It marks the first time a 401(k) plan has dived into the Nasdaq ETF area for its investors.
"This breakthrough development is consistent with Nasdaq's vision of fairness and transparency," said Nasdaq Financial Product Services President John Jacobs of the offering. "Not only do employee participants pay low administrative costs, [but] those costs are easily identifiable." The key to the move is that many ETF administrative costs will not be passed on to the 401(k) investors.
Four Nasdaq ETFs ONEQ, NASDAQ-100 Index Tracking Stock, BLDRS Emerging Markets, 50 ADR Index Fund, and BLDRS Emerging Markets 100 Index Fund were added. Darwin Abrahamson, who founded Invest n Retire and is also CEO, said, "Investor demand compelled us to find a way for investors to attempt to meet their investment goals and objectives while defraying costs associated with similar investments."
He added that the trend of ETFs in retirement plans will "grow dramatically as investors seek alternative investment options."