Importantly, that is more than 50% above the rate of investors that favor ETFs in 401(k)’s due to intra-day tradability.
ETFs have a long road ahead to crack the 401(k) as some fund companies, including those that are themselves ETF issuers, oppose the idea. Additionally, critics of the idea assert that “many” working Americans have access to low-cost index mutual funds in their employer-sponsored retirement plans.
While that is true, there is difference between “many,” “most” and “all” and many Americans are still saddled with only high-fee products in their 401(k)’s.
Earlier this year, Schwab Retirement Plan Services, a unit of California-based Schwab, launched a full-service 401(k) program based on low-cost exchange-traded funds.
Schwab Retirement Plans Services is making 80 ETFs from 11 providers available in its new 401(k) ETF platform. In addition to Schwab ETFs, plan participants can choose from ETFs offered by ETF Securities, First Trust, Guggenheim Investments, Invesco PowerShares, iShares ETFs, PIMCO, State Street Global Advisors, Van Eck Global, Vanguard and United States Commodity Funds. [Schwab Launches ETF 401(k) Effort]