TSP Fund Returns March 2026: Monthly Performance Breakdown

Last Updated: April 5, 2026 Reading Time: 6 min

March 2026 ended a strong Q1 start for TSP investors. After two months of solid gains led by the I Fund, stock-based funds reversed sharply. Only the G Fund finished positive. For many federal employees, it was the first month this year of watching their balance go down.

Here is what happened, what drove it, and what it means for your strategy.

Key Takeaways

• The G Fund was the only fund to gain in March, up approximately 0.34%. All stock and bond funds finished negative.
• The C Fund fell about 4.98% in March, bringing its 2026 YTD return to roughly -4.34%.
• The S Fund dropped about 4.58% for the month, now down approximately 1.22% YTD.
• The I Fund, despite the March pullback, held an estimated +1.84% YTD gain thanks to a strong January and February.
• Tariff escalation, oil price spikes, and geopolitical pressures drove the market weakness.
• The April 2-3 tariff announcements extended the market drop into early Q2 and are not yet reflected in March's numbers.
• If you are in an L Fund, no action is needed. L Funds rebalanced automatically during the dip.

March 2026 Returns: Fund by Fund

Fund	March Return	YTD Through March
G Fund	approx. +0.34%	approx. +1.04%
F Fund	approx. -1.77%	approx. +0.04%
C Fund	approx. -4.98%	approx. -4.34%
S Fund	approx. -4.58%	approx. -1.22%
I Fund	significant decline	approx. +1.84%

Note: Figures sourced from FedSmith, GovExec, and TSPDataCenter reporting on TSP.gov data. The I Fund's exact March monthly figure was not reported as a single percentage at time of publication; the YTD figure of approximately +1.84% is from published sources.

The G Fund's 0.34% monthly return is its statutory floor, calculated monthly by the U.S. Treasury. It will not go negative.

How March Compares to January and February

March wiped out the equity gains built up over the first two months of the year. Here is the full Q1 picture month by month:

Fund	January	February	March	Q1 Total
G Fund	+0.37%	+0.33%	+0.34%	approx. +1.04%
F Fund	+0.20%	+1.63%	approx. -1.77%	approx. +0.04%
C Fund	+1.45%	-0.76%	approx. -4.98%	approx. -4.34%
S Fund	+2.41%	+2.41%	approx. -4.58%	approx. -1.22%
I Fund	+5.94%	+6.05%	significant decline	approx. +1.84%

The I Fund story stands out. It entered March up more than 12% YTD. The March pullback was steep, but the cushion from January and February kept it positive for the quarter.

The C Fund, which was barely positive through February at +0.68% YTD, took the hardest hit in dollar terms for most participants given that it holds the largest TSP allocation.

What Drove the Moves

Three factors converged in March 2026.

Tariff escalation. The Trump administration's ongoing tariff activity hit market sentiment throughout March. Export-sensitive stocks and companies reliant on international supply chains sold off. The C Fund, which tracks the S&P 500, and the S Fund, tracking small and mid-cap domestic companies, both absorbed the hit.

Geopolitical pressure and oil prices. Rising geopolitical tensions pushed oil prices sharply higher at points during Q1 2026, with reports of prices exceeding $100 per barrel in some trading sessions. Higher oil feeds into inflation expectations, which damped equity valuations.

Dollar strength hitting I Fund returns. The I Fund is not currency-hedged. When the dollar strengthens, the value of international stock holdings shrinks when converted back to dollars. This compounded the I Fund's March loss even for underlying stocks that held their local-currency value.

What happened April 2-3: The administration's tariff announcements on April 2 added a new wave of market pressure. The S&P 500 dropped sharply on April 3. Those moves will be reflected in April returns, not March, but federal employees checking balances in early April are seeing the combined effect of both.

YTD 2026 Performance in Context

After Q1, the TSP fund rankings are roughly inverted from recent years' U.S.-equity-dominated leaderboard.

Fund	2025 Return	YTD 2026 (through March)
I Fund	+32.45%	approx. +1.84%
C Fund	+17.85%	approx. -4.34%
S Fund	+11.38%	approx. -1.22%
G Fund	+4.44%	approx. +1.04%
F Fund	+7.21%	approx. +0.04%

The I Fund extended its outperformance from 2025 into early 2026 before March trimmed it. The C Fund, which led most of the prior decade, sits negative through Q1.

The rotation from U.S. to international equities that started in late 2025 is the defining story of 2026 TSP performance so far.

Lifecycle Fund Results

All L Funds finished March negative. Because each L Fund holds a mix of all five core funds, the loss for each depended on how much stock exposure it carries.

L Fund	Approx. March Return	Notes
L Income	approx. -1.66%	Most conservative, heavy G Fund allocation
L 2030	moderate loss	Lower stock exposure
L 2040	moderate loss	Balanced exposure
L 2045-L 2075	approx. -6.40%	Highest stock exposure, biggest March loss

Source: GovExec reporting on March 2026 TSP data.

Despite the March losses, L Funds benefited from the strong start to 2026. The long-dated L Funds entered March with substantial year-to-date cushions from January and February's I Fund-led gains.

