When you compare the I fund to three other index mutual funds that are also to track the MSCI EAFE index, it appears that the I fund does a reasonably good job. However, given the lauded TSP low fees, shouldn't it be doing a better job, with less tracking error? I've asterisked the best fund in tracking the EAFE for each year for the past few years. Note that the I fund only came closest to the index in one year.
2002
I fund: -15.98%
Vanguard VDMIX: -15.70%*
EAFE: -15.66%2003
I fund: 37.94%
Vanguard VDMIX: 38.61%*
EAFE: 39.17%2004
I fund: 20.00%
Vanguard VDMIX: 20.25%*
Price PIEQX: 19.2%
Fidelity FSIIX: 19.9%
EAFE: 20.70%2005
I fund: 13.63%
Vanguard VDMIX: 13.34%
Price PIEQX: 13.4%
Fidelity FSIIX: 13.7%*
EAFE: 14.02%2006
I fund: 26.32%*
Vanguard VDMIX: 26.18%
Price PIEQX:26.3%
Fidelity FSIIX: 26.2%
EAFE: 26.86%2007
I fund: 11.43%
Vanguard VDMIX: 10.99%
Price PIEQX: 11.8%*
Fidelity FSIIX: 10.7%
EAFE: 11.63%Will the new limits on the TSP IFTs help to close this tracking error gap? We will see.....
