Folio(k) Retirement Platform Includes ETFs

Alan Smith, VP of retirement services at Folio Institutional, adds that “the interest in the Foliofn platform by RIAs has been growing by leaps and bounds, and we are introducing Folio(k) because of this and [to help] advisors to be competitive.”

Smith explains that plan sponsors as well as participants “are asking for more transparency, better diversification, and lower costs across the board.” That’s why Folio(k)’s “customizable portfolios of low-cost ETFs were developed with diversification and cost in mind. Participants actually own fractions of the underlying ETFs in a low cost, easy-to-use, Web-based 401(k). And fees can be deducted from plan assets, so there are no out-of-pocket expenses to the sponsor.”

According to Folio Institutional, the Target Date Folios reflect a far broader level of diversification than traditional target date funds, “which focus primarily or exclusively on domestic equities and fixed income and have proven to be costly and insufficiently diversified.” The Target Date Folios, include allocations to all the major asset classes. Moreover, the Target Date Folios are created with varying risk levels, including conservative, moderate, and more aggressive. Advisors, the firm says, may periodically rebalance account holdings and have the option of using Folio(k)’s updated model portfolio data as a resource. Advisors, Folio Institutional says, “can rebalance, add or delete securities, or change the weightings–easily across all accounts with one simple click. An entire basket of securities can be traded in one simple transaction with no commissions, transaction fees, or ticket charges.”