Growth vs. Value

Chart of the Week for October 29-November 4, 2004

During 2004, large value stocks have outperformed their large growth counterparts by almost ten percent. As of September 30, 2004, value stocks have returned 7.1% so far this year while growth stocks saw a decline of 2.9%. Historically, value and growth stocks have experienced returns in a tight range with one not strongly outperforming the other, as can be seen in 2002 through mid-2003. Prior to 2002, during the raging bull and crippling bear markets, large growth and value stocks diverged greatly in performance by almost forty percent. This large difference between growth and value performance is historically uncommon.

* The illustration was created from information provided by Ibbotson Associates, a leading independent provider of economic, financial, and industry research designed to meet the diverse planning and information needs of businesses, governments, and professional investors and is not affiliated with the ICMA-RC). The S&P 500 is an Index of 500 Stocks, a widely recognized, unmanaged index of common stock prices. A fund’s portfolio may differ significantly from the securities held in the indices. Indices are not available for direct investment; therefore their performance does not reflect the expenses associated with the active management of an actual open-ended investment company portfolio. Past performance does not guarantee future results. Investment returns and principal value will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 1-800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240, or by visiting www.icmarc.org. Please consult both the current Vantagepoint Funds prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights and investment objectives, risks and performance information prior to investing any money. Vantagepoint securities are distributed by ICMA-RC Services LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC. For a current prospectus, contact ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400. AC:1004-91.