Plan Sponsor Series 2: Six Reasons to Use Index Funds and ETFs Exclusively

We have discussed index funds and exchange-traded funds (ETFs) several times in the past in conjunction with expert articles from others. We have also mentioned the ongoing industry discourse about the relative pros and cons of passive fund management vs. active management. Since plan sponsors for 401(k)s continue to move away from actively-managed funds, now is a good time to acknowledge this change and discuss some of the reasons why exclusive use of index funds and ETF's in 401(k) plans makes sense.