NU Online News Service, Feb. 3, 2005, 4:32 p.m. EST

Integrity Life Insurance Company, Louisville, Ky., has put a popular investment vehicle inside a tax-deferred wrapper.[@@]

The company, a unit of the Western and Southern Life Insurance Company, Cincinnati, has started selling variable annuities with an investment menu that includes exchange-traded “fund of fund” portfolios.

The portfolios serve the needs of investors with conservative, moderate and aggressive levels of risk tolerance.

An exchange-traded fund is a basket of stocks that is bought and sold as if it were a single stock. ETFs have been growing in popularity with “buy and hold” investors because their expense ratios are low.

In related news, Integrity Life says it has updated its Web site to include an automated system for setting up passwords and a system that shows customers which products are available in their states.