Market indicator changes, Part I

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Q. Why did the Dow Jones industrial average recently go up but the S Fund went down? The C Fund went up same as the Standard & Poor’s 500 index.

A. Why shouldn’t they behave differently? They’re two different things. The only thing that the Dow Jones industrial average and the S Fund have in common is that they are both based on a group of stock shares. They don’t have a single share or stock in common, however, and the S Fund incurs expenses while the Dow does not.

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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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