Last Updated: September 2, 2026 Reading Time: 7 min
August 2026 TSP fund returns turned the whole board green. After a July in which only the G Fund gained, every one of the 16 funds finished August positive. The I Fund led at +3.32% and pushed its 2026 lead to +19.18% year to date. Every fund is ranked below, before any commentary.
TSP Fund Returns August 2026, Ranked: All 16 Funds
This is the full August leaderboard, ranked by the month's return. The last column applies each fund's 2026 year-to-date return to $100,000 invested on January 1. Every figure is computed from TSP.gov month-end share prices (August 31 against July 31 for the month, and against December 31, 2025 for the year).
| Rank | Fund | August 2026 | 2026 YTD | $100,000 on Jan 1 is now |
|---|---|---|---|---|
| 1 | I Fund | +3.32% | +19.18% | $119,180 |
| 2 | L 2060 | +2.86% | +15.57% | $115,570 |
| 3 | L 2065 | +2.86% | +15.57% | $115,570 |
| 4 | L 2075 | +2.86% | +15.56% | $115,560 |
| 5 | L 2055 | +2.85% | +15.57% | $115,570 |
| 6 | L 2070 | +2.85% | +15.56% | $115,560 |
| 7 | C Fund | +2.72% | +13.12% | $113,120 |
| 8 | L 2050 | +2.43% | +13.14% | $113,140 |
| 9 | L 2045 | +2.31% | +12.50% | $112,500 |
| 10 | S Fund | +2.27% | +16.10% | $116,100 |
| 11 | L 2040 | +2.19% | +11.87% | $111,870 |
| 12 | L 2035 | +2.04% | +11.15% | $111,150 |
| 13 | L 2030 | +1.75% | +9.78% | $109,780 |
| 14 | L Income | +1.11% | +6.34% | $106,340 |
| 15 | G Fund | +0.41% | +3.00% | $103,000 |
| 16 | F Fund | +0.40% | -0.16% | $99,840 |
The five long-dated L Funds (2055 through 2075) took five of the top six spots, outrunning the C Fund for the month. And the S Fund, second for the year at +16.10%, ranked only tenth in August; small caps recovered, but not as fast as they fell in July.
Moved up: the I Fund, from a -1.01% July to first place. Moved down: the G Fund, July's "winner" at +0.39%, to 15th. It did exactly what it did in July, earn its statutory rate, and this time that was not enough to place.
The S Fund's 2026 Scoreboard: Half of July Recovered
The S Fund's month-by-month record, continued from the July post:
| Month | S Fund Return | YTD Leader After |
|---|---|---|
| January | +2.41% | I Fund |
| February | +1.08% | I Fund |
| March | -4.58% | I Fund |
| April | +9.96% | I Fund |
| May | +4.49% | I Fund |
| June | +4.34% | S Fund |
| July | -4.12% | I Fund |
| August | +2.27% | I Fund |
August recovered a little more than half of July's drop. The S Fund is still second for the year at +16.10%, three points behind the I Fund and three points ahead of the C Fund. It has had two red months in 2026 and gained after both of them.
Monthly Winners: Seven Changes in Eight Months
| Month | Monthly Winner | Return |
|---|---|---|
| January | I Fund | +5.94% |
| February | I Fund | +6.05% |
| March | G Fund | +0.34% |
| April | C Fund | +10.49% |
| May | C Fund | +5.26% |
| June | S Fund | +4.34% |
| July | G Fund | +0.39% |
| August | I Fund | +3.32% |
The I Fund has now led three of eight months (January, February, August). The G Fund has led two, both by not losing. The C Fund led two, the S Fund one. If you had switched into each month's winner at the start of the following month, you would have bought the G Fund on August 1 and missed the best broad-market month since April.
Six L Funds Are Beating the C Fund This Year
The C Fund tracks the S&P 500 and is the default "just buy stocks" choice for a lot of participants. In 2026 it is being outrun by six target-date funds:
| Fund | 2026 YTD | vs. C Fund (+13.12%) |
|---|---|---|
| L 2055 | +15.57% | +2.45 points |
| L 2060 | +15.57% | +2.45 points |
| L 2065 | +15.57% | +2.45 points |
| L 2070 | +15.56% | +2.44 points |
| L 2075 | +15.56% | +2.44 points |
| L 2050 | +13.14% | +0.02 points |
| L 2045 | +12.50% | -0.62 points |
The reason is allocation. The long-dated L Funds hold meaningful S Fund and I Fund positions alongside the C Fund, and both of those funds are ahead of the C Fund for the year (+16.10% and +19.18%). A fund that owns all three has beaten a fund that owns one. In a year where the S&P 500 led, the same table would flip. That is the point of holding a mix.
