Is This Fund a Good Choice for Me?
The Stock Index Fund may be appropriate if your goal is to grow your savings over the next several years by investing in large, well-known U.S. companies while closely tracking the performance of the overall U.S. stock market. You’re also comfortable with temporary — yet sometimes dramatic — fluctuations in your account balance based on the performance of the underlying stocks.
Investment Objective and Strategy
The fund seeks to match, as closely as possible, before expenses, the performance of the Standard & Poor’s 500 Stock Index, which emphasizes stocks of large U.S. companies. The fund is a feeder fund, meaning it invests its assets in the S&P 500 Index Master Portfolio, a separate series of an unaffiliated trust called the Master Investment Portfolio.
|Inception||October 28, 1999|
|Benchmark||S&P 500 Stock Index|
Category: Large Blend
Overall, out of 1,214 funds, according to risk adjusted return
Classification: S&P 500 Index
Overall, out of 12,300 funds, according to historical loss avoidance
Overall, out of 110 funds, according to success at deferring taxes
Lipper ratings for Tax Efficiency reflect the fund’s success at deferring taxes over the measurement period as of 3/31/20. Lipper ratings for Preservation reflect fund’s historical loss avoidance relative to other funds in the same asset class as of 3/31/20. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Tax Efficiency and Preservation metrics over three-year, five-year, and 10-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leader or a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2, and the lowest 20% are scored 1. Homestead Stock Index Fund, in Lipper’s S&P 500 Index classification, received a rating of 5 for the three-year, five-year, 10-year and overall periods, respectively (number of funds rated in parentheses). Tax Efficiency: Three-year (110 funds), Five-year (100 funds), 10-year (86 funds) and Overall (110 funds). Preservation: Five-year (10,419 funds), 10-Year (7,099 funds) and Overall (12,300 funds). Homestead Stock Index Fund, in Lipper’s S&P 500 Index classification, received a rating of 4 for the three-year periods. Preservation: (12,300 funds). Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at lipperleaders.com.
Morningstar rated this fund, in Morningstar’s large blend category, 4 stars for the Overall period out of 1,214 funds, 4 stars for the 10-year period out of 800 funds, 4 stars for the five-year period out of 1,048 funds and 4 stars for the three-year period out of 1,214 funds for performance periods ending 3/31/20. The Morningstar Rating for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-ended funds and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-year, five-year, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
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|Fee Structure||No Load|
|Expense Ratio||0.59% (Net 0.59%) (12/31/2019)|
|Median Expense Ratio for Peer Group||0.50% (12/31/2019)|
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.