ETF Trends
ETF Trends

ShareBuilder is an online brokerage firm and that offers 401(k) plans to self-employed workers and employees of small businesses.  Their plans are built exclusively around exchange traded funds.  On July 1st, ShareBuilder launched the first Roth 401(k) based solely on ETFs.  With a Roth 401(k), savings are taxed immediately and workers benefit at retirement because withdrawals are tax-free.  There are also no income limitations.

ShareBuilder is the only provider to specialize in ETFs and does so because of their low expenses.  They don’t charge commissions on purchases and sales within the plan.  However there is a set up fee and individuals pay $15 per month.  Other fees include the expense ratio for the ETFs, but none are higher than 0.21%; and ShareBuilder receives a fee of 0.65% for portfolio selection.  There is no minimum to open an account.

A few of the ETFs offered in the plan include SPDR Trust (SPY), Diamonds Trust (DIA), iShares Russell 2000 Index (IWM) and iShares MSCI Emerging Markets Index (EEM).

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.