Dow jones u.s. completion total stock market (tsm) index

Dow jones u.s. completion total stock market (tsm) index

Posted: netani Date of post: 22.07.2017

Dow Jones U.S. Completion Total Stock Market Index: INDEXDJX:DWCPF quotes & news - Google Finance

The TSP S Fund seeks to match the performance of the Dow Jones U. Completion Total Stock Market Index, a broad market index made up of stocks of U.

As of late , there are approximately 3, stocks in this index. Sign up for free TSP Fund price and performance updates via email. The charts below show the historical performance and risk of investing in the TSP S Fund. The chart below shows the historical drawdowns for the TSP S Fund.

Dow Jones U.S. Completion Total Stock Market Index - ETF Tracker

The worst drawdown since inception was The Dow Jones U. Completion Total Stock Market Index is not widely followed. Aside from the TSP S Fund, there are a few other mutual funds that track it, namely: Fidelity Spartan Extended Market Index Fund FSEMX and USAA Extended Market Index Fund USMIX.

With an annual expense ratio of 0.

dow jones u.s. completion total stock market (tsm) index

By contrast, the Fidelity and USAA funds have annual expense ratios of 0. In other words, the USAA fund's expense ratio is over 20 times greater than that of the S Fund! Your investment in the TSP S Fund is subject to stock market risk because the Dow Jones U. Completion Total Stock Market Index returns will rise and fall during bull and bear markets.

As can be seen from the performance charts and statistics above, the S Fund is somewhat more volatile higher risk than the C Fund.

This is because the S Fund holds smaller company stocks, which historically have been more volatile than large cap stocks. However, small cap stocks have historically also outperformed large cap stocks, so in the long run, investors "got paid" for taking on this extra risk.

Since the S Fund is passively managed, it remains fully invested during all market cycles and economic conditions. Although stocks have historically proved to be a good hedge against inflation, there's no guarantee that an investment in the S Fund will grow enough to offset inflation in the future. While investing in stocks is risky and the S Fund is no exception , it also offers the opportunity to gain from the potential growth of the U. S economy and corporate profits, which is eventually reflected in increasing stock prices and dividends.

Stock:Dow Jones U.S. Completion Total Stock Market Index (DWCPF)

In the long run, stocks have outpaced many other types of investments, so an allocation to stocks makes sense for investors interested in growth of investment capital. For investors who already own C Fund shares, the S Fund provides an excellent way to further diversify U. Investors may also want to consider an investment in the TSP I Fund , which tracks an international stock index.

Owning shares in all three funds results in a more globally diversified stock portfolio.

dow jones u.s. completion total stock market (tsm) index

The prices of domestic and international stock markets and small, mid, and large cap stocks don't always move in tandem, and by investing in all of them, you reduce your exposure to stock market risk. In addition to owning stock funds, TSP investors should consider bond funds like the TSP F Fund , since the prices of bonds are often uncorrelated or inversely correlated to stocks, providing a welcome buffer during market downturns, and reducing the overall volatility of an investment portfolio.

In our tactical asset allocation strategies , we dynamically allocate a portion of investable assets to the TSP S Fund, based on the prevailing market conditions. Sign up for a risk-free 30 day trial of the TSP Folio investment strategy: What Makes Us Unique?

dow jones u.s. completion total stock market (tsm) index

All-weather investment strategy that performs in both good and bad markets. It takes five minutes a month to follow the TSP Folio strategy. Focus on active risk management and capital preservation.

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