Thursday's TSP scorecard

Every TSP fund finished higher on Thursday, July 9, though the G Fund barely moved. Stock funds did the work, and small and mid-size companies led.

  • S Fund: $117.1972, up 1.35%. Year to date: 15.27%.
  • C Fund: $121.4229, up 0.82%. Year to date: 10.64%.
  • I Fund: $64.0071, up 0.63%. Year to date: 14.24%.
  • F Fund: $20.9359, up 0.13%. Year to date: 0.36%.
  • G Fund: $20.0366, up 0.01%. Year to date: 2.27%.

The one move over 1%

The S Fund's 1.35% gain was the only TSP move above 1%. It tracks the Dow Jones U.S. Completion index, which holds the U.S. companies outside the S&P 500, so it leans toward mid-size and smaller firms. The data I have doesn't say what drove the jump, and I won't guess. The five-day picture is worth a glance, though. The S Fund is still down 0.83% over five days, so Thursday recovered part of an earlier slide rather than starting a new run.

Why the other funds moved as they did

The C Fund follows the S&P 500, and its 0.82% gain sits right beside the index's 0.81% in the latest figures I have. The I Fund follows the MSCI ACWI ex-US ex-China index. It rose 0.63% and is up 14.24% for the year, the second-best showing among the individual funds behind the S Fund.

The F Fund tracks the Bloomberg U.S. Aggregate bond index. Its 0.13% gain fits a softer 10-year Treasury yield, since bond prices rise when yields ease. The G Fund pays a Treasury-based rate with no price swings, so 0.01% is simply a day of interest.

The L Funds blend the five individual funds, and the stock share decides how much each one moved:

  • L 2055 through L 2075: up 0.81%, matching the C Fund
  • L 2050: up 0.68%
  • L 2040: up 0.60%
  • L 2030: up 0.45%
  • L Income: up 0.24%

The pattern is steady. The further the target date, the more stock exposure and the bigger the gain. The funds closest to retirement moved the least.

What moved IRA index funds and ETFs

One caution first: the index and ETF figures below are from the prior session's close, so they aren't a perfect match for the TSP's Thursday numbers.

The S&P 500 closed at 7,543.64, up 0.81%. The Nasdaq Composite did better, rising 1.30% to 26,206.89, which also puts it above the 1% mark. The Dow Jones Industrial Average lagged at 52,487.41, up 0.27%. That gap says the gains leaned toward the Nasdaq's stocks more than the Dow's 30 names.

For broad IRA holdings, the Vanguard Total Stock Market ETF (VTI) gained 0.87% to $371.45. The Vanguard Total International Stock ETF (VXUS) rose 0.55% to $84.90. That is close to the I Fund's 0.63%, though VXUS includes China and the I Fund's benchmark does not.

On the bond side, the Vanguard Total Bond Market ETF (BND) added 0.18% to $72.83. The 10-year Treasury yield slipped 0.66% to 4.539%, which is the likely reason bonds edged up.

What it means for your plan

A good day for stocks and a quiet one for bonds is just a normal day. It doesn't call for any change to a long-term plan. One day rarely matters for money you won't touch for years, and the S Fund's 1.35% jump sits beside a five-day loss of 0.83%. Swings like that are why people spread money across several funds in the first place.

If you hold a L Fund, you own all of these pieces in a mix that adjusts over time. Look at your year-to-date and multi-year numbers, not a single Thursday. This recap is general information, not personal advice.