Thursday's TSP close

Thursday was a down day for almost every TSP fund. Only the G Fund finished higher, and its gain was a rounding error.

The C Fund closed at $109.5032, down 0.56%. That matches the S&P 500 move exactly, which is what you would expect. The C Fund tracks that index. Over five days it is off 1.1%, and it sits at -0.22% for the year.

The S Fund dropped 1.32% to $102.4059. That is the biggest one-day loss among the core funds and the only one past the 1% mark. 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 more than the large-company benchmark. It is down 2.76% over five days and is up 0.73% year to date.

The I Fund fell 0.90% to $58.6577. Its one-day number is modest, but the five-day figure is not: down 5.97%. That is the sharpest weekly drop on the board. The fund still leads the year at +4.69%, so the week took a real bite out of an otherwise strong start.

The F Fund slipped 0.24% to $21.0841, in line with a softer bond market. The G Fund added 0.01% to $19.7352, which is what a fund tied to Treasury rates does on a day like this. It is up 0.73% for the year.

L Funds

The L Funds blend the five core funds, so they landed between the G Fund's flat and the S Fund's slide.

  • L Income: -0.22%
  • L 2030: -0.46%
  • L 2040: -0.57%
  • L 2050: -0.65%
  • L 2055 through L 2075: -0.77%

The longer the time horizon, the more stock exposure, and the bigger the loss. The five-day numbers show the same pattern. L 2055 and later are down 3.0%, while L Income is down 0.82%. Year to date, they range from +1.02% to +1.64%.

What moved the IRA staples

The index data is for the prior session close, so it will not line up perfectly with the TSP numbers above.

The S&P 500 closed at 6,830.71, down 0.56%. The Dow Jones Industrial Average fell harder, down 1.61% to 47,954.74. The Nasdaq Composite held up best, losing 0.26% to 22,748.99.

Vanguard Total Stock Market ETF (VTI) dropped 0.65% to $336.00. The big mover was Vanguard Total International Stock ETF (VXUS), down 2.02% to $78.72. It holds a broader mix than the TSP's I Fund benchmark, which excludes China, so the two will not match day to day. Both point the same direction, though: international stocks had a rough stretch.

Vanguard Total Bond Market ETF (BND) slid 0.23% to $74.34. The 10-year Treasury yield rose 1.62% to 4.146. That is a jump of roughly 6 to 7 basis points. Bond prices fall when yields rise, which fits the small losses in both BND and the F Fund.

What it means for your plan

One red day, even one with a 1.3% drop in a single fund, rarely changes a long-term plan. A few things are worth keeping in view:

  • The I Fund's five-day slide is large, but it is still ahead for the year.
  • The L Funds with longer horizons fell more because they hold more stock. That is by design.
  • The G Fund barely moved, as usual.

If you are years from needing the money, a week like this is mostly noise. If your allocation still matches your timeline and your comfort with swings, there is nothing here that demands a response. This recap is general information, not advice for your situation.