401(k) Participant Trading Returned to Normal in November

Most 401(k) trading in the month favored fixed income investments.

The Alight Solutions 401(k) Index found that November was more of a typical month for trading activity among 401(k) investors. The month had three days of above-normal trading activity, down from five in October, but up from the summer lull when there were no above-normal trading days from July through September.

Participants traded a total of 0.13% of their balances in November. Days when trading into fixed income was the majority totaled 15, or 71% of the trading days, with the balance, six days, or 29%, favoring equities.

Trading inflows went mainly to stable value (59%), money market (18%) and large U.S. equity funds (13%), with money being withdrawn mostly from target-date funds (TDFs) (62%) and company stock funds (25%).

Asset allocation in equities inched upward to 68.1% by the end of November from 68.0% at the end of October. New contributions to equities decreased to 67.7% in November from 68.1% the month before.

Asset classes with the largest percentage of total balances at the end of November were TDFs (28%), large U.S. equity funds (25%) and stable value funds (10%). Asset classes with the greatest percentage of contributions in November were TDFs (48%), large U.S. equity funds (19%) and international funds (7%).