Are 401(k) Plans Ready For ETFs?

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I just read an article in the WSJ called “Exchange Traded Funds appear in 401(k)s.”Some providers like WisdomTree Investments are rolling out funds invested in ETFs.

Keep in mind that these offerings are still in an infant stage and improvements should materialize once this market matures. This story alerts you to some of the pros and cons and also reinforces what I have been saying before: Many of the 500 ETFs are focused on small and narrow market segments and are, in many cases, more of a gamble than a long-term investment.

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