Comparison of CREF versus Vanguard
Mike Lovell, Wesleyan University


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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:


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