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Alight Solutions 401(k) Index™: November 2023 Observations

Alight Solutions 401(k) Index™: November 2023 Observations

November trading saw two above-normal1 days, according to the Alight Solutions 401(k) IndexTM. Investors favored equities on 11 of 21 days. Large U.S. equity (60%), bond (23%) and money market (7%) funds saw the most inflows, while target date2 (38%), company stock (19%) and stable value (16%) funds experienced the most outflows. New contributions to equities increased from 68.8% in October to 69.1%, the first time over 69% since April 2022.

November observations:

  •  On average, 0.008% of 401(k) balances were traded daily.
  • 11 of 21 days favored equity funds.

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

Index statistics

November

2023 YTD

Total transfers as percentage of starting balance

0.1%

0.73%

# Fixed days

10 (48%)

141(61%)

# Equity days

11 (52%)

89 (39%)

# Above-normal1 days

2

10


Inflows and outflows during the month of November:

  • Trading inflows mainly went to large U.S. equity, bond and money market funds.
  • Outflows were primarily from target date,2 company stock and stable value funds.


Asset classes with most trading 

inflows in November

Percentage of inflows

Index dollar value ($mil)

Large U.S. equity funds

60%

$141

Bond funds

23%

$54

Money market funds

7%

$17

Asset classes with most trading 

outflows in November

Percentage of outflows

Index dollar value ($mil)

Target date funds2

38%

$89

Company stock

19%

$45

Stable value funds

16%

$37


November investment portfolios:

  • After reflecting market movements and trading activity, average asset allocation in equities increased from 69.2% in October to 70.2% in November.
  • New contributions to equities increased from 68.8% in October to 69.1% in November.

Asset classes with largest percentage

of total balance at the end of November

  Percentage of balance

  Index dollar value ($mil)  

Target date funds2

32%

$76,334

Large U.S. equity funds

28%

$66,486

Stable value funds

7%

$18,037

Asset classes with most 

contributions in November

Percentage of contributions

Index dollar value($mil)

Target date funds2

51%

$619

Large U.S. equity funds

21%

$249

International equity funds

7%

$88


Returns for common indices

November

2023 YTD

Bloomberg Barclays U.S. Aggregate Index

4.53%

1.64%

S&P 500 Index

9.13%

20.80%

Russell 2000 Index

9.05%

4.20%

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

9.00%

10.09%

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.

Related Insights


Alight Solutions 401(k) Index™: October 2026 observations

Retirement plan trading remained modest in October, with 0.06% of assets transferred and trading direction evenly split, as 11 of 22 trading days favored fixed income.

Alight Solutions 401(k) IndexTM: Third Quarter 2026 Observations

Retirement plan trading slowed in the third quarter as markets delivered mixed results.

Alight Solutions 401(k) Index™: September 2026 observations

Participant trading remained limited in September, even as all four market benchmarks declined for the month. Total transfers represented just 0.06% of starting balances, with only one above-normal1 trading day.