The Thrift Savings Plan’s S Fund — or small cap stock index investment fund — is one of the lesser known funds. Tom Trabucco, director of external affairs at the Federal Retirement Thrift Investment Board, told In Depth with Francis Rose the S Fund was a “second tier” fund that did not become available until 2001.
When the TSP was originally created, only the G Fund was offered. Later the F and C funds were added in the late 1980s. The C Fund invests a stock index that replicates the S&P 500, which covers 75 percent of the value of stocks in the U.S. equity markets, Trabucco said.
“It does leave 25 percent on the table untouched, and those are the 25 percent where there’s a lot of activity. Those are small and medium-sized companies,” Trabucco said.