With the agent out of the picture there is no need to charge a commission. Firms that sell low-cost annuities include Fidelity, Vanguard, Schwab, T. Rowe Price, Ameritas Life and TIAA-CREF.

When it comes to saving for retirement, a deferred variable annuity can be a useful tool. The money you invest grows tax-deferred, so you won’t owe taxes on your earnings until they’re withdrawn.

To be sure, ETF fees already were relatively low when compared with other investment products that rely on pools of assets to provide a return, including fees charged for annuities. Vanguard has ...