Betterment Brings ETFs to 401(k) Plans

Betterment client currently have access to six equity-based ETFs and seven fixed income. All six of the equity ETFs available to Betterment clients are Vanguard funds while three of the fixed income offerings are iShares ETFs with the other four being Vanguard funds. https://www.betterment.com/portfolio/

Betterment’s ETF offerings currently include the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO), Vanguard Value ETF (NYSEArca: VTV) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD).

TD Ameritrade (NasdaqGM: AMTD) has been offering ETFs to the 401(k) world for over four years, indicating that previous hurdles, including technological challenges, are falling by the wayside. [TD Ameritrade Solves ETF 401(k) Problem]

Advisrors  and ETF advocates have been pushing for ETFs within retirement plans. ETFs have yet to break into 401(k) plans because of structural differences. 401(k) plans have been modeled around mutual funds for years, however, the trading aspect and the transaction fees incurred are the biggest hitch.