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Alight Solutions 401(k) Index™: Second Quarter 2022 Observations

With market volatility continuing, 401(k) investors remained busy but cautious traders in the second quarter of 2022, according to the Alight Solutions 401(k) IndexTM. There were 17 above-normal1 trading days in the quarter, slightly higher than the 16 above-normal days seen in Q1. Net transfers as a percentage of starting balances were 0.46%, identical to the percentage seen in the prior quarter. Net trading activity significantly favored fixed income.

Second quarter observations:        

  • Net transfers for the quarter were 0.46% of balances.
  • 51 out of 62 trading days in the second quarter had net trading dollars moving from equities to fixed income.

Alight Solutions 401(k) Index™ statistics for Q2 2022 and year-to-date:

Index statistics

Q2 2022

2022 YTD

Total transfers as percentage of starting balance

0.46%

0.86%

# Fixed days

51 (82%)

93 (75%)

# Equity days

11 (18%)

31 (25%)

# Above-normal1 days

17

33

Asset classes with most

trading inflows in Q2 2022

Percentage of inflows

Index dollar value ($mil)

Stable value funds

86%

$964

Money market funds

13%

$148

Self-directed window funds

1%

$8

Asset classes with most

trading outflows in Q2 2022

Percentage of outflows

Index dollar value ($mil)

Target date funds2

56%

$629

Large U.S. equity funds

17%

$194

Company stock

6%

$62

Returns for common indices

Q2 2022

2022 YTD

Bloomberg Barclays U.S. Aggregate Index

-4.7%

-10.4%

S&P 500 Index

-16.1%

-20.0%

Russell 2000 Index

-17.2%

-25.2%

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

-13.7%

-19.4%

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™

Monthly and quarterly Alight Solutions 401(k) Index Reports

Alight Solutions 401(k) Index™: July 2022 Observations

401(k) plan investors were light traders in July, according to the Alight 401(k) Index™. There were no above-normal trading days as Wall Street posted its best month since November 2020.

Alight Solutions 401(k) Index™: June 2022 Observations

June was another active trading month for 401(k) investors, according to the Alight 401(k) Index. There were 5 above-normal trading days, and all but 3 days in the month had net trading flows going from equities to fixed income.