Thursday's TSP results

Stocks had a rough session, and the TSP's equity funds took it on the chin. Only the G Fund finished in positive territory, and barely.

The S Fund fell 2.19% to $98.6609, the biggest drop on the board. Its benchmark, the Dow Jones U.S. Completion index, covers mid-sized and smaller U.S. companies, and those names fell harder than the large caps. The S Fund is down 3.66% over five days and 2.96% for the year.

The I Fund dropped 1.69% to $57.4813. Its benchmark is MSCI ACWI ex-US ex-China, so it follows foreign stocks outside China. It is down 2.01% over five days, but at +2.59% it remains the only equity fund with a solid year-to-date gain.

The C Fund slid 1.52% to $107.0162, matching the S&P 500's 1.52% decline. The fund is down 2.27% over five days and 2.49% for the year.

The F Fund slipped 0.32% to $20.8937. It tracks the Bloomberg U.S. Aggregate bond index, and bonds lost ground as Treasury yields rose. The G Fund gained 0.01% to $19.7504. It pays a Treasury-based rate and doesn't fluctuate with markets.

L Funds

The L Funds blend the individual funds, so their results follow how much stock each one holds. L 2055 through L 2075 are the most stock-heavy and all fell 1.65%. L 2050 lost 1.38%, L 2045 1.30%, L 2040 1.21% and L 2035 1.11%. L 2030 lost 0.96% and L Income 0.47%.

Moves over 1% on the day: S Fund, I Fund, C Fund, and every L Fund from 2035 out to 2075. Year to date, all the L Funds from 2030 on sit within a hair of flat, between -0.09% and -0.74%, while L Income is up 0.37%.

What moved IRA index funds and ETFs

The broad market data tells the same story. The Nasdaq Composite fell 1.78% to 22,311.98. The S&P 500 lost 1.52% to 6,672.62, and the Dow dropped 1.56% to 46,677.85. The Vanguard Total Stock Market ETF (VTI) fell 1.60% to $327.92, a close match for the large-cap indexes.

International stocks fared worse. The Vanguard Total International Stock ETF (VXUS) dropped 1.99% to $77.47. VXUS includes China and a wider mix of markets than the I Fund's benchmark, which helps explain why its drop differs from the I Fund's 1.69%.

The Vanguard Total Bond Market ETF (BND) lost 0.36% to $73.62, in line with the F Fund's 0.32%. The 10-year Treasury yield rose 1.54% to 4.273%, a move of roughly 6 to 7 basis points. Bond prices fall when yields rise, which is why bonds slipped alongside stocks. The data here does not say what drove the move, so I won't guess.

Note that the index and ETF figures are labeled as the prior session close, while the TSP prices are Thursday's official close. The S&P 500 and C Fund moves matched exactly.

What it means for your plan

A 1% to 2% drop is unpleasant, but it's within the range stocks produce from time to time. One day rarely matters for a plan measured in years or decades. Your allocation, your contributions and your time horizon will do far more than any single session.

This recap is general information, not personal advice. If you're thinking about changes to your TSP or IRA, check them against your own goals and timeline, and consider speaking with a qualified professional.