Trading activity rose slightly in April with four above-normal1 days compared to just two in March, according to the Alight Solutions 401(k) IndexTM. Investors favored fixed income funds on 13 of 22 days. Bond funds (52%) saw the most inflows, while target date funds2 (58%) experienced the most outflows. New contributions to equities increased slightly to 69.8% in April, while average asset allocation in equities dropped from 71.7% in March to 71.3% in April.
April observations:
- On average, 0.009% of 401(k) balances were traded daily.
- 13 of 22 days favored fixed income funds.
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Inflows and outflows during the month of April:
- Trading inflows mainly went to bond, money market and large U.S. equity funds.
- Outflows were primarily from target date2, mid U.S. equity and small U.S. equity funds.
Asset classes with most trading inflows in April | Percentage of inflows | Index dollar value ($mil) |
| Bond funds | 52% | $125 |
Money market funds | 18% | $44 |
| Large U.S. equity funds | 18% | $43 |
Asset classes with most trading outflows in April | Percentage of outflows | Index dollar value ($mil) |
Target date funds2 | 58% | $142 |
Mid U.S. equity funds | 19% | $46 |
| Small U.S. equity funds | 11% | $28 |
April investment portfolios:
- After reflecting market movements and trading activity, average asset allocation in equities decreased from 71.7% in March to 71.3% in April.
- New contributions to equities increased from 69.7% in March to 69.8% in April.
Asset classes with largest percentage of total balance at the end of April | Percentage of balance | Index dollar value ($mil) |
Target date funds2 | 32% | $83,004 |
Large U.S. equity funds | 28% | $72,944 |
International equity funds | 7% | $17,384 |
Asset classes with most contributions in April | Percentage of contributions | Index dollar value($mil) |
Target date funds2 | 50% | $705 |
Large U.S. equity funds | 22% | $515 |
International equity funds | 7% | $98 |
Returns for common indices | March | 2024 YTD |
Bloomberg Barclays U.S. Aggregate Bond Index | -2.53% | -3.28% |
S&P 500 Index | -4.08% | 6.04% |
Russell 2000 Index | -7.04 | -2.22% |
MSCI All Country World ex-U.S. Index (net) | -1.80% | 2.81% |
1 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.
2 Target date funds also include the amounts in target risk funds. The amount in the target risk funds is less than 10% of the total.
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