Pragmatic Observer

The Schwab ETF Launch: More Important than You Think

One aspect of the Schwab move that has barely been commented on by other contributors is the advantage it gives them in attracting new retirement and 401k plan money. 401k's are filled with mutual funds which are easy, and cost effective, to dollar cost average into every two weeks on payday. ETFs have not offered this option...until now.

Schwab is now in a position to be the first to offer transaction free ETF dollar cost averaging for your retirement account. As plan administrator for thousands of retirement plans, and always looking for more business, what better way to attract more business than to remove the biggest obstacle to investing in ETFs through your company's retirement program?

Others will have to follow if they hope to KEEP the company retirement accounts they currently have.