U.S. retirement assets are multiplying at a rapid pace and so are the exchange traded funds (ETFs) in the retirement plans. Retirement assets accounted for 39% of household assets last year and overall assets for retirement rose by $1.7 trillion in 2006 to $16.4 trillion. This 12% increase outpaces the growth in retirement assets from 2004-2005, when investors added about $1 trillion to their nest eggs, reports Daisy Maxey for The Wall Street Journal.
In 2006, ETF assets grew by more than 40% to $423 billion. The amazing aspect of this growth is ETFs are not yet available in 401k plans. As investors’ demand to include ETFs in retirement plans grows, plan providers will eventually succumb resulting in even greater expansion in ETFs assets and products.
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.