March proved challenging for Thrift Savings Plan participants. After a strong start to the year—especially in international equities—markets shifted as rising global tensions pushed investors toward a more cautious posture. Although a late-month rally on March 31 helped limit the damage, most TSP funds still finished the month in negative territory.
March performance broke down as follows:
| Fund | March 2026 | YTD 2026 | 12-Month |
|---|---|---|---|
| G Fund | +0.34% | +1.0% | +4.4% |
| F Fund | -1.77% | +0.0% | +4.4% |
| C Fund | -4.98% | -4.3% | +17.8% |
| S Fund | -4.58% | -1.2% | +20.8% |
| I Fund | -9.35% | +1.8% | +28.9% |
As is often the case during periods of volatility, the G Fund was the only fund to post a gain, underscoring its role as a stable, low-risk option. The I Fund, which had been a top performer earlier in the year, saw the steepest decline as international markets reacted sharply to unfolding global developments. Lifecycle funds followed suit, with results largely reflecting their exposure to equities—more conservative allocations saw modest declines, while more aggressive portfolios experienced deeper pullbacks.
The primary driver behind March’s market weakness was escalating geopolitical tension tied to the Iran conflict. Oil prices climbed above $100 per barrel amid concerns about potential disruptions in the Strait of Hormuz. That surge added to inflation worries and increased uncertainty around the Federal Reserve’s next moves, leading many investors to pull back from equities. International markets were hit hardest, while U.S. large-cap stocks showed comparatively greater resilience.
Despite the overall downturn, the final trading day of the month served as a reminder of how quickly sentiment can shift. A strong rally on March 31 helped reduce losses across stock-based funds, preventing an even steeper monthly decline.
Looking at the bigger picture, the TSP remains on solid footing. Total plan assets surpassed $1 trillion at the end of 2025, reflecting decades of steady contributions from federal employees and service members. Participation rates remain high, and contribution levels continue to be strong, even as withdrawals rise alongside a growing retiree population.
March’s performance is a reminder that short-term volatility is a normal part of investing. For long-term participants, market pullbacks can present opportunities to continue investing at lower prices. As always, A Federal Retirement Consultant (FRC®) can ensure that your allocations align with your time horizon, risk tolerance, and overall retirement strategy.
