Vanguard has introduced its first dynamic asset allocation fixed income model portfolios, expanding its suite with the Fixed Income Risk Diversification and Fixed Income Total Return options. These new models are designed to support financial advisors by actively adjusting allocations throughout the year, guided by Vanguard’s 10-year Capital Markets Model forecasts. 

Aimed at outperforming benchmarks like the Bloomberg U.S. Aggregate and Universal Indexes, the portfolios are tailored to varying risk appetites and investment timelines. The Risk Diversification model emphasizes global investment-grade bonds for stability, while the Total Return model adds high-yield exposure for greater accumulation potential.

 With expense ratios of 0.05% and 0.08% respectively, the models reflect Vanguard’s continued focus on low-cost, research-driven solutions. 

Finsum: Their debut also aligns with broader industry momentum toward model portfolios, with advisors increasingly favoring them over traditional fund-of-funds structures.