iShares, one of the leading providers of exchange traded funds (ETFs), has launched the iShares 401(k) Program. It was designed to help financial advisors utilize ETFs as standard investment options within 401(k) plans. This is a great step.

The new program identifies administrative providers and networks that offer competitively priced and straightforward access to ETFs in 401(k) accounts, making it easier for financial advisors to provide ETFs in clients’ retirement programs alongside traditional mutual funds.

iShares has already identified Pai and Ascensus as the first Preferred Providers and Mid Atlantic Financial Platforms as the first Preferred Network. More providers and plans will be submitted in the future, upon approval.

This was created in direct response to the demand for ETFs in 401(k)s along with the lack of choices and information available. Financial advisors find it hard to find an effective deliverance of requested ETFs into a retirement platform, so this service could be of great help to both parties. This also comes at a time when many investors are wary of markets, and feel the industry is in need of a makeover.

iShares does not sell or condone any ETFs that are suggested, and it is up to the advisor or investor to make their own judgments about what works best for them.

Tags: 401(k), Retirement