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401(k) Plans Add Exchange-Traded Funds
The Wall Street Journal; subscription may be required
Oct. 21, 2008
Excerpt: The growing interest in ETF-based 401(k)s comes as regulators demand better disclosure of plan fees. Mutual funds, currently the mainstay of 401(k) plan investment menus, often have complex 'revenue sharing' agreements, which can involve the fund company making payments to the plan provider to help cover the cost of certain services such as account maintenance. Those revenue-sharing costs are often passed along to plan participants as part of the funds' expenses. Since ETFs don't have revenue-sharing arrangements, they can simplify 401(k) plan fee disclosure.
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