Select Sector SPDRs, a family of exchange-traded funds, will be made available to 401(k) plan participants through 401K Retirement Solutions' platform. 401K Retirement Solutions has an open-architecture platform for defined contribution plan sponsors that lets participants select from a menu of ETFs. Its record-keeping technology then processes ETF trading and tracking.
"There's a popular perception that you can't do this in 401(k)s, but we think that's changing," said Dan Dolan, director of wealth strategies for Select Sector SPDR Trust, in an interview. SSgA Funds Management, a subsidiary of State Street Corp., serves as the adviser to the trust. Select Sector SPDRs, which divide the S&P 500 index into nine sector index funds such as consumer stapes, energy, financials and health care, had a total of $16.1 billion in assets as of July 31.