The Thrift Savings Plan (TSP) Common Stock Index Investment Fund, or commonly referred to as the C Fund, is a fairly high return investment in a broadly diversified portfolio of medium and large U.S. companies (valued between $5B and $650B). The goal of the fund is to match the performance of the S&P 500 Index, and public law dictates the money be invested in a portfolio of U.S. stocks that are representative of the whole market. The risk in the fund is market loss, or the decline of company stock values.
The 10-year annual return (2005-2014) is 7.72% and is 10.43% since its inception in January 1988. There is about $140 Billion in assets in the C Fund and it charges 2.8 Basis Points, or $0.28 per $1000 balance. The C Fund is invested in an account managed by BlackRock Institutional Trust Company.
Here is the breakdown of the type of stocks invested by the C Fund (as of March 2015):
Information Technology – 20%
Financials – 17%
Health Care – 14%
Consumer Discretionary – 12%
Industrials – 10%
Consumer Staples – 10%
Energy – 8%
Materials – 3%
Utilities – 3%
Telecom Services – 2%
The Top 10 C Fund holdings are (as of December 2014):
Apple Inc. (wiki)
Wells Fargo & Company (wiki)
Exxon Mobil Corporation (wiki)
General Electric Company (wiki)
Microsoft Corporation (wiki)
Procter & Gamble Company (wiki)
Johnson & Johnson (wiki)
JP Morgan Chase & Company (wiki)
Berkshire Hathaway Inc. Class B (wiki)
Chevron Corporation (wiki)
There is also a small percentage that is invested in S&P Futures contracts, which allows for the interfund transfers that occur on quick notice.
The TSPinvestor Basic and Plus invest in the C Fund at times of great growth in the stock market and provide very good return during these times.