While they’re already popular, exchange-traded funds are looking to boost their growth further by getting onto 401(k) platforms, Dow Jones reports.
“ETFs and 401(k) plans are a natural match,” said Bruce Lavine, COO at ETF provider
But not everyone believes it will be easy for ETFs to beat out mutual funds, which comprise approximately half of the $2.4 trillion in 401(k) plans.
“Mutual fund are ingrained into the fabric of the 401(k) market,” said Rick Meigs, president of
One of the biggest obstacles to providing ETFs in 401(k) plans is the brokerage fees that must be paid whenever buying or selling one. To overcome this, some firms are aggregating trades or creating ETF collective trusts.