Empower Launches First-Ever Zero-Fee Index Fund for Retirement Investors

New offering eliminates fees, helping more retirement investors grow their retirement savings faster

In a new move set to reduce the cost of investing in retirement plans, Empower today announced the launch of the first-ever zero-fee index fund designed specifically for retirement investors.

The new fund, the Empower S&P 500^® Index Separate Account, offers broad market exposure with no management fees — a first in the industry. By eliminating fees entirely, Empower aims to give retirement plan participants the full power of compound growth potential to help close the retirement savings gap for millions of Americans.

“We are driven to help make investing more accessible and affordable,” said Empower President and Chief Operating Officer Rich Linton. “With this zero-fee index fund, we believe we are optimizing the value that plan participants can receive for their invested dollars.”

The fund will be available to all investors saving for retirement through defined contribution (DC) plans, including 401(k), 401(a), 457(b), and defined benefit plans as well as other qualified retirement accounts. This fund seeks investment results that track the total return of the common stocks that compose the Standard & Poor’s (S&P) 500 Index and is sub-advised by BlackRock.

Key features of the Empower S&P 500 Index Separate Account:

• 0.00% expense ratio (i.e., zero management fees)
• No trading or account fees
• No hidden costs or fees
• Full return of the investment portfolio

“Our aim is to give investors the best chance to maximize their returns on their investments,” said Executive Vice President and Head of Empower Investments Jonathan Kreider. “This fund puts every dollar to work for investors, helping them keep more of what they earn.”

Empower recognizes the popularity of S&P 500 Index funds within the DC space — as well as the complementary nature of this offering opposite the remaining Empower Institutional Separate Account Platform, which represents over 100 strategies and more than $80 billion in assets under management (AUM). Empower seeks to provide value to DC investors by offering this no-fee institutional separate account (ISA) as a means of highlighting the low-cost benefits of the ISA structure.

“The ISA structure might be the best-kept secret in retirement investing,” said Kreider. “The Empower Institutional Separate Account Platform leverages the institutional buying power of Empower to provide retirement plans high-quality investment strategies, managed by the nation’s premier asset managers, generally in a lower cost structure relative to mutual funds and collective investment trusts (CITs).”

Learn more about Institutional Separate Accounts from Empower.

About Empower

Recognized as the second-largest retirement services provider in the U.S.¹ by total participants, Empower administers more than $1.8 trillion in assets for 19 million investors² through the provision of retirement plans, advice, wealth management, and investments. Connect with us on empower.com, Facebook, X, LinkedIn, TikTok, and Instagram.

1. Pensions & Investments DC Recordkeeper Survey (2024). Ranking measured by total number of participants as of December 31, 2023.
2. As of December 31, 2024. Assets under administration (AUA) refers to the assets administered by Empower. AUA does not reflect the financial stability or strength of a company.

Empower refers to the products and services offered by Empower Annuity Insurance Company of America (EAICA) and its subsidiaries. “EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America.

The information contained herein is being provided for discussion purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy or sell securities.

Separate accounts are available under group variable annuity contracts issued by Empower Annuity Insurance Company (EAIC), Hartford, CT, an affiliate of Empower Retirement, LLC. EAICA and its affiliates are not affiliated with BlackRock.

The S&P 500® Index is a product of S&P Dow Jones Indices LLC (SPDJI), and has been licensed for use by EAIC. Standard & Poor's®, S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services LLC (S&P); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by EAIC. The Fund discussed in this material is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

©2025 Empower Annuity Insurance Company of America. All rights reserved. WF-4303982-0425 RO-4449588-0425

Learn more

To learn more about how we’re empowering plan sponsors and their participants to be more engaged in their retirement plans than ever before, call us at 800-719-9914.

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