Wednesday, November 30, 2022

401ks could offer more ETFs (Better Investing Magazine)

December 8, 2013 by  
Filed under Articles and Features

Better Investing Magazine (National Association of Investors Corp.) — As ETFs experience record-breaking inflows, many retail investors continue to eye them for their lower costs, transparency and opportunities for niche exposure. Although they’re quickly becoming a top choice for many investors, they have yet to gain any serious within 401(k) plans.

Experts say most 401(k) platforms aren’t designed to handle the trading complexities of ETFs. Although they may offer lower expense ratios, the problems of dealing with fractional shares, intraday trading and administrative issues make them extremely difficult to manage in a ordinary 401(k) plan. As emerging 401(k) platforms emerge to address these issues, some experts say more ETFs could soon be found in retirement plans.

READ THE FULL ARTICLE AT BETTER INVESTING MAGAZINE.

As ETFs experience record-breaking inflows, many retail investors continue to eye them for their lower costs, transparency and opportunities for niche exposure. Although they’re quickly becoming a top choice for many investors, they have yet to gain any serious within 401(k) plans.

Experts say most 401(k) platforms aren’t designed to handle the trading complexities of ETFs. Although they may offer lower expense ratios, the problems of dealing with fractional shares, intraday trading and administrative issues make them extremely difficult to manage in a ordinary 401(k) plan. As emerging 401(k) platforms emerge to address these issues, some experts say more ETFs could soon be found in retirement plans.

– See more at: http://blog.betterinvesting.org/investing/401ks-could-offer-more-etfs/#sthash.7XeGg74Z.dpuf

As ETFs experience record-breaking inflows, many retail investors continue to eye them for their lower costs, transparency and opportunities for niche exposure. Although they’re quickly becoming a top choice for many investors, they have yet to gain any serious within 401(k) plans.

Experts say most 401(k) platforms aren’t designed to handle the trading complexities of ETFs. Although they may offer lower expense ratios, the problems of dealing with fractional shares, intraday trading and administrative issues make them extremely difficult to manage in a ordinary 401(k) plan. As emerging 401(k) platforms emerge to address these issues, some experts say more ETFs could soon be found in retirement plans.

– See more at: http://blog.betterinvesting.org/investing/401ks-could-offer-more-etfs/#sthash.7XeGg74Z.dpuf

As ETFs experience record-breaking inflows, many retail investors continue to eye them for their lower costs, transparency and opportunities for niche exposure. Although they’re quickly becoming a top choice for many investors, they have yet to gain any serious within 401(k) plans.

Experts say most 401(k) platforms aren’t designed to handle the trading complexities of ETFs. Although they may offer lower expense ratios, the problems of dealing with fractional shares, intraday trading and administrative issues make them extremely difficult to manage in a ordinary 401(k) plan. As emerging 401(k) platforms emerge to address these issues, some experts say more ETFs could soon be found in retirement plans.

– See more at: http://blog.betterinvesting.org/investing/401ks-could-offer-more-etfs/#sthash.7XeGg74Z.dpuf

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