Retirement

According to an article in USA Today, one of the latest trends in the Exchange traded funds or ETF market is the expansion of theme into the huge markets of tax-differed savings plans like 401(k) retirement plans and 529 college savings plans.

The 401(k) retirement market is quickly approaching $3 trillion in invested assets. This market has been dominated with mutual funds; however, the largest ETF issuer BlackRock is making significant strides in bringing ETFs into the retirement world. Chip Castille, head of BlackRock explains, “It’s been a slow, gradual build-out. But all of the major back-office [...]

Schwab recently announced intentions to offer 401(k) retirement plans exclusively using ETFs. The move is seen to likely put pressure on competitors offering 401(k) plans which largely use actively managed mutual funds, which typically charge higher fees than ETFs. The 401(k) market is a nearly $3 trillion dollar market, and ETFs are only beginning to [...]

TD Ameritrade has added ETFs to its 401k retirement plan platform, ahead of competitors Schwab and Fidelity. Schwab announce plans last month to offer an all-ETF platform early next year. In a move intended to appeal to registered investment advisors, TD Ameritrade’s platform allows both ETFs and Mutual Funds. TD Ameritrade has begun offering the [...]

Thanks to the growing competition in the retail space, most long term investors can now balance their portfolios with exchange-traded funds for free. Fidelity, Vanguard, and Charles Schwab are all competing for investors’ dollars, and investors are the benefactor. One of the best deals for investors is Fidelity’s offer for free trades on several iShares [...]

While mutual funds have been a staple of the retirement planning community, exchange-traded funds are beginning to earn their fair share. Industry analysts contend the new wave of growth will be in the form of hybrid ETFs, with active management like a mutual fund, coupled with the benefits of exchange-traded funds. Following the crash of [...]

A recent study released by www.ratelines.com reveals that most Americans retirement portfolios are underfunded, resulting in many being unprepared for retirement. “Of the 1,153 workers surveyed, 43% have less than $10,000 set aside in their savings accounts for retirement. Approximately 27% of the work force has less than $1,000 saved. Both percentages have increased since [...]

Exchange traded funds are a low-cost way to build portfolio. John Waggoner of USA Today does a great job of outlining the benefits of ETFs, advising what to steer clear of and provides sound model portfolios. “One of the biggest advantages of ETFs is cost. Many ETFs charge 0.5% a year or less in expenses. [...]

Under-promoted and under-utilized, ETFs are slowly becoming more accessible through 401k programs’ self-directed brokerage window. 26% of ETF providers allow clients to use this service to make trades for themselves. The service can cost anywhere from $50-100 per year plus trading commissions, depending on the custodian, but allows full access to the stock market, CNN [...]

Vanguard, a leader in index mutual funds, has filed to create seven new funds, six of which will be invested in bonds. The new funds, which will be in competition with iShares and PIMCO, will fight primarily for its share of the Treasury bond ETF sector. The seven new funds are as follows: 1. Vanguard [...]