February 2026 TSP Performance
In January, all TSP Funds posted positive returns. That gave a favorable boost to investment returns for 2026. The I Fund was at the top of the returns with 5.94%, but the C Fund (1.45%) and the S Fund (2.41) also provided positive monthly returns.
The I Fund moved ahead of the other core stock funds again in February. In fact, the margin between the I Fund and the U.S. stock market widened. The I Fund jumped 6.05% in February and is up 12.34% so far this year.
For I Fund investors, this is great news. And the fast start is on top of an exceptional performance in 2025, when the I Fund returned 32.45% compared to 17.85% for the C Fund and 11.38% for the S Fund.
What is going on? What is behind this major shift in stock market performance between the U.S. markets and foreign stock markets? To put this into perspective, here are the results over a 10-year period as of December 31, 2025. Note that the lagging I Fund performance over this 10-year period includes the spectacular I Fund performance in 2025.
Also note in the chart below that over the past 12 months, the I Fund has returned 42.22%. The C Fund returned 16.66%, and the S Fund 16.58%. These are all excellent financial returns. Obviously, investors would prefer the higher number to enhance their future retirement income.
- C Fund: 14.79% annualized over 10 years
- S Fund: 11.04% annualized over 10 years
- I Fund: 8.70% annualized over 10 years
TSP Investors Have Noticed the I Fund’s Outperformance
TSP investors do not typically engage in much active trading or stocks. But they do pay attention to longer-term trends. For example, at the end of 2024, 3.2% of TSP participants’ funds were allocated to the I Fund. At the end of January 2026, 6% of TSP participant funds were invested in the I Fund. This was a difference of about $30 billion as investments in the I Fund almost doubled in about one year.
What is happening in the stock market to change the performance of the TSP Funds with the increasing returns in the I Fund? Here is a quick summary of why this is occurring:
Global Rotation Is Real — and the I Fund Benefits
Institutional investors are rotating out of crowded U.S. trades and into:
- Europe
- Japan
- Select emerging markets
That rotation shows up clearly inside the I Fund’s performance within the Thrift Savings Plan.
The I Fund’s outperformance isn’t random or just a lucky accident. It is the result of:
- A weaker dollar
- Cheaper overseas valuations
- Stalled U.S. large-cap momentum
- Global capital is rotating away from the U.S.
The Dollar Weakened — and That Directly Boosts the I Fund
The I Fund holds foreign stocks. When the U.S. dollar falls, gains earned overseas are worth more in dollars when converted back.
- There was a meaningful decline in the dollar’s value in February.
- That one change can add several percentage points to the I Fund returns.
- The C and S Funds do not have this benefit because they are purely U.S.-based.
TSP Performance February 2026, Year-to-Date and 12-Month Returns
Here is a chart displaying all of the TSP Fund returns:
| Fund | Month-to-Date | Year-to-Date | 12-Month Return |
|---|---|---|---|
| G Fund | 0.33% | 0.70% | 4.39% |
| F Fund | 1.63% | 1.84% | 6.28% |
| C Fund | -0.76% | 0.68% | 16.96% |
| S Fund | 1.08% | 3.52% | 16.58% |
| I Fund | 6.05% | 12.34% | 42.22% |
| L Income | 0.82% | 1.95% | 10.08% |
| L 2030 | 1.26% | 3.23% | 16.81% |
| L 2035 | 1.41% | 3.62% | 18.26% |
| L 2040 | 1.50% | 3.88% | 19.51% |
| L 2045 | 1.58% | 4.10% | 20.58% |
| L 2050 | 1.65% | 4.31% | 21.64% |
| L 2055 | 1.82% | 4.99% | 25.18% |
| L 2060 | 1.82% | 4.99% | 25.18% |
| L 2065 | 1.82% | 4.99% | 25.18% |
| L 2070 | 1.82% | 4.99% | 25.19% |
| L 2075 | 1.82% | 4.99% | – |
Comparing TSP Investor Balances to Other Americans
The latest report from the Federal Retirement Thrift Investment Board (FRTIB) shows that there were 4,138,830 TSP accounts from investors in the FERS retirement system as of the end of January 2026. The average balance for these investors was $220,398.
| Account Type | Total Number of Accounts | Average Balance | Total Number of Roth Accounts | Average Roth Balance |
|---|---|---|---|---|
| FERS | 4,138,830 | $220,398 | 1,206,980 | $39,415 |
| BRS Uniformed Services | 1,689,179 | $20,995 | 1,044,470 | $17,920 |
| Uniformed Services Legacy | 1,204,705 | $63,525 | 661,464 | $40,136 |
| CSRS | 223,087 | $243,385 | 8,688 | $46,989 |
| Beneficiary Accounts | 46,052 | $178,720 | 3,866 | $26,719 |
| Total | 7,301,853 | $149,145 | 2,925,468 | $31,874 |
The most recent average 401(k) balance for all Americans, combining all age groups, was about $148,153 according to Vanguard and about $137,800 according to Fidelity.
That figure reflects the mean balance across participants in defined contribution retirement plans (primarily 401(k)s) and is skewed higher by large account holders; the median (the midpoint where half are above and half below) is substantially lower ($38,176).
The average 401(k) balance increased by 8% to 10% compared to the previous year. This suggests Americans are setting aside more for retirement, and their account balances are growing.
How did TSP investors compare?
At the end of January 2026, the average FERS TSP investor had $220,328. At the end of January 2025, the average FERS TSP investor had $198,059. This shows the average increase is about 11.28%—slightly higher than most 401(k) investors.
