IFT and effectivity

[dpmp]

A week ago, the market went up 20 some points. Seeing that the market was going up, I decided to make an ITF (before 11:00) to move the remaining money from G to C.

The next day, I went to my TSP account and saw that the money was transferred to C. The part I did not understand was that the account balance was computer with the gain of C in the previous day.

Do you notice this?

What if it is a losing day, and you make and IFT to bail out of stock fund before 11:00 on the same day, how would TSP compute the balance?

 

[Frixxxx]

A week ago, the market went up 20 some points. Seeing that the market was going up, I decided to make an ITF (before 11:00) to move the remaining money from G to C.

The next day, I went to my TSP account and saw that the money was transferred to C. The part I did not understand was that the account balance was computer with the gain of C in the previous day.

Do you notice this?

What if it is a losing day, and you make and IFT to bail out of stock fund before 11:00 on the same day, how would TSP compute the balance?

I would need to see the day you are talking about... You say "the market went up 20 points" was that the S&P?
I would also balance that against what you said - "the account balance showed the gain from the previous day"

I can't speak to every account in TSP and the way you view it, but you can't get C Fund increase if you sell your G Fund at the end of the day. You can only buy at the C Fund price.

Example:
Account 100% G - 20 March =$10,000 means you have 10000/14.6762=681.3753 shares
If you sold at COB you have $10,000 to buy shares in C Fund.
Closing price on 20 March for C Fund was 27.8977
10000/27.8977=358.4615 shares

You might have cross-threaded values in your calculation. But at the end of the day what you sell gives you the amount you use to buy.

 

[jpcavin]

You said you moved "the rest" from G to C" so perhaps your gain was from the "other" portion that was already invested?
If you bail to G on a losing day, that just meant you bought G on a losing day. You still absorb the losses from the losing equities that you were invested in prior to getting out.

 

[dpmp]

You said you moved "the rest" from G to C" so perhaps your gain was from the "other" portion that was already invested?
If you bail to G on a losing day, that just meant you bought G on a losing day. You still absorb the losses from the losing equities that you were invested in prior to getting out.

That's what I thought. But TSP account balance showed my fund was on C on the day I made the IFT to C, and computed the gain as if it was in C for that day. That's what got me confused.

 

[kave]

This I do know, just because the market moves in a direction that doesn't always translate into the market tracking TSP fund moving in the same corelation. For example, on a particular day last week my TSP was 100% S Fund. The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index. Just because the S Fund tracks the Dow, it's not a 100% coorelation to the Dow. On a particular day last week the Dow was down not much let's say, 25 pts. But the S-fund itself was up just a little. It wasn't much of a gain but it wasn't a loss either. I'm not sure if this is what happened in your case or not.

The best way to to know what your TSP did at the end of the day is to check the fund your TSP is invested in. I look at the market everyday but just because the DOW had a 1.5% gain that day, it doesn't necessarily mean my S Fund had a 1.5% gain.

 

[RealMoneyIssues]

The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index. Just because the S Fund tracks the Dow, it's not a 100% coorelation to the Dow.

Just to be clear,when you say DOW, most people think of DJIA.

The S Fund, IMHO, tracks fairly close to the index it claims to mirror, as does the C fund to the S&P 500 index.


Sent from my (Daughter forcing me to use an) iPhone using Tapatalk...

 

[kave]

At yesterday's close:

Dow Jones Industrial Average (^DJI)

17,875.42

5.43(0.03%) Apr 7


Dow Jones U.S. Completion Total (^DWCPF)

1,116.08

5.76(0.51%) Apr 7

The DJIA -.03%
The DWCPF or our S-Fund -.51%

A prime example of what I posted here.

This I do know, just because the market moves in a direction that doesn't always translate into the market tracking TSP fund moving in the same corelation. For example, on a particular day last week my TSP was 100% S Fund. The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index. Just because the S Fund tracks the Dow, it's not a 100% coorelation to the Dow. On a particular day last week the Dow was down not much let's say, 25 pts. But the S-fund itself was up just a little. It wasn't much of a gain but it wasn't a loss either. I'm not sure if this is what happened in your case or not.



The best way to to know what your TSP did at the end of the day is to check the fund your TSP is invested in. I look at the market everyday but just because the DOW had a 1.5% gain that day, it doesn't necessarily mean my S Fund had a 1.5% gain.

 

[userque]

The S-Fund doesn't track the DJIA.

DWCPF was down 0.51%

TSPTalk reports the S-Fund as being down 0.52%

Seems to check out ok to me.

?

At yesterday's close:
Dow Jones Industrial Average (^DJI)

-DJI Watchlist

17,875.42

5.43(0.03%) Apr 7


Dow Jones U.S. Completion Total (^DWCPF)

-DJI Watchlist

1,116.08

5.76(0.51%) Apr 7
A prime example of what I posted here.

 

[Cactus]

But those two aren't the same thing. Why would you expect them to be the same? ^DJI is only something like 30 stocks (large caps I think) while ^DWCPF tracks 4500 stocks (midcap & smallcap). I think what confuses people is when the numbers for ^DWCPF and our S Fund are different.

 

[kave]

userque & cactus thank you!

 

[userque]

userque & cactus thank you!

Anytime Kave:smile: