Select Sector SPDRs added to Invest n Retire's 401k Platform
NEW YORK, NY, November 22, 2005 -- The Select Sector SPDRs, a family of Exchange Traded Funds (ETFs) that divide the S&P 500 into nine individual sector funds, and Invest n Retire, LLC, an internet-based 401k service provider, announced today that the Select Sector SPDRs which trade on the American Stock Exchange have been added as investment options in Invest n Retire's 401k platform and model portfolios. This is the first time that a 401k service provider has made the Select Sector SPDRs available to investors through its retirement platform.
Invest n Retire designed a (patent pending) proprietary system and methodology for managing tax-deferred retirement plans which allows participants to include exchange-traded funds (ETFs) in their retirement portfolio without passing most commissions to them. This important innovation allows employees to own individual and fractional shares of ETFs in their portfolio, without forcing them to shoulder the expense of setting up individual directed brokerage accounts, or invest through a collective trust, or invest through a fund made up of ETFs.
"Asset allocation design is more than just mixing up the asset classes in a model," said Darwin Abrahamson, founder & CEO of Invest n Retire. "By adding the Select Sector SPDRs to our retirement platform, financial advisors will be able to underweight or overweight the nine sectors of the S&P 500, using our asset allocation modeling software. The SPDRs gives these advisors more flexibility in designing models which meet the specific investment goals of their clients."
Select Sector SPDRs have the diversity of a mutual fund, the focus of a sector fund, and the tradability of a stock. Together, the nine Select Sector SPDRs represent the S&P 500 as a whole; however, each Select Sector SPDR can also be bought individually, providing you with undiluted exposure to a particular sector or industry group. Select Sector SPDRs let you achieve the security of investing in the well-known, large cap stocks of the S&P 500, with the ability to over-weight or under-weight particular sectors based on your own investment goals and strategies.
"By providing ETF solutions to the 401k channel, INR is allowing individual investors to take advantage of the transparency, asset allocation and cost benefits now enjoyed by institutional investors," said Jeremy Held, National Sales Manager for the Select Sector SPDRs family of Exchange Traded Funds. "We are pleased to be part of the INR platform and believe the addition of Select Sector SPDRs will provide advisors and plan participants with more flexibility and customization in their asset allocation decisions."
The Select Sector SPDRs saw its collective assets under management grow 4.5% in September 2005, rising to more than $12.5 billion. Although entire ETF assets have grown more than 14% in 2005, assets in the Sector SPDR Funds have grown 33% over the same time frame. This growth illustrates the continued popularity of ETFs, particularly the Sector SPDRs which grew by 52% in 2004.
About Invest n Retire, LLC
Invest n Retire, LLC (INR), located in Portland Oregon, was founded in 2000 by Darwin Abrahamson in response to the overwhelming demand for leading edge technology that can deliver financial tools and services to 401k plans. INR's uniquely designed (patent pending) system for managing tax-deferred retirement plans addresses and solves two major problems: (i) the move from defined benefit‚ profit sharing‚ and money purchase plans to defined contribution plans which forces employees to become investment experts and (ii) the high costs associated with the traditional investment options offered to employees.
About Select Sector SPDRs
Select Sector SPDRs are unique ETFs that divide the S&P 500 into nine sector index funds: Consumer Discretionary, Consumer Staples, Energy, Financials, Healthcare, Industrials, Materials, Technology and Utilities. Select Sector SPDRs allow investors to customize their portfolios by picking and weighting the sectors to meet specific investment goals. Select Sector SPDR shares are actively traded on the American Stock Exchange throughout the trading day. SSgA Funds Management, Inc. serves as the Adviser to the Trust and, subject to the supervision of the Board of Trustees, is responsible for the investment management of the Select Sector SPDR Funds. For more information visit www.sectorspdrs.com.
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