Does WealthStep use mutual funds or ETF’s inside portfolios?

WealthStep 401k may utilize mutual funds, commingled trust funds, unitized separate accounts or ETF’s, depending on the size of the plan, and the capabilities of the plan’s recordkeeper. WealthStep Direct currently primarily utilizes mutual funds, but also ETF’s in certain circumstances. ETF’s can be low or lower cost than comparable mutual funds, but in some cases the results are worse than a similar mutual fund, if the ETF has low trading volume and therefore sometimes a higher “bid-ask spread”. Many ETF investors pay a bid-ask spread cost without knowing it, because investment services that use ETF’s don’t quantify that cost or show it as a cost. Additionally, some index mutual funds outperform comparable ETF index funds because of careful and skilled trading. So, cost is an important factor, but net-results is a more important factor to consider.