Tuesday's TSP results

Stocks had a rough Tuesday, and the stock-heavy TSP funds took it on the chin. Bonds and the G Fund barely moved.

The S Fund fell 1.83% to $99.1497, the biggest drop of the day. Over five days it is down 2.98%. The C Fund slipped 1.17% to $108.0941, and the I Fund lost 1.21% to $53.1004. All three fell more than 1%.

The F Fund rose 0.12% to $20.8096, and the G Fund gained 0.01% to $19.4610. The G Fund pays a Treasury-based rate, so it does not swing with stock prices. That is why it looks the same on good and bad days.

Why the funds line up this way

Each fund follows its benchmark, so the pattern is easy to read. The C Fund tracks the S&P 500, which fell 1.17%, and the C Fund fell exactly that much. The S Fund follows the Dow Jones U.S. Completion index, which covers mid-sized and smaller companies outside the S&P 500. It fell harder than the large-company C Fund. The I Fund follows international stocks outside the U.S. and China, and it dropped 1.21%.

The F Fund tracks the broad U.S. bond market. Its small gain fits a day when the 10-year Treasury yield slipped to 4.089%. Falling yields tend to lift bond prices a little.

The L Funds

L Funds blend the five core funds, so their results depend on how much stock each one holds. The longer-dated funds hold the most stock and fell the most. L 2055 through L 2075 each lost 1.26%. L 2050 fell 1.03%, L 2040 fell 0.90%, and L 2030 fell 0.73%. L Income, the most conservative, lost 0.33%.

Year to date, L 2055 through L 2070 are up roughly 19%. L 2075 shows 8.31%, far below its neighbors, so treat that figure with some care.

What moved IRA index funds and ETFs

The index data below is labeled as the prior session close. Still, the S&P 500's 1.17% drop matches the C Fund's exactly, so it appears to describe the same move.

  • S&P 500: down 1.17% to 6771.55
  • Dow Jones Industrial Average: down 0.53% to 47085.238
  • Nasdaq Composite: down 2.04% to 23348.641

The Nasdaq fell nearly four times as much as the Dow, so the weakness was concentrated in the growth-heavy part of the market. The data does not name a cause, and I won't guess at one.

Vanguard Total Stock Market ETF (VTI) fell 1.21% to $331.74, in line with the broad U.S. market. Vanguard Total International Stock ETF (VXUS) lost 1.32% to $73.85. Vanguard Total Bond Market ETF (BND) rose 0.05% to $74.29, the one steady spot. The 10-year yield dipped 0.41% to 4.089.

What it means for your plan

A 1% to 2% drop looks bad on a single morning, but it is a small piece of a long record. The C Fund is still up 16.58% this year and the I Fund is up 26.64%, even after Tuesday's loss. Those year-to-date gains are the bigger story.

Days like this show why mixing stocks with bonds or the G Fund matters. The F and G funds held their ground while stock funds slid. How much cushion you want depends on your timeline and comfort with swings, and that is a question for you, not a daily headline.

One day rarely matters for a plan built over decades. If your contributions and allocation still fit your goals, Tuesday does not change that. Checking in on a schedule you set ahead of time usually serves savers better than reacting to one session.