There is a battle over 401k money and exchange traded funds (ETFs) are doing what they can to get in. Once in, ETFs could claim a big portion of the retirement marketplace. BenefitStreet joined Barclays to distribute ETFs to corporate sponsors of 401k’s. By moving 401k’s into the ETF marketplace there is a huge cost reduction for employees, reports Murray Coleman for MarketWatch.com. The move has been slow because of brokerage fees, and obstacles regarding record keeping, as ETFs are traded throughout the day. BenefitStreet has created a system to work around these obstacles with a more pure access to ETFs.
We’re still not at the point where 401k participants can handle their own asset allocation strategies with ETFs. This will be a huge step in the evolution of ETFs as they become a bigger part of corporate retirement plans.
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