TSP conversion
Moderator: Aitrus
- Jokerswild
- Posts: 115
- Joined: Wed Feb 22, 2017 5:58 pm
TSP conversion
Can anyone help me understand the mathematical conversion from the index stocks to the TSP funds? For example, as of closing today the S and the C funds according to tspcenter match the exact percentage of gains to the Dow and S&P respectively. However, the F fund says it went down .04% but the index shows it closed out at zero. I know which index moves each fund, but what is the mathematical conversion?
Shawn AKA "Joker"
"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." - Robert G. Allen
"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." - Robert G. Allen
Re: TSP conversion
The public funds are an approximation.
-An economic forecaster is like a blind javelin thrower; although rarely accurate, he keeps your full attention.
Re: TSP conversion
It doesn't work that way. An index is just a weighted list of companies. Tradeable funds attempt to mimic the index. When they do this, they sometimes have to buy a little more of one company and a little less of the other than the index suggests. So the TSP funds are not exactly matched to the indexes they attempt to mimic. Also, the I fund has currency conversion rates and a certain amount of hand waiving magic involved. The I fund diverges from its index the most of all of them due to those extra factors.
Owner/creator of TSPcalc.com - "Know your numbers"
- Jokerswild
- Posts: 115
- Joined: Wed Feb 22, 2017 5:58 pm
Re: TSP conversion
mjedlin66 wrote:It doesn't work that way. An index is just a weighted list of companies. Tradeable funds attempt to mimic the index. When they do this, they sometimes have to buy a little more of one company and a little less of the other than the index suggests. So the TSP funds are not exactly matched to the indexes they attempt to mimic. Also, the I fund has currency conversion rates and a certain amount of hand waiving magic involved. The I fund diverges from its index the most of all of them due to those extra factors.
Thanks. So the F fund of zero gains equals -.04% today... makes sense I like the hand waiving magic though.
Shawn AKA "Joker"
"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." - Robert G. Allen
"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." - Robert G. Allen
Re: TSP conversion
Jokerswild wrote:mjedlin66 wrote:It doesn't work that way. An index is just a weighted list of companies. Tradeable funds attempt to mimic the index. When they do this, they sometimes have to buy a little more of one company and a little less of the other than the index suggests. So the TSP funds are not exactly matched to the indexes they attempt to mimic. Also, the I fund has currency conversion rates and a certain amount of hand waiving magic involved. The I fund diverges from its index the most of all of them due to those extra factors.
Thanks. So the F fund of zero gains equals -.04% today... makes sense I like the hand waiving magic though.
LOL.
Fund Prices2024-04-18
Fund | Price | Day | YTD |
G | $18.19 | 0.01% | 1.27% |
F | $18.62 | -0.30% | -3.14% |
C | $78.45 | -0.21% | 5.50% |
S | $76.12 | -0.20% | -1.27% |
I | $40.67 | 0.02% | 1.21% |
L2065 | $15.58 | -0.13% | 3.04% |
L2060 | $15.58 | -0.13% | 3.04% |
L2055 | $15.58 | -0.13% | 3.04% |
L2050 | $31.35 | -0.13% | 2.44% |
L2045 | $14.32 | -0.12% | 2.35% |
L2040 | $52.37 | -0.11% | 2.29% |
L2035 | $13.85 | -0.10% | 2.21% |
L2030 | $46.21 | -0.09% | 2.15% |
L2025 | $12.93 | -0.05% | 1.72% |
Linc | $25.28 | -0.04% | 1.51% |