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As commissions hit zero for exchange-traded funds, advisors are using ETFsmore for investors and making other changes in their practices. Sosays the latest report from Cerulli, The Cerulli Edge—U.S. Advisor Edition, whichalso says that as several of the largest RIA custodians adopted zero-fee trading, it's"quickly become the norm—impacting both direct investors andfinancial advisors who are increasingly using the vehicle as abuilding block for client portfolios."
While advisors mostly stayed away from ETFs in 2019 because ofclient concerns over cost, the move to zero-commission trades latein the year has cleared the way for "substantial room for growth inthe ETF space among financial advisors," according to analystMatthew Belnap. He is cited saying in the report that "the race tozero will likely serve as the catalyst for increased adoption."
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
