It is no secret that exchange traded funds (ETFs) are catching on in the investment world, especially for their low costs to the investors and the financial advisors who use them.

Stephen Crowe for Financial Planning Magazine reports that, in fact, financial planners have been using ETFs for quite some time, and many believe that their current popularity is only the beginning. While many financial planners are already using ETFs, there is still a significant number of advisors out there who haven’t pulled the trigger yet.

At our company, we use ETFs for asset allocation tools, as well as tactical resources. Over the past decade, classic asset allocation tools haven’t been as favorable to advisors for getting returns. An increasing number of advisors can use ETFs to expand their asset allocation models. They can include areas such as currencies and commodities that weren’t as accessible before.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.