The S&P 500 index (the index on which the C Fund is based) went up on the final trading day of July. July is the fifth consecutive month of gains, and it is the longest winning streak since 2021. As noted in FedSmith last month, the C Fund is again the largest TSP Fund. It replaced the G Fund as the largest TSP Fund. The G Fund has taken over as the largest TSP Fund during the bear market.
The S&P 500 was up 3.1% for the month. The Dow Jones Industrial Average went up 3.3% for the month.
The C Fund has just experienced its longest winning streak since 2021. In that year, the C Fund had positive returns from February-August.
Best TSP Performance for the Month, Year and 12-Months
For those wondering which funds have had the best performance for the Thrift Savings Plan, it depends on which period is considered.
In July, the Thrift Savings Plan (TSP) had similar gains to the stock market. Here are the funds with the best returns in July:
- S Fund: 5.91%
- C Fund: 3.21%
- I Fund: 2.82%
As with the S&P 500 Index, the last month with negative returns for the C Fund was in February 2023.
Except for the F Fund, all TSP Funds showed positive returns in July.
For the year-to-date, here are the top results for the core funds:
- C Fund: 20.62%
- S Fund: 19.30%
- I Fund: 15.32%
For the past 12 months, these are the funds with the highest returns:
- I Fund: 16.43%
- C Fund: 12.96%
- S Fund: 10.63%
TSP Performance for July 2023, 12 Months and Year-to-Date
| Fund | Month-to-Date | Year-to-Date | 12-Month |
|---|---|---|---|
| G Fund | 0.34% | 2.26% | 3.84% |
| F Fund | -0.07% | 2.18% | -3.33% |
| C Fund | 3.21% | 20.62% | 12.96% |
| S Fund | 5.91% | 19.30% | 10.63% |
| I Fund | 2.82% | 15.32% | 16.43% |
| L Income | 1.09% | 6.19% | 6.23% |
| L 2025 | 1.44% | 8.28% | 7.21% |
| L 2030 | 2.18% | 11.98% | 9.79% |
| L 2035 | 2.36% | 12.95% | 10.30% |
| L 2040 | 2.54% | 13.92% | 10.84% |
| L 2045 | 2.70% | 14.75% | 11.27% |
| L 2050 | 2.86% | 15.59% | 11.75% |
| L 2055 | 3.42% | 18.52% | 13.91% |
| L 2060 | 3.42% | 18.52% | 13.91% |
| L 2065 | 3.42% | 18.52% | 13.90% |
Biggest Reason for Caution in Stocks
According to the Wall Street Journal, the biggest reason for caution in the stock market now “is the bullish sentiment.” As investors become more optimistic about the short-term performance of the stock market, they bid up the price of stocks. It is common for the prices to go higher than what is justified by companies’ earnings. As soon as that happens, stock prices will adjust quickly.
G Fund returns over the past 12 months are 3.84%. That is small compared to the double-digit returns of the core stock funds. It is still a good return without much risk compared to the risk in stock prices when there has been a significant gain in stock prices.
How will this impact the value of stocks by the end of 2023? We will let readers know the results early in the first week of January!
TSP Facts
At the end of June 2023, the total assets in the TSP were $796 billion with $47 billion in Roth assets. At the end of December 2022, total TSP assets were under $726 billion, and Roth assets were just above $39 million.
Balance of TSP Accounts: June 2023
| Accounts | Average Balance (06/23) | Average Balance (12/2022) | Roth Accounts | Average Roth Balance | |
| FERS | 3,966,787 | $169,204 | $157,325 | 965,670 | $24,866 |
| CSRS | 256,345 | $188,963 | $174,512 | 9,478 | $32,585 |
| Beneficiaries | 39,943 | $144,431 | $134,183 | 2,784 | $16,755 |
| BRS | 1,271,329 | $12,410 | $10,301 | 766,522 | $10,722 |
Hardship Withdrawals
Hardship withdrawal totals for May and June this year are the highest since August 2022. Private sector plans have also reported increases in hardship withdrawals this year.
For more information on requirements for hardship withdrawals and the potential consequences of these withdrawals, check out this article.