L 2045 falls just short, and every L Fund from L 2040 down trails the C Fund because of its G Fund and F Fund weight. The trade is less upside in a stock year for less damage in a bond-and-cash year.
What a Balance Looks Like After Eight Months
Applying the year-to-date returns to money invested January 1, 2026:
| Starting Balance | G Fund | F Fund | C Fund | S Fund | I Fund |
|---|---|---|---|---|---|
| $50,000 | $51,500 | $49,920 | $56,560 | $58,050 | $59,590 |
| $100,000 | $103,000 | $99,840 | $113,120 | $116,100 | $119,180 |
| $200,000 | $206,000 | $199,680 | $226,240 | $232,200 | $238,360 |
| $500,000 | $515,000 | $499,200 | $565,600 | $580,500 | $595,900 |
The I-over-S gap on a $100,000 balance grew from $1,830 at the end of July to $3,080 at the end of August. On a $250,000 balance, the C Fund has produced $282,800 against the G Fund's $257,500, a $25,300 gap for eight months of staying invested.
The F Fund is the only core fund still underwater for the year at -0.16%, even after gaining 0.40% in August.
The I Fund's Second Straight Big Year
2025 was the I Fund's record: +32.45%, the best full-year return any TSP fund has posted. Through August 2026 it is at +19.18%. That is not 2025's pace, but with four months left it is on track for a second consecutive top-tier year, and it has led or co-led the monthly return in three of eight months.
Participants who moved into the I Fund after 2025's headline are being rewarded so far. Participants who moved out of it after July's -1.01% missed August's +3.32%. Both groups did the same thing: reacted to the most recent month. Only one of them got lucky.
For the fund's holdings and how it differs from the C Fund, see the I Fund page and the S Fund page.
Model Your Own Allocation
The monthly leaderboard is useful for one thing: showing how often the leader changes. It is not a buy signal. Use the free TSP Calculator to model your target mix and contribution rate over your actual time horizon, then compare the result to what a single-fund position would have done in a year like 2026. Run your numbers →
Frequently Asked Questions
What did TSP funds return in August 2026?
All five core funds gained. The I Fund led at +3.32%, followed by the C Fund at +2.72%, the S Fund at +2.27%, the G Fund at +0.41%, and the F Fund at +0.40%. Every L Fund also finished positive, from L Income at +1.11% to the long-dated L 2055 through L 2075 funds at +2.85% to +2.86%. Figures are computed from TSP.gov month-end share prices.
Which TSP fund is leading 2026 year-to-date after August?
The I Fund, at +19.18% through August 31, extending the lead it retook in July. The S Fund is second at +16.10% and the C Fund third at +13.12%. The G Fund has returned +3.00%. The F Fund is the only core fund still negative for the year at -0.16%.
Did TSP funds recover from July's losses?
Yes. July was mostly red, with only the G Fund gaining. August reversed that completely: every core fund and every L Fund finished positive, and the S Fund's +2.27% recovered more than half of its -4.12% July drop.
Are any L Funds beating the C Fund in 2026?
Six of them. L 2055, L 2060, and L 2065 are at +15.57%, L 2070 and L 2075 at +15.56%, and L 2050 at +13.14%, all ahead of the C Fund's +13.12%. They hold more S Fund and I Fund than a pure C Fund position, and both of those funds are outrunning the C Fund this year.
How much would $100,000 invested in the I Fund on January 1, 2026 be worth at the end of August?
About $119,180, based on the I Fund's +19.18% year-to-date return through August 31. The same $100,000 in the G Fund would be worth $103,000, a $16,180 gap. In the C Fund it would be $113,120 and in the S Fund $116,100.
How does the I Fund's 2026 performance compare to 2025?
2025 was a record year for the I Fund at +32.45%, the best full-year return any TSP fund has posted. Through August 2026 it is at +19.18%, not a repeat of 2025's pace, but once again the top core fund for the year and the monthly leader in three of eight months.
Should I move my TSP into the I Fund after August?
The 2026 record argues against reacting month to month. The monthly winner has changed hands seven times in eight months, and the fund that led August (the I Fund) was down 1.01% in July. Set a target allocation you can hold through red months and use the TSP Calculator to model it, instead of chasing whichever fund just had a good month.
Related Resources
- TSP Calculator: Model your balance growth by fund mix and contribution rate.
- TSP Fund Returns July 2026: The red month August reversed.
- TSP Millionaires: Consistency Beats Timing: How 224,420 accounts crossed $1 million.
- Best TSP Allocation by Age: Benchmark mixes for each career stage.
- TSP L Fund Lifecycle Trap: What the glide path costs, and when it pays.
Sources: TSP.gov share price history (month-end prices, August 31 and July 31, 2026 and December 31, 2025; returns computed by FedTools), TSP.gov fund performance, TSP Bulletin 25-1 (L 2075 launch, June 30, 2025).