The I Fund is a special bargain

**azanon** · 05-18-2004, 07:48 PM

I'm sure many of you guys are aware, we all pay very low, index fund, like rates for all of the TSP funds. I want to say those rates are something like 0.2% management fee (or less).

For the F,C,S,and G fund, that's not particularily special since you can find other no-load fund companies that offer index funds with similar fees. However, to my knowledge (and please correct me if i'm wrong), i'm not aware of any 0.2% management fee fund that's a stock international fund or EAFE index fund with that low a fee. Most international funds management fees are a minimum 1%, and most are 1.5-2% or higher.

If someone knows of an outside, no-load purchasable International Fund with a management fee in the neighborhood of 0.2% or less, please list it.

Azanon

**thinks** · 05-18-2004, 08:17 PM

Very interesting... I've not thought about that angle.

**Mr. Duke** · 05-18-2004, 11:51 PM

Co-workers and I have also been down this street questioning management fees for number of trades versus equally split across all TSP participants....It does appear to be split equally, and the management fees have been difficult if not impossible todistinguish out of the account balances.... I concur management fees are definetely low....better not discuss this much more they will raise their fees!

Congrats on a positive day!

**azanon** · 05-19-2004, 02:25 AM

The management fees are actually published somewhere, I believe at the TSP website- I looked it up once a few months back, and their all in the neighborhood of 0.2%. As i said above, for all the funds except the I, we're not getting any special deal since the G, F, S, and C fund operate like "index" funds, meaning there is no active fund manager attempting to "beat" the market. Thesecurities that compose those funds are done with little forethought, and are simply designed to mimic the indexes.

In the case of the I fund though, I'm just not aware of any low cost index international stock mutual funds out there. That's why I think that one's particularily special, and a good deal.

**rokid** · 05-19-2004, 11:26 AM

Vanguard's Total International Stock Index (VGTSX) tracks the EAFE and has an expense ratio of .36%. Not as low as the TSP I Fund, but not bad.

**Pete1** · 05-19-2004, 01:25 PM

.10 for all of the funds according to the TSP website :^

**Pete1** · 05-19-2004, 02:15 PM

Also note that Vanguard is considered miserly and its index funds set the benchmark for low cost, index fund investing. At .10, all of the TSP funds are a remarkable deal, evenbetter thanVanguard. If only we could get a value fund or an international small fund. International small seemsless likely sinceinternational small index funds are nonexistent outside of DFA funds. Maybe Barclays will follow DFA's lead someday and offer an international small index fund.

**Pete1** · 05-19-2004, 02:18 PM

As a group, TSP talk membersmay want to petition TSP for a value fund since this asset class is widely indexed and offered by many 401K plans.

**azanon** · 05-19-2004, 06:21 PM

Hmm, i'm seeing VGTSX at 0.24% at msn.com, course Vanguard would be more up to date i'm sure. Well, i guess i wasnt aware of that one. Oh well - we still get a bargain with our TSP.

**tsptalk** · 05-19-2004, 06:49 PM

Pete1 wrote:

As a group, TSP talk membersmay want to petition TSP for a value fund since this asset class is widely indexed and offered by many 401K plans.

A separate growth fund would be nice also.

**rokid** · 05-20-2004, 12:52 AM

Actually, my error. VGTSX tracks the EAFE plus Emerging Markets. VDMIX tracks the EAFE. VGTSX has an expense ratio of .36% and VDMIX's expense ratio is .34% as of 10/31/2003.

**azanon** · 05-20-2004, 12:08 PM

Value funds have had their shining moments the past few years. Forced to guess, I'd guess the darling funds of the near future will be growth funds, esp large/mid cap ones, over the next year or two.

If we can just get Iraq somewhat stabilized, and the presidency taken care of, folks will relax and the econony should recover