Core Insights - Retirement investors are increasingly focusing on international stocks and emerging markets, as indicated by Alight Solutions' 401(k) Index [1][2] Group 1: Investment Trends - In January, international equity funds received 45% of equity inflows, while emerging markets attracted 33%, surpassing US equity categories [2] - A significant shift in investor behavior is observed, with 59% of funds withdrawn from large US equity funds, indicating a move away from US equities [2][3] - New contributions to equities rose to 73% in January from 70.1% in December, showing a renewed interest in equity investments [6] Group 2: Target-Date Funds - Despite withdrawals from target-date funds, they remain the largest asset class for 401(k) savers, with the majority of contributions in January directed towards these funds [4] - Target-date funds are commonly used by 401(k) plan sponsors and state auto-IRA programs for automatic enrollment [4] Group 3: Market Performance - The MSCI All Country World ex-USA Index gained 29.2% in 2025, outperforming the S&P 500's 17.9% gain, highlighting the potential of global markets [9] - Global markets showed a 6% increase last month, while the S&P 500 only gained 1.4%, further emphasizing the attractiveness of international equities [9] Group 4: Investor Sentiment - The shift towards international equities may reflect investor concerns over US equity volatility and a search for long-term global growth opportunities [7]