Collective Investment Trusts (CITs) are rapidly reshaping the retirement landscape, becoming a major alternative to mutual funds across defined contribution plans due to their lower fees and growing accessibility. CITs now hold over $5 trillion in assets, representing nearly 30% of DC plan assets, up sharply from just over a decade ago. 

Their rise is largely driven by cost efficiency, with fees that can be half those of comparable mutual funds, providing long-term savings potential for plan participants. Once limited to large retirement plans, CITs are now gaining traction among smaller plans, helped by lower investment minimums and broader recordkeeper availability. 

Even so, ongoing legislative efforts,such as the Retirement Fairness for Charities and Educational Institutions Act, could expand CIT access further, reinforcing their growing role in retirement investing.

Finsum: These vehicles could be right for a variety of retirement plans for client.