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Tony Ondrusek is founder and publisher of Insurance & Financial Advisor and IFAwebnews.com.

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According to an article on IFAwebnews.com, many investors are opting for EFTs and bypassing the traditional financial advisor relationship.

Besides Charles Schwab mentioned in the article, Legg Mason filed an applicaion with the SEC to launch actively managed exchange-traded funds, as reported by the Baltimore Sun.

Fellow Baltimore firm T. Rowe Price also has filed an application, as John Hancock and PIMCO are also reportedly planning to introduce an EFT.

The jury is still out on how this might affect advisors, but when savvy investors can bypass those who have handled their portfolios, that can’t be good news.