Costs

Homestead Funds are offered at no-load. That means the full amount you invest goes to work for you and none is spent on sales commissions, assuming you buy shares directly from Homestead Funds.

Load or sales charge:

None when you purchase shares directly from Homestead Funds.

Operating expenses:

Cover the cost of running the fund and include investment management, accounting, legal and compliance services, recordkeeping and statement production. All mutual funds incur expenses. The expense ratios for all of Homestead Funds’ active equity and bond funds are in line with or below their peer group medians, as determined by Morningstar.

Fund Fees and Operating Expenses as of 12/31/2019
Transaction Fees Gross Expense Ratio Net Expense Ratio Median Expense Ratio for Peer Group*
Daily Income Fund None 0.78% 0.78% 0.48%
Short-Term Government Securities Fund 1 None 0.85% 0.75% 0.90%
Short-Term Bond Fund None 0.79% 0.79% 0.78%
Intermediate Bond Fund 2 None 2.49% 0.80% 0.75%
Stock Index Fund None 0.59% 0.59% 0.50%
Value Fund None 0.66% 0.66% 1.06%
Growth Fund None 0.93% 0.93% 1.10%
International Equity Fund 3 None 1.30% 0.99% 1.27%
Small-Company Stock Fund None 1.05% 1.05% 1.25%
Daily Income Fund
Transaction Fees None
Gross Expense Ratio 0.78%
Net Expense Ratio 0.78%
Median Expense Ratio for Peer Group* 0.48%
Short-Term Government Securities Fund 1
Transaction Fees None
Gross Expense Ratio 0.85%
Net Expense Ratio 0.75%
Median Expense Ratio for Peer Group* 0.90%
Short-Term Bond Fund
Transaction Fees None
Gross Expense Ratio 0.79%
Net Expense Ratio 0.79%
Median Expense Ratio for Peer Group* 0.78%
Intermediate Bond Fund 2
Transaction Fees None
Gross Expense Ratio 2.49%
Net Expense Ratio 0.80%
Median Expense Ratio for Peer Group* 0.75%
Stock Index Fund
Transaction Fees None
Gross Expense Ratio 0.59%
Net Expense Ratio 0.59%
Median Expense Ratio for Peer Group* 0.50%
Value Fund
Transaction Fees None
Gross Expense Ratio 0.66%
Net Expense Ratio 0.66%
Median Expense Ratio for Peer Group* 1.06%
Growth Fund
Transaction Fees None
Gross Expense Ratio 0.93%
Net Expense Ratio 0.93%
Median Expense Ratio for Peer Group* 1.10%
International Equity Fund 3
Transaction Fees None
Gross Expense Ratio 1.30%
Net Expense Ratio 0.99%
Median Expense Ratio for Peer Group* 1.27%
Small-Company Stock Fund
Transaction Fees None
Gross Expense Ratio 1.05%
Net Expense Ratio 1.05%
Median Expense Ratio for Peer Group* 1.25%
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*The expense ratio shows the percentage of fund assets deducted annually to cover operating costs. Fund expense ratios shown here do not include acquired fund fees and expenses. If applicable, these additional costs are disclosed in the prospectus. For some funds, the investment advisor has agreed voluntarily or contractually (for at least the current fiscal year) to waive or reimburse a portion of expenses. The net expense ratio is the expense ratio minus the portion of expenses waived or reimbursed. Please see the current prospectus for additional details. The peer ratio is according to Morningstar Direct, based on each fund’s Morningstar classification.

1RE Advisers has contractually agreed, through at least May 1, 2021, to limit the Fund’s operating expenses to an amount not to exceed 0.75%.  This waiver agreement will terminate immediately upon termination of the Fund’s Management Agreement and may be terminated by the Fund or RE Advisers with one year’s notice.

2The inception date of this fund is May 1, 2019. RE Advisers Corporation has contractually agreed, through May 1, 2021, to limit the Fund’s operating expenses to an amount not to exceed 0.80%. This waiver agreement will terminate immediately upon termination of the Fund’s Management Agreement and may be terminated by the Fund or RE Advisers with one year’s notice.

3RE Advisers has contractually agreed, through at least May 1, 2021, to limit the Fund’s operating expenses to an amount not to exceed 0.99%.  This waiver agreement will terminate immediately upon termination of the Fund’s Management Agreement and may be terminated by the Fund or RE Advisers with one year’s notice.

Custodial fee:

A $15 annual custodial fee (for IRA and ESA accounts only) is charged by the custodian and covers the extra costs they incur for maintaining Individual Retirement and Education Savings Accounts. The fee is deducted automatically from your account in the fourth quarter or at the time your account is closed. A fee is assessed for each type of fiduciary account registered to the same Social Security Number — not by fund. For example, if you have a Traditional IRA and a Roth IRA, you would pay $30 in annual custodial account fees, regardless of the number of funds you own in each account.

Investment and Account Minimums

Homestead Funds keeps its investment minimums low, so almost everyone can afford to invest. You can open an Individual Retirement or Education Savings Account with as little as $200 and a regular, taxable account for $500. There’s no minimum if you open an account and establish a program of scheduled investments sent directly from your bank account or paycheck.

Regular Accounts:

The minimum to open a taxable account is $500.

  • Individual Account
  • Joint Account
  • UGMA/UTMA Account
  • Corporate Account
  • Trust Account
Individual Retirement Accounts:

The minimum to open an IRA is $200.

  • Roth IRA
  • Traditional IRA
  • Rollover IRA
Education Savings Accounts:

The minimum to open an Education Savings Account is $200.