Trio of TSP Funds Up Over 15% in 2023
Stock market’s continued momentum in July helps the federal government Thrift Savings Plan’s C Fund rise 20.62% through the first seven months of the year
Three of the five main funds in the federal government’s 401(k)-like Thrift Savings Plan have gained more than 15% so far in 2023, with a strong stock market so far this year leading the TSP’s C Fund (common stocks) to a gain of 20.62% after increasing by 3.21% during the month of July.
The C Fund is once again the largest TSP fund, replacing the conservative G Fund, which saw big increases in participant allocations during January-October 2022’s bear market.
As reported by Government Executive, the small- and mid-size businesses of the S Fund saw the best TSP performance in July, finishing the month 5.91% in the black. Since January, the S Fund has grown 19.30%.
Rounding out the trio of top performing funds in the world’s largest defined contribution plan, the I Fund (composed of international stocks) increased 2.82% last month, bringing its increase for the year to 15.32%.
July was of course another strong month for the stock market, with the S&P 500 up 3.1% for the month and the Dow Jones Industrial Average up 3.3%. Through the first seven months of the year, the S&P 500 has risen more than 19% while the Dow added more than 7%. Meanwhile, the tech-heavy Nasdaq Composite has risen an amazing 44% from the start of the year through July.
The G Fund, made up of government securities, grew by its statutorily mandated rate of 0.34% last month and has increased by 2.26% since January.
The only TSP fund to lose value in July was the F Fund (fixed income), which declined 0.07% and slightly dinged its year-to-date return to 2.18%.
Each of the TSP’s L (lifecycle) funds, which resemble target-date funds, posted gains in July. The L Income Fund, designed for those already making withdrawals, increased 1.09% (6.19% YTD); L 2025, 1.44% (8.28% YTD); L 2030, 2.18% (11.98% YTD); L 2035, 2.36% (12.95% YTD); L 2040, 2.54% (13.92% YTD); L 2045, 2.70% (14.75% YTD); L 2050, 2.86% (15.59% YTD); L 2055, 3.42% (18.52% YTD); L 2060, 3.42% (18.52% YTD); and L 2065, 3.42% (18.52% YTD).
At the end of June 2023, total assets in the TSP were $796 billion, compared to just under $726 billion at the end of December 2022.
Citation: 401K Specialist
Brian Anderson, Editor-in-Chief
August 3, 2023
