Driven by the success of exchange-traded fund provider
Of the $2.7 trillion Americans have in 401(k) plans, $2 trillion is in mutual funds, according to the
BlackRock estimates $2 billion of its iShares are in 401(k)s and that “in the next five years, it is conceivable that flows to ETFs within the 401(k) space could reach several billion dollars,” said Darek Wojnar, head of product research and strategy at BlackRock’s iShares ETF unit.
While ETFs held outside of tax-advantaged retirement plans offer just that feature, as well as intraday trading, the appeal of ETFs for 401(k) investors is their low fees, Wojnar said.