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 Prices2024-03-28
Fund | Price | Day | YTD |
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% |