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What is a Model Portfolio?
Model portfolios are a diversified group of assets designed to achieve an expected return with a corresponding risk. Ideally, each portfolio has a combination of intelligent and optimized managed investments based on extensive research. These portfolio blend asset classes, investment managers and investment strategies to achieve diversification.
Intelligent model portfolios offer retail and institutional investors the opportunity to realize returns outperforming the standard investment benchmark with low net annual operating cost often less than 0.2%.
Why should you use a model portfolio?
- Investment comes with expectations. The reality is that investors always seek high returns, low risk, tax efficiency, and even social responsibility.
- Investors are increasingly distrusting the actively managed portfolios due to higher cost and underperforming results.
- Therefore, one of the driving forces currently reshaping the financial services landscape is the increased usage of model portfolios utilizing low-cost ETFs as the engine for most Robo-advisory product designs and as the portfolio construction tools by advisors and fund managers.
How do you select a model portfolio?
- In the financial service industry, financial advisors or investment managers have started to offer a variety of model portfolios to correspond with investors' financial goals and objectives. If constructed properly, these model portfolios are designed to achieve benchmark-matching performance.
- Computing power and data analytics have made it possible to further improve model portfolios and create intelligent model portfolios with positive alpha. Alpha is the excess return of the portfolio over its benchmark for its expected risk.
- Our value-added intelligent model portfolios have all been time-tested to outperform the standard investment benchmark. They are ready-to-use ETF portfolios and available in serving investors with Growth Strategy, Income Strategy, and Global Strategy.
Safer Growth
Inception Date: 09/19/2017
Objective
Simple and diversified growth
Design Keys
High quality, growth and value balanced, diversified
Performance
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Symmetric growth
Inception Date: 11/10/2014
Objective
Inflation protected capital appreciation
Design Keys
Balanced and diversified
Performance
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Superior Income
Inception Date: 12/02/2015
Objective
High income with low volatility
Design Keys
Diversified income with some capital appreciation and risk management
Performance
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Social ESG Growth
Inception Date: 03/09/2017
Objective
Socially responsible investing
Design Keys
Global diversification with ESG choices (Environmental, Social, and Governance)
Performance
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Synergy Growth
Inception Date: 12/03/2015
Objective
High quality global growth
Design Keys
High quality, balanced, diversified
Performance
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Systematic Growth
Inception Date: 01/22/2014
Objective
Benchmark-matching growth
Design Keys
Systematic mimic of benchmark index, diversified
Performance
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Popular model portfolios:
Remarks: We encourage investors and advisors to look into these popular model portfolios and find out how these popular model portfolios compared to our Intelligent Alpha portfolios, why they have little intelligence, and why they often do not generate better performance as compared to benchmarks.
- Vanguard Model Portfolios
- Fidelity Model Portfolios
- Schwab Model Portfolios
- Interactive Brokers Model Portfolios
- BlackRock Model Portfolios
- Goldman Sachs Model Portfolios
- Morgan Stanley Model Portfolios
- J. P. Morgan Model Portfolios
- State Street ETF Model Portfolios
- Russell Investments Model Portfolios
- Capital Group American Funds Model Portfolios
- WisdomTree Modern Alpha® ETF Model Portfolios
- VanEck ETF Model Portfolios
- Franklin Templeton Model Portfolios