TSP conversion

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Jokerswild
Posts: 115
Joined: Wed Feb 22, 2017 5:58 pm

TSP conversion

Post by Jokerswild »

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

usps2013
Posts: 137
Joined: Tue Jul 14, 2015 9:52 pm

Re: TSP conversion

Post by usps2013 »

The public funds are an approximation.
-An economic forecaster is like a blind javelin thrower; although rarely accurate, he keeps your full attention.

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mjedlin66
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Re: TSP conversion

Post by mjedlin66 »

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"

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Jokerswild
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Joined: Wed Feb 22, 2017 5:58 pm

Re: TSP conversion

Post by Jokerswild »

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

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Five-O
Posts: 19
Joined: Mon Dec 12, 2016 8:11 pm

Re: TSP conversion

Post by Five-O »

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.

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Fund Prices2024-03-28

FundPriceDayYTD
G $18.15 0.05% 1.05%
F $19.08 -0.06% -0.74%
C $82.21 0.11% 10.55%
S $82.43 0.30% 6.92%
I $42.57 -0.24% 5.95%
L2065 $16.38 0.02% 8.37%
L2060 $16.39 0.02% 8.38%
L2055 $16.39 0.02% 8.38%
L2050 $32.73 0.01% 6.95%
L2045 $14.91 0.02% 6.58%
L2040 $54.38 0.02% 6.22%
L2035 $14.34 0.02% 5.79%
L2030 $47.67 0.02% 5.38%
L2025 $13.15 0.03% 3.43%
Linc $25.61 0.03% 2.82%

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