A rising stock market in June saw investors trading into equities, according to the Alight Solutions 401(k) IndexTM. Large U.S. equity funds accounted for the most inflows (71%), while stable value funds experienced the most outflows (57%). New contributions to equities stayed the same at 68.6%. The two above-normal1 days were the first since March.
June observations:
• On average, 0.011% of 401(k) balances were traded daily.
• 15 of 21 days favored equity funds.
The Alight Solutions 401(k) IndexTM statistics for the month of June: | ||
Index statistics | June | 2023 YTD |
Total transfers as percentage of starting balance | 0.12% | 0.35% |
# Fixed days | 6 (29%) | 78 (63%) |
# Equity days | 15 (71%) | 46 (37%) |
# Above-normal1 days | 2 | 4 |
Inflows and outflows during the month of June:
• Trading inflows mainly went to large U.S. equity, bond and international equity funds.
• Outflows were primarily from stable value, company stock and small U.S. equity funds.
Asset classes with most trading inflows in June | Percentage of inflows | Index dollar value ($mil) |
Large U.S. equity funds | 71% | $197 |
Bond funds | 17% | $46 |
| International equity funds | 7% | $19 |
Asset classes with most trading outflows in June | Percentage of outflows | Index dollar value ($mil) |
Stable value funds | 57% | $156 |
| Company stock | 31% | $85 |
| Small U.S. equity funds | 6% | $16 |
June investment portfolios:
- After reflecting market movements and trading activity, average asset allocation in equities increased from 68.8% in May to 69.7% in June.
- New contributions to equities remained at 68.6% from May through June.
Asset classes with largest percentage of total balance at the end of June | Percentage of balance | Index dollar value ($mil) |
Target date funds2 | 31% | $71,801 |
Large U.S. equity funds | 27% | $64,165 |
Stable value funds | 8% | $19,380 |
Asset classes with most contributions in June | Percentage of contributions | Index dollar value($mil) |
Target date funds2 | 50% | $682 |
Large U.S. equity funds | 21% | $282 |
International equity funds | 7% | $98 |
Returns for common indices | June | 2023 YTD |
Bloomberg Barclays U.S. Aggregate Index | -0.36% | 2.46% |
S&P 500 Index | 6.61% | 9.65% |
Russell 2000 Index | 8.13% | -0.04% |
MSCI All Country World ex-U.S. Index (net) | 4.49% | 4.77% |
[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.
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