PLANADVISER - May/June 2019 - 46
investment-oriented
New Platforms Support ETFs
E
xchange-traded fund (ETF)
assets have seen explosive
growth in the past decade.
In
the U.S., assets in these low-cost
investments jumped from $716 billion
in 2008 to $5.02 trillion last year,
according to Statista, a provider of
statistics, consumer survey results
and industry studies.
Still, this is not reflected in the
institutional retirement plan space,
despite an industry focus on lowering
investment and retirement plan costs,
experts say. A mere 13% of plans
offer ETFs in their investment lineup,
according to the 2018 PLANSPONSOR
Defined Contribution (DC) Benchmarking
Report.
One of the first issues to tackle,
when plan sponsors ask about possibly
adopting these funds is access. Brian
Kraus, head of investment consulting
and internal sales at Hartford Funds,
in Wayne, Pennsylvania, says
the
recordkeeping infrastructure that was
built mainly to support end-of-day net
asset values (NAVs) for mutual funds
is a major impediment to the adoption
of ETFs in retirement plans. " T[hat]
was effectively designed prior to the
launch of ETFs, " he says. " It was not set
up for some of the schematics of ETFs,
so I would say there are more head
winds than tail winds. "
Global X, an ETF provider in New
York City, has a few clients that manage
money on behalf of retirement plans,
says Rohan Reddy, a research analyst
with the firm. However, most of the
interest is coming from international
pension funds, rather than U.S.-based
pensions or retirement plans, he says.
" The biggest hesitancy to offering
ETFs in a retirement plan is that ETF
trading can be difficult to manage, "
Reddy says.
In addition, there are transaction
costs ranging up to $10 when trading
ETFs, whereas mutual funds typically
do not carry such charges, notes
Some designs have removed the obstacles to investment by retirement plans
46 | planadviser.com May-June 2019 Art by David Jien
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PLANADVISER - May/June 2019
Table of Contents for the Digital Edition of PLANADVISER - May/June 2019
Advisers' Future Trajectory
Tangled
2019 PLANADVISER DCIO Survey
High-Tech Meets High-Touch
Whatever Suits
New Platforms Support ETFs
Major Cases
Good News for P.R. Plans
Denial of Benefits
The Cost of Advising One's Own Plan
PLANADVISER - May/June 2019 - C1
PLANADVISER - May/June 2019 - FC1
PLANADVISER - May/June 2019 - FC2
PLANADVISER - May/June 2019 - C2
PLANADVISER - May/June 2019 - 1
PLANADVISER - May/June 2019 - 2
PLANADVISER - May/June 2019 - 3
PLANADVISER - May/June 2019 - 4
PLANADVISER - May/June 2019 - 5
PLANADVISER - May/June 2019 - 6
PLANADVISER - May/June 2019 - 7
PLANADVISER - May/June 2019 - 8
PLANADVISER - May/June 2019 - 9
PLANADVISER - May/June 2019 - 10
PLANADVISER - May/June 2019 - 11
PLANADVISER - May/June 2019 - 12
PLANADVISER - May/June 2019 - 13
PLANADVISER - May/June 2019 - 14
PLANADVISER - May/June 2019 - 15
PLANADVISER - May/June 2019 - 16
PLANADVISER - May/June 2019 - 17
PLANADVISER - May/June 2019 - 18
PLANADVISER - May/June 2019 - 19
PLANADVISER - May/June 2019 - Advisers' Future Trajectory
PLANADVISER - May/June 2019 - 21
PLANADVISER - May/June 2019 - 22
PLANADVISER - May/June 2019 - 23
PLANADVISER - May/June 2019 - 24
PLANADVISER - May/June 2019 - 25
PLANADVISER - May/June 2019 - Tangled
PLANADVISER - May/June 2019 - 27
PLANADVISER - May/June 2019 - 28
PLANADVISER - May/June 2019 - 29
PLANADVISER - May/June 2019 - 2019 PLANADVISER DCIO Survey
PLANADVISER - May/June 2019 - 31
PLANADVISER - May/June 2019 - 32
PLANADVISER - May/June 2019 - 33
PLANADVISER - May/June 2019 - 34
PLANADVISER - May/June 2019 - 35
PLANADVISER - May/June 2019 - High-Tech Meets High-Touch
PLANADVISER - May/June 2019 - 37
PLANADVISER - May/June 2019 - 38
PLANADVISER - May/June 2019 - 39
PLANADVISER - May/June 2019 - 40
PLANADVISER - May/June 2019 - 41
PLANADVISER - May/June 2019 - Whatever Suits
PLANADVISER - May/June 2019 - 43
PLANADVISER - May/June 2019 - 44
PLANADVISER - May/June 2019 - 45
PLANADVISER - May/June 2019 - New Platforms Support ETFs
PLANADVISER - May/June 2019 - 47
PLANADVISER - May/June 2019 - Major Cases
PLANADVISER - May/June 2019 - 49
PLANADVISER - May/June 2019 - Good News for P.R. Plans
PLANADVISER - May/June 2019 - Denial of Benefits
PLANADVISER - May/June 2019 - The Cost of Advising One's Own Plan
PLANADVISER - May/June 2019 - C3
PLANADVISER - May/June 2019 - C4
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