Blackrock (BLK) will use its newly acquired iShares division to push ETFs in US retirement accounts. ETFs are ideal for such accounts as their multiple cost advantages over mutual funds compound greatly over time. 401 (k) providers, however, have embraced the ETF revolution more slowly than hedge funds, pension funds, and individual investors.

According to Blackrock CEO Larry Fink this is largely the result of institutional inertia as most 401 (k) back offices are not set up to handle ETFs. The new Blackrock Global Investors – to be formed through the merger of Blackrock and Barclays Global Investors – can use its scale in both the mutual fund and ETF industry to offer a choice to investors.