Valleymd blog (the international question)

valleymd

New member
I have been investing in the TSP since November 2007. Going into my federal career I researched a lot of financial planning. Time and time again almost everyone said that it's important to have at least some of your account invested in international stocks. Well, fast forward 17 years, and about 10-15% of my account has been underperforming in the I-Fund. It's taken me a long time to get to the point of considering cutting them out (mainly because of this year's 20% difference between C and I) and just putting that money in the C-Fund. Is international ever going to catch up on an annual basis to the huge outperformance of the C or S funds?
 
I have been investing in the TSP since November 2007. Going into my federal career I researched a lot of financial planning. Time and time again almost everyone said that it's important to have at least some of your account invested in international stocks. Well, fast forward 17 years, and about 10-15% of my account has been underperforming in the I-Fund. It's taken me a long time to get to the point of considering cutting them out (mainly because of this year's 20% difference between C and I) and just putting that money in the C-Fund. Is international ever going to catch up on an annual basis to the huge outperformance of the C or S funds?
Members have talked about the "I" fund was do a breakout for many years. It just doesn't outperform "C" or "S". Last year wasn't bad with the "I" fund closing at 18.38%. This year currently sitting at 5.61%. Although the "L" funds do have a percentage invested in the "I" fund. The choice is yours to make. Investing is a long game. Make a change for a little bit and see if it works out. Good luck.
 
Hi Valleymd!

The I-fund had some big years, but only once did it meaningfully outperform the C-fund, 2006, when it was up 26% vs. the C-fund's +16% gain that year.

The I-fund started in 2002 and unfortunately it has been the same old story so it seems to be clear cut that opting for the US stocks is a better option over the longer term.

However, for short-term trading, if you can recognize when the dollar is in a meaningful downtrend, you can catch some good months for the I-fund.
 
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