Table: Index Funds $$\begin{array} { l c }
\hline \text { S\&P Index Funds Annual Cost } & \text { Expense Ratio } \
\hline \text { Vanguard 500 Index mutual fund Admiral Shares (VFIAX) } & 0.09 \% \
\text { Vantagepoint 500 Stock Index mutual fund Class II Shares (VPSKX) } & 0.25 \
\text { T. Rowe Price Equity Index 500 mutual fund (PREIX) } & 0.35 \
\text { California Investment S\&P 500 Index mutual fund (SPFIX) } & 0.36 \
\hline
\end{array}$$ Refer to the table. Which index fund would be best to include in a retirement savings plan?

Question

Table: Index Funds $$\begin{array} { l c } 
\hline \text { S\&P Index Funds Annual Cost } & \text { Expense Ratio } \
\hline \text { Vanguard 500 Index mutual fund Admiral Shares (VFIAX) } & 0.09 \% \
\text { Vantagepoint 500 Stock Index mutual fund Class II Shares (VPSKX) } & 0.25 \
\text { T. Rowe Price Equity Index 500 mutual fund (PREIX) } & 0.35 \
\text { California Investment S\&P 500 Index mutual fund (SPFIX) } & 0.36 \
\hline
\end{array}$$ Refer to the table. Which index fund would be best to include in a retirement savings plan?

Quizplus · Accepted Answer

Vanguard 500 has the lowest expense ratio, which means it will have the lowest annual cost.

Table: Index Funds Refer to the Table