ETF Trends
ETF Trends

WisdomTree Retirement Services, a subsidiary of the exchange traded fund (ETF) provider WisdomTree Investments, announced today the launch of a 401(k) platform. This is one of several ways companies are trying to set up platforms for easy ETF access in 401k plans. The platform uses index-based investing and WisdomTree’s fundamental ETFs in addition to no-load, actively-managed mutual funds for extra diversification. The open platform features third-party ERISA fiduciary and investment advisory services and is designed to be used by plan sponsors, advisers, brokers and third-party administrators (TPAs).

The comprehensive service platform offers an all-inclusive 401(k) ETF program for as low as 65 to 70 basis points and has eliminated the trading fees and commissions typically associated with retail ETF purchases. To deliver the platform, WisdomTree has partnered with CLS Investment Firm for asset allocation services, Professional Capital service for record-keeping and ICTC (Ameritrade) for custody and trading services. The two options available on the platform are:

  • Model Plan
    The model plan is a wrap-free ETF 401(k) plan that offers six ETF portfolios designed for different investors’ risk tolerance or target retirement date. The models feature ETFs from WisdomTree as well as Vanguard and iShares. Additionally, advisers can supplement the ETF models with a menu of mutual funds.
  • Custom Plan
    The custom plan features all of the investment options available in the model plan and allows advisers who can assume more responsibility for their clients to create customized portfolios. 

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.