ETF's have become highly regarded for inclusion in investor portfolios — and for the same reasons, they make sense for 401(k) plans. They offer easy-to- implement, fully transparent, high-quality investment performance that covers the full range of risk and style categories, and are available with significantly lower expenses than most traditional mutual funds.

And now WisdomTree Retirement Services, Inc. offers you a comprehensive service platform — and a choice of pre-built and customizable solutions — that make it easy to create complete a 401(k) ETF program to meet a plan's investment objectives.

The benefits of ETFs in a 401(k)

The goal with a 401(k) is to create an effective long-term investment strategy. The best way to do this is to offer participants well designed asset allocation portfolios. ETFs offer several benefits that make them particularly well suited for this purpose:

• Low-cost — ETFs are low-cost tools for creating asset allocation portfolios and can often significantly lower overall costs to participants.
• Fully Transparent — ETFs hold underlying securities on a completely transparent basis. They have no 12b-1 fee structure so they are fee transparent, and are entirely suited to the requirement of complete fee disclosure.
• Flexible — To achieve additional diversification, ETF portfolios can be easily combined with other investment options such as low-cost, actively managed mutual funds.
• Omnibus trading — ETFs can be traded on an omnibus basis in a 401(k) plan to substantially reduce or eliminate the normal trading commissions associated with their retail purchase.
• No redemption fees or holding period restrictions
• Index investing — ETFs are pure blocks of investments that can cover all of the major asset classes, domestically or internationally. This makes them an ideal tool for asset allocation.

But all ETFs are not created equal.

WisdomTree ETFs offer a unique combination of benefits. The vast majority of today's ETFs are market cap-weighted. Which means by design, they hold more of a stock as its price is going up, and less as it's going down. So while common sense says "buy low, and sell high," market cap-weighted ETFs do the exact opposite. To us, that's illogical because it can lead to overweighting in overvalued stocks and underweighting in undervalued stocks.

To address this structural flaw of market cap weighting, WisdomTree ETFs are based on fundamental value (earnings or dividend) metrics. We believe this offers the potential for more profitable, long term investing with less risk than traditional ETFs.

WisdomTree ETFs cover all major market capitalizations both domestically and internationally, can be supplemented with outside mutual funds for increased diversification and are competitively priced to allow for a low-cost investment expense to participants. Only WisdomTree offers you a choice of pre-built or fully customizable solutions.