401(k) investors started 2018 with exceptionally high trading activity, according to the Alight Solutions 401(k) Index™. January had 12 days of above normal trading activity—one fewer than throughout all of 2017. Investors were primarily trading into equities as the stock market climbed to new records during the month.
January observations:
- Net transfers for the month of January were 0.32% of balances
- 17 out of 21 days favored equity funds
The Alight Solutions 401(k) Index™ statistics for the month of January 2018:
| Index statistics | January | 2018 YTD |
|---|---|---|
| Total transfers as percentage of starting balance | 0.32% | 0.32% |
| # Fixed days | 4(19%) | 4(19%) |
| # Equity days | 17(81%) | 17(81%) |
| # Above normal days | 12 | 12 |
Inflows and outflows during the month:
-
Trading inflows mainly went to international, large U.S. equity, and emerging markets funds
-
Outflows were primarily from stable value, company stock, and bond funds
Asset classes with most trading inflows in January
| Percentage of inflows | Index dollar value ($ mil) |
|
|---|---|---|
| International funds | 46% | $304 |
| Large U.S. equity funds | 34% | $227 |
| Emerging markets funds | 16% | $107 |
Asset classes with most trading outflows in January
| Percentage of outflows | Index dollar value ($ mil) |
|
|---|---|---|
| Stable value funds | 49% | $322 |
| Company stock funds | 24% | $161 |
| Bond funds | 11% | $74 |
January investment portfolios:
- At the end of January, 69.5% of balances were invested in equities, up from 68.6% at the end of December
- 68.1% of new contributions were invested in equities, up from 67.1% at the end of December
Asset classes with largest percentage of total balance at end of January
| Percentage of balance | Index dollar value ($ mil) |
|
|---|---|---|
| Target date funds2 | 27% | $57,327 |
| Large U.S. equity funds | 24% | $51,218 |
| Stable value funds | 9% | $19,911 |
Asset classes with most contributions in January
| Percentage of contributions | Index dollar value ($ mil) |
|
|---|---|---|
| Target date funds | 48% | $669 |
| Large U.S. equity funds | 18% | $258 |
| International funds | 8% | $114 |
January market observations
Large U.S. equities, small U.S. equities, and international equities (represented by the S&P 500 Index, the Russell 2000 Index, and MSCI All Country World ex-U.S. Index, respectively) had positive gains in January. U.S. bonds (represented by the Bloomberg Barclays U.S. Aggregate Index) experienced a loss for the month.
Returns for common indices
| January | 2018 YTD | |
|---|---|---|
| Bloomberg Barclays U.S. Aggregate Index | -1.2% | -1.2% |
| S&P 500 Index | 5.7% | 5.7% |
| Russell 2000 Index | 2.6% | 2.6% |
| MSCI All Country World ex-U.S. Index (net) | 5.6% | 5.6% |
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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