Charles Schwab is launching a 401(k) program based solely on ETFs in a platform that it says will cut costs to investors by more than 90 percent relative to a traditional 401(k) program centered on actively managed funds. The new ETF platform should cost about a third less and investors now have the option to invest in an ETF-only 401(k) program that should costs 10 basis points or less. The new platform will offer access to more than 25 asset classes through 78 different low-costs ETFs, all commission free.
These ETFs come from 11 different issuers: ETF Securities, First Trust, Guggenheim, Invesco PowerShares, iShares, Pimco, State Street Global Advisors, Van Eck, Vanguard and United States Commodity Funds, as well as Schwab’s proprietary ETFs.
While interest in the new 401(k) platform seems to be strong, Schwab expects adoption of the program to only pick up later this year as employers work through sales and implementation processes in months ahead.
On February 6th, iShares launched the 2019 AMT-Free Muni Bond ETF [ MUAH ]. MUAH is the next ETF in the iShares Muni Series- a suite of fixed income muni ETFs with planned maturity dates.
Ticker : MUAH
Expense Ratio : 0.30%
Exchange : NYSE Arca
Index Name : S&P AMT-Free Municipal Series 2019 Index™
Index Ticker : SPMUS19T
On Wednesday, February 12th, AdvisorShares is launching four gold ETFs. Each ETF will acquire gold in the respective currencies- yen, pound, and euro- in an effort to provide investors with access to gold while reducing exposure to the dollar. The AdvisorShares International Gold ETF [ GLDE ] will be a fund-of-funds strategy that will invest in the other three exchange-traded products that tap into the international gold market. It has an expense ratio of 1.52%. The portfolio will consist primarily of long positions in these various ETFs, each costing 0.65 percent in expense ratio:
Gartman Gold/Yen ETFs [ GYEN ]
Gartman Gold/British Pound ETF [ GGBP ]
Gartman Gold/Euro ETF [ GEUR ]