Fedweek

The Brexit impasse and a slowdown in the EU is dragging on the I Fund, but it's cheap compared to the C Fund, which is near all time highs.

The common stock C and bond F funds posted gains of nearly 2 percent in March—1.95 and 1.93 percent, respectively—while the international stock I fund gained 0.71 percent and the government securities G fund gained 0.23 percent; the small company stock S fund dropped 1.03 percent.

The returns for the Lifecycle L funds were:
Income, 0.52; 2020, 0.61; 2030, 0.87; 2040, 0.96; 2050, 1.02.

Companies in the I Fund have an average price-to-earnings ratio of under 14.5 and a sizable 3.4% dividend yield. Meanwhile, companies in the C Fund have an average price-to-earnings ratio of 20.0 along with a smaller dividend yield of just 1.9%, making the I Fund look cheap by comparison for a long term position, but it’s not without reason. Brexit and a slowdown in the EU loom. Read more: Europe’s Slowdown and Brexit Are Hanging Over the I Fund