State Farm® Index Stock Funds
Choosing the right investment, whether it's an index fund or other type of mutual fund, is an important decision that could affect your financial future. At State Farm, we want to help you start saving for retirement by creating a portfolio that matches your investment style.
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Index funds are mutual funds that seek to follow the returns of a well-known stock index such as the S&P 500® Index. They do this by holding the same securities, or a sample of securities, in the index.
Index funds are typically considered a high-risk investment. This type of investment may be a good fit for you if you intend to maintain it for many years and through multiple stock market cycles.
Your registered State Farm agent can help you understand your goals and choose an investment that meets your needs. For more information, you can also:
We offer 3 different types of index funds, each with different approaches. Click the individual fund names below to view the investment objective strategy for the fund as well as performance and fee information.
- S&P 500® Index Fund: Seeks to provide investment results that correspond to the total return of publicly traded common stocks, as represented by the S&P 500 Composite Stock Price Index (the "S&P 500® Index").
- Small Cap Index Fund: Seeks to match as closely as possible, before fees and expenses, the performance of the Russell 2000® Small Stock Index* (the "Russell 2000 Index").
- International Index Fund: Seeks to match as closely as possible, before fees and expenses, the performance of the Morgan Stanley Capital International Europe, Australasia, and Far East Free ("EAFE® Free Index").
Index funds usually have a lower turnover in the portfolio and lower management fees, which may make them an appealing investment.
An index fund may be a good fit for you if you:
- Can tolerate the price fluctuations and volatility that are inherent in investing in a broad based mutual fund
- Want to invest in stocks, but with an indexing approach
- Want to diversify your investments
- Are seeking an investment with higher growth potential and more risk in an attempt to balance risk and reward in your portfolio
- Are investing for retirement or other goals that are many years in the future
Not sure this is right for you?
- Use our fund selection tool to learn more about the other types of mutual funds and which ones may fit your investment goals better.
- Contact a registered State Farm agent who can talk with you about your options, help set up an account, and answer other investing questions.
When you determine what types of investments you are interested in, complete the Mutual Fund Account Application [PDF-1.2MB] to get started.
Index funds are typically considered high-risk investments.
Before you begin investing you should understand your level of risk tolerance. The following investor profiles can help you determine which kind of investor you are.
- You're willing to accept potentially lower returns on your investments to avoid potential losses.
- You become uncomfortable when your account balance shifts up and down and feel that slow and steady is a more appropriate strategy for you.
- You may be looking for low-risk investments.
- You like the potential for higher returns, but you may not stick with your investments when they start to tumble.
- You look for a balance between higher potential returns and relatively stable investment alternatives.
- You may be looking for moderate risk investments.
- You're willing to have your account balance shift up and down in exchange for potentially higher returns.
- You are able to withstand the highs and lows in the market without too much concern and are willing to accept an increased potential for loss.
- You may be looking for high-risk investments.
Investing involves risk, including potential for loss.
Diversification does not assure a profit or protect against loss.
Mutual Funds Disclosure
Automatic investment plans do not assure a profit or protect against loss.
Neither State Farm nor its agents provide investment, tax, or legal advice.
It is not possible to invest directly in an index.
State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.
As of June 2, 2010, additional fees may apply to certain accounts with balances less than $5000.
Each State Farm LifePath Fund invests all of its assets in a corresponding LifePath Master Portfolio under a master/feeder structure. BlackRock Fund Advisors ("BFA") is the investment advisor to the LifePath Master Portfolio. State Farm Investment Management Corp. (SFIMC) is the investment advisor to the State Farm LifePath Funds. State Farm VP Management Corp. (SFVPMC) is the distributor of the State Farm LifePath Funds. Neither SFIMC nor SFVPMC are affiliated with BFA or its affiliates.
BlackRock Investors Services (BIS) provides marketing support to the LifePath Master Portfolios. BFA and BIS are wholly owned subsidiaries of BlackRock Institutional Trust Company, N.A. ("BTC"). Neither BTC nor its affiliates are affiliated with SFIMC or SFVPMC. BTC is located at 400 Howard Street, San Francisco, CA 94105.
BlackRock Fund Advisors ("BFA") is the investment sub-advisor to the S&P® 500 Index Fund.
Ascensus provides recordkeeping and administrative services for retail 401(k) retirement plans offered by State Farm Investment Management Corp.
Net Asset Value (NAV) is calculated by adding all of the assets of a Fund, subtracting the Fund's liabilities, then dividing by the number of outstanding shares.
The Russell 2000® Index tracks the common stock performance of the 2,000 smallest U.S. companies in the Russell 3000 Index.
