The AmericanTCS 401(k) Composite Benchmark delivered a –1.37% return in the first quarter of 2025, about -1% off of the –0.38% return of the 60/40 Balanced Index.
Over the same period, the S&P 500 Index (large cap U.S. stocks) returned -4.27%, as elevated uncertainty stemming from U.S. trade policy dampened growth expectations in the U.S. The Bloomberg U.S. Aggregate Bond Index (taxable U.S. bonds) yields fell on rising recession risks, ultimately returning +2.78% in the first quarter.
Because 401(k) participants are long-term investors, it is important to take a step back and look at the hypothetical 401(k) participant’s journey over longer time periods. The AmericanTCS 401(k) Benchmark delivered a solid return of 11.52% over the last five-year period. This reaffirms the experts’ advice to 401(k) participants of the importance of staying the course even in volatile markets. History tells us that good markets often follow bad ones. To achieve long-term financial success and stability, 401(k) participants must maintain a committed approach to their 401(k) portfolio.
About the AmericanTCS 401(k) Benchmark
AmericanTCS is a leading financial services organization that provides a wide array of brokerage, advisory, and trust services to a diverse national client base of financial advisors and institutions, asset managers and benefits administrators through its various affiliated companies. Because we provide these services, AmericanTCS has plan investment data on over 256,000 401(k) plans representing approximately $163 billion in assets. In response to requests from our institutional clients, we have created the AmericanTCS 401(k) Composite Benchmark. Using data from plans serviced by AmericanTCS with assets of at least $100,000 at the beginning and end of the month, the AmericanTCS 401(k) Composite Benchmark is designed to reflect the portfolio performance across 401(k) plans serviced, in any capacity, by AmericanTCS. See the “Methodology” section of this report for details on how the composite benchmark is calculated.