The short version

Friday was a hard day for stocks and a quiet, slightly positive one for bonds. Every TSP stock fund fell by more than 2%, the F Fund gained a bit, and the G Fund did what it always does.

TSP individual funds

Stock funds fell. The C Fund dropped 2.70% to $104.5568, which matches the S&P 500's 2.71% decline almost exactly. That is the point of an index fund: it follows its benchmark. The C Fund is still up 12.76% for the year, though its 5-day return is now -2.41%.

The S Fund fell the most, down 3.09% to $98.1074, with a 5-day loss of 3.34%. It tracks the Dow Jones U.S. Completion index, which covers U.S. companies outside the S&P 500. It fell harder than the C Fund, and its 8.53% year-to-date gain is the smallest of the stock funds.

The I Fund lost 2.15% to $51.8659. Its benchmark is the MSCI ACWI ex-US ex-China, and the move is close to the 2.31% drop in the Vanguard Total International ETF (VXUS). Even after the slide, it leads the individual funds this year at 23.69%.

Bonds and the G Fund held up. The F Fund rose 0.43% to $20.7939, in line with the 0.39% gain in the Vanguard Total Bond Market ETF (BND). The 10-year Treasury yield fell about 2.3% to 4.051%, roughly 10 basis points. Bond prices move opposite to yields, so that helps explain the gain. The G Fund added 0.01% to $19.4040. It earns a Treasury-based rate and doesn't swing with markets.

Moves over 1%

Four individual funds and most of the lifecycle lineup crossed that line, all on the downside:

  • S Fund: -3.09%
  • C Fund: -2.70%
  • I Fund: -2.15%
  • L 2030 through L 2075: -1.47% to -2.53%

L Funds

The L Funds blend the five individual funds, so their losses scale with how much stock each one holds. L Income, the most conservative, fell 0.66%. L 2030 lost 1.47%, L 2040 lost 1.80%, and L 2050 lost 2.06%. L 2055 through L 2075 all dropped 2.53%, because they hold the same mix. Their five-day losses were 2.62%.

The L 2075 shows a year-to-date gain of 5.45%, far below the roughly 15.9% of its neighbors. I wouldn't read much into that from one day's numbers.

IRA index funds and ETFs

The index readings below are labeled as the prior session close in my data, and they line up closely with the TSP moves.

The Nasdaq Composite fell the most, down 3.56% to 22,204.43. The S&P 500 slid 2.71% to 6,552.51. The Dow Jones Industrial Average fell 1.90% to 45,479.60, the mildest of the three.

Those moves carried through to the ETFs many IRAs hold. The Vanguard Total Stock Market ETF (VTI) dropped 2.68% to $321.80, nearly identical to the S&P 500. VXUS lost 2.31% to $72.17, so foreign stocks were not a refuge. BND rose 0.39% to $74.52, and anyone with a bond slice saw it cushion the day.

What it means for your plan

A 2% to 3% drop in a single session is uncomfortable, especially for a stock-heavy account. It is also not unusual over a long investing life, and one day rarely changes the outcome of a plan built over decades. The funds that fell the most are still showing double-digit gains or solid gains for the year.

The day also showed why mixing asset types matters. Bonds rose while stocks fell, and the L Funds took a smaller hit the closer they are to retirement. If your allocation still fits your timeline and your comfort with risk, a rough Friday is not a reason to rewrite it. This recap is general information, not advice for your situation.