The trend of small trades away from equities to fixed income funds seems to suggest participants were rebalancing their portfolios, not making drastic changes to their investment mix, says Rob Austin, with Alight Solutions.
Tag: 401(k) participant trading
For the 17th straight month, 401(k) investor trades have favored fixed income, according to the Alight Solutions 401(k) Index.
While only 0.21% of balances were exchanged in May, it was the highest monthly activity so far this year, according to Alight Solutions.
In total, 1.45% of total plan balances were traded during the year, down from 2.13% in 2016, as participants chased performance within their own portfolios.