has agreed to pay all the expenses of the fund, except management fees, brokerage commissions, taxes, interest, commitment fees, Shareholder Services Plan fees, fees and expenses of non-interested Board members (including counsel fees) and extraordinary expenses. In addition, the Manager is required to reduce its fees in an amount equal to the fund’s allocable portion of fees and expenses of the non-interested Board members (including counsel fees). Each Board member also serves as a Board member of other funds within the Dreyfus complex (collectively, the “Fund Group”). Each Board member receives an annual fee of $25,000, an attendance fee of $4,000 for each in-person meeting and $500 for telephone meetings.The chairman of the Board receives an additional 25% of such compensation (with the exception of reimburseable amounts). Subject to the Company’s Emeritus Program Guidelines,Emeritus Board Members, if any, receive 50% of the annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status.All Board fees are allocated among the funds in the Fund Group in proportion to each fund’s relative net assets. Amounts required to be paid by the Company directly to the non-interested Board members, that were applied to offset a portion of the management fee payable to the Manager, were in fact paid directly by the Manager to the non-interested Board members.All Board fees are allocated among the funds in the Fund Group in proportion to each fund’s relative net assets.

(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services a fee, at the annual rate of .25 of 1% of the value of the fund’s average daily net assets.The services provided may include personal services relating to shareholder accounts,

32

such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts.The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period October 31, 2004, the fund was charged $7,554,217 pursuant to the Shareholder Services Plan.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: management fees $652,670 and shareholder services plan fees $652,669.

(c) A 1% redemption fee is charged and retained by the fund on shares redeemed within six months following the date of issuance, including redemptions made through the use of the fund’s exchange privilege. During the period ended October 31, 2004, redemption fees charged and retained by the fund amounted to $65,047.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and financial futures during the period ended October 31, 2004, amounted to $210,857,235 and $55,311,370, respectively.

The fund may invest in financial futures contracts in order to gain exposure to or protect against changes in the market.The fund is exposed to market risk as a result of changes in the value of the underlying financial instruments. Investments in financial futures require the fund to “mark to market” on a daily basis, which reflects the change in the market value of the contract at the close of each day’s trading.Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses.When the contracts are closed, the fund recognizes a realized gain or loss.These investments require initial margin deposits

The Fund 33

NOTES TO FINANCIAL STATEMENTS (continued)

with a broker, which consist of cash or cash equivalents.The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open as of October 31, 2004, are set forth in the Statement of Financial Futures.

At October 31, 2004, the cost of investments for federal income tax purposes was $2,474,976,634; accordingly, accumulated net unrealized appreciation on investments was $664,920,344, consisting of $984,569,187 gross unrealized appreciation and $319,648,843 gross unrealized depreciation.

NOTE 5—Legal Matters:

Two class actions have been filed against Mellon Financial, Mellon Bank, N.A., Dreyfus, Founders Asset Management LLC and the directors of all or substantially all of the Dreyfus Funds, on behalf of a purported class and derivatively on behalf of said funds, alleging violations of the Investment Company Act of 1940, the Investment Advisers Act of 1940, and the common law. The complaints alleged, among other things, (i) that 12b-1 fees and directed brokerage were improperly used to pay brokers to recommend Dreyfus funds over other funds, (ii) that such payments were not disclosed to investors, (iii) that economies of scale and soft-dollar benefits were not passed on to investors, and (iv) that 12b-1 fees charged to certain funds that were closed to new investors were also improper. The complaints sought compensatory and punitive damages, rescission of the advisory contracts and an accounting and restitution of any unlawful fees, as well as an award of attorneys’ fees and litigation expenses. On April 22, 2004, the actions were consolidated under the caption In re Dreyfus Mutual Funds Fee Litigation, and a consolidated amended complaint was filed on September 13, 2004.While adding new parties and claims under state and federal law, the allegations in the consolidated amended complaint

34

essentially track the allegations in the prior complaints pertaining to 12b-1 fees, directed brokerage, soft dollars and revenue sharing. Dreyfus and the funds believe the allegations to be totally without merit and intend to defend the action vigorously.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Dreyfus funds believe that any of the pending actions will have a material adverse effect on the Dreyfus funds or Dreyfus’ ability to perform its contracts with the Dreyfus funds.

