TSP (for Federal Employees and Retirees): Is there a Problem with the I Fund?

AW Admin |

Mike Causey recently interviewed me on Federal News Radio. (You can listen to the interview here). One of the main topics of our discussion was the I Fund, which turns out to have low performance even when compared to many other international funds.

Many of my comments during the interview were based upon an article by researcher Lyn Alden. (You can read the original article here). Lyn says the I Fund under performs because of the design of the Index used.

During the interview, Mike and I also discussed how the TSP Funds reacted to the presidential election. I wrote an article for Mike's column on this subject that you can read here.

Please let me know if you would like to discuss any of these issues. I'd be happy to.

Notes:
 
This is for educational purposes only. To learn more about the topics mentioned and if they are suitable for you, consult an appropriate professional. Tax laws can change at any time.
 
Any information provided in this presentation has been prepared from sources believed to be reliable, but is not guaranteed and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for information purposes only and does not constitute a recommendation.
 
Keep in mind that:
  • Past performance is no guarantee of future performance;
  • Investments involve the risk of loss of principal and earnings;
  • ETFs, mutual funds, money market funds, etc. are not guaranteed by the US Government, the FDIC, a bank or anyone else.
  • “Average annual return” evens out variations in the actual year-to-year returns.
  • ETFs, mutual funds and individual stocks and bonds fluctuate in value and there will always be times when they lose value.
  • None of the information provided is necessarily relevant to anyone’s personal situation. Circumstances differ among individuals and they should not assume that these generalizations or information apply to them.
  • Investments mentioned may not be suitable for all investors.