Skip to content
Alight Completes Sale of Payroll and Professional Services Business. Learn more here

Alight Solutions 401(k) Index™: June 2024 Observations

Trading activity was down slightly in June with just two above-normal1 days, compared to three in May, according to the Alight Solutions 401(k) IndexTM. Investors favored fixed income funds on nine of 22 days. Large U.S. equity (40%) and bond (34%) funds saw the most inflows, while target date funds2 (43%) experienced the most outflows. New contributions to equities decreased to 69.6% in June, while average asset allocation in equities increased from 71.7% in May to 71.9% in June, the highest reported since January 2001.

June observations:        

•    On average, 0.008% of 401(k) balances were traded daily.

•    Nine of 19 days favored equity funds.



The Alight Solutions 401(k) IndexTM statistics for the month of June:

Index statistics

June

2024 YTD

Total transfers as percentage of starting balance

0.09%

0.74%

# Fixed days

9 (47%)

70 (56%)

# Equity days

10 (53%)

54 (44%)

# Above-normal1 days

2

23


Inflows and outflows during the month of June:

•    Trading inflows mainly went to large U.S. equity, bond and money market funds.

•    Outflows were primarily from target date2, mid U.S. equity 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

40%

$98

Bond funds

34%

$84

Money Market funds

14%

$35

Asset classes with most trading 

outflows in June

Percentage of outflows

Index dollar value ($mil)

Target date funds2 

43%

$105

Mid U.S. equity funds

17%

$42

Small U.S. equity funds

14%

$34


June investment portfolios:

  • After reflecting market movements and trading activity, average asset allocation in equities increased from 71.7% in May to 71.9% in June.
  • New contributions to equities decreased from 69.8% in May to 69.6% in 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%

$85,581

Large U.S. equity funds

29%

$78,267

Company stock funds

7%

$19,602

Asset classes with most 

contributions in June

Percentage of contributions

Index dollar value($mil)

Target date funds2

51%

$611

Large U.S. equity funds

21%

$256

International equity funds

7%

$80


Returns for common indices

June

2024 YTD

Bloomberg Barclays U.S. Aggregate Bond Index

0.95%

-0.71%

S&P 500 Index

3.59%

15.29%

Russell 2000 Index

-0.93%

1.73%

MSCI All Country World ex-U.S. Index (net)

-0.10%

5.69%

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.

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.

Related Insights


Alight Solutions 401(k) Index™: Second Quarter 2024 Observations

401(k) investors were light traders in Q2, with just nine above-normal1 days, compared to 14 in Q1, according to the Alight Solutions 401(k) IndexTM.

Alight Solutions 401(k) Index™: May 2024 Observations

Trading activity was down slightly in May with just three above-normal1 days compared to four in April, according to the Alight Solutions 401(k) IndexTM.

Alight Solutions 401(k) Index™: April 2024 Observations

Trading activity rose slightly in April with four above-normal1 days compared to just two in March, according to the Alight Solutions 401(k) IndexTM.