The Russell 2500 Index measures the performance of the 2,500 smallest securities in the Russell 3000 Index.
The Russell 1000 Index is a market-capitalization weighted index that tracks the largest 1,000 companies in the Russell 3000 Index.
The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity market and is a subset of the Russell 1000 Index.
The Dow Jones Industrial Average is an unmanaged average of 30 actively traded stocks.
The NASDAQ Composite is an unmanaged market capitalization weighted index that is designed to represent the performance of the National Market System.
The S&P 500® Index tracks the common stock performance of 500 large U.S. companies.
The Barclays 1-5 Year U.S. Treasury Index measures the performance of short-term U.S. Treasury Securities maturing within one to five years.
The Barclays U.S. Aggregate Bond Index represents debt securities in the U.S. investment grade fixed rate taxable bond market.
The Barclays Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.
The Barclays High-Yield Bond Index covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.
The Barclays U.S. TIPS Index is an unmanaged index composed of inflation protected securities issued by the U.S. Treasury.
The Citigroup 3-Month Treasury Bill Index is an unmanaged index of three-month Treasury bills.
The FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index is designed to measure the stock performance of companies engaged in specific real estate activities of the real estate markets outside of the United States.
The FTSE EPRA/NAREIT Developed Real Estate Index is designed to measure the stock performance of companies engaged in specific real estate activities of the North American, European, and Asian real estate markets.
The Morgan Stanley Capital International Europe, Australasia and Far East Free (EAFE® Free) Index currently measures the performance of stock markets of Europe, Australia, New Zealand, and the Far East.
The MSCI All Country World Index (ACWI) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The MSCI All Country World Index (ex-U.S.) (MSCI ACWI ex-U.S. Index) is a free float-adjusted market capitalization index that is designed to measure equity market performance in global developed and emerging markets, excluding the United States.
The MSCI Emerging Markets Index is a float-adjusted market capitalization index designed to measure equity market performance in global emerging markets.
The Credit Suisse High Yield Index is designed to mirror the investible universe of the U.S. dollar-denominated high yield debt market.
The New York Stock Exchange is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities.
The Nikkei 225 Index is a price-weighted index comprised of Japan's top 225 blue–chip companies on the Tokyo Stock Exchange.
The Blended Benchmark for the Equity and Bond Fund is a combination of 60% of the S&P 500 Index and 40% of the Barclays U.S. Aggregate Bond Index, rebalanced monthly.
The Blended Benchmark for the LifePath Funds is a combination of the holdings in the Barclays U.S. Aggregate Bond Index, Russell 1000 Index, Russell 2000 Index, MSCI ACWI ex-U.S. IMI Index, Dow Jones-UBS Commodity Index, FTSE EPRA/NAREIT Developed Real Estate Index and Barclays U.S. TIPS Index. The weightings of the indices are adjusted quarterly to reflect the funds' changing asset allocations over time.
iShares, LifePath and LifePath followed by 2020, 2030, 2040 and 2050 are all registered trademarks of BlackRock Institutional Trust Company, N.A.
"S&P 500®" is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by the State Farm Mutual Fund Trust. The State Farm S&P 500 Index Fund (the "Fund") is not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of investing in the Fund.
Russell Investment Group ("Russell") is the source and owner of the trademarks, service marks and copyrights related to the Russell 2000® Index. Russell® is a trademark of Russell. The State Farm Small Cap Index Fund (the "Fund") is not sponsored, endorsed, sold or promoted by, nor in any way affiliated with Russell. Russell is not responsible for and has not reviewed the Fund nor any associated literature or publications and Russell makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.
The EAFE® Free Index is a trademark, service mark and the exclusive property of Morgan Stanley Capital International, Inc. ("MSCI") and its affiliates and has been licensed for use by the State Farm Mutual Fund Trust (the "Trust"). The State Farm International Index Fund (the "Fund"), based on the EAFE® Free Index, has not been passed on by MSCI as to its legality or suitability, and is not issued, sponsored, endorsed, sold or promoted by MSCI. MSCI makes no warranties and bears no liability with respect to the Fund. MSCI has no responsibility for and does not participate in the management of the Fund assets or sale of the Fund shares. The Trust's Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with the Trust and the Fund.
Each of the investment products and services referred to on the State Farm Mutual Funds web site is intended to be made available to customers or prospective customers residing in the United States. The customer's U.S. permanent residence address must be a street address. This web site shall not be considered a solicitation or offering for any investment product or service to any person in any jurisdiction where such solicitation or offer would be unlawful.
Business Continuity Plan
State Farm VP Management Corp. has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, download this information on our business continuity plan [PDF-19.5KB].
Not FDIC Insured
- No Bank Guarantee
- May Lose Value