Canada (EN)
Retirement plan trading increased in the second quarter as equity markets rebounded sharply from first-quarter volatility. The S&P 500 gained 15.2% during Q2, while the Russell 2000 advanced an impressive 21.5%, reflecting broad strength across U.S. equities. Strong market performance contributed to increased profit-taking activity among 401(k) participants, particularly within company stock holdings, which accounted for 56% of all trading outflows during the quarter, as participants capitalized on significant gains and rebalanced portfolios. After a relatively slow first quarter, Q2 included 10 above-normal1 trading days, according to the Alight Solutions 401(k) Index™. Participant transfers showed an overall preference for fixed investments, with bond funds receiving 49% of inflows, followed by stable value funds at 17% and money market funds at 12%. While outflows were concentrated in company stock (56%) and large U.S. equity funds (24%), the pattern largely reflected selective profit-taking and rebalancing rather than a broad retreat from equities. Participants appeared to remain committed to long-term growth strategies, using market strength to reduce concentrated positions while maintaining diversified retirement portfolios. | ||
Second quarter observations: | ||
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Asset classes with most trading inflows in Q2 2026 | Percentage of inflows | Index dollar value ($mil) |
| Bond funds | 49% | $550 |
| Stable value funds | 17% | $186 |
| Money market | 12% | $138 |
Asset classes with most trading outflows in Q2 2026 | Percentage of outflows | Index dollar value ($mil) |
Company stock | 56% | $622 |
Large U.S. equity funds | 24% | $267 |
| Small U.S. equity funds | 9% | $105 |
Returns for common indices | Q2 2026 | 2026 YTD |
Bloomberg Barclays U.S. Aggregate Bond Index | 0.67% | 0.62% |
S&P 500 Index | 15.20% | 10.21% |
Russell 2000 Index | 21.49% | 22.57% |
MSCI All Country World ex-U.S. Index (net) | 14.49% | 13.68% |
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.
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