The Fund 35

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Dreyfus S&P 500 Index Fund

In our opinion, the accompanying statement of assets and liabilities, including the statements of investments and financial futures, and the related statements of operations and of changes in net assets and financial highlights present fairly, in all material respects the financial position of Dreyfus S&P 500 Index Fund (the “Fund”) (one of the series constituting Dreyfus Index Funds, Inc.), at October 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits.We conducted our audits of these financial statements in accordance the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstate-ment.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities owned at October 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
New York, New York
December 14, 2004
36

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the fund hereby designates 100% of the ordinary dividends paid during the fiscal year ended October 31, 2004 as qualifying for the corporate dividends received deduction. For the fiscal year ended October 31, 2004, certain dividends paid by the fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, $15,290,473 represents the maximum amount that may be considered qualified dividend income. Shareholders will receive notification in January 2005 of the percentage applicable to the preparation of their 2004 income tax returns.

The Fund 37

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (61)
Chairman of the Board (1995)
Principal Occupation During Past 5 Years:
• Corporate Director and Trustee
Other Board Memberships and Affiliations:
  • The Muscular Dystrophy Association, Director
  • Levcor International, Inc., an apparel fabric processor, Director
  • Century Business Services, Inc., a provider of outsourcing functions for small and medium size companies, Director
  • The Newark Group, a provider of a national market of paper recovery facilities, paperboard mills and paperboard converting plants, Director
  • Azimuth Trust, an institutional asset management firm, Member of Board of Managers and Advisory Board

No. of Portfolios for which Board Member Serves: 186

———————
David P. Feldman (64)
Board Member (1989)
Principal Occupation During Past 5 Years:
• Corporate Director & Trustee
Other Board Memberships and Affiliations:

  • BBH Mutual Funds Group (11 funds), Director
  • The Jeffrey Company, a private investment company, Director
  • QMED, a medical device company, Director

No. of Portfolios for which Board Member Serves: 51

———————

Ehud Houminer (64) Board Member (1996)

Principal Occupation During Past 5 Years:
  • Executive-in-Residence at the Columbia Business School, Columbia University
  • Principal of Lear,Yavitz and Associates, a management consulting firm (1996 to 2001)
Other Board Memberships and Affiliations:
  • Avnet Inc., an electronics distributor, Director
  • International Advisory Board to the MBA Program School of Management, Ben Gurion University, Chairman
  • Explore Charter School, Brooklyn, NY, Chairman
No. of Portfolios for which Board Member Serves: 30
38
Gloria Messinger (74)
Board Member (1996)
Principal Occupation During Past 5 Years:
  • Arbitrator for American Arbitration Association and National Association of Securities Dealers, Inc.
  • Consultant in Intellectual Property
Other Board Memberships and Affiliations:
  • Yale Law School Fund, Director
  • Theater for a New Audience, Inc., Director
  • Brooklyn Philharmonic, Director
  • New York Women’s Agenda Music Performance Trust Fund, Director
No. of Portfolios for which Board Member Serves: 19

———————

T. John Szarkowski (78) Board Member (1991)

Principal Occupation During Past 5 Years:

• Consultant in Photography

Other Board Memberships and Affiliations:

• Photography Department at The Museum of Modern Art, Director Emeritus

No. of Portfolios for which Board Member Serves: 19

———————
Anne Wexler (74)
Board Member (1991)
Principal Occupation During Past 5 Years:

  • Chairman of the Wexler & Walker Public Policy Associates, consultants specializing in government relations and public affairs
Other Board Memberships and Affiliations:
  • Wilshire Mutual Funds (5 funds), Director
  • Methanex Corporation, a methanol producing company, Director
  • Member of the Council of Foreign Relations
  • Member of the National Park Foundation
No. of Portfolios for which Board Member Serves: 29

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.

John M. Fraser, Jr., Emeritus Board Member

The Fund 39

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 93 investment companies (comprised of 186 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 59 years old and has been an employee of the Manager since May 1995.

STEPHEN R. BYERS, Executive Vice President since November 2002.

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 93 investment companies (comprised of 186 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 51 years old and has been an employee of the Manager since January 2000. Prior to joining the Manager, he served as an Executive Vice President-Capital Markets, Chief Financial Officer and Treasurer at Gruntal & Co., L.L.C.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 58 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Secretary since March 2000.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 195 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since October 1991.

STEVEN F. NEWMAN, Assistant Secretary since March 2000.

Associate General Counsel and Assistant Secretary of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 55 years old and has been an employee of the Manager since July 1980.

JAMES WINDELS, Treasurer since November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 46 years old and has been an employee of the Manager since April 1985.

RICHARD CASSARO, Assistant Treasurer since August 2003.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 26 investment companies (comprised of 101 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since September 1982.

40

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 27 investment companies (comprised of 106 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1990.

