Employees of Capital One’s all-exchange-traded fund (ETF) digital 401(k) business, along with outside investors, have bought the business from Capital One and rolled it out as a new company, ShareBuilder 401k.
“We accomplished great things being part of Capital One, including year-over-year growth, adding impressive talent to the team, and helping more business owners and their employees plan and save for the future,” Stuart Robertson, president of ShareBuilder 401k, tells PLANADVISER. “We pioneered using 100% ETF index funds and also pioneered putting plans online. Using digital and investing best practices to help people save is our core strength—providing low-cost funds paired with exemplary service. That is where we are going to double down.
He notes that there is tremendous opportunity to expand 401(k) coverage: “There are 30 million U.S. businesses but only 575,000 401(k) plans. Many small businesses don’t even know they can offer a retirement plan. We are going to continue to use social and digital media, along with videos, to make folks aware that they can do so, at a reasonable cost.”