Charles Schwab is seeking to lower 401(k) costs by moving assets towards lower-priced passive index funds and ETFs, IndexUniverse reports. The U.S. brokerage and banking firm is aiming to launch index mutual funds in its plans later this year, while the ETFs will be rolled out next year.
The California-based firm’s shift is based on a study it published in September 2010 called The New Rules of Engagement for 401(k) Success. Charles Schwab has about $200 billion in retirement assets.
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