Compass Investors, a provider fund reallocation model portfolios for 401(k) retirement plan participants, has now expanded its services to support investors in ETFs.
The six different ETF plans offered – for investors at Fidelity, Vanguard, Schwab (2), E*TRADE and TD Ameritrade – employ the identical Adaptive Asset Allocation formula used in Compass's products for 401(k) participants. Because the Compass model encourages adjustments to asset allocation every five weeks, trading costs had cut into its performance for those investors using the product for mutual fund investments outside of 401(k) or single-fund family IRA accounts. Its new plans, designed specifically around commission-free ETFs now offered at the major brokerages, offer investors all the advantages of mutual funds without additional fees, minimum purchase restrictions or the withdrawal limitations imposed on 401(k) or IRA accounts.
"We've always been committed to helping investors achieve the highest performance without enormous fees," says President Kevin Coppola, who founded Compass Investors in 2004, "so now that brokerage firms are offering diversified baskets of commission-free ETFs, we've jumped to meet the new demand."
Unlike financial advisors charging a percentage of funds under management, Compass Investors charges subscribers a fixed yearly fee.
