A new low-cost, tech-centered share class called NQQQX launched Tuesday from Shelton Capital Management that “seeks to address the needs of retirement plan participants and consultants by reducing the overall expenses of investing in a Nasdaq-100 fund through their 401k plans.”
“America is facing a retirement savings crisis and younger investors are being driven away from retirement plans because of options that don’t appeal to them.”
Steve Rogers
Shelton claims plan participants, especially younger ones, have long clamored for better access to the investment choices that they want.
“They are demanding access to companies that are at the forefront of innovation, and when these aren’t offered in their 401k plan, they take their money elsewhere,” according to the firm.
“America is facing a retirement savings crisis and younger investors are being driven away from retirement plans because of options that don’t appeal to them.” Steve Rogers, CEO of Shelton Capital Management, said in a statement. “We believe all plans should include a Nasdaq-100 Index alternative, and we are taking steps to address this crisis by launching the NQQQX.”
The Nasdaq-100 Index gives investors access to a variety of sectors and focuses on the largest 100 non-financial companies listed on the Nasdaq exchange. Over the last ten years (12/31/11 to 12/31/21), the cumulative return of the Nasdaq-100 Index reached over 700% compared S&P 500 Index of 362%, an annualized yearly outperformance of nearly 7%.
Iconic brands
“Iconic brands like Tesla, Apple, Amazon, Microsoft, and Alphabet appeal to investors who believe these, and other component companies represent the future economy,” Dennis Clark, Shelton’s Managing Director, added. “As the landscape of retirement savings plans evolves, our Nasdaq-100 Index Fund has become a popular offering with 401k platforms and is very appealing to younger investors.”
Denver, Colo.-based Shelton Capital Management is a multi-strategy asset manager with fund administration and digital marketing expertise. Shelton Capital manages over $4 billion of assets as of 12/31/21.
“Demand for this product offering is substantial,” Theresa Conti, President of Sunwest Pensions, concluded. “If employers aren’t focused on the next generation of participants, the next generation is focused on other employers.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
