Trading among retirement accounts increased slightly in April, finds data released by Alight Solutions’ 401(k) Index.
According to the findings, investors had four “above-normal” trading days compared to two in March, for a total number of 18 days for 2024.
For reference, Alight explains 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.
On average, 0.009% of 401(k) balances were traded daily in April, a small increase from 0.008% in March. Bonds came in first place with the most inflows (52%), followed by money market funds (18%) and large U.S. equity funds (18%).
Target-date funds (TDFs) observed the most outflows out of any other asset class (52%), trailed by mid U.S. equity funds (19%) and small U.S. equity funds (11%). Thirteen out of 22 days in April favored fixed income funds.
On the contribution side, TDFs saw the most funds added, at 50% of contributions for a dollar value of $705 million. Large U.S. equities experienced 22% of contributions, while international equity funds realized 7%.
New contributions to equities increased slightly from 69.7% in March to 69.8% in April, while average asset allocation in equities dropped from 71.7% in March to 71.3% in April.
Alight’s 401(k) Index analyzes trading activity for two million participants with over $200 billion in collective assets. The reports detail monthly and quarterly trading volume, asset flows, and market activity.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.