ETF research shows low cost exchange traded funds are pushing their way into retirement plans. Ascensus, a retirement plan solutions provider, has partnered with 3D Asset Management to offer a new exchange-traded fund package aimed at the 401(k) market.
The new offering, which uses Ascensus’ fee-based platform, is called the “ETF AdvisorPlan.” The retirement plan solution provides asset allocation ETF portfolios managed by 3D with underlying ETFs from iShares, WisdomTree and others.
“We are pleased to be partnering with one of the largest and most reputable plan recordkeepers in the industry,” said Wayne Connors, chief investment officer for 3D Asset Management. “By leveraging Ascensus’ proven platform we can truly help advisors differentiate themselves when presenting alternatives to sponsors.”
The ETF AdvisorPlan solution targets financial advisors that want to grow their fee-based business in the 401(k) space using ETFs. In addition, 3D’s new program offers advisors a comprehensive suite of materials to make it easier for financial advisors to offer an all-inclusive, fee-based retirement program.
“Together, we bring the benefits of low-cost ETFs to 401(k) plans by leveraging Ascensus’ ETF trading capabilities coupled with 3D’s professionally managed asset allocation strategies,” explained Michael Narkoff, senior vice president, Sales for Ascensus.
3D Asset Management is a registered investment advisory firm located in East Hartford, CT.
Other ETF News
Global X Funds debuted a new ETF linked to South American stocks called the Global X FTSE Argentina 20 ETF (NYSE: ARGT).
ARGT is linked to the performance of the FTSE Argentina 20 Index, which represents the performance of the twenty largest and most liquid companies that directly participate in the Argentine economy, but are not listed in Argentina. As of February 22, 2011 the three largest components for ARGT were Tenaris S.A. (NYSE: TS), MercadoLibre Inc. (NASDAQ: MELI) and Banco Macro S.A. (NYSE: BMA).
Argentina stands as the second largest economy in South America by GDP, trailing only Brazil, according to IMF estimates from 2010. Argentina is the second largest corn exporter and third largest soy exporter in the world.
Within the past month, Global X introduced the Global X FTSE Andean 40 ETF (NYSE: AND) which offers equity exposure to stocks from Chile, Colombia and Peru. ARGT’s annual expenses are 0.75%.
Senior Loan ETF
Invesco PowerShares Capital Management introduced the PowerShares Senior Loan Portfolio (NYSE: BKLN) which is linked to the S&P/LSTA U.S. Leveraged Loan 100 Index.
Senior loans, also called leveraged loans, syndicated loans, bank loans or floating rate loans – are privately arranged corporate debt instruments that provide capital to a company and are syndicated to a group of banks and institutional lenders. The loans are typically secured by specific assets of the borrower such as property, plant, or equipment and are senior to all other outstanding debt obligations. Proceeds are often used to finance leveraged buyouts, mergers, acquisitions, stock repurchases and other transactions.
“Senior loans can provide an attractive income stream for yield-minded advisors and investors interested in shortening portfolio duration,” said Ben Fulton, Invesco PowerShares managing director of global ETFs. “As a result of shorter maturities and a floating interest rate feature that typically resets quarterly, senior secured loans have the ability to keep pace with rate changes and have historically proven to be more stable than traditional high yield fixed-income investments.”
BKLN follows a market-weighted index of the largest institutional leveraged loans based on market weightings, spreads and interest payments and its annual fees are 0.83%.
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