Style Trends Take a Turn

Chart of the Week for April 14-20, 2000

The chart above shows the cumulative relative performance of the S&P/BARRA Growth and Value Indexes. Growth stocks were outperforming value stocks until late March when value stocks picked up steam. Now growth and value have traded places. Through Wednesday, April 12, value stocks have higher YTD returns than growth stocks.

Cumulative performance differs from daily performance in that it shows how returns are adding up over time (rather than showing daily ups and downs). Relative performance shows how much the return of the index’s subsets (that is, the growth and value components) exceeded or fell short of the overall index itself.

The important point to remember here is that investment styles can—and do—go in and out of favor over time. The best way to insulate your retirement portfolio from such unpredicable investment style changes is to diversify. Because the ICMA-RC employs a multi-management structure in its actively managed funds, participants enjoy an added level of diversification.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

Investment information can change rapidly and the changes can be significant particularly in volatile markets. For this reason “as of”’ dates are provided for specific data where applicable. The information should not be considered current after the dates provided.

Please read both the current applicable prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights, investment objectives, risks and performance information. Investing in mutual funds and other investment vehicles involves risk, including possible loss of the amount invested. Investors should carefully consider the Fund's investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and other information about the investment company. The Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC and member FINRA/SIPC. For a current prospectus, contact ICMA-RC Services, LLC.

The performance data quoted represents past performance. Past performance is no guarantee of 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 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.