Displaying items by tag: models

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.

(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.

(New York)

Market volatility has been rising substantially and advisors may be interested in looking for holistic ways to diversify risk. Take a look at WisdomTree’s lineup of models, which are quite comprehensive. Using a factor-based approach, WisdomTree has a number of models to help investors hedge risk. This kind of approach can be quite useful right now as the market has been so unpredictable. According to the CIO of WisdomTree “We see an almost total factor performance reversal. In Q1 (when interest rates were rising), the market was led by value, dividends, and quality, with growth and momentum trailing far behind … But since then (as interest rates have fallen), it has been exactly the opposite—growth, momentum, and quality have led the way, while value and dividends dramatically underperformed”.

FINSUM: Models are an increasingly popular way for advisors to achieve a lot of investing goals, and they may be most useful because they can help save time by giving a single point-of-access to a comprehensive strategy.

(New York)

Any advisor will have noticed the big industry push towards model portfolios, and in particular, model ETF portfolios. To many, this might be a “what gives?” moment. The reason why is actually a simple one for both advisors and asset managers. For asset managers, models can be a very nice singular location to gather up assets. For advisors, it is all about saving time and getting the best of a wide array of ETFs. Model portfolio can allow advisors to get access to a range of best-of-breed products without the need to proactively take the time to diversify client Dollars into those funds.

FINSUM: Model portfolios are going to keep growing. They are generally a win-win for both advisors and managers.

(New York)

Advisors likely know Global X as a leader in thematic investing—heck they practically invented the space! Well the know-how and expertise you know and love from their ETFs is available as part of a suite of model portfolios at Orion. In partnership with Orion Portfolio Solutions, Global has launched both an Equity Thematic Disruptors ETF Model Portfolio and five Core Series Models tailored to specific risk appetites. In Global X’s own words, the Equity Thematic Disruptors ETF Model Portfolio “Targets structural and long-term trends that transcend traditional sector investing and provides investors with access to potential growth opportunities”.

FINSUM: Exciting to see Global X bringing its edge to the model world. The Disruptors model seems like a one-stop shop to access cross-sector innovation.