Likewise, the U.S. Department of Labor suggests that plan sponsors must "ensure that fees paid to service providers and other expenses of the plan are reasonable in light of the level and quality of services provided." This would require a degree of knowledge and specialty in matching fees paid with service providers. There appears to be a great gap, a disconnect going on here.
How can this happen if plan sponsors aren’t even aware of what they are selling?
As an employee, you should ask your Human Resource department why ETFs aren’t available to you! This might help get the ball rolling.
The ETF industry is going to be watching these developments closely. And as more people become educated about what fees are costing them, plan participants are going to being to get more discerning. Right now, there is no proper analysis of fees, and plan sponsors clearly don’t know what their responsibilities are.