EarlyBird901 wrote:Thanks everyone for your evaluation, including Madd Hatter for your recent response.
The plan administrator charges approximately $30/yr for plan management, but common sense tells me that if ING charged nothing in excess of Vanguard's fees, then they would soon be out of business.
It still seems odd that ING lists a unit value for Vanguard TR2030 (VTHRX) of, say, $9.9119/share when the Vanguard lists the unit value as $20.68/share.
If there were no advantage to ING, it would seem to be a lot simpler for them to just pass on the Vanguard funds are they are without alteration and absence of dividends.
Read about collective investment trusts (CITs) as suggested by Madd Hatter. You probably own units of a collective trust. You don't own VTHRX, but the trust does. When VTHRX pays dividends, they are not paid to you (you don't own the shares). They are paid to the trust and your unit value goes up. If you owned shares, the NAV would go down when the dividend is paid. Your unit value doesn't. Also, the starting unit value doesn't have to equal the NAV. The trust could buy 100,000 shares and issue 500,000 units.
Here is one place to start (google will give you many others):
http://www.modernsaver.com/collective-t ... utual-fund
P.S. don't mix terms. A mutual fund has a NAV, not a unit value. The CIT has a unit value, not a NAV (it actually does, but it is not called that).