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.
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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.
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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