I think others might have posted similar data in the past. If so, consider this an update...
I recently rebalanced my TSP account, and in doing so, I allocated dollars between the C and S Funds to collectively represent the total US market capitalization and in the correct proportion between large-, mid- and small-cap companies. I did this by allocating $1 of S Fund to every $6.06 of C Fund. Here's why:
The C Fund is based on the S&P 500 Index (large-cap). The S Fund is based on the Dow Jones U.S. Completion Total Stock Market Index (mid- and small-cap). In trillions of dollars (T), the market capitalizations for these indices are $44.35T and $7.32T, respectively. The ratio of these numbers is 6.06.
The capitalization data for the indices are at the following links:
https://www.spglobal.com/spdji/en/indic ... -500/#data
https://www.spglobal.com/spdji/en/indic ... ndex/#data
How to represent total U.S. market capitalization in TSP
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How to represent total U.S. market capitalization in TSP
Last edited by Blue_Radio on Mon May 20, 2024 6:38 pm, edited 1 time in total.
Re: How to represent total U.S. market capitalization in TSP
Hey, BR. Your numbers seem pretty good.
Various sources, from Dave Ramsey to Motley Fool, have advised a heavier allocation towards C if one is trying to reflect the US market. As I recall, Ramsey's advice is something like 60/40 C and S for an ideal long-term high-risk growth portfolio using the TSP Funds only.
Various sources, from Dave Ramsey to Motley Fool, have advised a heavier allocation towards C if one is trying to reflect the US market. As I recall, Ramsey's advice is something like 60/40 C and S for an ideal long-term high-risk growth portfolio using the TSP Funds only.
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Re: How to represent total U.S. market capitalization in TSP
Thanks! I was just passing along info I though others might find useful.
I agree there are other valid allocations between the C and S Funds, depending on one's objective. Willing to take more risk for growth? Yup -- dial-up your S Fund allocation.
My objective was to mimic a total market ETF, such as Vanguard’s Total Stock Market ETF (ticker VTI) for use in a classic Boglehead three-fund portfolio. Based on the market capitalization argument above, this means a mix of 85.8% C Fund and 14.2% S Fund = VTI... because 85.8/14.2 is nearly equal to 6.06.
I agree there are other valid allocations between the C and S Funds, depending on one's objective. Willing to take more risk for growth? Yup -- dial-up your S Fund allocation.
My objective was to mimic a total market ETF, such as Vanguard’s Total Stock Market ETF (ticker VTI) for use in a classic Boglehead three-fund portfolio. Based on the market capitalization argument above, this means a mix of 85.8% C Fund and 14.2% S Fund = VTI... because 85.8/14.2 is nearly equal to 6.06.
Fund Prices2024-11-12
Fund | Price | Day | YTD |
G | $18.65 | 0.05% | 3.80% |
F | $19.52 | -0.71% | 1.55% |
C | $94.36 | -0.19% | 26.88% |
S | $94.25 | 0.53% | 22.25% |
I | $42.75 | -1.60% | 6.40% |
L2070 | $10.63 | -0.58% | 6.31% |
L2065 | $17.94 | -0.58% | 18.67% |
L2060 | $17.94 | -0.58% | 18.67% |
L2055 | $17.95 | -0.58% | 18.68% |
L2050 | $35.47 | -0.52% | 15.88% |
L2045 | $16.11 | -0.49% | 15.12% |
L2040 | $58.57 | -0.46% | 14.38% |
L2035 | $15.39 | -0.42% | 13.52% |
L2030 | $50.96 | -0.37% | 12.66% |
L2025 | $13.79 | -0.19% | 8.54% |
Linc | $26.78 | -0.16% | 7.51% |