Investment Objective and Strategy
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|
|Fee Structure||No Load|
|Expense Ratio||0.50% (Net 0.50%) (12/31/2021)|
|Median Expense Ratio for Peer Group||0.45% (12/31/2021)|
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.
As of 12/31/2022
Calendar-Year Total Returns
The total returns shown above represent past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. For performance data current to the most recent month-end, call 800.258.3030 or visit homesteadfunds.com.
Fund total returns include changes in principal value and reinvested dividends, income and capital gain distributions.
Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. The Stock Index Fund pursues its objective by investing substantially all of its assets in another pooled investment vehicle (a “master fund”). The ability of the Stock Index Fund to meet its investment objective is directly related to the ability of the master fund to meet its investment objective. Index funds may hold securities of companies that present risks that an investment adviser researching individual securities might otherwise seek to avoid and are subject to tracking error risk.
The Standard & Poor’s 500 Stock Index is a broad-based measure of U.S. stock market performance and includes 500 widely held common stocks. Indices are unmanaged, and investors cannot invest directly in an index. Unless otherwise noted, performance of indices does not account for any fees, commissions or other expenses that would be incurred. Returns include reinvested dividends.
Index funds are subject to tracking risk, the risk that the fund’s return will not closely track the return of the index.
Growth of $10,000
The line chart compares the change in value of a $10,000 investment in the fund and the Standard & Poor’s 500 Stock Index over a 10-year period. The chart represents past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares.
For the month ending 12/31/2022
*Overall, out of 1,223 funds, according to risk-adjusted return
|Classification||S&P 500 Index|
1Overall, out of 12,466 funds, according to historical loss avoidance
2Overall, out of 114 funds, according to success at deferring taxes
The Lipper Rating for Preservation is a fund that has demonstrates a superior ability to preserve capital in a variety of markets when compared with other funds in its asset class as of month ending 12/31/22. Lipper Ratings for Tax Efficiency reflect funds’ historical success in postponing taxable distributions relative to peers as of month ending 12/31/22. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the 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 4 for Overall periods, respectively (number of funds rated in parentheses). Preservation: Three-Year (12,466 funds), five-year (11,302 funds) and Overall (12,466 funds); and Tax Efficiency: Three-Year (114 funds), five-year (111 funds) and Overall (114 funds). For Preservation: the fund received a rating of 5 for the ten-year period (7,934 funds); and Tax Efficiency: the fund received a rating of 5 for the ten-year period (89 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, 3 stars for the Overall period out of 1,223 funds, 3 stars for the 10-year period out of 818 funds, 3 stars for the five-year period out of 1,116 funds and 3 stars for the three-year period out of 1,223 funds for performance month ending 12/31/22. 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.
©2023 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Ratings are updated regularly. More information is available at morningstar.com.
Share Price History
As of 02/03/2023
The chart plots daily share prices for the last 10 years. The interactive calendar will retrieve the share price for any business day since the fund's inception.
Sector Weightings (% of Total Equity Holdings)
As of 12/31/2022
Top 10 Holdings (% of Total Equity Holdings)
As of 12/31/2022
|Berkshire Hathaway, Inc.||1.7%|
|UnitedHealth Group Inc.||1.5%|
|Johnson & Johnson||1.4%|
|Exxon Mobil Corp.||1.4%|
|JPMorgan Chase & Co.||1.2%|
Portfolio holdings are subject to change without notice.
As of 12/31/2022
|Number of Holdings||Fully invested in BlackRock S&P 500 Master Portfolio|
Income and/or capital gains distributions for this fund, if any, are listed in the table below for the current and previous calendar year. Mutual funds are required to pass through to their shareholders substantially all of the interest income and capital gains earned by the fund during the year. These distributions are paid on a regular schedule as shown in the table below.
2022 Earnings Distribution
|Distribution Type||Record Date||Declaration Date||$/Per Share|
|Long-Term Capital Gains||6/29/22||6/30/22||$0.0913|
|Short-Term Capital Gains||6/29/22||6/30/22||$0.0086|
|Long-Term Capital Gains||12/14/22||12/15/22||$0.0456|
|Short-Term Capital Gains||12/14/22||12/15/22||$0.0467|
The record date is the date on which you must be a shareholder in order to receive a portion of the fund’s distribution.
The declaration date, typically the business day after the record date, is the date the amount of the distribution is announced and deducted from fund assets. On this day, the amount of the distribution is deducted from fund assets and calculated as a per share amount to be passed through to shareholders. The fund’s share price will decline by the amount of the distribution (plus or minus any share price change related to market activity). The following business day, shareholders will see their portion of the distribution posted to their account as either a cash dividend or dividend reinvestment.
BlackRock Fund Advisors is not affiliated with Homestead Funds, Homestead Advisers Corp., Homestead Financial Services Corp. or NRECA.
Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. The Stock Index Fund pursues its objective by investing substantially all of its assets in another pooled investment vehicle (a “master fund”). The ability of the Stock Index Fund to meet its investment objective is directly related to the ability of the master fund to meet its investment objective. Index funds may hold securities of companies that present risks that an investment advisor researching individual securities might otherwise seek to avoid and are subject to tracking error risk.