The language required to allow CITs in 403(b) plans was dropped in the final bill after inter-committee negotiations.
Experts discussed their views on exchange-traded funds and collective investment trusts as emerging investment options during PLANADVISER’s latest Practice Progress webinar.
This is driving providers to offer inexpensive options, such as series that rely on CITs and passive funds, Morningstar says.
Nearly half owned their funds only through their employer-sponsored retirement plans, according to the ICI.
Cerulli says retirement specialist advisers are becoming more knowledgeable about and comfortable with CITs, and the research firm expects CITs will continue to expand their share of 401(k) plan assets.
In conversation with Jeff Kletti, head of investments at Wells Fargo Institutional Retirement and Trust, PLANADVISER gets an inside view of some emerging—and some familiar—defined contribution plan trends.