KENNETH J. SANDGREN, Assistant Treasurer since November 2001.

Mutual Funds Tax Director of the Manager, and an officer of 94 investment companies (comprised of 202 portfolios) managed by the Manager. He is 50 years old and has been an employee of the Manager since June 1993.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (94 investment companies, comprising 202 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 47 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since October 2002.

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 89 investment companies (comprised of 197 portfolios) managed by the Manager. He is 33 years old and has been an employee of the Distributor since October 1998.

The Fund 41

For More    Information 
 
Dreyfus S&P 500    Transfer Agent & 
Index Fund    Dividend Disbursing Agent 
200 Park Avenue    Dreyfus Transfer, Inc. 
New York, NY 10166    200 Park Avenue 
Manager    New York, NY 10166 
The Dreyfus Corporation    Distributor 
200 Park Avenue    Dreyfus Service Corporation 
New York, NY 10166    200 Park Avenue 
Custodian    New York, NY 10166 
Boston Safe Deposit and     
Trust Company     
One Boston Place     
Boston, MA 02109     
 
 
Telephone 1-800-645-6561     

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 E-mail Send your request to info@dreyfus.com Internet Information can be viewed online or downloaded at: http://www.dreyfus.com

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the 12-month period ended June 30, 2004, is available through the fund’s website at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

®

© 2004 Dreyfus Service Corporation 0078AR1004

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3. Audit Committee Financial Expert.

The Registrant's Board has determined that David P. Feldman, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). David P. Feldman is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $91,000 in 2003 and $105,000 in 2004.

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2003 and $0 in 2004.

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2003 and $0 in 2004.

Note: For the second paragraph in each of (b) through (d) of this Item 4, certain of such services were not pre-approved prior to May 6, 2003, when such services were required to be pre-approved. On and after May 6, 2003, 100% of all services provided by the Auditor were pre-approved as required. For comparative purposes, the fees shown assume that all such services were pre-approved, including services that were not pre-approved prior to the compliance date of the pre-approval requirement.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $7,200 in 2003 and $8,100 in 2004. [These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various

-2-

financial instruments held or proposed to be acquired or held, and (iv) determination of Passive Foreign Investment Companies [CUSTOMIZE SERVICE LIST FOR FUND].]

The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $0 in 2003 and $0 in 2004.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2003 and $0 in 2004.

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service

Affiliates, other than the services reported in paragraphs (b) and (c) of this Item, which required pre-approval by the Audit Committee were $0 in 2003 and $0 in 2004.

Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $0 in 2003 and $0 in 2004.

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates which were not pre-approved (not requiring pre-approval) is compatible with maintaining the Auditor's independence.

Item 5.    Audit Committee of Listed Registrants. 
    Not applicable.    [CLOSED-END FUNDS ONLY] 
Item 6.    Schedule of Investments. 
    Not applicable.     
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable.    [CLOSED-END FUNDS ONLY] 
Item 8.    Purchases of Equity Securities by Closed-End Management Investment Companies and 
    Affiliated Purchasers. 
    Not applicable.    [CLOSED-END FUNDS ONLY] 
Item 9.    Submission of Matters to a Vote of Security Holders. 

The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor West, New York,

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New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders.

Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.

Item 10. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 11. Exhibits.

(a)(1)    Code of ethics referred to in Item 2. 
(a)(2)    Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) 
under the Investment Company Act of 1940. 
(a)(3)    Not applicable. 
(b)    Certification of principal executive and principal financial officers as required by Rule 30a-2(b) 
under the Investment Company Act of 1940. 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dreyfus Index Funds, Inc.

By:    /s/ Stephen E. Canter 
    Stephen E. Canter 
    President 
 
Date:    December 28, 2004 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 
1940, this Report has been signed below by the following persons on behalf of the Registrant and in the 
capacities and on the dates indicated. 
 
By:    /s/ Stephen E. Canter 
    Stephen E. Canter 
    Chief Executive Officer 
 
Date:    December 28, 2004 
 
By:    /s/ James Windels 
    James Windels 
    Chief Financial Officer 
 
Date:    December 28, 2004 
 
EXHIBIT INDEX
 
    (a)(1)    Code of ethics referred to in Item 2. 
 
    (a)(2)    Certifications of principal executive and principal financial officers as required by Rule 30a- 
    2(a) under the Investment Company Act of 1940. (EX-99.CERT) 
 
    (b)    Certification of principal executive and principal financial officers as required by Rule 30a- 
    2(b) under the Investment Company Act of 1940. (EX-99.906CERT) 

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