TSP international fund far outpaces others in yearlong returns
Small and mid-size domestic companies continue volatile streak, dipping in July.
With July's returns as part of the equation, the yearlong performance of the Thrift Savings Plan's international stocks fund is now head and shoulders above that of its other funds.
The TSP, a $180 billion 401(k)-style retirement savings plan for federal employees, earned 0.98 percent for its international (I) fund last month, bringing that offering to a 24 percent gain over 12 months.
The I Fund, which invests in European, Australian and some Asian stocks, was the second-highest earner in July. The F Fund, composed of fixed-income bonds, earned 1.32 percent last month. But its 12-month earnings to date are only 1.42 percent.
TSP investments in common stocks listed on the Standard & Poor's 500 Index brought in a 0.65 percent return in July. The C Fund's 12-month earnings were the next highest after the I Fund's, but were considerably lower at 5.42 percent.
The S Fund, which is invested in the stocks of small- and mid-size American companies, was the only one to lose ground in July, falling 2.79 percent. The highly volatile fund still recorded a yearlong positive return of 5.35 percent, however, after losing 4.36 percent in May and gaining 0.47 percent in June.
The G Fund, the TSP's most popular and reliable investment option, earned a 0.44 percent return last month for a one-year gain of 4.84 percent.
In addition to the five basic fund options, the TSP offers five life cycle (L) funds, which are a compilation of the five underlying funds that automatically shift to become more conservative as an investor nears retirement.
L 2040, intended for employees with a target retirement date around the year 2040, gained 0.13 percent. The L 2030 Fund earned 0.20 percent; the L 2020 gained 0.35 percent; the L 2010 increased 0.37 percent; and the L Income, designed for employees with planned retirements in the very near future, grew 0.49 percent.
Yearlong returns were available for the L Funds for the first time. All the funds beat the G and C funds, with the riskier mixes earning more than the conservative ones. L 2040 had a 9.12 percent twelve-month return, L 2030 had 8.50 percent, L 2020 had 8.15 percent, L 2010 had 7.32 percent, and L Income had a 5.51 percent gain