Several years ago the TSP had expense ratios that would shame even Vanguard. And despite these expense ratios rising a bit the last few years, they still beat Vanguard in all but the S&P 500 Index fund. Here's the expense ratios as provided in my year-end statement. For comparison, the TSP website claims an average expense ratio of 0.040 % for CY 2018, up from 0.033% from CY 2017. The table below lists the expense ratio for each fund. I'm adding the most comparable Vanguard funds for comparison (see below table for explanation of funds used).
| Fund | Expense Ratio | Vanguard Comparison |
|---|---|---|
| G Fund | 0.040% | 0.200% (VSGBX) |
| F Fund | 0.041% | 0.050% (VBTLX) |
| C Fund | 0.041% | 0.040% (VFIAX) |
| S Fund | 0.040% | 0.080% (VEXAX) |
| I Fund | 0.041% | 0.100% (VTWAX) |
| L 2050 | 0.040% | 0.150% (VFIFX) |
| L 2040 | 0.040% | 0.140% (VFORX) |
| L 2030 | 0.040% | 0.140% (VTHRX) |
| L 2020 | 0.040% | 0.130% (VTWNX) |
| L Income | 0.040% | 0.130% (VTXVX) |
- G Fund | There is no equivalent to the G Fund in the private sector. I used VSGBX which I believe to be the closest that they have in the private sector. Still not the same thing. Consider it a place holder entry.
- F Fund | I used Vanguard's Total bond market fund. Realistically, it's more diverse than the TSP variation, but it's the closest that I could find with my limited knowledge.
- C Fund | The C Fund tries to track the S&P 500. VFIAX was an easy match. And Vanguard pulls ahead (by a nose) this time.
- S Fund | The S Fund is equivalent to an extended market index fund and, when combined with the C Fund in the correct ratio can be used to approximate the total US stock market (currently 82:18, or 4:1 for those who want to keep it simple).
- I Fund | The TSP's only international stock fund. VTWAX is not a direct match, but it's the closest I can find in a one-fund solution from Vanguard's options. Vanguard has more emerging market stocks in their fund whereas the TSP's is more conservative.
- Lifecycle Funds | The L 2020-2050 were matched to their Vanguard equivalent. For the L Income fund, I used the Vanguard 2015 target date fund, which is their most conservative. It should be noted that since these funds are merely "containers" holding several underlying funds, they are not a 100% direct match. They are merely close equivalents.
Submitted February 20, 2019 at 10:04PM by jaykresge https://ift.tt/2GBjngu
