| Comparison of CREF versus Vanguard | Mike Lovell, Wesleyan University | |||||||
| link to Mike Lovell's Home Page | ||||||||
| link to printer friendly version (PDF file) | Annual Expenses……..……. | Value of | ||||||
| link to EXCEL spreadsheet | Total return (% per annum) | on | $100,000 | |||||
| 1 year | 5 year | 10 year | % of investment | $100,000 | after 10 years | |||
| CREF Stock | 7.49 | 1.82 | 8.48 | 0.40% | $400 | $225,682 | ||
| CREF Equity Index | 5.67 | 1.19 | 8.89 | 0.36% | $360 | $234,358 | ||
| Vanguard 500 Index Fund (0040) | 4.77 | 0.42 | 9.00 | 0.18% | $180 | $236,736 | ||
| Vanguard 500 Index Fund (0540), Admiral class | 4.87 | 0.49 | 0.09% | $90 | ||||
| CREF Global Equities | 9.62 | 0.92 | 7.04 | 0.44% | $440 | $197,452 | ||
| Vanguard Global Equities (0129) | 11.77 | 12.00 | 11.60 | 0.80% | $800 | $299,669 | ||
| CREF Bond Market | 2.25 | 5.71 | 5.99 | 0.39% | $390 | $178,916 | ||
| Vanguard Total Bond Market Index (0084) | 2.40 | 5.43 | 5.89 | 0.20% | $200 | $177,235 | ||
| Vanguard Long Term Bond Index (0522) | 5.32 | 8.30 | 7.41 | 0.18% | $180 | $204,384 | ||
| CREF Inflation Linked Bonds | 2.53 | 8.33 | 7.17 | 0.39% | $390 | $199,863 | ||
| Vanguard Inflation Protected Security Fund (0119) | 2.59 | 8.53 | 0.17% | $170 | ||||
| CREF Money Market | 2.90 | 2.03 | 3.76 | 0.34% | $340 | $144,644 | ||
| Vanguard Prime Money Market (0030) | 3.01 | 2.16 | 3.81 | 0.30% | $300 | $145,342 | ||
| Inflation: CPI annual rate of change | 3.4% | 2.5% | 2.5% | |||||
Notes: |
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| The last column reports the value on 12/30/05 of $100,000 invested in a fund in 12/30/95. Thus $100,000 invested in CREF Stock in 1995 | ||||||||
| would now be worth $225,682; in CREF Equity Index it would be worth $234,358; in Vanguard 500 it would be worth $236,736. | ||||||||
| [CREF Equity Index closely tracks the Russell 3000 index less expenses; Vanguard 500 the S&P 500 index; Vanguard's Total Stock | ||||||||
| Market Index (inception 11/13/2000) the Wilshire 5000 index. About 40% of CREF Stock is actively managed & 60%indexed. ] | ||||||||
| Total return (% per annum) is the average annual return (capital gains, dividends, interest) as a percent of the investment averaged | ||||||||
| over the specified time period, after the deduction of expenses (reported in next column). | ||||||||
| Annual expenses are reported on the table as a percent of the amount invested and as the amount that would be charged on an investment of | ||||||||
| $100,000. Vanguard recently began offering "Admiral Class" shares to investors with at least $100,000 invested in that fund. Thus | ||||||||
| an investment of $100,000 in CREF Stock would involve annual management expenses of $400, $360 in CREF Equity | ||||||||
| (TIAA-CREF expense ratios have recently been reduced. For example, the CREF Stock annual expense ratio was 0.66%.) | ||||||||
| Index or $90 with Vanguard 500. | ||||||||
| A blank indicates the fund not in existence for the specified period. | 1/18/2006 | |||||||