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NEWS - Schwab Retirement Plan Services Becomes First Major Firm to Launch Full-Service 401(k) Program Based on ETFs

February 5, 2014 – San Francisco – Schwab Retirement Plan Services, Inc., a national 401(k) service provider to approximately 1.3 million workers saving through company retirement plans, has become the first major firm to launch a full-service 401(k) program based on low-cost exchange-traded funds.

“We believe workers can and should get more value from their 401(k)s,” said Steve Anderson, head of Schwab Retirement Plan Services, Inc. “In 2012, we successfully launched Schwab Index Advantage®, designed to help workers better prepare for retirement using low-cost index mutual funds and personalized advice. We are now launching an additional version of Schwab Index Advantage with the goal of further driving down investment costs by using low-cost exchange-traded funds.”

Anderson estimates a 401(k) plan using index exchange-traded funds can reduce investment expenses by more than 90 percent compared to a typical 401(k) plan that primarily uses actively managed mutual funds, and by more than 30 percent compared to a 401(k) plan that uses index mutual funds.1

Several employers have already expressed strong interest in becoming first adopters of the exchange-traded fund version of Schwab Index Advantage. Given the typical 6-12 month sales and implementation cycle in the 401(k) industry, the firm anticipates clients will be offering this new version of Schwab Index Advantage to their employees later this year.

Click on the external link below to review the entire article:

http://pressroom.aboutschwab.com/press-release/schwab-corporate-retirement-services-news/schwab-retirement-plan-services-becomes-firs