TSP’s market funds bloom in May

Small and common stocks, two of the riskier fund options in the Thrift Savings Plan, led earnings in May, while fixed-income bonds lost ground.

The S Fund, which invests in the stocks of small- and mid-size U.S. companies, grew the most of the five funds, at 4.88 percent last month. The fund tracks the Dow Jones Wilshire 4500 Index, which invests in the 4,500 next-largest domestic companies after the 500 tracked by the common stock, or C Fund. The S fund posted 12-month losses of 5.27 percent.

The C Fund, which tracks Standard & Poor's 500 Index, was the second-highest earner, with gains of 1.27 percent last month. The fund had the largest long-term losses, however, losing 6.68 percent during the past year.

The international, or I Fund, which invests in stocks in Europe, Australia and some countries in Asia, grew 1.09 percent in May. The fund posted 12-month losses of 2.28 percent.

The government securities (G) fund, the most reliable of the five funds, earned 0.32 percent last month for a yearlong 4.36 percent increase.

The F Fund was the lone loser in May among the five basic options, dropping 0.74 percent. The fund, made up of fixed-income bonds, still had positive 12-month earnings, at 7.09 percent.

All the TSP's life-cycle fund options, which automatically adjust to more conservative allocations as investors near their target retirement date, gained last month. The options designed for younger employees grew the most because they are heavily invested in riskier funds, but also have greater earnings potential.

The L 2040 Fund, designed for TSP participants anticipating retirement around the year 2040, grew 1.65 percent in May. The L 2030 Fund gained 1.48 percent; L 2020 rose 1.23 percent; L 2010 increased 0.78 percent; and L Income, designed for employees with planned retirements in the very near future, increased 0.59 percent.

The L funds with riskier allocations posted yearlong losses, however. L 2040 lost 2.87 percent; L 2030 fell 1.94 percent; and L 2020 was down 0.84 percent. L 2010 earned 1.38 percent during the past year while L Income grew 2.88 percent.