Empower this week announced the launch of a zero-fee index fund with access to broad market exposure.
The latest fund, the Empower S&P 500 Index Separate Account, eliminates fees in an effort to increase levels of compound growth for retirement investors. The firm says that doing so could help limit the retirement savings gap for participants.
“I am pleased to announce the launch of the first-ever zero-fee index fund designed specifically for retirement investors, the Empower S&P 500 Index Separate Account,” wrote Empower CEO Ed Murphy, in a post on LinkedIn announcing the news. “Empower is committed to making investing more affordable. We aim to give retirement plan participants the full power of compound growth potential to help close the retirement savings gap for millions of Americans.”
The fund will be available to all participants enrolled in a defined contribution (DC) plan, including 401(k), 401(a), and 457(b) plans, along with defined benefit (DB) plans and qualified retirement accounts. As reported by Empower, the fund seeks investment results that track the total return of the common stocks included in the S&P 500 Index and is sub-advised by BlackRock.
Along with zero management fees, Empower says the fund has no trading or account fees, no hidden costs or fees, and promises a full return of the investment portfolio.
“Our aim is to give investors the best chance to maximize their returns on their investments,” said Executive Vice President and Head of Empower Investments Jonathan Kreider, in a statement. “This fund puts every dollar to work for investors, helping them keep more of what they earn.”
Along with its S&P 500 Index fund, Empower also offers its Empower Institutional Separate Account Platform to participants, including over 100 strategies and more than $80 billion in assets under management (AUM), along with a no-fee institutional separate account (ISA) structure.
Empower holds over $1.8 trillion in AUM for 19 million investors.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.