S&P 500 Sector Performance

Chart of the Week for April 27 - May 3, 2007

Just as the market as a whole can post a good or bad year, so too can individual sectors of the market. A sector can outperform over an extended period and then underperform in subsequent periods, trailing all other sectors. For example, the information technology sector shot up over 150% in 1998 and 1999; over the next three years, the sector lost these gains and more. The graph above compares the performance of the S&P 500 to its ten underlying S&P 500 industry sectors.

For the twelve months ended March 31, 2007, the S&P 500 Index, which follows the stocks of 500 of the largest U.S. companies, returned 11.83%. The Utilities and Telecom Services sectors posted the highest returns over the one-year period, earning 33.77% and 28.15%, respectively. The lowest returns for the period came from Information Technology and Industrials, earning 3.10% and 6.99%, respectively.

While the sectors with the best performance may appear attractive today, sectors move in and out of favor. The top sector in the last twelve months (April 1, 2006 - March 31, 2007) was Utilities, but it only ranked eighth out of ten sectors in the prior twelve month period (April 1, 2005 through March 31, 2006). On the other side, the bottom sector in the last twelve months was Information Technology and it ranked fourth out of ten sectors in the prior twelve month period.

*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.Please consult 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 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. Please read the prospectus carefully before investing. All Vantagepoint Funds invested through 401 or 457 plans are held through VantageTrust. 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 1-800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 1-800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.

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