November was a more typical month for trading activity among 401(k) investors according to Alight Solutions 401(k) IndexTM. The month had three days of above-normal1 trading activity—down from five in October, but up from the summer lull when there were no above-normal days from July through September.
November observations:
- 15 of 21 days favored fixed income funds
- On average, 0.015% of 401(k) balances were traded daily
The Alight Solutions 401(k) Index™ statistics for the month of November 2018:
| Index statistics | November | 2018 YTD |
|---|---|---|
| Total transfers as percentage of starting balance | 0.13% | 1.20% |
| # Fixed days | 15 (71%) | 140 (60%) |
| # Equity days | 6 (29%) | 92 (40%) |
| # Above-normal days | 3 | 37 |
Inflows and outflows during the month:
- Trading inflows mainly went to stable value, money market, and large U.S. equity funds
- Outflows were primarily from target date2 and company stock
Asset classes with most trading inflows in November
| Percentage of inflows | Index dollar value ($ mil) |
|
|---|---|---|
| Stable value funds | 59% | $152 |
| Money market funds | 18% | $46 |
| Large U.S. equity | 13% | $34 |
Asset classes with most trading outflows in November
| Percentage of outflows | Index dollar value ($ mil) |
|
|---|---|---|
| Target date funds | 62% | $159 |
| Company stock funds | 25% | $65 |
November investment portfolios:
- Asset allocation in equities increased slightly to 68.1% at the end of November from 68.0% at the end of October
- New contributions in equities decreased to 67.7% in November from 68.1% in October
Asset classes with largest percentage of total balance at end of November
| Percentage of balance | Index dollar value ($ mil) |
|
|---|---|---|
| Target date funds | 28% | $55,840 |
| Large U.S. equity funds | 25% | $50,375 |
| Stable value funds | 10% | $20,899 |
Asset classes with most contributions in November
| Percentage of contributions | Index dollar value ($ mil) |
|
|---|---|---|
| Target date funds | 48% | $528 |
| Large U.S. equity fund | 19% | $214 |
| International funds | 7% | $80 |
November market observations
After a volatile October, the capital markets provided positive returns in November. Large-Cap U.S. equities (represented by the S&P 500 Index) were up 2.0% and Small-Cap U.S. equities (represented by the Russell 2000 Index) were up 1.6%. International equities (represented by the MSCI ACWI ex-US Index) were up 1.0% and the U.S. Bond market (represented by the Bloomberg Barclays U.S. Aggregate Index) was up 0.6%.
Returns for common indices
| November | 2018 YTD | |
|---|---|---|
| Bloomberg Barclays U.S. Aggregate Index | 0.6% | -1.8% |
| S&P 500 Index | 2.0% | 5.1% |
| Russell 2000 Index | 1.6% | 1.0% |
| MSCI All Country World ex-U.S. Index (net) | 1.0% | -10.1% |
Members of the media: please contact MacKenzie Lucas for questions about the Alight Solutions 401(k) Index™.
Learn more about the Alight Solutions 401(k) Index™ here.
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