International Stock Index Investment Fund
First, let's answer a few questions.
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Investment in the I Fund offers the opportunity to experience gains from equity ownership of non-U.S. companies. Because it represents the stocks of large, medium, and small companies in more than 40 developed and emerging market countries (excluding the U.S.), it is an excellent way to diversify the stock portion of your TSP allocation.
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I Fund returns move up and down with the returns in the MSCI ACWI IMI ex USA ex China ex Hong Kong Index (market risk). The MSCI ACWI IMI ex USA ex China ex Hong Kong Index (and the I Fund returns) will rise or fall as the value of the U.S. dollar decreases or increases relative to the value of the currencies of the countries represented in the MSCI ACWI IMI ex USA ex China ex Hong Kong index (currency risk) or if I Fund investments do not outpace or grow enough to offset the reduction in purchasing power (inflation risk).
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The I Fund can be useful in a portfolio that also contains stock funds that track other indexes such as the C Fund and the S Fund. By investing in all segments of the stock market (as opposed to just one), you reduce your exposure to market risk. The I Fund can also be useful in a portfolio that contains bonds. A retirement portfolio that contains a bond fund like the F Fund, along with other stock funds, like the C and S Funds, will tend to be less volatile than one that contains stock funds alone.
The I Fund's investment objective is to match the performance of the MSCI ACWI IMI ex USA ex China ex Hong Kong Index.
Performance
| -- YTD | 1 yr | 3 yr | 5 yr | 10 yr |
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Details as of 12/31/2023
Assets
$78.2 billionTotal expense ratio
$0.540/$1,000 account balance 0.054% (5.4 basis points)Benchmark index1
MSCI EAFE Index | msci.comAsset manager(s)
BlackRock Institutional Trust Company, N.A.
State Street Global Advisors Trust CompanyInception date
5/1/2001- As of July 31, 2024, the benchmark index of the I Fund is the MSCI ACWI IMI ex USA ex China ex Hong Kong Index.
Top ten holdings as of 7/31/2024
- TSM Taiwan Semiconductor Mfg Co Ltd
- NOVOB Novo Nordisk Class B
- ASML ASML Holding NV
- SSNLF Samsung Electronics Co Ltd
- NSRGF Nestle S.A.
- AZN AstraZeneca PLC
- SHEL Shell PLC
- RHHBF Roche Holding AG
- NYSEF Novartis AG
- SAP SAP SE
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Portfolio Weight as of July 31, 2024
Country Portfolio Weight Portfolio Percentage Number of Companies Japan 17.21% 1067 United Kingdom 10.45% 308 Canada 8.07% 292 France 6.98% 133 India 6.69% 645 Switzerland 6.32% 113 Taiwan 5.9% 450 Germany 5.5% 161 Australia 5.21% 229 Korea 3.71% 388 Netherlands 3.04% 52 Sweden 2.45% 153 Denmark 2.42% 45 Italy 1.95% 95 Spain 1.78% 54 Brazil 1.3% 133 Saudi Arabia 1.25% 123 Singapore 1.03% 66 South Africa 0.96% 74 Belgium 0.71% 36 Finland 0.71% 36 Israel 0.7% 103 Mexico 0.63% 43 Norway 0.58% 65 Indonesia 0.51% 68 Malaysia 0.5% 96 Thailand 0.49% 123 United Arab Emirates 0.37% 34 Turkey 0.32% 95 Poland 0.3% 32 Kuwait 0.25% 29 Qatar 0.25% 25 Austria 0.21% 20 Ireland 0.2% 10 Philippines 0.18% 32 New Zealand 0.17% 13 Greece 0.17% 25 Chile 0.15% 28 Portugal 0.15% 15 Peru 0.08% 4 Hungary 0.07% 5 Czech Republic 0.04% 5 Colombia 0.03% 3 Egypt 0.03% 9 Total 1 100.02% 5535 - Due to rounding, numbers may not add up to exactly 100%.
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Fees as of 12/31/2023
Net administrative expense ratio
$0.480/$1,000 account balance 0.048% (4.8 basis points)Investment expense ratio1
$0.060/$1,000 account balance 0.006% (0.6 basis points)Total expense ratio
$0.540/$1,000 account balance 0.054% (5.4 basis points)- Fees paid to the investment manager.
Additional information
By law, the I Fund must be invested in a portfolio designed to track the performance of an index of stocks representing international stock markets outside of the United States. The Federal Retirement Thrift Investment Board has chosen as its benchmark the MSCI ACWI IMI ex USA ex China ex Hong Kong Index.
As of July 31, 2024, the index included over 5,000 stocks representing 44 countries (21 developed markets and 23 emerging markets). It is not efficient for the I Fund to hold every stock in the index because some of those stocks have small market capitalizations and low trading volumes. Therefore, the I Fund holds most of the large and medium-sized companies in the index, using a mathematical technique to hold a representative sample of smaller stocks.
The FRTIB’s Executive Director currently allocates the selection, purchase, investment, and management of assets contained in the I Fund to BlackRock Institutional Trust Company, N.A., and State Street Global Advisors Trust Company. The performance of the I Fund is evaluated on the basis of how closely its returns match those of the MSCI ACWI IMI ex USA ex China ex Hong Kong Index.
