As regulators focus more on the fees participants pay for their401(k)s, Charles Schwab is launching a 401(k) plan that offers onlyindex mutual funds, which are often much less expensive thanactively managed funds. The new product, Schwab Index Advantage,also provides personalized investment advice and access to anFDIC-insured bank account for investors.

Schwab Index Advantage will have a line-up of about 40 indexfunds in 16 different asset categories, says Steve Anderson, seniorvice president at Schwab Retirement Services.

“That's all we're going to make available, passive index fundsto drive the cost down as low as we can,” Anderson says. “Whatwe're trying to do is create a very diversified portfolio at thelowest cost.”

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Susan Kelly

Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.