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Great to see more competition in this space! (Aside: Can you comment on why this is happening now? ForUsAll, Captain401k, Betterment's 401k, now you, etc.) Wh
by boulos 11y ago
Great to see more competition in this space! (Aside: Can you comment on why this is happening now? ForUsAll, Captain401k, Betterment's 401k, now you, etc.)
Who is your third-party custodian? Wealthfront uses Apex Clearing and makes this explicit.
What ETFs do you allow employees to choose from? Again, others (e.g. Captain 401k) make this explicit.
Can employees choose their options in a fine grained manner, or does everyone need to opt-in to your rebalancing and changing of ETF options?
- rik1shah 11y agoHey, thanks for the questions! I'm Rikin, also a founder. We actually have relationships with several custodians - depending on the investment options the company wants to make available in the plan. We don't explicitly list the ETFs because we're not tied to a single fund family (e.g. Vanguard). We pick the best of breed funds for each asset class quarterly - our portfolios currently have ETFs from iShares, Vanguard, Schwabb and PowerShares. We can accommodate requests if employees are after something in particular. And finally, yes, employees can build custom portfolios. Investment flexibility was one of drivers of us starting this, but we make our portfolios/rebalancing the default to encourage participation from inexperienced employees. We don't have any restrictions on the ETFs/funds or even single-stocks that can be added - but we are careful not to unlock funds that aren't risk appropriate.