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, while 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.
SEE ALSO:
• Only One TSP Fund Saw Negative Returns in June
• TSP Rings in the New Year with Bleak Performance
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
