I Fund

The  (International Stock Index Investment Fund) is one of six investment offerings inside the Thrift Savings Plan, a contributory retirement program for United States federal employees, members of the uniformed services, and their beneficiaries.

Fundamentals
The I fund is an international developed market stock collective investment trust. The fund tracks the Europe, Australasia and Far East (EAFE) index, which covers the stock markets of twenty-two developed countries.

On December 6, 2017, the TSP's governing board "at its most recent meeting accepted a recommendation by a consultant to switch to linking the I fund to the MSCI All Country World Index, which covers non-U.S. developed markets, smaller companies and emerging markets." In the November 28, 2017 meeting of the TSP Governing Board, it was stated: "The target date for the change would be some time in 2019," although the TSP stated at the end of 2018 that the switch would occur in the second half of 2020, due to timelines related to the assignment of a new fund manager contract for the TSP funds.

At its May 13, 2020 meeting the Federal Retirement Thrift Investment Board unanimously passed a motion to delay, pending further study, the implementation of the I Fund benchmark change to the MSCI ACWI ex US Investible Market Index from the MSCI EAFE Index. The stated rationale was “the meaningful different economic environment related in large part to the impact of the global Covid-19 pandemic, as well as the nomination of 3 new FRTIB Board members.”

Role in a portfolio
Until the I fund's index switches to the more diversified MSCI All Country World Index in 2020, the I Fund's does not have stocks from emerging markets, small caps, and Canada. TSP investors seeking to round out the gaps in the I Fund can consider the following:
 * To increase exposure to emerging markets, hold the I Fund and an emerging markets fund in their IRA, such as Vanguard Emerging Markets Fund.
 * To increase exposure to international small caps, hold an international small cap index fund in an IRA.
 * To increase exposure to Canadian stocks, which are 8.6% of Vanguard's Total International Stock Market Index Fund, hold a Canadian stock mutual fund or ETF such that tracks the MSCI Canada Index Fund such as EWC or Vanguard MSCI Canada Index ETF Fund (VCE)

Approximating Total International Stock Market contains more information for investors who would like to hold this combination of funds.

Or, they can place all of their international investments with Vanguard (e.g., in the Vanguard Total International Stock Market Fund).