What index does the TSP F fund follow?
The Federal Retirement Thrift Investment Board has chosen to invest the F Fund in an index fund that tracks the
The F Fund invests in a bond index fund that tracks the Barclays Capital U.S. Aggregate Bond Index. This broad index includes U.S. Government, mortgage-backed, corporate, and foreign government (issued in the U.S.) sectors of the U.S. bond market.
The I Fund's investment objective is to match the performance of the MSCI EAFE (Europe, Australasia, Far East) Index.
The C Fund holds all the stocks included in the S&P 500 Index in virtually the same weights that they have in the index. The performance of the C Fund is evaluated on the basis of how closely its returns match those of the S&P 500 Index.
| TSP | Fidelity | |
|---|---|---|
| Fund | Benchmark | Benchmark |
| F Fund | Barclays Capital U.S. Aggregate Bond Index | Fidelity® U.S. Bond Index Fund |
| C Fund | S&P 500 Index | Fidelity® 500 Index Fund |
| S Fund | Dow Jones U.S. Completion TSM Index | Fidelity® Extended Market Index Fund |
The C Fund has grown 7.49% in 2024, marking the best performance among the TSP's core funds. The small- and mid-size businesses of the S Fund posted the strongest numbers in February, gaining 6.03%.
Best Funds for TSP Performance in 2023
The most aggressive Lifecycle Funds (L Funds) were up 14.6% (the L 2055, 2060, and 2065 Funds) so far this year. All TSP Funds are up in 2023. Over the past 12 months, only one TSP Fund has had a negative return. That is the F Fund which is down 0.87% over 12 months.
What is the safest TSP fund? The G fund is generally the safest option as it invests in government securities. Although you won't lose money investing in this fund, your rate of return will be low. This may be a good option if you are close to retirement.
What Is a Tracker Fund? A tracker fund is an index fund that tracks a broad market index or a segment thereof. Tracker funds are also known as index funds, designed to offer investors exposure to an entire index at a low cost.
It is important to note that the EAFE Index and the S&P 500 are not directly comparable. The EAFE Index measures performance in foreign developed markets, while the S&P 500 measures performance in the U.S. Stock market. As a result, investors should not use the two indices interchangeably.
Are all S and P index funds the same?
While most S&P index funds will have similar holdings, they may vary in terms of their fees, such as expense ratios. Expense ratios are annual fees you pay to help cover a fund's expenses. If you invest in a fund with a 0.25% expense ratio, you'll pay $2.50 annually for every $1,000 invested.
funds (G, F, C, S, and I Funds) offer a broad range of investment options, including government securities, bonds, and domestic and foreign stocks. Generally, it's best not to put all of your eggs in one basket.
If you choose to invest in the G Fund, you are placing a higher priority on the stability and preservation of your money than on the opportunity to potentially achieve greater long-term growth in your account through investment in the other TSP funds.
Generally, if market interest rates rise, the value of your F Fund shares will fall, and vice versa. The effect of rising interest rates is offset, to some extent, by the interest payments that are periodically received from the bonds and credited to the shares' value.
The F Fund (bonds) and the C, S, and I Funds (stocks) have higher potential returns than the G Fund (government securities). But stocks and bonds also carry the risk of investment losses that the G Fund does not have.
An f-series or f-class mutual fund is a mutual fund that does not pay any additional commissions to the firm or advisor making the purchase. Designed specifically for accounts that pay a percentage based on your overall dollars managed.
Your best bet is to stick with the C, S and I Funds. Here's the ratio we recommend for your portfolio: 80% in the C Fund, which is tied to the performance of the S&P 500. 10% in the S Fund, which includes stocks from small- to mid-sized companies that offer high risk and high return.
Fidelity recommends age-based milestones between ages 30 to 67. Based on these guidelines, you should aim to save 1x your income by age 30, 3x by age 40, 6x by 50, 8x by 60, and 10x by age 67. However, these milestones may vary depending on the age when you plan to retire and the desired lifestyle in retirement.
Thrift Savings Plan C Fund Monthly Returns is at 5.34%, compared to 1.68% last month and -2.44% last year. This is higher than the long term average of 0.96%.
TSP contributions and investing should be top of mind when you begin your federal career. An employee who earns 50,000 per year and contributes 2,500 dollars with a 2,500-dollar match from the government can reach the TSP millionaire dollar mark in 25-30 years by investing aggressively.
How many TSP investors are millionaires?
As of year-end 2023 just under 117,000 TSP investors had $1 million or more in their accounts, an increase of some 40,000 during the year, another impact of the rebound in stock-based investment funds during the year making up for their losses of 2022.
For federal employees, TSPs' automatic contributions, higher employer matches and low fees probably make them a superior choice. For people who don't work for the federal government, 401(k) plans are still a good choice for retirement savings and can be central parts of individual financial strategies.
Why should I invest in the F Fund? F Fund investors are rewarded with the opportunity to earn higher rates of return over the long term than they would from investments in short-term securities such as the G Fund.
To receive the maximum Agency or Service Matching Contributions, you must contribute 5% of your basic pay each pay period.
Your index fund should mirror the performance of the underlying index. To check, look at the index fund's returns on the mutual fund quote page. It shows the index fund's returns during several time periods, compared with the performance of the benchmark index. Don't panic if the returns aren't identical.
