Schwab Retirement Plan Services says that employees who enrolled in an all-index fund 401(k) plan launched by the company about a year ago saw the expenses on their funds drop nearly 80 percent.
The company said Thursday that fund expenses for investors in the plan, dubbed Schwab Index Advantage, fell 77 percent to $14.78 per $10,000 invested.
Prior to transitioning to an all-index fund approach, Schwab says the weighted-average operating expense ratio on these investors' 401(k) plans was $65.11 per $10,000 invested.
Schwab rolled out the plan to draw more investors, many increasingly wary of investing fees and looking to reduce costs.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 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.
