To say model portfolios are having a moment is an understatement. As of the start of Q2, they comprised nearly $8 trillion in assets spread across them. That represents a dramatic increase in just a few years.
That surge confirms RIAs are embracing model portfolios in a big way. As Ryan Krystopowicz, director of client solutions at WisdomTree points out, more than 80% of fee-based advisors are using them.
From that data point, we can infer a few important points. First and perhaps most importantly, model portfolios aren’t chasing clients away. In fact, a slew of studies and surveys confirm clients are more than fine with model portfolios. That’s because above investment performance, they prize advisors’ communication skills, trustworthiness, and other “soft skills.”
Second, model portfolios, of which WisdomTree is one of the leading sponsors, offer advisors myriad benefits. This includes time efficiencies, allowing them to spend more time building their businesses and delivering more customization and personal touches to existing clients. Learn how WisdomTree can help your practice in the video below.
Compelling Reasons to Consider Model Portfolios
There is considerable momentum building around model portfolios. But some advisors are skittish about this form of asset allocation. Yet data don’t support that perspective. As Krytopowicz pointed out, 90% of investors are happy with model portfolios being integrated into their investment plans. And 70% believe performance will increase as a result.
“In other words, this isn’t about giving up control. It’s about delivering thoughtful investment strategies while still being the trusted guide your clients rely on,” observed Krystopowicz.
WisdomTree has the tools to help advisors succeed in the rapidly evolving world of model portfolios, including the CIO-Managed Portfolios suite.
Active Insights + Passive Discipline
“WisdomTree’s CIO-Managed Portfolios blend active insights with passive discipline to support a range of client goals—from growth to income to wealth preservation,” said Krystopowicz. “Built on an open-architecture framework, they include building block sleeves and multi-asset portfolios aligned with our Model Portfolio Investment Committee’s views. While primarily strategic, these portfolios are tactically adjusted throughout the year to reflect evolving market conditions across equities, fixed income and currencies.”
This article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional.
WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.
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