Patchwork Chart of Investment Returns

Chart of the Week for January 26-February 2, 2007

The chart of investment returns ranks key indices, representing asset classes, in order of performance (high to low) each year. Using this table, we can make several observations about the market:

1. International markets, represented by the MSCI EAFE Index, were the top performers in 2004 through 2006. The performance of the EAFE was buoyed by global growth, attractive overseas valuations, and a weaker dollar.
2. Large-cap stocks, represented by the Russell 1000 Index, were near the bottom of the chart during the 2000 to 2002 period. In 2003, a turn around for large-cap stocks started thanks to strong corporate earnings growth and a healthy economic environment.
3. Small-cap stocks, represented by the Russell 2000 Index, and mid-cap stocks, represented by the Russell Mid-Cap Index, outperformed large-cap stocks from 2000 to 2004.
4. The bond market, represented by the Lehman Brothers Aggregate Bond Index, was the leading asset class from 2000 to 2002. The performance of the Index during this period was in part attributable to a decline in interest rates in the United States.

Above all, this chart illustrates the risk inherent in capital markets and supports the case for diversification. Performance of asset classes can be cyclical and rankings may change every year.

Index	1999	2000	2001	2002	2003	2004	2005	2006
LB Aggregate Bond	-0.8%	11.6%	8.4%	10.3%	4.1%	4.3%	2.4%	4.3%
U.S. 30 Day T-Bill	4.7%	5.9%	3.8%	1.6%	1.0%	1.2%	3.0%	4.8%
Russell 1000	20.9%	-7.8%	-12.5%	-21.7%	29.9%	11.4%	6.3%	15.5%
Russell MidCap	18.2%	8.2%	-5.6%	-16.2%	40.1%	20.2%	12.7%	15.3%
Russell 2000	21.3%	-3.0%	2.5%	-20.5%	47.3%	18.3%	4.6%	18.4%
MSCI EAFE	27.3%	-14.0%	-10.5%	-15.7%	-39.2%	20.7%	14.0%	26.9%

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.

Investment information can change rapidly and the changes can be significant particularly in volatile markets. For this reason “as of”’ dates are provided for specific data where applicable. The information should not be considered current after the dates provided.

Please read 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 carefully 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. All Vantagepoint Funds invested through 401 or 457 plans are held through VantageTrust. The 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.