TSP I Fund

The TSP I Fund is an investment option within the Thrift Savings Plan (TSP) that seeks to provide returns that track the performance of international stock markets. The fund primarily invests in large and mid-sized companies in developed countries, with a smaller allocation to emerging markets.

Investing in international stocks can offer diversification benefits, as these companies may not be influenced by the same economic and geopolitical factors as U.S.-based companies. The TSP I Fund invests in companies located in countries such as Japan, the United Kingdom, Germany, France, Canada, and Australia.

The TSP I Fund follows the MSCI EAFE (Europe, Australasia, Far East) Index, which is a benchmark that tracks the performance of stocks in developed countries outside of North America. As of April 2023, the top holdings in the TSP I Fund were Nestle SA, Tencent Holdings, and Samsung Electronics.

While the TSP I Fund can offer diversification benefits, it is important to note that investing in international stocks also carries additional risks. Factors such as changes in exchange rates, political instability, and differences in accounting and disclosure standards can impact the performance of the fund.

Investors should also consider the fees associated with the TSP I Fund. As with all funds within the TSP, the I Fund charges a very low expense ratio of just 0.04%. This is significantly lower than the fees charged by many actively managed mutual funds and exchange-traded funds.

Investors can allocate a portion of their TSP contributions to the I Fund, based on their risk tolerance and investment objectives. It is important to regularly review and rebalance one's TSP portfolio, including the I Fund, to ensure that it remains aligned with one's goals.

In conclusion, the TSP I Fund can offer exposure to international stocks and provide diversification benefits to investors. However, it is important to be aware of the additional risks associated with investing in international markets and to regularly monitor one's TSP portfolio to ensure that it remains aligned with one's goals.