TSP performance trending up, but mostly still in the red

Performance among the Thrift Savings Plan’s stock funds was mixed last month and the Lifecycle funds slightly dropped.

Compared to a year ago, all funds posted lower returns except the government securities investment G fund and the fixed income index investment F fund, according to monthly returns released by the TSP on Wednesday. The G fund, which had a return of 0.13% for May 2021, had a 0.21% return last month; while the F fund had a 0.34% return for May 2021 and a 1.13% return last month.

The G fund continued its streak of modest, yet consistent month-over-month growth that has been happening for at least 57 months, based on Federal News Network data.

The small cap stock index S fund had the lowest return, at -3.53% last month. Compared to April, it is up from -10.57%. The common stock index C fund rose from a -8.72% return in April, to a -1.65% return in May. Meanwhile, the fixed income index F fund is the only fund aside from the G fund that gained ground over the last year.

All Lifecycle funds finished in the red last month except for the L Income fund, which had a return of 0.04%. The biggest monthly gains were in the L 2055, L 2060 and L 2065 funds, which rose from  -8.11% in April to -0.89% last month.

Year over year, all Lifecycle funds were down in May.

Differences between fund and index returns were larger than normal last month because the TSP transitioned its record keeper, said Kim Weaver, the director of external affairs for the Federal Retirement Thrift Investment Board. As a consequence of the switch, participants were unable to make trades on May 27 and May 31. The returns presented reflect the market returns through May 26. Benchmark indices captured the entire month, however.