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Investment Options in the Makes Sense 401k |
Participants in the Makes Sense 401k have the freedom to select their own choices of investments from the plan's investment lineup. These self-directed participants make their choices through a simple online interface, available 24 x 7. Participants who do not choose to make their own investment selections will be automatically defaulted to an age-appropriate Risk Managed Portfolio (which can be changed at any time by the participant.)
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Self-Directed Investments
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Participants who choose to direct their own investments can select any combination of one or more choices from the menu of ETFs and professionally managed portfolios.
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The ETF portion of the menu offers an unparalleled combination of broad asset class coverage and extremely low cost, and features ETFs from the industry's leading suppliers: Vanguard, Charles Schwab, State Street SPDR, iShares
and PowerShares.
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The professionally managed portfolio choices include three "balanced" portfolios (the Risk Managed Portfolios) and four specialty portfolios, each with its own focus. Detailed Informationon about the professionally managed portfolios is available via the Makes Sense 401k online participant interface.
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Unlike most 401k plans, there are no penalties or restrictions on trading activities such as minimum hold times or maximum allowable transaction counts.
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Default Investments
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Participants who do not choose to direct their own investments will be automatically assigned to one of the three "balanced" Risk Managed Portfolios. These portfolios are constructed from the very same low-cost ETFs contained in the Self-Directed investment lineup, and provide participants in the Makes Sense 401k easy access to expert professional portfolio management. Better yet, these Portfolios have been certified by Dalbar for use as Qualified Default Investment Alternatives ("QDIA") and meet all ERISA requirements applicable to QDIA's in 401k plans (more on Dalbar below).
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Automatic assignments to Risk Managed Portfolios is age-based as follows. Participants can freely change or cancel the automatic assignments at any time. |
Participant Age |
Default Risk Managed Portfolio Assignment* |
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Up to age 39 |
Risk Managed High Equity Portfolio |
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age 40-55 |
Risk Managed Medium Equity Portfolio |
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over 55 |
Risk Managed Low Equity Portfolio |
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See the Risk Managed Portfolio Investing Process page for further information on the operation of the Risk Managed Portfolios.
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Self-Directed Investment Choices - ETFs
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Unlike the vast majority of 401k plans, the Makes Sense 401k offers not only coverage of ALL U.S. equity styleboxes, but also real estate, materials & resources, both developed and emerging international funds, and broad coverage in bonds.
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Asset Class |
Name |
Ticker |
Expenses* |
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Large Value |
iShares S&P 500 Value Index ETF |
IVE |
0.18% |
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Large Blend |
SPDR Dow Jones Industrial Avg. ETF |
DIA |
0.16% |
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Large Blend |
Vanguard S&P 500 ETF |
VOO |
0.03% |
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Large Growth |
PowerShares QQQ ETF |
QQQ |
0.20% |
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Large Growth |
iShares S&P 500 Growth Index ETF |
IVW |
0.18% |
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Mid Value |
Vanguard Mid-Cap Value ETF |
VOE |
0.07% |
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Mid Blend |
iShares Core S&P Mid-Cap ETF |
IJH |
0.05% |
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Mid Growth |
Vanguard Mid-Cap Growth ETF |
VOT |
0.07% |
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Small Value |
Vanguard Small-Cap Value ETF |
VBR |
0.07% |
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Small Blend |
Schwab U.S. Small-Cap ETF |
SCHA |
0.04% |
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Small Growth |
Vanguard Small Cap Growth ETF |
VBK |
0.07% |
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Real Estate |
Schwab U.S. REIT ETF |
SCHH |
0.07% |
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Foreign Large Blend |
Schwab International Equity ETF |
SCHF |
0.06% |
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Diversified Emerg. Mkts. |
Schwab Emerging Markets ETF |
SCHE |
0.11% |
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Materials & Resources |
Select Sector Materials ETF |
XLB |
0.13% |
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Utilities |
Select Sector Utilities ETF |
XLU |
0.13% |
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High-Grade Corporate Bond |
Vanguard Intermediate-Term Corporate Bond Index |
VCIT |
0.05% |
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Intermediate-Term Bond |
iShares Core Total U.S. Bond ETF |
AGG |
0.04% |
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Intermediate-Term Bond |
PIMCO Total Bond Return ETF |
BOND |
0.73% |
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Inflation-Protected Bond |
Schwab U.S. TIPS ETF |
SCHP |
0.05% |
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Stable Value Fund |
MetLife Stable Value - Class J |
971803143 |
0.49% |
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