Low Cost S & P 500 Index Funds | Vantagepoint 500 Index Fund (VPSKX)

Vantagepoint 500 Index Fund (VPSKX)

The diversified no load index fund strategy of the Vantagepoint 500 index mutual fund

According to Vantagepoint’s prospectus, the investment strategy of the Vantagepoint 500 Stock Index mutual fund “to offer long-term capital growth by approximating the performance of the S&P 500 Index. The fund’s principal investment strategies are “to seek to invest, under normal circumstances, at least 90% of its net assets in a portfolio that consists of the stocks in the S&P 500 Index, weighted to seek to replicate the investment characteristics and performance of the index.”

Understand the differences between Vantagepoint 500 Index Fund Class I and Class II shares.

To participate in this low cost mutual fund, you must be eligible to participate in an employer-sponsored retirement savings plan that offers VPSKX Class II Shares as an investment alternative. Such employer plans might include A) 457 deferred compensation plans, B) 401(a) defined contribution plans, C) 401(k) salary reduction plans, D) 403b non-profit employer plans, or other similar plans.

To obtain the .25% annual expense ratio associated with Class II Shares, your employer-sponsored plan must have $20 million or more of your group’s employee assets under administration by the Vantagepoint Funds sponsor. If you plan’s total assets under administration by the sponsor are under $20 million, then only Class I Shares would be available, which carry a higher annual expense ratio of .45%. The trading symbol or ticker symbol for Class I Shares is VPFIX.

Individuals can also invest directly with Vantagepoint Funds in a traditional IRA account or a Roth IRA account. However, only Class I Shares (VPFIX) are available, which carry the .45% annual management fee. While Class II Shares carry a relatively low expense ratio for an index fund tracking the S&P500 composite index, the higher VPFIX Class I Shares expense ratio might induce a direct IRA investor to look elsewhere for a lower cost passively managed index investment fund.

Short overview of Vantagepoint 500 Index Fund — Class II Shares (VPSKX)

Annual management expense fees are .25% for Class II shares. The fund itself does not charge sales loads or 12b-1 fees, but you should check for additional fees the may be levied by the particular plan within which VPSKX shares are offered as an option. These additional fees would be related to the plan and not this particular investment fund share class.

Annual turnover is 4% and acts as a trading cost proxy for the fund. Shares in the fund were first sold in 1999 and. Total net assets in the fund are about $413 million. The trading symbol for Class II shares is VPSKX.

The Vantagepoint fund family website is at www.icmarc.org. The customer service telephone number is 1-800-669-7400.

The Vantagepoint 500 Index Fund is one of the lower cost S&P 500 Index Funds you can buy.

To buy index funds, click on any of the 10 low cost, no load S&P 500 index funds below to find additional information about them. The article “Top 10 S&P 500 Index Funds” explains how this list was developed. The five letter term in parentheses is the fund’s trading symbol.

  1. California Investment S&P 500 Index Fund (SPFIX)
  2. Fidelity Spartan 500 Index Fund (FSMKX)
  3. Schwab S & P 500 Index Fund (SWPPX)
  4. SSga S&P 500 Index Fund (SVSPX)
  5. T Rowe Price Equity Index Fund 500 (PREIX)
  6. United Association S&P500 Index Fund (UAIIX)
  7. USAA S&P 500 Index Fund – Member (USSPX)
  8. Vanguard 500 Index Fund – Admiral (VFIAX)
  9. Vanguard 500 Index Fund (VFINX)
  10. Vantagepoint 500 Index Fund – Stock II (VPSKX)

You should be able to go directly to most of these 10 funds to buy them. Either call them or download the investment forms from their websites. When you shop for any investment, always pay attention to the details. Understand whether there are other restrictions, costs, and purchase conditions associated with buying any index mutual fund.

Your decision on whether to purchase or to sell any investment is yours and yours alone. READ OUR WEBSITE DISCLAIMER HERE: No Load Index Funds

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