Product’s investment options boast expense ratios lower than market average
Exchange-traded funds, or ETFs, are generating a lot of buzz in the marketplace. ETFs are similar to index-tracking mutual funds, but trade on an exchange like a stock and generally charge lower expenses than conventional mutual funds. They are an increasingly popular investment option, and the industry is booming. Assets under management in ETFs now total about $480 billion in 500 offerings.1
The Symetra Focus Variable Annuity’s investment options include an asset-allocation series of ETF portfolios created and managed by the internationally recognized investment firm Ibbotson, tailored to fit your clients’ risk profiles, and with expense ratios lower the market average.
In just three months, the average expense ratio for a U.S. stock ETF jumped 21 percent.2 Morningstar reports that the average expense ratio of ETFs launched in the last six months is 0.67 percent.3 While many investors may consider that low, it's still higher than the expense ratio of any investment option — including ETFs — in a Focus VA. And unlike a standalone ETF or other fund, annuities feature guaranteed income and tax deferral.
Focused on value
Symetra Focus is designed to help maximize your clients’ investment value. By centering on low-cost ETFs and index-tracking portfolios, Symetra Focus boasts one of the lowest costs of ownership available on the market today. According to VARDS, a leading source of variable annuities data, average total contract expenses for variable annuities were 2.51 percent of assets in 2006.4 Symetra Focus’ average total cost — including all available investment options — is 1.59 percent. That’s 36.6 percent less than the industry average.5
In addition to Ibbotson’s low-cost ETFs, Focus’ options include low-cost, index-style portfolios by respected firms such as Fidelity and Vanguard that typically outperform most managed investments.6 An analysis of 23,000 funds found that Standard and Poor’s 500-style index funds outperformed 80 percent of managed funds — largely because of managed funds’ higher expenses.7
If your clients are looking for maximum value in their retirement portfolio, Symetra Focus could be the solution. To learn more, please visit the Symetra Focus Web site at www.symetra.com/focus, or contact the Symetra Sales Center at invest@symetra.com or 1-800-706-0700.
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