August showed an uptick in 401(k) trading activity among defined contribution plan investors, according to the Alight Solutions 401(k) Index™. There were three days of above-normal
1 trading activity in August, equal to the total number of above-normal days from January through July. When making trades, investors generally favored fixed income funds.
“Over the last five years, the Index has averaged 32 above-normal trading days per year. The fact that there have only been six such days this year speaks to how infrequently participants have been initiating trades. There are likely two main forces at play: inertia on the part of investors and a prolonged upward-trending market.”
– Rob Austin, Director of Research at Alight Solutions
August observations:
- On average, 0.016% of balances traded each day
- 18 out of 23 days favored fixed income funds
The Alight Solutions 401(k) Index™ statistics for the month ending August 31, 2017: