TSP funds at the close

Monday was a down day almost across the board. Every TSP fund but one finished lower, and the one that didn't, the G Fund, barely moved.

The C Fund fell 0.77% to $123.9641. It tracks the S&P 500, which also dropped 0.77%, so the match is exact. The fund is down 1.04% over five days but still up 12.96% for the year.

The S Fund had the roughest day, down 1.02% to $112.6245. That is the only TSP fund to fall more than 1% in a single session. It follows the Dow Jones U.S. Completion index, which covers mid-sized and smaller companies outside the S&P 500. Its five-day loss is 1.81%, the largest of any fund, and its year-to-date gain is 10.78%.

The I Fund slipped 0.76% to $64.9717. It is down 1.6% over five days, though its 15.96% gain for the year is still the best among the core funds.

The F Fund lost 0.49% to $20.3403. It follows the Bloomberg U.S. Aggregate bond index, and bonds were under pressure (more on that below). It is down 1.6% over five days and 2.49% for the year.

The G Fund rose 0.04% to $20.2509. It earns a Treasury-based rate and doesn't swing with markets, so a small steady gain is what you'd expect. It is up 3.36% this year.

L Funds

The L Funds blend the five core funds, so their results sit between the G Fund and the stock funds. The more stock exposure, the bigger the drop.

  • L Income: -0.22%
  • L 2030: -0.44%
  • L 2040: -0.60%
  • L 2050: -0.68%
  • L 2055 through L 2075: -0.79% to -0.80%

The far-dated funds are nearly all stocks, so they behaved like the C and I Funds. The L 2055 through L 2075 funds are up about 13.7% this year. L Income is up 5.98%.

What moved IRA index funds

The index and ETF figures below are listed as the prior session close, so treat the timing as approximate. They tell the same story as the TSP numbers.

The S&P 500 fell 0.77% to 7,683.69. The Dow lost 0.67% to 51,481.51. The Nasdaq Composite fell 0.92% to 26,820.38, the weakest of the three.

VTI, the total U.S. stock market ETF, dropped 1.03% to $375.84. Because it holds smaller companies along with the large ones, it fell harder than the S&P 500, much like the S Fund. VXUS, the total international ETF, slipped 0.69% to $85.75. It includes China, which the TSP's I Fund benchmark leaves out, so the two won't match exactly.

BND, the total bond ETF, fell 0.50% to $70.28. The reason is visible in the 10-year Treasury yield, which rose 1.08% to 5.24%. When yields go up, existing bond prices go down, and that is why both BND and the F Fund lost ground. Yield moves of this size can also weigh on stocks, though the data here doesn't tell us what drove the day's selling.

What it means for your plan

One down day, even a 1% one in the S Fund, rarely changes the outcome of a plan built over decades. The C, I and S Funds are all still well ahead for the year, and the L Funds did what they are designed to do, which is soften the blow as the target date gets closer.

A higher 10-year yield and a bond fund that is down for the year are worth noticing, but they are not a reason to react to a single session. If your contributions and allocation still match your timeline and comfort with risk, Monday's numbers don't call for action. If you are close to needing the money, that is a question for a longer look at your whole plan, not a single close.

This recap is general information, not personal advice.