Key point for L Fund participants: No action needed. L Funds automatically rebalanced during the March dip, buying more stock fund shares at lower prices to restore target allocations. This is the discipline working as designed.

Trailing 12-Month Returns

Looking beyond Q1, the trailing 12-month picture through March 2026 remains strong, particularly for the I Fund, which ran up significantly from April 2025 through February 2026.

Fund	Approx. Trailing 12-Month Return
I Fund	approx. +24.9%
C Fund	approx. +13-15%
S Fund	approx. +8-11%
G Fund	approx. +4.2-4.4%
F Fund	approx. +5-7%

Note: 12-month figures are estimates based on available reporting through early April 2026. Verify current figures at TSP.gov fund performance.

The I Fund's trailing 12-month figure reflects its exceptional 2025 and early 2026 run. Even after March's pullback, international equities in the TSP dramatically outperformed U.S. equities over the past year.

What This Means for Your Strategy

March is a data point, not a verdict.

If you are in an L Fund, nothing to do. The fund handled the rebalancing automatically. Stay the course.

If you are self-managing, start by checking whether your allocation still matches your target. Use the 5-percentage-point rule: if a fund has drifted more than 5 points from your target, consider rebalancing. If the C and S Fund drops pushed your stock allocation below target, a rebalance means buying more, not selling more.

If you are within 3-5 years of retirement, verify your I Fund slice did not run up beyond plan during January and February. March trimmed it back, but check your overall stock-to-bond ratio before assuming you are still on target.

One thing worth saying plainly: the G Fund's positive March result can look like the obvious safe move right now. It is not. Moving into the G Fund after stock losses locks in the decline. Investors who moved to G during the March 2020 COVID crash earned 0.97% for the full year while the C Fund returned 18.31%. That pattern has repeated after every major equity dip in TSP history.

On contributions: TSP contributions auto-invest on your payroll schedule. Continuing to contribute during a down month means you buy fund shares at lower prices. That happens automatically. You do not have to do anything extra to benefit from it.

One more piece of context for early April: TSP balances right now reflect additional losses from the April 2-3 tariff announcements on top of March's drop. Those will show in April's monthly report, not March's. Two back-to-back rough months after a very strong 2025 is uncomfortable, but both sit within the normal volatility range for TSP stock funds.

Calculate Your TSP Balance Under Different Scenarios

Use the free TSP Calculator to model how March's returns affect your long-term balance, and run allocation scenarios to see what different fund mixes look like over 10, 20, or 30 years.

Project Your TSP Balance

Frequently Asked Questions

What did TSP funds return in March 2026?

The G Fund gained approximately 0.34%, while stock funds lost ground. The C Fund dropped about 4.98%, the S Fund fell about 4.58%, and the F Fund declined roughly 1.77%. The I Fund also fell sharply in March, though its strong January and February gains left it positive for Q1 at an estimated +1.84% YTD.

Which TSP fund performed best in March 2026?

The G Fund was the only fund to post a positive return in March 2026, gaining approximately 0.34%. All stock and bond funds finished the month negative.

What is the TSP YTD return through March 2026?

Through March 31, 2026, the G Fund is up about 1.04% YTD. The C Fund is down approximately 4.34% YTD. The S Fund is down roughly 1.22% YTD. The I Fund is positive at an estimated +1.84% YTD, holding onto gains from January and February despite the March pullback.

Why did TSP stock funds drop in March 2026?

Several forces hit equity markets in March: tariff escalation under the Trump administration hurt export-sensitive sectors; rising oil prices tied to geopolitical tensions pushed inflation fears higher; and the strong January-February run created conditions for profit-taking. The drops in C and S funds reflect broad domestic equity weakness, while the I Fund's losses were compounded by dollar strength reducing the value of international holdings.

Should I move my TSP to the G Fund after March's losses?

Generally, no. Moving to the G Fund after a market drop locks in losses and risks missing a recovery. The right question is whether your allocation still matches your target percentage. If you are in an L Fund, the fund rebalanced automatically. If self-managing, check your actual allocation against your target before making any interfund transfer.

How did TSP Lifecycle funds perform in March 2026?

All L Funds finished March in negative territory. The L Income Fund, the most conservative, fell approximately 1.66%. Longer-dated funds with higher stock exposure dropped more, with L 2045 through L 2075 down roughly 6.40% for the month. These losses were partly offset by strong Q1 gains in January and February.

Related Resources

• Best TSP Allocation 2026: How to set your fund mix by age and career stage
• TSP I Fund Volatility and Rebalancing Guide: How to respond when a fund drops sharply
• TSP G Fund Analysis 2026: The real cost of moving to "safe" money
• TSP in Government Turmoil: A Guide for Federal Employees: Staying on course when conditions are uncertain
• TSP Calculator: Project your balance under current or alternative allocations

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Sources: FedSmith: TSP Returns Slide In Early 2026, GovExec: Most TSP Funds Tumbled in March, TSP.gov Rates of Return, TSPDataCenter.com Monthly Returns, Federal News Network: TSP Funds See Losses in March.