Top Performing Industries Review

Chart of the Week for August 11-17, 2006

Which industry groups in the S&P 500 Index have produced the highest returns for shareholders so far this year? With soaring energy prices, no doubt stocks of several industries, related to energy, generated solid returns for investors. In the above chart of the top ten performing industries, we can find industries like Oil & Gas Refining and Marketing, Oil & Gas Equipment and Service, Integrated Oil & Gas Equipment and Independent Power Producers with returns of 19%, 22%, 22% and 27% respectively.

Helped by global strong demand for agricultural products, Agricultural Products and Fertilizers & Agricultural Chemicals industries have been strong performers with returns of 65% and 17%. High commodities prices also benefited the Diversified Metals and Mining industry with a return of 17%. Steel manufacturers produced a return of 47% because of strong demand. However, it might be surprising that struggling automobile manufacturers’ stocks are performing quite well thus far because of General Motors’s faster than expected progress in restructuring.

We might not be able to predict how long the high energy prices will sustain or if the market will lose confidence in GM’s turnover plan. Investors should stay diversified with different industries and sectors to navigate through the volatile stock market.

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 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.