Participants in the plan may not have been complaining about that recently: The MSCI EAFE Index that is the basis for the I fund has gained more than 12% on an annualized basis during the past three years, whereas the MSCI Emerging Markets Index has gained just 4% annualized during the same period. market index fund), the I fund doesn't include exposure to emerging markets or foreign small caps. market (a 4 to 1 ratio replicates a total U.S. While investors can easily marry the S&P 500 C fund with the small-cap S fund to gain exposure to the total U.S. Yet, as I've noted in the past, the TSP is missing exposure to a few areas that many investors might want as part of their long-term portfolios. The TSP is able to swing those low expense ratios because of its enormous scale, as well as the fact that loan fees and forfeitures get thrown into the kitty, thereby putting downward pressure on administrative costs. According to information on the TSP's website, each of the fund options charged just 0.029% in net administrative expenses in 2014. The defining feature of all of the funds on the TSP menu is their ultra-low costs. Like all target-date funds, the near-dated funds are more conservative and equity-light than the funds geared toward investors retiring 20 or 30 years from now. The L funds-target-date equivalents managed for investors who are already retired and those who anticipate retirement in or around 2020, 2030, 2040, and 2050-consist of varying mixes of the aforementioned five funds. The G fund consists of nonmarketable Treasury securities it's guaranteed not to lose money, but it has historically generated a yield in line with an intermediate-term Treasury fund rather than cash. While it's not difficult to find index-fund equivalents of the aforementioned four funds outside of the government's plan, the TSP also includes what's called the G fund, managed exclusively for TSP participants. All four of these funds are managed by BlackRock Institutional Trust Company for the TSP. Aggregate Bond Index tracker ( the F fund). Completion Total Stock Market Index ( the S fund), an international-stock fund that tracks the MSCI EAFE Index ( the I fund), and a Barclays U.S.
The TSP's core menu includes an S&P 500 index tracker ( the C fund), a small-cap stock fund that tracks the Dow Jones U.S. One of the nice things about the TSP lineup is that it's minimalist and extremely stable. It's time for another review, including a deeper dive into its L funds, the TSP's target-date equivalent. In the past, I've written about the TSP's many virtues, especially its ultra-low-expense, utilitarian menu of investment options, as well as a few holes in its lineup, which TSP investors can plug using accounts like IRAs. And the funds are index-based, so nor will you see TSP managers telegraphing their views on CNBC or in the Wall Street Journal.īut that doesn't mean that TSP participants aren't keen for information. But it's a quiet giant: While the TSP website includes a lot of valuable information for plan participants, the TSP funds are not mutual funds, so you won't see data for them on or other media outlets. With nearly $450 billion in assets and 5 million participants, the retirement plan for government workers-the Thrift Savings Plan (TSP)-is the largest defined-contribution plan in the U.S.
0 kommentar(er)
