TSP funds at the close

Wednesday was a down day for nearly every TSP fund. The exception was the G Fund, which did what it always does and edged up 0.01%, to $20.2372.

The C Fund slipped 0.75% to $124.3218. That lines up almost exactly with the S&P 500, which it tracks and which fell 0.76%. The F Fund lost 0.83% to $20.5004, in step with the Bloomberg U.S. Aggregate benchmark it follows.

Two funds fell by more than 1%:

  • S Fund: down 1.22% to $113.8627. It follows the Dow Jones U.S. Completion index, which covers mid and small companies outside the S&P 500. Those names fell harder than the large-cap Dow, which lost 0.68%.
  • I Fund: down 1.17% to $65.3729. It follows MSCI ACWI ex-US ex-China, so foreign stocks took a bigger hit than U.S. large caps.

L Funds and the longer view

The L Funds are blends of the five core funds, so their losses scale with how much stock each one holds. L Income, the most conservative, fell 0.31%. L 2030 dropped 0.56%, L 2040 0.74%, and L 2050 0.84%. The long-dated funds (L 2055 through L 2075) all fell 0.96%, since they hold the most stock.

Zoom out and the picture looks calmer. Over five days, every fund except F is still up, with the C Fund gaining 2.05%. Year to date, the I Fund leads at 16.68%, followed by the C Fund at 13.28% and the S Fund at 11.99%. The F Fund is down 1.72% for the year, and the G Fund is up 3.29%.

What moved IRA index funds and ETFs

These figures are from the prior session's close, so they won't line up perfectly with the TSP numbers above. The direction is the same, though.

The S&P 500 fell 0.76% to 7,706.03, and the Dow lost 0.68% to 51,511.59. The Nasdaq Composite had the worst of the big three, down 1.13% to 26,936.04. Vanguard's Total Stock Market ETF (VTI) dropped 0.80% to $378.23.

Overseas, the Vanguard Total International Stock ETF (VXUS) fell 1.79% to $85.92. It holds a broader mix than the TSP's I Fund, including China and emerging markets, which may explain part of the gap. The data here doesn't say.

Bonds had a rough session too. The 10-year Treasury yield jumped 2.94% to 5.114%, which works out to a rise of roughly 15 basis points. When yields climb, existing bond prices fall. That fits the Vanguard Total Bond Market ETF (BND) losing 0.84% to $70.81, and it matches the F Fund's drop. The numbers show what moved, not the news behind it, so I won't guess at a cause.

The takeaway is that stocks and bonds fell together, which is the kind of day when a mixed portfolio doesn't cushion much. The G Fund's flat result is a reminder of why it exists.

What it means for your plan

One day of losses near 1% is within the normal range for stock funds. It is small next to the year-to-date gains in the C, S and I Funds, and the five-day figures are still mostly positive.

A rising 10-year yield is worth noticing, since it affects bond fund prices and the F Fund. But a single session doesn't set a trend.

If you contribute every paycheck, you are buying at whatever the price is that day, and today's price is slightly lower. A long-term plan rests on your time horizon, your contribution rate and your allocation, not on a Wednesday close. This recap is general information, not advice for your situation.