New forms of mutual funds created new breeds of financial advisors and the ETF manager is one of the new breeds. ETF management sprang up after the new ETF (exchange-traded funds) appeared. Unlike traditional mutual funds, these funds trade on the stock exchange and redemption or purchase doesn't take place at the end of the day for the net asset value of the fund, but it happens in real time when you purchase the shares. Sometimes, the purchase price is more or less than the net asset value, the total value of the stocks or bonds the fund holds.

These new forms of funds are lower in cost but require a skilled ETF consulting service to make the maximum return. Since they differ from the traditional funds ETF managers, specialize in this variety of investment.

1. Look for an ETF advisor that offers conservative, intermediate and aggressive risk options.
2. Investigate the fees that the exchange traded funds advisor charges.
3. Seek companies that offer actively managed exchange traded funds.

Action Steps
The best contacts and resources to help you get it done

Find an exchange traded funds advisor to design a portfolio that matches your situation

Each business has different needs when it comes to a pension plan, and ETF consultants offer a variety of solutions. If your company has a young staff, an aggressive ETF portfolio fits your situation. Companies with the vast majority of staff close to retirement age need a conservative mix. Most employers require more than one so growth occurs for the long term, but conservative investments are available for retirees.

I recommend: Two consultants that offer varied ETF portfolios are AgileInvesting and JPMorgan Chase & Co.

Look for low cost ETF consultants

There are a number of companies that offer ETF management consulting. Many of the companies that create the ETF offer management services at a low cost. The use of the ETF for pensions reduces the cost automatically, but management fees still reduce the return. It pays to check out the costs involved when it comes to 401k or pension management.

I recommend: ShareBuilder Corporation is a subsidiary of ING that manages 401k plans using low cost ETF portfolios. The Vanguard Group offers management services of small business pensions and uses their own ETF portfolios.

Select ETF managers that offer both actively managed and indexed ETF funds

ETF funds come in a variety of styles. Some funds use only the index for their basis. Other types of exchange traded funds offer active fund management. Each type of ETF offers different benefits. The actively managed offers better returns and the indexed fund is lower in cost. Get an exchange traded funds consulting that uses both for the maximum return.

I recommend: Morgan Stanley led the way in using ETF portfolios. Invesco Aim offers both styles of funds for your pension portfolio.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Check out the returns of the ETF manager that you choose before you sign on the dotted line.