We’re staying in the S Fund (“Extended Market”), since it appears to have the best prospects, though it is a bit overbought. Stock funds, such as the S Fund, C Fund (“S&P 500″), and L2040 (“Lifecycle 2040″), have high expected returns right now. On the other hand, though expected returns for the non-stock funds, like G Fund (“Money Market”), L2010 (“Lifecycle 2010″), and F Fund (“Total Bond”), are positive, they are on the low end of the scale. The I Fund (“Europe Pacific”) is a bit risky, but it might still bounce back. (follow: facebook, twitter, identi.ca, rss.)

Lifecycle fund equivalence

Each Lifecycle fund invests in a mixture of TSP Individual fund. The mix of Individual funds held by each Lifecycle fund changes with time. The only exception is Lifecycle Income — the mix of Individual funds that it holds is not supposed to change. As each fund’s target date approaches, the mix of funds that it holds is supposed to become more and more like the mix of funds that Lifecycle Income is holding.

Below is an estimate of the current holdings of each Lifecycle fund. Note that this is only an estimate and might not be completely accurate.

L2040: G 10 F 10 C 40 S 17 I 23
L2030: G 21 F 9 C 36 S 14 I 20
L2020: G 34 F 8 C 31 S 10 I 17
L2010: G 71 F 7 C 13 S 3 I 6
LIncome: G 74 F 6 C 12 S 3 I 5

Related posts:

1. Holding on to small caps
2. Markets unstable; stocks could still rise
3. Trying small-cap stocks agains
4. Small cap stocks remain attractive
5. Still in small cap stocks

One Response to “Small caps in the lead”

1. pingback from Holding on to small caps | Peaceful Gains Newsletters
   May 16th, 2010 at 7:15 pm

   [...] updates on this topic.Despite the recent market shakeup, the S Fund (“Extended Market”) still looks like the place to be. The C Fund (“S&P 500″), on the other hand, though it could have a decent return, [...]

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