{"id":392317,"date":"2026-01-07T03:33:08","date_gmt":"2026-01-07T03:33:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/392317\/"},"modified":"2026-01-07T03:33:08","modified_gmt":"2026-01-07T03:33:08","slug":"i-fund-leads-in-third-straight-strong-year-for-tsp-stock-funds","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/392317\/","title":{"rendered":"I Fund Leads in Third Straight Strong Year for TSP Stock Funds"},"content":{"rendered":"

\t\t\"\"
\n\t\t\t\t\tThe international stock I fund posted a stellar 32.45 percent gain on the year, tracking the all-world ex USA ex China ex Hong Kong Index (MSCI ACWI IMI ex USA ex China ex Hong Kong Index).\t\t\t\t\t Image: Dennis Diatel\/Shutterstock.com
\n\t\t\t\tBy: FEDweek Staff<\/a><\/p>\n

The three stock-based TSP core funds posted their third straight strong year in 2025, led by a 32.45 percent gain in the international stock I fund, followed by a 17.85 percent gain in the large company stock C fund and an 11.38 percent gain in the small company S fund.<\/p>\n

The bond F fund finished up 7.21 percent for the year (it\u2019s best since 2020) and the government securities G fund up 4.44 percent (in December, the five funds in that order posted returns of 3.04, 0.06, -0.53, -0.26 and -.35 percent).<\/p>\n

Globally, on the year markets benefited from easing inflation, solid earnings expectations and a view that central banks are winding down tightening cycles. The I Fund\u2019s strong run was driven by in part by higher growth overseas and currency effects boosting dollar-based returns. US large caps (C Fund) had solid but more moderate gains with already high-valuations pushing higher, while US small caps (S Fund) had another positive year but were held back more by high interest rates and tougher financing conditions.<\/p>\n

The lifecycle\u00a0L funds posted gains in December ranging from 0.51 to 1.01 percent, bringing their 2025 total returns to: Income, 9.36; 2030, 15.17; 2035, 16.27; 2040, 17.31; 2045, 18.2; 2050, 19.07; 2055, 21.87; 2060, 2065, 21.88; 2070, 21.89. (Note: No full-year figure was calculated for the 2075 fund, which started in mid-year; its investment mix mirrors that of the 2065 fund.)<\/p>\n

TSP Individual Fund Returns \u2014 2025 Year-End Overview<\/p>\n

Fund
\nDecember 2025 Change
\n2025 YTD Return<\/p>\n

G Fund
\n-0.35%
\n+4.44%<\/p>\n

F Fund
\n-0.26%
\n+7.21%<\/p>\n

C Fund
\n+0.06%
\n+17.85%<\/p>\n

S Fund
\n-0.53%
\n+11.38%<\/p>\n

I Fund
\n+3.04%
\n+32.45%<\/p>\n

Despite mixed results in December, all five individual TSP funds finished 2025 with positive YTD returns. The F and G Funds posted their best combined performance in several years, reflecting a more favorable bond environment.<\/p>\n

Lifecycle (L) Funds \u2014 2025 Year-to-Date Returns<\/p>\n

Funds with later target dates hold higher stock allocations and experienced stronger gains in 2025.<\/p>\n

L Fund
\n2025 YTD Return<\/p>\n

L Income
\n+9.36%<\/p>\n

L 2030
\n+15.17%<\/p>\n

L 2035
\n+16.27%<\/p>\n

L 2040
\n+17.31%<\/p>\n

L 2045
\n+18.20%<\/p>\n

L 2050
\n+19.07%<\/p>\n

L 2055
\n+21.87%<\/p>\n

L 2060
\n+21.88%<\/p>\n

L 2065
\n+21.88%<\/p>\n

L 2070
\n+21.89%<\/p>\n

Growth-oriented Lifecycle funds (L 2055 and beyond) led 2025 with returns approaching 22 percent. Meanwhile, the L Income fund delivered a very nice +9.36% practically risk-free.<\/p>\n

As of the end of November, of the $1.071 trillion on investment with the TSP, the C fund held 35.3 percent, the L funds collectively 26.1 percent, the G fund 22.7 percent, the S fund 8.9 percent, the I fund 4.7 percent, and the F fund 2.2 percent. Counting their shares in the L funds, the C, G, S, I and F funds held 44.5, 29.7, 11.2, 10.8 and 3.7 percent, respectively. Continued concentration of assets in the C Fund and the L Funds shows confidence remains in equities even after three consecutive strong years following 2022, which saw the S&P decline around 20 percent.<\/p>\n

Money invested through the mutual fund window into outside funds accounted for 0.1 percent. 2025 again rewarded diversified exposure, disciplined allocation and staying invested through market fluctuations (e.g. if you stayed the course and did nothing before or after Trump\u2019s liberation day tariff announcement, or during November\u2019s pullback \u2013 you came out ahead).<\/p>\n

Pay Raise Coming, but Not Immediately; Some Benefit Changes to Result<\/a><\/p>\n

For TSP, 2026 Brings Higher Investment Limits, In-Plan Roth Conversion Option<\/a><\/p>\n

OPM Issues Final Regs on Looser Recruitment, Relocation Incentives<\/a><\/p>\n

2026 Pay Raise Guidance Issued; Pay Tables Posted GS, LEO<\/a><\/p>\n

VA Announces Reorganization of Health Branch, Says Cutting Jobs Isn\u2019t the Goal<\/a><\/p>\n

OPM Previews Plans to Seek Forced Ratings Distribution for All Federal Employees<\/a><\/p>\n

See also,<\/p>\n

OPM Addresses Status of Telework-Eligible Employees during Severe Weather or Other Emergencies<\/a><\/p>\n

TSP Posts Year-End Transaction Schedule<\/a><\/p>\n

How Withdrawal Order Affects Taxes for Federal Retirees<\/a><\/p>\n

Eight Key Topics to Cover Before Your Federal Retirement<\/a><\/p>\n

What Retirement Date Maximizes My Federal Benefits?<\/a><\/p>\n

The Best Ages for Federal Employees to Retire<\/a><\/p>\n

FERS Retirement Guide 2025 \u2013 Your Roadmap to Maximizing Federal Retirement Benefits<\/a><\/p><\/p>\n","protected":false},"excerpt":{"rendered":"The international stock I fund posted a stellar 32.45 percent gain on the year, tracking the all-world ex…\n","protected":false},"author":2,"featured_media":392318,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":{"0":"post-392317","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-personal-finance","10":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/392317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=392317"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/392317\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/392318"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=392317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=392317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=392317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}