S&P 500 Quarterly Operating Earnings

Chart of the Week for August 5-11, 2005

The above chart illustrates operating profits of companies in the S&P 500 Index on a quarterly basis. Year-over-year growth has remained in double digits for twelve consecutive quarters and will likely hold up for a thirteenth consecutive quarter, as over 70% of constituents of the S&P 500 who have reported earnings, beat analyst estimates. The biggest contributors to the rise in earnings for the second quarter were the industrials and energy sectors. Industrials posted 30.8% year-over-year growth and the energy sector rose 26.4% from the previous year. It is estimated that the third and fourth quarters of 2005 will likely also see double-digit growth, providing leverage for companies to boost operational resources.

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. 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: 0705-124