State Street Bank plans to introduce ETFs to the 401(k) market

ChainCatcher news, State Street's Anna Paglia plans to push ETFs into the U.S. 401(k) retirement system. State Street's Chief Business Officer Anna Paglia stated in an interview with Bloomberg Television that the bank is working closely with regulators, investors, and plan sponsors to overcome technical and regulatory barriers to allow ETFs into 401(k) plans. She believes that ETFs can play an important role in retirement portfolios, even though the current 401(k) system primarily relies on mutual funds. Paglia joined State Street in February of this year, previously serving as the global head of ETFs at Invesco. She firmly believes that the low cost and tax efficiency of ETFs are their advantages, even though capital gains taxes do not apply to 401(k)s, and intraday liquidity is not necessary in retirement accounts.