Barclays Tries Its Hand at 529s
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Friday, August 08, 2008

Barclays Tries Its Hand at 529s

Interested in the use of ETFs in tax-deferred savings vehicles? Then check out Ian Salisbury's Friday column (login required) in Dow Jones Newswires. Salisbury highlights Barclays' new purely advisor-sold, ETF-based 529 offering for the state of Arkansas. But will the idea take hold? Salisbury reminds readers of several difficulties with meshing ETFs into 529s and 401(k), notably the lack of intra-day trading inside such plans, and he hints at the biggest difficulty of all: how does everybody in such a plan get paid when ETFs are used? The San Francisco-based asset manager told Salisbury that the new offering is "competitively priced" at 50 to 110 basis points, including fees for administration and for the state of Arkansas, but not including fees for the investor's advisor.

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