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

Question

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

Quizplus · Accepted Answer

The Vanguard 500 Index mutual fund Admiral Shares (VFIAX) has the lowest expense ratio at 0.09%, which means it will cost less in fees over time, potentially leading to higher net returns for a retirement savings plan.

Table: Index Funds Refer to the Table