The stock-oriented TSP funds extended their record of recent monthly gains in August, led by the small company stock S fund with a 7.2 percent gain, almost matched by the large company stock C fund at 7.19 percent.
Those two funds are now in positive territory year-to-date despite the steep drops of February and March, at 6.7 and 9.67 percent, respectively.
The international stock I fund gained 5.12 percent in August but remains down year-to-date by 4.35 percent. During August the government securities G fund gained 0.05 percent but the bond F fund fell 0.81 percent.
The August returns of the lifecycle L funds, all gains, were: Income, 1.39; 2025, 3.17; 2030, 3.81; 2035; 4.18; 2040, 4.56; 2045, 4.88; 2050, 5.21; 2055, 6.41; 2060, 6.4; 2065, 6.4.
TSP return chart.
Survey Examines Why Some Employees Forgo Agency Contributions
The TSP’s recently released participant survey showed that among FERS participants, 11 percent were not investing any of their own money and another 8 percent were investing less than the 5 percent needed to capture the maximum government match of another 4 percent.
TSP C Fund Reaches New Highs Despite Underlying Fundamentals
The S&P 500 index tracks 500 top publicly-traded American companies, represents about 80% of the U.S. equity market by value, and is tracked by the C Fund. It has broken out to new all-time highs in 2020 despite the economic downtrend that has occurred, but is now overbought in terms of the daily relative strength index (RSI), which historically increases the odds of a correction or consolidation in the weeks ahead.
TSP International Fund Continues to Lag
The TSP’s International Fund, or I Fund, tracks the MSCI EAFE index, which includes equities from foreign developed markets mainly in Europe and Japan. Over the past year, the S&P 500, which is the index that the C Fund tracks, has outperformed the MSCI EAFE index by nearly 13%.