The first quarter of 2021 saw light trading in 401(k) plans, according to the Alight Solutions 401(k) IndexTM. The only day of above-normal1 activity occurred on January 6 when investors sold large U.S. equities amid events at the U.S. Capitol.
First quarter observations:
- Total transfers as a percent of balances in Q1 2021 were 0.46%—the lowest quarterly level since Q3 2018. Last year, 1.59% of balances were traded as stocks tumbled in the first quarter.
- Seventy percent of the trading days saw net trading money flowing from fixed income funds to equities.