TSP funds at the Friday close

Stocks had a rough Friday in the TSP. Every fund except the G Fund finished lower, and the G Fund barely moved.

The C Fund fell 1.31% to $108.0667, which matches the S&P 500's drop closely. The S Fund was the weakest of the group, down 1.91% to $100.4526. Its benchmark is the Dow Jones U.S. Completion index, which holds mid-sized and smaller companies outside the S&P 500. It fell more than the large-company C Fund. The I Fund lost 1.16% to $57.9747.

The F Fund slipped 0.10% to $21.0624, a small move that fits a bond index like the Bloomberg U.S. Aggregate. The G Fund gained 0.01% to $19.7373. It follows a Treasury rate and doesn't swing with stocks.

The drops worth flagging

Three individual funds fell more than 1% on the day: the S Fund (-1.91%), the C Fund (-1.31%) and the I Fund (-1.16%).

The bigger number is the I Fund's 5-day loss of 7.0%. That is a large move for one week, and it dwarfs the C Fund's 1.99% and the S Fund's 3.35% over the same stretch. The I Fund is still up 3.47% for the year, the best of the individual funds. The C Fund (-1.53%) and S Fund (-1.2%) are both negative year to date. The data I have doesn't say what caused the international slide, so I won't guess.

L Funds follow their mix

The L Funds are blends of the G, F, C, S and I funds, so their day depended on how much stock each one holds.

  • L 2055 through L 2075: down 1.32% on the day and 3.89% over five days. These are stock-heavy and move in lockstep. L 2050 fell 1.10% and L 2045 fell 1.03%, so both also crossed the 1% line.
  • L 2040, 2035 and 2030: down 0.96%, 0.88% and 0.76%.
  • L Income: down 0.36%, cushioned by its larger G and F holdings.

Year to date, the L Funds range from 0.3% to 0.65%.

What moved IRA index funds and ETFs

The index numbers I have are labeled as the prior session's close, so they may not line up exactly with the TSP's Friday figures. The direction was the same.

The S&P 500 fell 1.33% to 6740.02. The Nasdaq Composite dropped 1.59% to 22387.68, and the Dow fell 0.94% to 47501.551. The Nasdaq's bigger decline suggests growth-oriented stocks took more of the hit than the Dow's older industrial names.

The Vanguard Total Stock Market ETF (VTI) lost 1.37% to $331.41, in line with the S&P 500. The Vanguard Total International Stock ETF (VXUS) fell 0.94% to $77.98. The Vanguard Total Bond Market ETF (BND) slipped 0.14% to $74.24. The 10-year Treasury yield eased 0.31% to 4.133. The bond ETF barely budged, and I can't tell from this data why it dipped as yields eased.

What it means for your plan

A 1% to 2% drop in stocks is uncomfortable but not unusual, and one day rarely matters for a plan measured in decades. The I Fund's five-day loss is the number most likely to catch your eye. Even so, the fund remains positive for the year, and weekly swings like this can reverse or deepen without warning.

Your L Fund or your mix of index funds already reflects a decision you made about risk. If that decision still fits your timeline, a down Friday is not a reason to change it. If you are unsure whether it fits, that is a question for a quiet weekend or a qualified adviser, not for a red screen.

This recap is general information, not personal advice.