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Research

Methodology

How the research becomes TSP fund percentages.

TSPvectors studies how established investment companies invest for different retirement timelines. It combines selected research and translates it into model allocations using the TSP’s C, S, I, F, and G Funds.

The result is a percentage breakdown you can compare with your own investments. Here’s how that process works.

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The process at a glance

  • 15 fund families evaluated annually
  • 5 selected for each approach
  • Models run twice weekly
  • Current Allocations published monthly

Five steps from research to publication

TSPvectors follows a consistent process to turn research into TSP fund percentages.
  • 1. Research

    Review 15 leading target-date fund families and the strategies behind them.

  • 2. Analyze

    Evaluate and rank the families based on performance, risk, consistency, and diversification.

  • 3. Build

    Construct models using the top-ranked fund families, giving higher-ranked families more weight. These models translate the research into percentages for the TSP funds.

  • 4. Monitor

    Run the models twice weekly and review the results regularly to monitor changes in the allocations.

  • 5. Publish

    Publish the latest model allocations monthly so participants can review the current TSP fund percentages.

  • 1. Research

    Start with professionally managed target date funds

Target date funds invest for different retirement timelines. Their managers make decisions about the mix of stocks and bonds, U.S. and international investments, and how that mix changes over time.

TSPvectors evaluates 15 established fund families each year. A fund family here means a series of target date funds covering different years. These families are research inputs, not funds you buy through TSPvectors.

Studying several families brings different investment approaches into the research.

The 15 benchmark families researched

Strategies that include actively managed investments
  • BlackRock LifePath Dynamic Fund Series
  • Fidelity Freedom Fund Series
  • JPMorgan SmartRetirement Fund Series
  • MFS Lifetime Fund Series
  • T. Rowe Price Retirement Fund Series
Strategies that combine active and index-based investments.
  • Fidelity Freedom Blend Fund Series
  • JPMorgan SmartRetirement Blend Fund Series
  • PIMCO RealPath Blend Fund Series
  • T. Rowe Price Retirement Blend Fund Series
Strategies built from index-based investments.
  • BlackRock LifePath Index Fund Series
  • Fidelity Freedom Index Fund Series
  • Nuveen Lifecycle Index Fund Series
  • Schwab Target Index Fund Series
  • State Street Target Retirement Fund Series
  • Vanguard Target Retirement Fund Series

  • 2. Analyze

    One ranking. Two approaches.

  • Evaluate 15 Fund Families

    Compare all 15 fund families based on performance, risk, consistency, and diversification.

  • Ranking Algorithm

    Combine the results into one overall ranking. This ranking provides the starting point for both aVectors and iVectors.

aVectors
iVectors
Top 5 Overall Families Selected
Active, blend, or index families
aVectors Current Benchmarks
  • BlackRock LifePath Dynamic Fund Series
  • Fidelity Freedom Fund Series
  • Nuveen Lifecycle Index Fund Series
  • T. Rowe Price Retirement Blend Fund Series
  • Vanguard Target Retirement Fund Series
Top 5 Index-Only Families Selected
Selected from 6 eligible index families
iVectors Current Benchmarks
  • BlackRock LifePath Index Fund Series
  • Fidelity Freedom Index Fund Series
  • Nuveen Lifecycle Index Fund Series
  • Schwab Target Index Fund Series
  • Vanguard Target Retirement Fund Series
  • Fund Families are listed alphabetically, not by rank or weight.
    The same five fund families are generally used across target dates within each approach, with limited substitutions for the Retire vectors when an equivalent target date fund is not available.

  • 3. Build

    Turn the selected research into TSP percentages

The investment mixes of the five selected families are combined for each target date. Higher-ranked families have more influence on the result, while all five contribute.

The combined mix is then translated into the closest available TSP equivalents. Each Vector shows percentages using only the TSP’s C, S, I, F, and G funds.

Because the G Fund is unique to the TSP, a separate methodology is used to translate the bond and cash exposures of the target portfolio into F and G Fund allocations.

  • C Fund

    U.S. Large-Cap Stocks

  • S Fund

    U.S. Small & Mid-Cap Stocks

  • I Fund

    International Stocks

  • F Fund

    U.S. Bonds

  • G Fund

    Government Securities

Each Vector represents a complete portfolio:
C + S + I + F + G = 100%
The models use the benchmark funds as a guide without replicating every underlying holding.

  • 4. Monitor

    Check for changes twice a week

Both aVectors and iVectors run twice weekly through a scheduled, automated process. Each run uses available underlying fund data to recalculate the model allocations and identify changes.

Automation handles the recurring calculations. Results are reviewed before publication.

  • 5. Publish

    Review the results. Publish monthly.

Model outputs are reviewed throughout the month, and current allocations are published monthly on the individual Vector pages.

A model run does not automatically change the published percentages. Small movements in the underlying funds may not represent a meaningful strategy change, and a monthly publication may retain the existing allocation.

Ready to Find Your Vector?

Start with when you expect to begin using your TSP savings. Explore the two models for that target date and see how they compare with your current approach.

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TSPvectors is an independent educational and informational resource. It is not affiliated with, endorsed by, sponsored by, or associated with the Federal Retirement Thrift Investment Board.

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