401(k) Investors Shift 45% Inflows to International, Emerging Markets in 2026

Retirement investors are shifting 45% of equity inflows into international stocks and 33% into emerging markets, per Alight Solutions’ 401(k) Index. While January trading in retirement accounts was quiet, new contributions to equities rose to 73%, up from 70.1% in December. Last year, investors pulled 59% of funds from large US equity funds, signaling de-risking, but target-date funds remained the largest 401(k) asset class. The MSCI All-Country World ex-USA Index outperformed the S&P 500 in 2025 (29.2% vs. 17.9%) and was up 6% in January, versus 1.4% for the S&P 500. This shift reflects growing confidence as the weaker U.S. dollar and AI-driven gains in Asia support longer-term global opportunities.