TSP funds at the close

Stock funds rose on Thursday, and the one bond fund with price risk slipped. The G Fund did what it always does.

  • S Fund: $101.6957, up 1.81%
  • C Fund: $105.7595, up 0.48%
  • I Fund: $52.4506, up 0.33%
  • G Fund: $19.3541, up 0.01%
  • F Fund: $20.6861, down 0.28%

The C Fund gained 0.48%, matching the S&P 500's 0.48% in the index data below. That is the point of an index fund. It follows its benchmark closely, so a day like this is just the market passing through.

The I Fund added 0.33% following its benchmark, the MSCI ACWI ex-US ex-China. Its 5-day gain is 0.68%, and its 25.09% year-to-date return is still the best of any individual TSP fund.

The F Fund fell 0.28%. It tracks the Bloomberg U.S. Aggregate, a broad bond index, and bond prices tend to dip when yields rise. The 10-year Treasury yield did rise in the data below, so a small loss fits. The G Fund earns a Treasury-based rate and does not swing with the market, so +0.01% is normal.

The one big move

The S Fund jumped 1.81%, the only move over 1% in the TSP lineup. It follows the Dow Jones U.S. Completion index, which covers U.S. companies outside the S&P 500. The data supplied does not say what drove the jump, so I won't guess. It is worth noting that its 5-day gain is just 1.01%, so one day made up most of the week's progress. Single-day jumps like this can fade as easily as they arrive.

L Funds

Every L Fund finished higher, and the pattern is easy to read. L Income rose 0.15%. L 2030 rose 0.35%, L 2040 rose 0.41%, and L 2050 rose 0.47%. The L 2055 through L 2075 funds all gained 0.59%. Funds with later target dates hold more stock, so they captured more of the gain. L Income holds the most bonds and government securities, so it moved the least.

What moved IRA index funds

The index data supplied is labeled as the prior session close, so timing may differ slightly from the TSP figures.

  • S&P 500: 6,631.96, up 0.48%
  • Nasdaq Composite: 22,470.72, up 0.94%
  • Dow Jones Industrial Average: 46,142.42, up 0.27%

The Nasdaq led the major indexes, and the Dow lagged. That helps explain why the Vanguard Total Stock Market ETF (VTI) gained 0.63%, ahead of the S&P 500. Total market funds hold smaller companies that the S&P 500 leaves out, which matches the strength seen in the S Fund.

The Vanguard Total International Stock ETF (VXUS) added only 0.08%. That is well below the I Fund's 0.33%. The two track different indexes, and VXUS includes China while the I Fund's benchmark does not, so the gap is not surprising.

The Vanguard Total Bond Market ETF (BND) fell 0.26%, close to the F Fund's 0.28% drop. The 10-year Treasury yield stood at 4.104%, up 0.69% on the day. That is roughly three hundredths of a percentage point. Higher yields pressure existing bond prices, which is the usual link.

What it means for your plan

A good day for stocks and a slightly bad day for bonds is ordinary. Neither tells you much about your retirement. If you hold a mix of funds, this is the kind of day where your stock holdings gained and your bond holdings gave a little back.

The S Fund's 1.81% is the number that will grab attention, but one day rarely matters for a long-term plan. What matters more is whether your contributions are steady and whether your mix still fits your timeline. This recap is general information and not advice for your situation.