Emerging markets in the I-fund?

[tsptalk]

TSP considering emerging markets as part of the I-Fund (http://www.tsptalk.com/images/2009-i-fund-benchmark-evaluation.pdf)

"The Federal Retirement Thrift Investment Board (FRTIB) requested that Ennis Knupp & Associates (EnnisKnupp) evaluate the appropriateness of changing the benchmark of the International Stock Index Investment Fund (I Fund) offered within the Thrift Savings Plan (TSP). The I Fund’s existing benchmark is the MSCI EAFE Index, which provides exposure to 21 developed non-U.S. equity markets across Europe, Australasia, and the Far East. In this report, we review the appropriateness of changing the I Fund’s benchmark to the MSCI All-Country World (ACW) ex-U.S. Index. The MSCI ACW ex-U.S. Index provides broader and more diversified coverage of the non-U.S. equity markets as it includes exposure to the emerging markets and Canada, in addition to the countries that are in the MSCI EAFE Index."

More (http://www.tsptalk.com/images/2009-i-fund-benchmark-evaluation.pdf)

[alevin]

We can only hope......

[Frixxxx]

Three things come to mind:

1. Splitting the I Fund into other funds causes a little more confusion for a regular investor. It would almost be a full economic class to make other investors understand.

2. The splits don't really get an investor "in" the emerging market. It only diversifies the stronger established markets.

3. IFT limits will crush someone if foreign investments tank. Wait, that's every investment.

My $0.02

Frixxxx

[JTH]

Hey, I'll take that over just the I-Fund. For one thing it consistenly outperforms the I-Fund in both the good & bad years. For another it would give us some exposer to China, India, ect...

8660

[Frixxxx]

Hey, I'll take that over just the I-Fund. For one thing it consistenly outperforms the I-Fund in both the good & bad years. For another it would give us some exposer to China, India, ect...

I was looking for more JTH, This one seems too limiting.....
Not really an ETF. Drop UK and Australia and give me more Hang Seng, then maybe I'd look at this..... I just see more of the same with a different wrapper....This kind of exposure is not even enticing.... The outperforms aren't that much anyway....:nuts:

[JTH]

I was looking for more JTH, This one seems too limiting.....
Not really an ETF. Drop UK and Australia and give me more Hang Seng, then maybe I'd look at this..... I just see more of the same with a different wrapper....This kind of exposure is not even enticing.... The outperforms aren't that much anyway....:nuts:

I'll give you that, the outperforms are not that big, but if it has to be a choice between this and the I-Fund, I'll take this. I would rather have the emerging markets as a "seperate" fund, and while they are at it, add a diversified precious metals fund, maybe even a commodities fund too.

[Bullitt]

I like the idea.

[James48843]

we COULD lobby to keep the current "I" fund, and also adopt a new expanded markets fund.

Instead of "G, F, C, S, I",

it COULD become "G',F, C, S, I, and E".


That would get my vote, and a small portion of my account immediately.

[Boghie]

we COULD lobby to keep the current "I" fund, and also adopt a new expanded markets fund.

Instead of "G, F, C, S, I",

it COULD become "G',F, C, S, I, and E".


That would get my vote, and a small portion of my account immediately.

James, we agree!!! :p

I think Emerging Markets differ from Established Foreign Markets. Both have their role in your allocation. I would like to own both. I do not want someone figuring out the allocation for me, however...