According to Odaily, Anna Paglia, Chief Business Officer at State Street Bank, is planning to introduce Exchange Traded Funds (ETFs) into the US 401(k) retirement system. In an interview with Bloomberg Television, Paglia stated that State Street is closely collaborating with regulators, investors, and plan initiators to overcome technical and regulatory obstacles that may hinder the introduction of ETFs into the 401(k) plan.
Paglia, who joined State Street in February this year, was previously the global ETF director at Invesco. She believes that ETFs can play a significant role in retirement investment portfolios, despite the current 401(k) system primarily relying on mutual funds. Paglia is confident in the advantages of ETFs, such as their low cost and tax efficiency, even though capital gains tax does not apply to 401(k) and intraday liquidity is not necessary in retirement accounts.
