New 401(k) rules pose a challenge for small and midsize companies.
David McCann, CFO Magazine
May 1, 2011
ETFs do not only promise to lower 401(k) fees but ETFs do deliver on this promise. My firm has created almost 400 Fee Disclosure and Comparison Reports this year and the reduction in total fees by changing to ETFs ranges from a 30 % to 70% saving in total plan fees. The statement that ETFs come with hidden trading costs is incorrect. ETFs do not have hidden trading costs. Mutual funds do have hidden trading costs that are not disclosed. If an advisor trades ETF though an expensive broker or at the close of the market then the higher cost of trading is the advisors fault and not the ETFs fault.
Posted by Darwin Abrahamson | May 26, 2011 06:30 pm© CFO Publishing Corporation 2009. All rights reserved.