401(k) trading activity was remarkably light in the second quarter, according to the Alight Solutions 401(k) IndexTM. Net trades for the quarter amounted to 0.16% of balances, the lowest quarterly figure in the almost 25-year history of the 401(k) Index. There was only one day of above-normal1 activity.
Q2 2021 observations:
- Total transfers as a percent of balances in Q2 2021 were 0.16%. The previous quarterly low was 0.30% (Q2 1998). From Q1 1998 through Q1 2021, the average quarterly net trading activity was 0.88%.
- 37 days (59%) had net trading dollars moving to equities, and 26 days (41%) favored fixed income.
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The Alight Solutions 401(k) Index statistics for Q2 2021 and year to date: |
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Index statistics |
Q2 2021 |
2021 YTD |
|
Total transfers as percentage of starting balance |
0.16% |
0.59% |
|
# Fixed days |
26 (41%) |
44 (35%) |
|
# Equity days |
37 (59%) |
80 (65%) |
|
# Above-normal days |
1 |
2 |
|
Asset classes with most trading inflows in Q2 2021 |
Percentage of inflows |
Index dollar value ($mil) |
|
International |
36% |
$153 |
|
Specialty/sector |
18% |
$75 |
|
Target date funds2 |
18% |
$75 |
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Asset classes with most trading outflows in Q2 2021 |
Percentage of outflows |
Index dollar value ($mil) |
|
Stable value |
36% |
$151 |
|
Company stock |
35% |
$146 |
|
Money market |
11% |
$46 |
Q2 2021 market returns:
|
Returns for common indices |
Q2 2021 |
2021 YTD |
|
Bloomberg Barclays U.S. Aggregate Index |
1.83% |
-1.60% |
|
S&P 500 Index |
8.55% |
15.25% |
|
Russell 2000 Index |
4.29% |
17.54% |
|
MSCI All Country World ex-U.S. Index (net) |
5.48% |
9.16% |
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.
Members of the media: please contact Landis Cullen for questions about the Alight Solutions 401(k) Index™. Learn more about the Alight Solutions 401(k) Index™ here.
