TSP funds at the Friday close

Most TSP funds finished higher on Friday, with one bond fund the exception. The I Fund led, gaining 1.03% to $66.3161. That is the only fund to clear 1% on the day.

The C Fund rose 0.44% to $123.6762, in line with its benchmark, the S&P 500. The S Fund gained 0.86% to $118.5706, tracking the Dow Jones U.S. Completion index, which holds the mid- and small-sized companies the S&P 500 leaves out. The G Fund added 0.01% to $20.1475, as it usually does, since it follows a Treasury rate and does not swing with markets.

The F Fund fell 0.17% to $20.8404. It follows the Bloomberg U.S. Aggregate bond index, and bond prices tend to slip when yields rise. They did.

The L Funds

Because the L Funds are blends of the individual funds, their results land between the stock and bond numbers.

  • L 2055 through L 2075 all gained 0.69%, which fits their heavy stock mix.
  • L 2050 rose 0.56%, L 2045 rose 0.53%, and L 2040 rose 0.49%.
  • L 2035 gained 0.46% and L 2030 gained 0.37%.
  • L Income, the most conservative blend, rose 0.20%.

The pattern is simple. The more stock exposure a fund holds, the more it gained on a day when stocks rose.

The week was a different story

Friday's gains came after a soft stretch. Over five days the S Fund is down 1.99%, the C Fund is down 1.39%, and the longest-dated L Funds are down 1.00%. The I Fund is nearly flat at -0.08%, and the F Fund is off 0.1%. The G Fund is up 0.09%.

So the S Fund's 0.86% gain on Friday recovered only part of a larger slide. Year to date, the I Fund leads at 18.36%, followed by the S Fund at 16.63% and the C Fund at 12.69%. The F Fund is slightly negative at -0.09%, and the G Fund is up 2.83%.

What moved IRA index funds and ETFs

One note on timing: the index and ETF figures below are from the prior session's close, not Friday's. TSP prices are Friday's.

The S&P 500 closed at 7,674.37, up 0.43%. The Nasdaq Composite rose by the same 0.43% to 26,180.46. The Dow did more, gaining 0.98% to 53,277.01. The Vanguard Total Stock Market ETF (VTI) added 0.44% to $378.24, which sits close to the S&P 500 because large companies dominate the total market.

Internationally, the Vanguard Total International Stock ETF (VXUS) rose 0.78% to $87.71, the same direction as the I Fund's big day.

The Vanguard Total Bond Market ETF (BND) slipped 0.15% to $72.23. The 10-year Treasury yield rose 0.89% to 4.738%, which works out to roughly four basis points. Higher yields push existing bond prices down, which is why BND and the F Fund both lost a little. The data here does not say what drove the move in yields, and I won't guess.

What it means for your plan

A 1% day for the I Fund and a 0.17% dip for the F Fund are small events when set against a retirement horizon measured in years or decades. Friday's rebound did not erase the week's losses, and one week of losses does not undo a year that is still comfortably positive in the stock funds.

If you hold a L Fund or a broad index fund, the mix is already doing its job: stocks for growth, bonds and the G Fund for ballast. Daily moves like these are normal, and one day rarely matters for a long-term plan. Check your allocation on your own schedule, not the market's.