"According to Vanguard's 2025 How America Saves report, only 5% of nonadvised participants made any portfolio exchanges in 2024, down from 20% in 2004. Among investors who hold a single target-date fund, the figure drops further: just 1% traded at all."
"Sixty-seven percent of Vanguard participants now hold professionally managed allocations, meaning a target-date fund, a balanced fund, or a managed account does the rebalancing for them. That figure was 9% in 2005."
"The Vanguard Total Stock Market ETF, a reasonable proxy for what a hands-off saver in a US equity fund captured, returned 30.26% over the past year and 234.12% over the past ten years."
The trading rate among nonadvised 401(k) participants has significantly decreased, with only 5% making exchanges in 2024 compared to 20% in 2004. A majority now hold professionally managed allocations, particularly target-date funds. The trend towards passivity has been beneficial, as evidenced by strong returns from the Vanguard Total Stock Market ETF, which yielded 30.26% over the past year and 234.12% over the past decade. This suggests that doing nothing in retirement investing may be advantageous for savers.
Read at 24/7 Wall St.
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