Vanguard said the small 401(k) plan service that it introduced last month for plans of up to $20 million in assets under management has been receiving a great deal of interest, particularly the platform’s concentration on low-cost index and target-date funds, and its “all-in” plan fees that include investment, recordkeeping and administration costs.

According to data from the Investment Company Institute and Deloitte Consulting, the average all-in fees for plans between $1 million and $10 million in assets is 1.27%, whereas Vanguard’s is roughly 32 basis points, Vanguard said.

“The tremendous response we’ve received since this service was announced confirms what we’ve been hearing for years from advisers and plan sponsors,” said Kathy Fuertes, head of retirement plan services for small business at Vanguard. “Many small employers who provide a 401(k) plan for their employees—or would like to provide one—want a cost-effective program and access to funds and features that will both make it a valuable recruitment and retention resource and offer the tools to help their employees plan properly for retirement.”

-- This article first appeared on Money Management Executive.