Small Continues to Outperform Large

Chart of the Week for October 22-28, 2004

Riskier smaller company stocks, those with market capitalizations of $1 billion and under, have exceeded the returns of their larger counterparts over the past one year period. The S&P Small Cap 600 Index had a cumulative return of 14.64% while larger capitalization stocks, those over $4 billion as measured by the S&P 500 Index, gained 7.8%. For the quarter, all three capitalization indexes saw negative performance with the S&P Small Cap 600 losing the least amount, -1.37%. The S&P MidCap 400 saw the largest negative return of the three indexes, -2.1%.

* 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. The Russell 2000 Index consists of 2000 US stocks in terms of market capitalization and is a measure of the stock price performance of small companies. 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.