ETFs Wriggle Further Into 401(k) Plans

Exchange-traded funds are making their way into more 401(k) retirement plans, according to The Wall Street Journal.

Most recently, Sharebuilder Securities launched a web resource that allows small businesses to set up 401(k)s that are made up entirely of ETFs.

The company allows shareholders to make regular and even automatic investments in ETFs for $1 to $4 a trade. The trades are bundled together and money is invested weekly.

Sharebuilder 401(k) "is a natural extension of what we are already doing," said Jeffrey Seely, the firm's chief executive.

Sharebuilder 401(k)s are geared towards small businesses consisting of 50 employees or less.

Sharebuilder offers five model portfolios that include four to seven ETFs each.

The initial payment to start the plan is $750.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

For reprint and licensing requests for this article, click here.
Money Management Executive
MORE FROM FINANCIAL PLANNING