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Thread: The I-fund Price 5/01/15

  1. #1

    Default The I-fund Price 5/01/15

    I'm getting a lot of inquiries about the price given to the I-fund yesterday. A few things to keep in mind:

    1) The EAFE Index that the I-fund tracks closes before noon ET.

    2) The EFA price at the bottom of tsptalk.com is NOT the I-fund. It is an ETF traded on the U.S. market that is supposed to track the EAFE Index and so we use it for some intraday guidance, but since it is traded like a stock, the price is where the buyers and sellers agree on a price. So while the EAFE is closed, traders are still speculating on a price.

    3) The TSP has to come up with a price. This where it gets tricky because they have to decide whether to use the actual EAFE number, or to add / subtract "fair value" based on what's happen in other markets after the EAFE has closed.

    The I-fund was given a loss of 0.27% on Friday.

    The EFA had a gain of 1.11%.

    The EAFE Index actually closed down 0.28% on Friday.



    https://www.msci.com/end-of-day-data-search


    The EAFE and the TSP will likely adjust on Monday, you'll see.

    More on "fair value"... What is a "FV" and how does it work?
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.


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  3. #2

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    Default Re: The I-fund Price 5/01/15

    Quote Originally Posted by tsptalk View Post
    I'm getting a lot of inquiries about the price given to the I-fund yesterday. A few things to keep in mind:

    1) The EAFE Index that the I-fund tracks closes before noon ET.

    2) The EFA price at the bottom of tsptalk.com is NOT the I-fund. It is an ETF traded on the U.S. market that is supposed to track the EAFE Index and so we use it for some intraday guidance, but since it is traded like a stock, the price is where the buyers and sellers agree on a price. So while the EAFE is closed, traders are still speculating on a price.

    3) The TSP has to come up with a price. This where it gets tricky because they have to decide whether to use the actual EAFE number, or to add / subtract "fair value" based on what's happen in other markets after the EAFE has closed.

    The I-fund was given a loss of 0.27% on Friday.

    The EFA had a gain of 1.11%.

    The EAFE Index actually closed down 0.28% on Friday.



    https://www.msci.com/end-of-day-data-search


    The EAFE and the TSP will likely adjust on Monday, you'll see.

    More on "fair value"... What is a "FV" and how does it work?
    Thanks much for that explanation Tom. The I Fund is really confusing -- and having a 1.38% difference in performance on one day is doubly so.

    I'm assuming thew Monday adjustment will be to the plus side. Is that what you'd expect?

  4.  
  5. #3

    Default Re: The I-fund Price 5/01/15

    Quote Originally Posted by Khotso View Post
    I'm assuming thew Monday adjustment will be to the plus side. Is that what you'd expect?
    I'd assume so. They have a lot to make up, and they usually do it quickly.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.

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  7. #4

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    Default screwed

    FV got us again today. EFA closed at +3.28% yet the I-Fund only closed at +1.97%...no sir, I would not like another!
    100 G COB 11/3/23

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  9. #5

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    Default Re: screwed

    Excellent reason why I no longer use the "I"nsane fund...
    Rules:
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  11. #6

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    Default Re: screwed

    I fund actually is about 1.4% below where it should be - as they blew another .4% earlier in the week.

    I am in the I fund now- hope they catch up Monday!

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  13. #7

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    Default Re: screwed

    Another divergent day on the "I" fund.

    EFA was up 1.22%, yet the EAFE was only up 0.82%.

    And the "I" fund value only rose about 0.81%.

    Come on baby- let's make it up tomorrow!

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  15. #8

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    Default Re: screwed

    I hope it gets fixed James. I'm also crossing my fingers and toes for a few more up days in this rally (I hope it isn't just a DCB). Reading the news tonight reminds me why they call it the "wall of worry". I knew I should have listened to my gut and bought in on Friday. Oh well...time for more white water investing. Best of luck to you in your investing.

    FS
    FogSailing
    Try to learn something about everything and everything about something.

  16.  
  17. #9

    Default Re: screwed

    Quote Originally Posted by James48843 View Post
    Another divergent day on the "I" fund.

    EFA was up 1.22%, yet the EAFE was only up 0.82%.

    And the "I" fund value only rose about 0.81%.

    Come on baby- let's make it up tomorrow!
    They didn't seem to take the afternoon weakness in the dollar into consideration...

    Monday's dollar...

    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.


  18.  
  19. #10

    Default Re: screwed

    Quote Originally Posted by James48843 View Post
    Another divergent day on the "I" fund.

    EFA was up 1.22%, yet the EAFE was only up 0.82%.

    And the "I" fund value only rose about 0.81%.

    Come on baby- let's make it up tomorrow!
    At noon time, it was around .89%. According to Tom, i fund closes at noon time for TSP Purposes. Not the afternoon close.
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  21. #11

    Default Re: screwed

    The Asian markets close very early and the European markets close at about 11:30 AM ET (lets say noon), but the I-fund is in reality open until the TSP says it's closed. Sometimes they take the late action into consideration, and sometimes they don't. That's the confusing part.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.

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  23. #12

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    Default Re: The I-fund Price 5/01/15

    After doing a little research not long ago, I believe the TSP uses a fair valuation for the I fund that is based upon the (projected?) current trading price of the EAFE at (or near?) the time the TSP posts its daily prices.

    The EAFE begins trading at or after our markets close. So today, it seems that there was a pull-back of sorts. I don't believe that they ever 'owe' us anything with regard to fair valuation.

    Best paper so far I've read regarding fair valuation and our funds:

    https://www.msci.com/resources/pdfs/...etin_FINAL.pdf
    [COLOR=#0000ff][FONT=comic sans ms][I]"In the land of idiots, the moron is King."--Unknown[/I][/FONT][/COLOR]

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