In July 2025, the TSP reported varied performance across its funds, with 14 of 16 funds posting gains, though most grew by less than 1% compared to June. The S Fund, tracking small- and mid-size businesses, led with a 2.53% gain, while the C Fund, mirroring the S&P 500, rose 2.24%. These were the only funds with month-over-month increases exceeding 1%. Year-to-date, the S Fund is up 4.69%, and the C Fund has gained 8.56%.
The I Fund, focused on international stocks, declined by 1.52% in July, despite a strong year-to-date return of 16.89%. This drop was attributed to a stronger U.S. dollar, which reduced the value of foreign earnings, alongside weak economic data from Europe and Japan, global political uncertainties, and profit-taking after a robust 2025. The F Fund, tracking the Bloomberg U.S. Aggregate Bond Index, also fell by 0.25% in July, impacted by rising U.S. 10-year Treasury yields amid concerns over persistent inflation and delayed Federal Reserve rate cuts. Its year-to-date return stands at 3.76%.
The G Fund, composed of government-backed securities, grew at its mandated rate of 0.37%, with a year-to-date increase of 2.60%. All lifecycle (L) funds ended July in positive territory, with gains ranging from 0.50% for the L Income Fund to 0.95% for the L 2055, L 2060, L 2065, L 2070, and the newly launched L 2075. Year-to-date, these funds have risen between 5.07% (L Income) and 10.94% (L 2070).
G Fund:
0.37% July
2.60% YTD
4.40% 12 Month
F Fund:
-0.25% July
3.76% YTD
3.39% 12 Month
C Fund:
2.24% July
8.56% YTD
16.28% 12 Month
S Fund:
2.53% July
4.69% YTD
11.58% 12 Month
I Fund
-1.52% July
16.89% YTD
11.94% 12 Month
The TSP’s total assets surpassed $1 trillion for the first time, with the C Fund’s share price exceeding $100. Despite July’s mixed results, the C Fund’s heavy weighting in tech giants like Microsoft, Nvidia, and Alphabet (collectively ~30% of the S&P 500) drove its performance, while the S Fund’s broader distribution across smaller companies provided stability.
Check your allocations regularly to make sure you’re maximizing the performance of your TSP. Need help? A Federal Retirement Consultant (FRC®)can give you a complimentary analysis and tailor a plan to meet your retirement goals.
