Share Price Change

[oshan]

My question is what am I missing? The C fund was up 4 points or so Monday 22. The share price went up 13 cents. Tuesday C fund was up almost 10 points and the share price only went up 11 cents. Can someone explain the math to me. Thanks

 

[oshan]

Date was wrong. Should have been Monday 25.

 

[Show-me]

I'm not sure what the question is.

 

[Show-me]

The relationship between "points" and "share price" is based on the percent of rise or fall.

 

[mayday]

The C fund goes up .01 cents for every point the S&P 500 advances The S fund goes up .03 cents for every point the Russel 2K advances apprx. Mayday

 

[Show-me]

It doesn't work that way. The S&P number is a point value. The higher or lower the S&P goes it changes the value of the points. Use a percent change calculator.

Ding ding! Never mind I just figured out the correlation. The C fund is NOT the S&P 500, it tracks the S&P very closely but not always the exact same.

The C fund goes up .01 cents for every point the S&P 500 advances The S fund goes up .03 cents for every point the Russel 2K advances apprx. Mayday

 

[oshan]

I appreciate the attempt to answer my question and there might be something to the statement that the fund only tracks the S&P and might not be exact. This is still pretty vague. I would like to have something I can sink my teeth into and say this is what it is. Thanks for comments.

 

[EW_ret]

I appreciate the attempt to answer my question and there might be something to the statement that the fund only tracks the S&P and might not be exact. This is still pretty vague. I would like to have something I can sink my teeth into and say this is what it is. Thanks for comments.

This is the math:

[(S&P500 Current Day Point Gain)/(S&P500 Prior Day Closing Value)] X 100 = Current Day S&P500 Gain (%)

(Prior Day C Fund Price ($)) X 1+[(Current Day S&P500 Gain (%))/100] = Current Day C Fund Price ($)

Example for 9/26/2006 closing prices:
S&P500 9/25 1326.37, 9/26 1336.34
C Fund 9/25 $14.60, 9/26 $14.71

SPP500 9/26 Gain = (9.97/1326.37)X100= 0.75168%
C Fund 9/26 Price = $14.60X(1+0.0075168)= $14.7097 or 14.71

Does this answer your question?

 

[oshan]

Thanks for the formula. I will try this and see.

 

[fabijo]

Just remember that whatever price you see on the tsp.gov site for the C,S,I,F,G is a rounded number. When you see a price of 20.15, it could mean 20.14987 or it could mean 20.15334. So it could take a while to figure out that data.

It can probably be done if you put all of the S&P 500 prices into a spreadsheet for the past 3 years, then next to the top row, put in the C fund price from 3 years ago. Use another cell to calculate the % change of the S&P 500 from one day to the next. Copy that formula all the way down. Then make a formula under the C fund column to apply the percentage change of the day to the previous C fund price. Copy that formula all the way down the column.

Compare the last calculated C fund price to the current one. If it is off, adjust the earliest C fund in the right direction a little.

Example: The spreadsheet calculated the C fund to be 14.99, instead of 14.74. You'd have to keep adjusting the C fund price from 3 years ago by minute decimal amounts until you can get today's calculated C fund price to match the actual C fund price.

Of course this does not take into account whatever small percentage they are collecting as operating costs.