TSP Funds at the Close

Thursday, May 7, was a down day for nearly every TSP fund. Only the G Fund finished in positive territory, and just barely.

The S Fund took the biggest hit, falling 1.51% to $110.2634. That is the one move past the 1% mark. The I Fund was close behind at -0.95% ($63.0469), and the C Fund slipped 0.38% ($117.8248). The F Fund lost 0.24% ($20.9509), and the G Fund gained 0.01% ($19.8805).

Why the Funds Moved as They Did

The C Fund follows the S&P 500, and the two lined up exactly: both down 0.38%. The S Fund follows the Dow Jones U.S. Completion index, which covers U.S. stocks outside the S&P 500. It fell much harder than the large-cap index, so smaller and mid-sized companies had the rougher day. Even so, the S Fund is still up 8.45% for the year and 1.11% over five days.

The I Fund tracks MSCI ACWI ex-US ex-China, and its 0.95% drop was the second-largest of the day. Even after that, it leads every individual fund year to date at 12.53% and over five days at 2.25%. One bad session does not erase that.

The F Fund follows the Bloomberg U.S. Aggregate bond index. Its small loss fits a day when Treasury yields rose, since bond prices usually dip when yields climb. The G Fund simply earns a Treasury-based rate, so it barely moves. It is up 1.47% year to date.

L Funds

Every L Fund finished lower, and the pattern was orderly. The more stock exposure a fund holds, the more it fell.

  • L Income: -0.21%
  • L 2030: -0.42%
  • L 2040: -0.54%
  • L 2050: -0.61%
  • L 2055 through L 2075: -0.72%

The longest-dated funds, which hold the most stock, all landed at the same 0.72% loss and sit at 9.27% for the year. L Income, with the most G and F Fund exposure, held up best at 3.63% year to date.

What Moved IRA Index Funds and ETFs

One caution first: the index and ETF figures below are labeled as the prior session's close, so they may not line up perfectly with the TSP numbers above. The C Fund and S&P 500 both showed -0.38%, though, so the broad picture matches.

The S&P 500 closed at 7,337.11. The Dow fell 0.63% to 49,596.97, while the Nasdaq Composite lost just 0.13% to 25,806.20. The Vanguard Total Stock Market ETF (VTI) dropped 0.46% to $360.20.

International stocks were weaker. The Vanguard Total International Stock ETF (VXUS) fell 1.60% to $84.25. VXUS holds a wider mix than the I Fund, including China and emerging markets, which is one reason the two did not move in lockstep. Both were still down on the day.

Bonds slipped too. The Vanguard Total Bond Market ETF (BND) lost 0.26% to $73.36, in line with the F Fund. The 10-year Treasury yield rose 0.83% to 4.392%, which works out to a few hundredths of a percentage point. That rise is the likely pressure point for bond funds. The data here does not say what drove stocks lower, so I will not guess.

What It Means for Your Plan

A 1.51% drop in one fund on one day is worth noticing, but it rarely changes a long-term plan. Retirement accounts are built over years and decades, and the five-day and year-to-date figures above are still positive across the board. Daily swings like this are normal.

This is general information, not personal advice. Your own mix of funds, your time horizon and your goals matter far more than any single session. If your allocation still fits your plan, a red Thursday is usually just a red Thursday.