Collective trust funds are pooled investment vehicles offering diversification, professional management, and investment flexibility to investors participating in qualified plans.* They are pooled investment vehicles which ONLY accept assets from ERISA qualified retirement plans as defined under section 401 of the IRA codes. They are usually offered by a bank or a trust company and are available to qualified plans, such as 401(k) plans and certain governmental plans, including 457(b) plans. They are not available to retail investors.
The EZ 401(k) Retirement Solutions offer 11 individual ETF collective trusts from MG Advisory, an affiliate of Matrix Financial Solutions.
Sample MG ETF Collective Trusts:
MG Trust Passive Bond Market Collective Trust |
MG Trust Dow Jones Wilshire Mid Cap Value Index |
|---|---|
MG Trust Dow Jones Wilshire Large Cap Growth Index |
MG Trust Dow Jones Wilshire Small Cap Growth Index |
MG Trust Dow Jones Wilshire Large Cap Value Index |
MG Trust Dow Jones Wilshire Small Cap Index |
MG Trust Dow Jones Wilshire Large Cap Index |
MG Trust Dow Jones Wilshire Small Cap Value Index |
MG Trust Dow Jones Wilshire Mid Cap Growth Index |
MG Trust MSCI EAFE Index |
MG Trust Dow Jones Wilshire Mid Cap Index |
*Source: http://www.investorwords.com/5462/collective_trust.html
An investment in Exchange Traded Funds is subject to risk. The value of an investment and the return on invested capital will fluctuate over time, and, when sold or redeemed, an investment may be worth less than its original cost. ETFs will fluctuate with changes in market conditions and may not be suitable for all investors. In many cases ETFs have lower expense ratios than comparable index funds. However, since ETFs trade like stocks, they may be subject to brokerage fees and trading spreads. ETFs do not necessarily trade at the net asset values of their underlying holdings, meaning an ETF could potentially trade above or below the value of the underlying portfolio.