Equity Markets So Far in 2004

Chart of the Week for August 20-26, 2004

The high price of oil, tepid job growth and rising interest rates may be causing turmoil for many investors. The year to date returns shown in the chart above indicate that the Dow Jones Industrial Average, S&P 500 and Nasdaq Indexes reached 2004 lows over the past two weeks, although they seem to be climbing back up this week. Investors are searching for answers but some analysts have varied reasons for the volatility. One message is consistent; with all of this year’s uncertainty, investors should consider being diversified, as well as comfortable with the risk level of their portfolio, to help lessen the impact of market volatility.

* This illustration was compiled by information provided by Bloomberg L.P., which is an information services, news and media company serving customers around the world. Bloomberg L.P. is not affiliated with the ICMA-RC (“ ICMA-RC ”). This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. Individuals are advised to consider any new investment strategies carefully prior to implementing. The Dow Jones Industrial Average is a price-weighted average of 30 actively traded stocks, primarily industrials and is the oldest and most widely quoted of all the market indicators. The S&P 500 is an Index of 500 Stocks, a widely recognized, unmanaged index of common stock prices. The Nasdaq Composite Index is a market value-weighted index that measures all domestic and non-U.S. based securities listed on the NASDAQ Stock Market. 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.