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 Prices2024-04-16
Fund | Price | Day | YTD |
G | $18.19 | 0.01% | 1.24% |
F | $18.58 | -0.32% | -3.33% |
C | $79.08 | -0.21% | 6.34% |
S | $76.95 | -0.41% | -0.18% |
I | $40.73 | -0.98% | 1.37% |
L2065 | $15.67 | -0.50% | 3.66% |
L2060 | $15.67 | -0.50% | 3.67% |
L2055 | $15.68 | -0.50% | 3.67% |
L2050 | $31.50 | -0.44% | 2.93% |
L2045 | $14.38 | -0.41% | 2.81% |
L2040 | $52.59 | -0.38% | 2.72% |
L2035 | $13.91 | -0.35% | 2.60% |
L2030 | $46.37 | -0.32% | 2.50% |
L2025 | $12.95 | -0.18% | 1.90% |
Linc | $25.31 | -0.14% | 1.64% |