The Daily Brief
Charles Schwab office

Exposure to the Largest 1,000 for 5 Basis Points

Charles Schwab introduces a new ETF, workers support state auto-IRA programs and the difference between good advice and effective advice.

Charles Schwab Investment Management has introduced a new ETF to provide exposure to the largest 1,000 stocks at a lower cost than competing funds. The Schwab 1000 Index ETF is based on the Schwab 1000 Index, launched in 1991, and charges just 5 basis points. ..

Workers Support State Auto-IRA Programs

Workers who receive no access to employer-sponsored retirement plans are supportive of the idea of enrolling in state-sponsored plans, according to a new study by The Pew Charitable Trusts. The study, Worker Reactions to State-Sponsored Auto-IRA Programs, surveyed 900 workers without access to retirement plans at small and midsized businesses with 5 to 500 employees, finding that 64 percent support state sponsorship of auto-IRA programs. Only one-fourth of those surveyed said they were unsure whether they would participate, and only 13 percent said they would opt out. Currently, California, Connecticut, Illinois, Maryland, and Oregon have passed auto-IRA legislation.

The Difference Between Good Advice and Effective Advice

Ben Carlson, investment manager at Ritholtz Wealth Management who blogs at "A Wealth of Common Sense," makes a distinction for advisors between good advice and effective advice. They are not the same thing, he argues. Telling a family member to eat better or excerise more is, no doubt, good advice. It's not effective advice. The truth is, effective advice is much harder. The same distinction shapes the conversations advisors have with their clients. "Good advice is preaching to your clients to stay the course. Effective advice is building portfolios that are durable and behaviorally aware enough to help clients stick to their plan," he writes. 

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