BenefitStreet has launched a new 401(k) platform that can support both mutual funds and exchange-traded funds. It’s a big advancement for 401(k) platforms since traditional 401(k) recordkeeping systems were designed to allow investments in mutual funds, not ETFs or other products that trade whole shares on an exchange. Previously, BenefitStreet offered a separate, ETF-only 401(k) platform.
“Rather than having to choose one or the other, we’re excited to see BenefitStreet’s ability to combine ETFs and mutual funds in the same plan offering,” said Tim Nihill, manager of retirement products and services at Commonwealth Financial Network. “The original ETF 401(k) plan’s only barrier to entry for a number of our corporate clients was that it took away the ability to also invest in mutual funds. We believe that most participants will find the ETF portfolios very appealing once they see how lower fees can positively impact long-term performance.”