I read their discussions a couple of weeks ago on this subject. I’m not sure THEY- the FTRIB, actually fully understand the L-Fund concepts and what they are trying to do. Some of what I read was that they decided to change the makeup the makeup in order to put more stocks in the portfolio earlier- hence the 99% stocks to begin with in that L-2060 to be. And more “I”, because they think that foreign stocks ought to have a bigger part.
They are correct that foreign stocks DO play a bigger part now in the world overall. However, the current “I” fund ONLY represents the developed world, and not emerging markets. And I is overweighted in Japan, and has no exposure to mainland China, India, or any number of Asian emerging markets.
Unfortunately, there isn’t a good world-wide fund index yet that adequately reflects the entire world, while also being large enough to represent TSP investors.
I need to work on developing that fund someday....
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