The “Collective Trust” – A New Financial Product?

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Much Like a Mutal Fund – But Less Transparent

By Staff Reporters

Recently, we received this query from a physician-investor. So, we went right to the innovator of this financial product for the answer.

A collective trust is similar to a mutual fund that only sells to institutional investors like 401-k and 403-b plans. Because a collective trust doesn’t take on retail investors, it’s exempt from some regulatory requirements, so beware!

But, not having to deal with retail investors also makes the costs lower.

Link: http://thefinancebuff.com/collective-trust-vs-mutual-fund-whats-the-difference.html

Assessment

The BlackRock EAFE Equity Index Collective Trust invests in stocks in developed countries, tracking the MSCI EAFE index.

Conclusion

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