TSP funds: everything finished higher

Every TSP fund closed in the green on Tuesday, May 26. The international and small-cap funds did the heavy lifting.

The I Fund gained 1.55% to $64.2322, the best showing of the group. The S Fund rose 1.49% to $112.9809. Both cleared the 1% mark, which is the notable move of the day. The C Fund was up 0.62% to $120.8571, a steadier gain for the large-company stocks in the S&P 500.

The bond side was quiet. The F Fund added 0.40% to $20.9082, and the G Fund edged up 0.05% to $19.9274. The G Fund tracks a Treasury rate and does not swing with the market, so a tiny gain is what you would expect.

Why the funds line up with their benchmarks

The C Fund follows the S&P 500, and the S Fund follows the Dow Jones U.S. Completion index, which covers mid-size and smaller companies outside the S&P 500. The I Fund follows the MSCI ACWI ex-US ex-China index, so it moves with foreign stocks. The F Fund follows the Bloomberg U.S. Aggregate bond index.

The S Fund's five-day gain of 4.65% is the largest among the core funds, ahead of the I Fund's 3.2% and the C Fund's 1.6%. For the year, the I Fund leads at 14.64%, followed by the S Fund at 11.13% and the C Fund at 10.13%. The F Fund is at 0.23% and the G Fund at 1.71%.

L Funds: the blend shows through

The L Funds mix the five core funds, so their results depend on how much stock each one holds. The longer-dated funds hold more stock, and they gained more.

  • L 2055 through L 2075: +1.05% each, just over the 1% line
  • L 2050: +0.90%
  • L 2040 and L 2045: +0.80% and +0.85%
  • L 2030 and L 2035: +0.63% and +0.74%
  • L Income: +0.35%, close to the F Fund's gain

What moved IRA index funds and ETFs

The index and ETF figures below are from the prior session's close, so they are not a same-day match for the TSP prices above. They still show the general direction.

The S&P 500 rose 0.61% to 7519.12. The Nasdaq Composite did better, up 1.19% to 26656.18. The Dow slipped 0.23% to 50461.68, one of the few red numbers anywhere in this data.

For ETFs, VTI, the total U.S. stock market fund, gained 0.73% to $369.46. VXUS, the total international fund, jumped 1.95% to $86.11. That is the largest move in the set and fits the I Fund's strong day. BND, the total bond market fund, rose 0.29% to $73.21.

The 10-year Treasury yield fell 1.43% to 4.493. Bond prices rise when yields fall, which fits with gains in BND and the F Fund. The data here doesn't say what drove any of these moves, so I won't guess at a cause.

What it means for your plan

One good day does not change much. A 1.5% gain in the I and S Funds is nice, but a quick look at the five-day and year-to-date numbers shows how bumpy the path can be, and strong stretches can fade as easily as they arrive.

If you hold an L Fund or a broad index fund, the mix is already doing its job, and the spread between the L 2030 and L 2075 results is the design working as intended. Nothing here calls for action by itself. This is a summary of one session, not personal advice, and your own timeline and goals matter more than any single day's numbers.