Exchange traded funds (ETFs) are getting ready to enter into the world of retirement planning. Innovative firms are developing and planning the technology and platforms necessary to make ETFs compatible with the defined-contribution market. John Spence of Dow Jones Newswire states the 401K market could provide the venue for ETFs next round of growth. ETFs will need to break some of the hold in this area that is dominated by mutual funds, and some insiders say ETFs can expect 10-15% of the retirement market over the next decade. ETF Trends even called it a billion dollar struggle, while predicting this breakthrough for ETFs in 2007. Some of the problems that are being addressed are cost issues, tax efficiency and intra-day trading.
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.