The time has come: Exchange traded funds (ETFs) are making their mark in 401(k) retirement plans. In June, BenefitStreet, a provider of retirement plans, began offering ETFs on their 401(k) platform in conjunction with Barclays Global Investors. So far, they have received $150 million in commitments from retirement plans.
Barclays has been working with several retirement plans and finds the technology is finally making enough advancement to offer ETFs within retirement plans. ETFs cost a lot less than other funds because they don’t require a manager and they track indexes. Collective trusts offer another option for ETFs to break into retirement plans, but Jesse Emspak for Investor’s Business Daily reports this is still in an embryonic stage.
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