Displaying items by tag: vanguard
The Best Model Portfolios Ranked, 6-10
In our continued coverage of Morningstar’s top model portfolios, today we are featuring those ranked 6-10. Morningstar is soon going to double the coverage of the growing model portfolio universe, which is great news for advisors having trouble deciding on which to choose. Without further delay, here are the rankings. Number 10: Vanguard S&P (Silver rating). Number 9: Vanguard Russell (Silver rating). Number 8: Vanguard CRSP (Silver rating). Number 7: American Funds Tax Aware Income (Silver rating). Number 6: American Funds Tax Aware Growth and Income (Silver rating).
FINSUM: Well the list isn’t very diverse in terms of managers, but the Russell model from Vanguard looks like an interesting way to play small caps. Additionally, given Biden’s proposals, tax aware income would be a wise strategy in which to take a holistic approach.
The Top 15 Model Portfolios, 15-11 ranked
(New York)
Firstly, some good news for advisors, Morningstar has announced it is doubling its analyst coverage of models next year from a current 250. Within that coverage, advisors can also find the top 15 models according to Morningstar. Here are those ranked 15-11. Number 15: T. Rowe Price Active, number 14: Dimensional Tax-Sensitive, number 13: Dimensional Core Wealth, number 12: Fidelity Target Allocation Index-Focused, number 11: BlackRock Target Allocation Tax-Aware ETF.
FINSUM: A nice diverse group of models with a lot of different focus areas. Great start for further research.
Here are Morningstar’s Top Model Portfolios
(New York)
Morningstar has added a lot of coverage to their model portfolio universe this year. Earlier in 2021 they expanded their coverage of ratings to 1500 model portfolios, an increase of 50%. Of all those funds reported on, only two of them took home their coveted gold rating: the Vanguard CORE series and the BlackRock Target Allocation ETF. Vanguard was noted as having highly diversified index funds and rarely making portfolio changes. Other funds that got acclaim, such as their silver rating, include American Funds Growth & Income and the American Funds Tax Aware Growth & Income series.
FINSUM: The world of model portfolios has grown nearly as dizzying as that of ETFs so these Morningstar guides are a big help.
Morningstar Says Vanguard Has the Best Model Portfolio
(New York)
The model portfolio world has grown highly confusing over the last few years. The explosion in popularity of models has led to thousands on the market, making it very hard to sort one from another. Luckily, Morningstar has launched a new product to help do just that. Morningstar’s new ratings are on a one to five scale (like their mutual fund ratings) and they have increased coverage recently from 76 models to 139. They are also now covering not just SMA models, but theoretical ones. Morningstar gave only 2 out of 1,500 models its top “gold” rating, and one of the pair was Vanguard’s CORE portfolio. According to Morningstar, CORE has “an extremely appealing price tag along with top notch, highly diversified underlying index funds”.
FINSUM: This rating system will be a great resource for advisors, especially as coverage continues to increase. These scores will be useful not just for investment selection, but also for highlighting their utility and legitimacy to clients.
The Best Model Portfolios Right Now
(New York)
Model portfolios provided by third parties have become increasingly popular for advisors, but separating the best from the rest is no easy feat. To help out advisors, Morningstar now has rankings and guides (see them here). Here are five of the top picks from Morningstar: BlackRock Target Allocation ETF, Vanguard CORE, American Funds Growth & Income, American Funds Tax Aware Growth & Income, BlackRock Multi-Asset Income. Other interesting options include the State Street Strategic Asset Allocation and T.Rowe Price Active.
FINSUM: The world of model portfolios has been proliferating enough that scoring and guidance is very useful (just think how hard ETF selection would be without screeners!).