Thursday's close: stocks down, bonds and G Fund steady

Thursday, Nov. 20, was a clear down day for the stock-based TSP funds. The bond and government-securities funds barely moved, which is about what you would expect when equities slide.

The core funds

C Fund closed at $104.4689, down 1.54% on the day and 2.89% over five days. It tracks the S&P 500, so a drop like this means large U.S. companies as a group lost ground. The fund is still up 12.67% for the year.

S Fund took the biggest hit at $94.0240, down 2.05%. It follows the Dow Jones U.S. Completion index, which holds mid-sized and smaller companies, basically the U.S. market minus the S&P 500 names. It is down 3.93% over five days and up just 4.01% year to date, well behind the other stock funds.

I Fund slipped 0.99% to $51.8718, tracking the MSCI ACWI ex-US ex-China index. It just missed the 1% mark. The five-day loss is 3.63%, the steepest of the three stock funds after the S Fund, though it still leads the group at +23.71% year to date.

F Fund rose 0.17% to $20.8131, in line with the Bloomberg U.S. Aggregate bond index. It is up 0.11% over five days and 6.84% for the year.

G Fund gained 0.01% to $19.4965. It earns a Treasury-based rate, so it ignores stock swings. It is up 3.93% year to date.

Moves over 1%

Three funds fell more than 1% in a single day: the S Fund (-2.05%), the C Fund (-1.54%), and the L Funds with heavier stock weightings. L 2045 fell 1.07% and L 2050 fell 1.14%. L 2055, 2060, 2065, 2070 and 2075 all dropped 1.40%. L 2040 was down exactly 1.00%.

L Funds

The L Funds blend the five core funds, so they move with their stock share. The later the target date, the more stock exposure, and the bigger Thursday's drop:

  • L Income: -0.37% (YTD 7.3%)
  • L 2030: -0.82% (YTD 11.2%)
  • L 2035: -0.92% (YTD 11.84%)
  • L 2040: -1.00% (YTD 12.5%)
  • L 2050: -1.14% (YTD 13.61%)
  • L 2055 to 2075: -1.40% (YTD 15.26% to 15.28% for 2055 through 2070, and 4.85% for L 2075)

The funds from 2055 on behave nearly alike, with matching one-day and five-day numbers. The L 2075 year-to-date figure of 4.85% stands apart from its neighbors, so read it on its own terms.

What moved IRA index funds and ETFs

The prior-session figures for the index funds and ETFs behind most IRAs were not included in today's data, so I won't guess at their numbers. The TSP funds are a reasonable stand-in for direction. Many IRAs hold S&P 500, small and mid-cap, international and bond funds, much like the C, S, I and F funds. The pattern here was stocks lower, small caps weakest, bonds slightly higher. The data does not say what drove the selloff, and I won't invent a reason.

What it means for your plan

One red day, even a sharp one, rarely changes the outcome of a plan built over decades. The C Fund's year-to-date gain is still 12.67% after Thursday, and the I Fund's is 23.71%. A 1% to 2% daily move is well within the normal range for stocks. The five-day numbers show it has been a rough week, but a week is still a short window.

Your own timeline, your mix of funds and your comfort with swings matter more than any single session. If a day like this makes you uneasy, that is worth noting. Reacting to one day's price rarely helps. This recap is general information, not advice for your situation.