The widespread move to zero-commission trading for exchange-traded funds is likely to increase adviser adoption of this type of fund and spur other changes in adviser practices, a new report from Cerulli Associates finds.
The Boston-based research firm said that with zero-fee trading now the norm among most custodians, advisers’ primary objection to ETF allocations — cost — has been eliminated.
Decreased trading expenses will enable advisers to pursue portfolio objectives once associated with high transaction costs, such as tax-loss harvesting and strategic rebalancing, said Cerulli, which expects advisers to allocate more to ETFs for exposure to niche asset classes.
“For the 51% of advisers who indicate that tax planning is a key service offering, ETFs offer opportunities to minimize tax obligations of their clients,” the firm said in a release.
Cerulli’s research indicates that more than one-quarter (27%) of advisers did not allocate to ETFs in 2019, citing client concern over cost as a primary objection.
The bank's new training initiative aims to add hundreds of advisors as it expands its mass-affluent advice unit, according to Barron's.
The lawyers' group warns that adjudicating certain claims externally and limiting punitive damages, among other suggestions, could hurt investors.
With Parkworth Wealth Management and its Silicon Valley tech industry client base now onboard, Savant accelerates its vision of housing 10 to 12 specialty practices under its national RIA.
The wealth tech giant is unveiling its new offerings, designed for advisor productivity and client engagement, as investors and experts continue to grapple with the implications of AI.
Meanwhile, Merchant is continuing to expand its support for RIAs by partnering with a South Dakota-chartered trust company.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
