The short version

Friday was a broad down day. Every TSP fund except G lost ground, and three of the five core funds dropped more than 1%. The G Fund did what it does and barely moved.

How the individual TSP funds did

The I Fund fell the most, down 2.08% to $61.9717. It tracks international stocks outside the U.S. and China, and the international ETF that many IRAs use (VXUS) dropped 2.25%. The two moves line up closely. The I Fund is down 2.25% over five days, but it is still up 10.61% for the year, the best showing among the core funds.

The S Fund lost 1.95% to $108.2834. It follows smaller and mid-sized U.S. companies, and it fell harder than the big-company benchmarks. It is down 2.14% over five days and up 6.51% year to date.

The C Fund dropped 1.22% to $119.0314, almost exactly matching the S&P 500's 1.24% decline. Over five days it is still up 0.17%, and it is up 8.46% for the year.

The F Fund slipped 0.62% to $20.7561. It follows the broad U.S. bond market, and the bond ETF BND fell 0.57%. That fits with the 10-year Treasury yield, which rose 3.00% to 4.595%, roughly 13 basis points by my math. Bond prices move opposite to yields. The F Fund is down 0.5% for the year.

The G Fund rose 0.01% to $19.9002. It earns a Treasury rate and holds no market price risk, so a day like this barely registers.

Moves over 1%

Friday's drops of more than 1% were:

  • I Fund: -2.08%
  • S Fund: -1.95%
  • C Fund: -1.22%
  • L 2035 through L 2075: -1.10% to -1.60%

The L Funds

L Funds blend the G, F, C, S and I funds, so their moves depend on how much stock each one holds. The later the target date, the more stock, and the bigger Friday's loss.

L 2055 through L 2075 all fell 1.60%, which suggests they share the same mix. L 2030 fell 0.93%, and L Income, the most conservative, fell 0.48%. Five-day moves range from -0.28% for L Income to -0.98% for the longest-dated funds.

What moved IRA index funds and ETFs

The index figures I have are labeled as the prior session close, but they point the same direction as the TSP funds.

  • S&P 500: -1.24% to 7408.5
  • Dow Jones Industrial Average: -1.07% to 49,526.17
  • Nasdaq Composite: -1.54% to 26,225.14
  • Vanguard Total Stock Market ETF (VTI): -1.27% to $362.74
  • Vanguard Total International Stock ETF (VXUS): -2.25% to $83.11
  • Vanguard Total Bond Market ETF (BND): -0.57% to $72.74

The Nasdaq fell more than the Dow, so growth-oriented holdings took a bigger hit. International stocks were the weakest of the group. Bonds also lost ground, which meant they did not cushion the stock decline. The data I have does not name a cause for the selloff, and I won't guess at one.

What it means for your plan

One day rarely matters for a long-term plan, and Friday is a good example. The C Fund is still up for the week, and every stock-heavy fund is still ahead for the year.

If you hold a target-date L Fund, the fund is built to absorb days like this, and you don't need to do anything. If you hold a mix of stock and bond funds, Friday showed that both can fall together. That is normal, if unpleasant. Your own timeline and risk tolerance matter far more than any single session. This recap is general information, not personal advice.