From time to time we hear from people who say the stock fund (C, S or I Fund) they’ve invested in isn’t doing as well as the returns reported in the newspaper. Sometimes it’s a timeline issue involving when the returns were reported. But sometimes people, through no fault of their own, are just in the wrong fund. Simple as that.
Recently heard from a fed who early this month contacted us about his investments in the C fund. He wrote, “How is it that the Dow Jones average went up 300 points, but the valuation of my TSP share went down…and I took a hit? The folks at the TSP cannot seem to answer that question.”
We found one. Kim Weaver, the spokesperson for the Federal Retirement Thrift Investment Board (it runs the TSP) said:
Without knowing what fund he’s invested in, I can’t address his specific rate of return. However, as noted, the TSP Funds do not track the Dow Jones Industrial Average (DJIA). For U.S. stocks, we offer the C and S Funds:
The Dow Jones Completion Index (S Fund) offers the mid- and small capitalized stocks that compliment and “complete” the U.S. stock market when added to the C Fund.