FedSmith Readers Largely Split on I Fund Investing in China

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By on May 12, 2020 in Pay & Benefits with 0 Comments

What do FedSmith readers think about the I Fund expanding investment in Chinese companies?

The issue has become a topic of political discussion. The White House and Department of Labor are now directly urging the Federal Retirement Thrift Investment Board (FRTIB) to drop the planned expansion.

While the government oftentimes moves slowly, there are issues that start attracting headlines and the attention of political leaders. That has happened with this topic and events are moving more quickly than would normally be the case.

As outlined in this article, the Department of Labor has ordered the FRTIB to halt the expansion of the I Fund into Chinese companies.

What Do FedSmith Readers Think?

In the last few days, readers have weighed in on the topic with their opinions on the issue of expanding the I Fund to include Chinese companies in our latest survey.

Here are the results showing the opinion of about 1,400 respondents to each question asked. Many of the questions show a relatively even split among those responding.

In response to the overall question of whether the TSP should be barred from investing in Chinese companies, a majority of those responding indicated that they were in favor of this action.

Pie chart showing the number of responses of FedSmith readers as to whether or not the TSP's I Fund should be barred from investing in Chinese companies

Would investing in Chinese companies provide better TSP returns in the I fund?

The largest number of responses were that it would likely create better returns. More than 26% indicated it would not make a difference and almost 33% thought it would harm investment returns.

Pie chart showing responses of FedSmith readers to question about whether or not investing in Chinese companies via the I Fund would help or hurt returns

On the issue of whether the White House should take action to stop the TSP from expanding I Fund options to include Chinese companies, a majority favored this action.

Pie chart showing responses of FedSmith readers to the question "Do you believe the White House should take action to stop the TSP from expanding I Fund investment options to include Chinese companies?'

What about national security issues? Would allowing investment in Chinese companies by the I Fund pose a threat to American security?

A majority of respondents indicated that it would be a threat.

Would I Fund investment in Chinese companies harm national security?

Will investing in Chinese companies impact an individual’s decision to invest in the I Fund? A majority indicated they would be less likely to invest.

Pie chart showing the responses of FedSmith readers to the question of whether changing the I Fund would impact their decision to invest in it

How many of the respondents to this survey invest in the TSP? Almost 97% currently invest in this plan. 64.1% of respondents are currently invested in the I Fund.

While events appear to be occurring quickly on the issue of the TSP’s expansion of the I Fund, we will provide additional information as it becomes available, including the reaction and decisions of the FRTIB to the demands of the White House.

© 2020 Ralph R. Smith. All rights reserved. This article may not be reproduced without express written consent from Ralph R. Smith.


About the Author

Ralph Smith has several decades of experience working with federal human resources issues. He has written extensively on a full range of human resources topics in books and newsletters and is a co-founder of two companies and several newsletters onĀ federal human resources. Follow Ralph on Twitter: @RalphSmith47