Throughout the second quarter, 401(k) investors traded from equities to fixed income funds, according to the Alight Solutions 401(k) IndexTM. The steady stream of trades in one direction made for the heaviest quarter of net trading since the third quarter of 2016.
Second quarter observations:
- Net transfers for the quarter were 0.61% of balances
- 53 out of 63 trading days in the second quarter had net trading dollars moving from equities to fixed income
Alight Solutions 401(k) Index™ statistics for Q2 2019 and year-to-date:
|Index Statistics||Q2 2019||2019 YTD|
|Net transfers as percentage of starting balance||0.61%||1.10%|
|# Fixed days||53 (84%)||107 (86%)|
|# Equity days||10 (16%)||17 (14%)|
|# Above-normal1 days||7||16|
|Asset classes with most trading inflows in Q2 2019||Percentage of inflows||Index dollar value
|Stable value funds||23%||$283|
|Money market funds||14%||$171|
|Asset classes with most trading outflows in Q2 2019||Percentage of outflows||Index dollar value
|Large U.S. equity funds||55%||$669|
Second quarter market observations:
Despite a dip in the middle of the quarter, most major market indices rose during Q2 2019. Large U.S. equities (represented by S&P 500 Index) were up 4.3%, small U.S. equities (represented by Russell 2000 Index) gained 2.1%, and international equities (represented by MSCI All Country World ex-U.S. Index) rose by 3.0%. U.S. bonds (represented by Bloomberg Barclays U.S. Aggregate Index) gained 3.1%.
|Returns for common indices||Q2 2019||2019 YTD|
|Bloomberg Barclays U.S. Aggregate Index||3.1%||6.1%|
|S&P 500 Index||4.3%||18.5%|
|Russell 2000 Index||2.1%||17.0%|
|MSCI All Country World ex-U.S. Index (net)||3.0%||13.6%|
Members of the media: please contact Dominic Belmonte for questions about the Alight Solutions 401(k) Index™.
Learn more about the Alight Solutions 401(k) Index™ here.