Exchange traded funds (ETFs) are loved by small business owners and the financial advisors that help them. ShareBuilder 401(k) has sold over 1,250 ETF-based 401(k) retirement plans in only two years. Small business owners are realizing the long term growth opportunity in investments. Stronger returns, lower fees, and simple sign up is a combination that is attractive to many. ShareBuilder and other firms, such as Invest n Retire, are leading the way in providing 100% ETF-based 401(k) plans.
Recently, ShareBuilder announced that it is being bought by ING Direct, an online bank, reports Tricia Duryee of The Seattle Times. This is ING’s first foray into the ETF marketplace. Expect to see more global financial services firms find ways to capitalize on incorporating ETFs into retirement plans.
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.