TSP Returns for Core Stock Funds in February
February was volatile for the stock market and the Thrift Savings Plan (TSP). February was a volatile month for stock investors. Capping off the volatile month, on February 28, the Dow Jones Industrial Average went up 1.4%, and the S&P 500 went up 1.6% in one day.
The TSP core stock funds reflected this volatility for the month. TSP stock returns were generally down for the month (except the I Fund). Here is how these Funds performed for the month:
| Fund | Feb. 28 return | Monthly Return |
| C | 1.6% | -1.3% |
| S | 1.34% | -5.8% |
| I | 0.03% | 0.91% |
What Created the Volatility?
For the month, the general considerations for stock investors were a sharp decline in consumer spending in January and the fact that inflation is still high. However, inflation showed signs of easing in January with a new report coming out. This provided some relief to stock investors and stocks went up on the last day of the month.
During February, there were concerns about the uncertainty of the impact of America’s tariff policies, particularly on China, Canada, and Mexico, on global markets and the possibility of increasing inflation. On the last day of the month, the highly-publicized clash between President Trump and Ukraine’s President Volodymyr Zelensky created concern.
By the end of the day on Friday, U.S. stocks jumped as investors looked past the heated public discussion between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky in the Oval Office. One highlight was President Trump’s claim Ukraine was gambling with “World War III.”
Inflation data released on February 28 also impacted the stock market. “Core” inflation, measured by Personal Consumption Expenditures (PCE), which excludes volatile prices for food and energy, fell to a 2.6% increase over the past year. This was down from a 2.9% rate in December. The latest data was the lowest rate since last June.
This indicated the efforts of the Federal Reserve to reduce inflation are working. It also created the possibility of the Fed lowering inflation rates later in 2025.
TSP Returns in February and in 2024
Here are the TSP returns for all TSP Funds for February and for 2025 through the end of the month.
| Fund | February Returns | Year-to-Date |
|---|---|---|
| G Fund | 0.36% | 0.75% |
| F Fund | 2.20% | 2.73% |
| C Fund | -1.30% | 1.44% |
| S Fund | -5.80% | -1.10% |
| I Fund | 0.91% | 4.63% |
| L Income | 0.07% | 1.27% |
| L 2025 | 0.04% | 1.32% |
| L 2030 | -0.42% | 1.78% |
| L 2035 | -0.49% | 1.88% |
| L 2040 | -0.57% | 1.97% |
| L 2045 | -0.64% | 2.05% |
| L 2050 | -0.72% | 2.11% |
| L 2055 | -1.11% | 2.22% |
| L 2060 | -1.11% | 2.22% |
| L 2065 | -1.10% | 2.22% |
| L 2070 | -1.09% | 2.23% |
TSP Factoids—Nearly $1 Trillion in Assets
According to the latest data issued by the Federal Retirement Thrift Investment Board (FRTIB) total assets in the TSP are rapidly closing in on one trillion dollars. At the end of January, total assets in the TSP were $985 billion.
The TSP is the nation’s largest 401(k) fund. Looking back as late as 2013, the TSP had over $336 billion in assets as of January in that year. In that same month, the TSP has estimated that its assets would increase to more than $500 billion in five years and nearly $789 billion in 10 years. Looking at the actual data from 2022, the TSP had almost $726 billion in assets as of December 31, 2022.
At the end of December 2012, the average participant balance was about $70,000, and the plan had 4.6 million participants.
At the end of January 2025, the TSP had over 7.2 million accounts with an average balance of $132,022. The average balance for FERS participants was $198,059. We also know that the TSP had 157,760 TSP millionaires at the end of 2024.
The C Fund continues to be the largest TSP Fund (and growing). As of December 31, 2024, the C Fund held 36.1% of participant allocated assets. The G Fund is the 2nd largest Fund with 23.6% of participant allocated assets.
The C Fund holds 44.5% of participant assets in invested individual TSP Funds, while the G Fund has 30.6% in individual TSP Funds.
The TSP issued over 1.3 million 1099-R forms in January and notified more than 303,000 participants about their 2025 required minimum distribution amount. A 1099-R form is a tax document used to report distributions from retirement plans, pensions, annuities, or other similar accounts to the Internal Revenue Service (IRS) and also to the recipient of the funds.
