The Thrift Savings Plan (TSP) International Stock Index Investment Fund, or I Fund, offers a potentially high return by investing in the stocks of large companies in developed countries outside the U.S. The goal of the fund is to match the performance of the MCSI EAFI Index, which includes countries in Europe, and the Australasia/Far East. The risk to returns are the decline of company stock value (market risk) and increases to the value of the dollar (currency risk).
The 10-year (2005-2014) annual return is 4.58% and is 4.56% since its inception in May 2001. There is about $33 Billion invested in the fund and it charges 2.9 Basis Points ($0.29 per $1000 balance). The fund is managed by BlackRock Institutional Trust Company.
The countries included in the index are: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, Australia, Hong Kong, Israel, Japan, New Zealand, and Singapore. There are more than 900 companies in the index.
The largest holdings in the I Fund are (as of December 2014):
Royal Dutch Shell Class A (wiki)
Roche Holding Ltd Genussch (wiki)
Commonwealth Bank of Australia (wiki)
HSBC Holdings (wiki)
Toyota Motor Corporation (wiki)
The TSPinvestor Basic and Plus each utilize the I Fund at various times as an alternative/compliment to the C and S Funds.