All but one portfolio in the federal government’s Thrift Savings Plan (TSP) produced positive returns in June, a stark difference from dismal results in May.
The fixed income F fund finished the month in red, down 0.36% in June and -0.87% in the last 12 months, making it the only F fund to not be in the black over the course of the year. The F fund also saw a 2.25% return year-to-date (YTD).
The C, S, and I fund drove performance in the month of June, relative to May. The common stocks C fund returned 6.61% last month and 19.54% in the last 12 months, making it the fund with the highest returns since January.
The small cap stock investment S fund produced the greatest returns, finishing in black at 8.31% in June and 15.24% over the last 12 months.
The I fund, made up of international investments, saw a return of 4.57% at the end of June, and 19.08% over the course of the year.
YTD returns for the C, S, and I fund were 16.88%, 12.64%, and 12.16%, respectively.
The government securities investment G Fund saw a slight return in June of 0.01%, at 0.32% compared to 0.31% in May. In the last 12 months, the G funds has seen a return of 3.76%, with a YTD of 1.91%.
As for the TSP’s lifecycle L funds, all saw positive returns in June. The L Income fund yielded a 1.70% return last month and 5.05% YTD, while the L 2025 was up 2.42% (6.74% YTD); L 2030 up 3.74% (9.59% YTD); L 2035 up 4.07% (10.34% YTD); L 2040 up 4.41% (11.09% YTD); L 2045 up 4.71% (11.74% YTD); L 2050 up 5.00% (12.38% YTD); L 2055 up 6.07% (14.60% YTD); L 2060 up 6.07% (14.60% YTD); and L 2065 up 6.07% (14.60% YTD).
The returns are a glaring contrast from the previous month’s results, likely thanks to news regarding President Joe Biden’s debt ceiling deal at the end of May. Additionally, FedSmith notes that 2023 has seen multiple averted crises, including several bank failures that did not expand nationwide, along with slowing inflation rates.
SEE ALSO:
- Debt Ceiling Deal: Social Security Payments Likely Not Delayed; Student Loan Payments to Resume
- ‘No ESG in TSP Act’ Reintroduced in Congress
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
