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U.S. retirement investors turn toward global stocks

Retirement savers have begun to broaden their horizons

Updated:

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Photo by Towfiqu Barbhuiya on Unsplash

Key Insights

  • Retirement investors are increasingly moving money into international and emerging-market equities, making non-U.S. companies the largest beneficiaries of net inflows in January 2026. 
  • Outflows from large U.S. equity and stable value funds suggest a shift in investor confidence toward global growth opportunities, even amid generally light trading activity.
  • January marked the first month of net equity inflows in 401(k) plans since January 2025, signaling a renewed, albeit cautious, engagement with equities overall.

Retirement plan investors are increasingly allocating their savings beyond domestic markets, according to the latest Alight Solutions 401(k) Index for January 2026. This shift toward international and emerging-market equities reflects growing interest among U.S. savers in tapping global growth opportunities.

In the first month of 2026, retirement accounts saw net inflows concentrated in non-U.S. funds, with international equity funds capturing 45% of total inflows and emerging-market funds taking another 33%. By contrast, traditional large U.S. equity funds saw the largest share of outflows, accounting for 59% of funds leaving equities, followed by stable value funds with 24%. 

Although overall trading activity remained muted—with average daily transfers equating to just 0.011% of 401(k) balances and no days of above-normal trading—January nonetheless marked the first month of net equity inflows since January 2025. Many retirement investors appear to be selectively adding to equity positions, signaling measured confidence returning to growth-oriented assets.

Why investors are looking abroad

Several factors may be driving this international shift:

  • Valuation and Opportunity: With U.S. markets seen by some as richly priced, retirement savers are diversifying into global stocks that may offer more attractive valuations or longer-term growth potential.
  • Emerging-Market Appeal: Emerging economies—notably in Asia and Latin America—continue to attract interest for their faster projected economic expansion compared with developed markets.
  • Diversification Benefits: Adding international holdings can reduce portfolio concentration risk tied solely to the U.S. economy.

Despite these flows, U.S. equities and stable value funds maintain a significant presence in retirement portfolios. Target date funds, a popular default investment option in many 401(k) plans, still represent the single largest share of total assets (31%), followed by large U.S. equity (29%).

A reengagement with equities

Financial analysts point out that January’s light but positive equity reallocations suggest a careful reengagement with the stock market among plan participants. After periods of volatility and low trading activity throughout late 2025, this modest return to equity investing—especially internationally—could foreshadow changing sentiment as savers look to extend their retirement growth prospects beyond domestic boundaries. 

As retirement landscapes evolve, plan sponsors and advisors may need to consider educational efforts that help savers understand both the opportunities and risks associated with global diversification.