Stocks lead, bonds barely move

Monday was a broad gain for the Thrift Savings Plan. Every fund finished higher, and nothing fell. The stock-heavy funds did the work while the bond and Treasury funds barely budged.

The individual funds

The C Fund closed at $121.5326, up 1.68% on the day. It tracks the S&P 500, which rose 1.65% in the index data below, so the two lined up closely. The fund is up 2.04% over five days and 10.74% for the year.

The I Fund gained 1.52% to $65.1640. It follows the MSCI ACWI ex-US ex-China index. Its five-day gain of 4.17% is the best of any TSP fund, and its 16.3% year-to-date return is the highest on the board.

The S Fund rose 1.13% to $116.2841. Its benchmark is the Dow Jones U.S. Completion index, which covers U.S. stocks outside the S&P 500. It lagged the C Fund on the day but leads it over five days (3.35% versus 2.04%) and for the year (14.38% versus 10.74%).

The F Fund added 0.12% to $21.0051, in line with its Bloomberg U.S. Aggregate bond benchmark. The G Fund gained 0.04% to $19.9769. It pays a Treasury-based rate and does not swing with the market.

Moves over 1%

Three single funds cleared the 1% mark: the C Fund (+1.68%), the I Fund (+1.52%) and the S Fund (+1.13%). All were gains. There were no drops of any size.

The L Funds are blends of the individual funds, so their results follow their mix. The further out the date, the more stock exposure, and the bigger Monday's gain:

  • L 2055 through L 2075: about +1.53% to +1.54%
  • L 2050: +1.28%
  • L 2045: +1.21%
  • L 2040: +1.13%
  • L 2035: +1.04%
  • L 2030: +0.88%
  • L Income: +0.46%

Nearly all the L Funds from 2035 on topped 1%, while L 2030 and L Income, which lean more on the G and F funds, stayed under it.

What moved IRA index funds

The index figures below are from the prior session close in the data provided. The data does not say what caused the move, so I won't guess at a headline.

The S&P 500 rose 1.65% to 7,554.29. The Nasdaq Composite did the most, up 3.07% to 26,683.939, and the Dow Jones Industrial Average gained a smaller 0.92% to 51,671.031. Big gains in the Nasdaq usually mean technology and growth shares did the lifting.

The ETFs many IRAs hold followed suit. The Vanguard Total Stock Market ETF (VTI) rose 1.68% to $372.53. The Vanguard Total International Stock ETF (VXUS) gained 1.52% to $86.98. Both match their TSP cousins, the C and I funds, almost to the decimal.

Bonds were quiet. The Vanguard Total Bond Market ETF (BND) added 0.08% to $73.30. The 10-year Treasury yield slipped 0.40% to 4.469%, a drop of roughly two basis points. A slightly lower yield nudges bond prices up, which fits the small gains in BND and the F Fund.

What it means for your plan

A day like this feels good, but one session rarely changes a long-term plan. A +1.68% Monday can be given back by Wednesday, and the five-day and year-to-date figures tell you more than any single close.

Notice, too, how each fund behaved the way its makeup says it should. Stock funds jumped, bond funds crept, and the G Fund held steady. That is what you own them for, and it holds on up days and down days alike. If your allocation still fits your timeline and your comfort with risk, today does not call for any action. Nothing here is personal advice, just a look at how the numbers fell.