Alight Solutions 401(k) Index: Fourth Quarter 2021 Observations

401(k) investors were light traders in the fourth quarter, according to the Alight Solutions 401(k) Index^TM. There was one day of above-normal trading, bringing the total to three for the entire year. Net trading activity slightly favored fixed income, with over 60% of days favoring moving money into stable value, money market, and bond funds. 

Fourth quarter observations:

• Net transfers for the quarter were 0.17% of balances—the second lightest trading quarter on record.
• 39 out of 64 trading days in the fourth quarter had net trading dollars moving from equities to fixed income.

¹ A “normal” level of relative transfer activity is when the net daily movement of participants’ balances, as a percent of total 401(k) balances within the Alight Solutions 401(k) Index™ equals between 0.3 times and 1.5 times the average daily net activity of the preceding 12 months. A “high” relative transfer activity day is when the net daily movement exceeds two times the average daily net activity. A “moderate” relative transfer activity day is when the net daily movement is between 1.5 and 2 times the average daily net activity of the preceding 12 months.

² Target date funds also include the amounts in target risk funds. The amount in the target risk funds is less than 10% of the total.