Even lower than Vanguard.
However, one of the downsides of the TSP is that there are only five choices of funds.
- The “C Fund” follows the S&P 500.
- The “S Fund” follows small cap companies.
- The “F Fund” follows a broad bond index.
- The “I Fund” follows international stocks.
- The “G Fund” holds unique treasury securities.
Four out of five of these are perfect. The I Fund, however, leaves a lot to be desired. Rather than following the entire international stock market (as, say, the Vanguard Total International Stock fund does), it only follows developed countries, and is heavily concentrated in just five of them.
I put together an infographic to explain why TSP investors should think carefully before putting too much money in your I Fund: