Introduction
As investors continue to monitor their retirement savings, the Thrift Savings Plan (TSP) stands out as a cornerstone of financial planning for federal employees. Understanding the performance of various TSP funds is crucial for making informed investment decisions. In February 2024, TSP investors witnessed a notable uptick in returns across most portfolios, reflecting positive market dynamics. Let's delve into the specifics of each fund's performance while providing essential background information on the TSP funds.
TSP Fund Performance February 2024
Fund | Monthly Return | Year-to-Date Return |
G Fund | 0.33% | 0.67% |
F Fund | -1.41% | -1.60% |
C Fund | 5.34% | 7.10% |
S Fund | 6.03% | 3.48% |
I Fund | 2.74% | 2.51% |
L Income | 1.29% | 1.66% |
L 2025 | 1.63% | 2.01% |
L 2030 | 2.74% | 3.15% |
L 2035 | 2.96% | 3.38% |
L 2040 | 3.20% | 3.62% |
L 2045 | 3.41% | 3.83% |
L 2050 | 3.62% | 4.04% |
L 2055 | 4.48% | 4.95% |
L 2060 | 4.48% | 4.95% |
L 2065 | 4.48% | 4.95% |
C Fund (Common Stocks):
The C Fund, which tracks the S&P 500 index, saw a robust performance in February, posting a 5.34% increase. Year-to-date, the C Fund has surged by 7.10%, making it the top-performing fund among the TSP core offerings.
S Fund (Small- and Mid-Size Businesses):
Investors in the S Fund enjoyed even greater gains, with a notable 6.03% increase in February. Year-to-date, the S Fund has grown by 3.48%, showcasing the strength of small and mid-size businesses in the market.
I Fund (International Stocks):
The I Fund, which tracks the MSCI EAFE Index, recorded a solid performance with a 2.74% increase in February. Year-to-date, the I Fund has shown resilience with a 2.51% return, demonstrating the potential of international investments.
G Fund (Government Securities):
Despite its conservative nature, the G Fund maintained stability, growing at its mandated rate of 0.33% in February. Year-to-date, the G Fund has increased by 0.67%, offering a secure option for risk-averse investors.
F Fund (Fixed Income):
The F Fund experienced a slight decline, dropping by 1.41% in February. Year-to-date, the F Fund has lost 1.60% in value, highlighting the challenges faced by fixed-income investments amid market fluctuations.
Each of the TSP's lifecycle funds delivered positive returns in February, aligning with their respective target retirement dates. From the L Income Fund to the L 2065 Fund, investors witnessed steady growth, with returns ranging from 1.29% to 4.48%.
Understanding TSP Fund Options:
The TSP offers a range of core funds, each serving a specific investment objective:
G Fund: Government Securities Investment Fund
F Fund: Fixed Income Index Investment Fund
C Fund: Common Stocks (S&P 500 Index)
S Fund: Small Cap Stock Index Investment Fund
I Fund: International Stock Index Investment Fund
Lifecycle (L) Funds: Additionally, the TSP offers lifecycle funds tailored to investors' projected retirement dates. These funds automatically adjust their asset allocation over time, transitioning from aggressive to conservative investments as retirement approaches.
Conclusion
As TSP investors navigate the dynamic landscape of financial markets, understanding fund performance is paramount. The positive TSP performance for February underscores the resilience and potential of TSP investments. Whether opting for core funds or lifecycle funds, federal employees have access to diverse investment options designed to support their long-term financial goals.
