ShareBuilder Expands Its All-ETF 401(k) Plan

ETF Trends

Retirement planner ShareBuilder 401k will add five more exchange traded funds to its All-ETF 401(k) platform, expanding the available investment options and diversifying its ETF-based retirement plan.

According to a press release, the 401(k) provider has added the following funds to its All-ETF 401(k) plan:

  • iShares Gold Fund (NYSEArca: IAU)
  • PowerShares General Commodities Fund (NYSEArca: DBC)
  • iShares Socially Responsible Fund (NYSEArca: KLD)
  • SPDR’s International Bond Fund (NYSEArca: BMX)
  • PowerShares Emerging Market Bond Fund (NYSEArca: PCY)

“We’re pleased to enhance our All-ETF 401(k) with access to new commodities, international fixed income, emerging markets and socially responsible funds,” Stuart Robertson, ShareBuilder 401k general manager, said in the press release. “These funds offer important diversification options to help investors preserve and grow investments through varying economic climates while, at the same time, address the growing demand for socially responsible investments.”

Various assets are favored during different economic cycles. For instance, during periods of strong economic growth and low inflation, equities have performed, whereas gold and commodities outperform during times of slow economic growth and high inflation.

Plan participants in the ShareBuilder 401(k) All-ETF plan may peruse 20 ETFs and a money market fund found in five model portfolios.

“Our goal is to provide a quality, low-cost, easy-to-use platform where employees can create customized, adjustable, goals-based plans and feel confident about their financial futures,” Robertson added.

ETFs are gaining traction in the primarily mutual fund dominated 401(k) space ahead of the new Department of Labor’s fiduciary and 408(b)(2) fee disclosure rules, which would require companies to disclose greater transparency into their fee structure. Naturally, the low cost aspect found in ETFs puts the investment in a good position to capitalize on the new disclosure rules. [Growing Demand For ETF-Based 401(k)s]

For more information on ETFs in 401(k)s, visit our 401(k) category.

Max Chen contributed to this article.

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