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As commissions hit zero for exchange-traded funds, advisors are using ETFs more for investors and making other changes in their practices. So says the latest report from Cerulli, The Cerulli Edge—U.S. Advisor Edition, which also says that as several of the largest RIA custodians adopted zero-fee trading, it's "quickly become the norm—impacting both direct investors and financial advisors who are increasingly using the vehicle as a building block for client portfolios."

While advisors mostly stayed away from ETFs in 2019 because of client concerns over cost, the move to zero-commission trades late in the year has cleared the way for "substantial room for growth in the ETF space among financial advisors," according to analyst Matthew Belnap. He is cited saying in the report that "the race to zero will likely serve as the catalyst for increased adoption."

Not only is there room for growth, among advisors who also do tax planning, those zero-commission ETFs provide the opportunity to minimize tax obligations. And that's not all; Belnap continues, "Transaction costs in the past may have prevented advisors from taking advantage of tax loss harvesting or strategic rebalancing opportunities. Zero-fee trades allow advisors to be more flexible and strategic in pursuing client objectives."