Model portfolios
Approach
How Vanguard builds its model portfolios
There are several ways to build and manage model portfolios. Vanguard uses two key portfolio approaches.
Strategic model portfolios
Strategic models are designed with long-term goals in mind. Through a broadly diversified set of products, the models are designed to have low volatility, and they typically trade on an annual basis.
Dynamic model portfolios
Dynamic models seek to outperform a benchmark and manage volatility. They take a medium- to long-term perspective and maintain the flexibility to adjust portfolio allocations based on updates to Vanguard’s prevailing quarterly 10-year forecasts. This allows the models to respond appropriately to changing market conditions without making reactive short-term moves that may result in unfavorable risk/reward trade-offs.
Benefits
Vanguard’s low-cost advantage
The average cost of Vanguard model portfolios is 80% less than the industry average.1
Below, you can see how the difference in cost potentially translates into dollars and cents. For example, with an initial investment of $250K, you could save more than $132K ($132,440) in fees over 30 years.
Amount you can save with Vanguard
Notes: This hypothetical illustration assumes a 6% return for all examples. Rate is not guaranteed. If the rate of return were altered, results would vary from those shown. The final balance shown is after costs. This example doesn’t represent any particular investment and doesn’t account for inflation. There may be other material differences between investment products that must be considered prior to investing. All averages are asset-weighted. Industry averages exclude Vanguard.
Sources: Vanguard June 30, 2025.
Benefits
Deep investment expertise
Vanguard’s approach incorporates our time-tested portfolio construction expertise, focus on keeping costs low, and commitment to helping clients achieve their long-term goals.
Vanguard’s investment managers seek to dampen day-to-day market fluctuations. This helps them keep costs low and provide a range of broadly diversified portfolios that let you disconnect from the business headlines.
Indexing expertise
Renowned for pioneering index investing, Vanguard offers advisors deep expertise, robust strategies, and decades of experience in building low-cost, diversified indexed portfolios designed to help clients achieve their long-term goals.
Deep expertise
Managed by a team of experts in the economy, investment strategy, portfolio management, product, behavioral research, and advice.
Strong active management
Barron’s ranked Vanguard number one in 10-year active returns in six of the past eight years.2
Getting started
How to get started using model portfolios
Your guide on how to get started using model portfolios.
Model portfolios offer a streamlined way to align client goals with professionally managed strategies. In this video, Pat Moore, senior product manager on Vanguard’s model portfolios team, will walk you through a few practical steps on how to get started using them to deliver scalable solutions for your clients.
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Vanguard Strategic Model Portfolios Benefits for you and your clients
Model portfolios are backed by Vanguard's 50 years of investment expertise. They're a low-cost approach to meeting clients' unique investing goals while providing you with access to broader asset classes vetted by Vanguard.
Insights
Product News
Vanguard has launched two new fixed income model portfolios that complement our existing fixed income models—giving you more options to satisfy a variety of client needs. Read this article to learn more.
Product News
As an advisor, you know that optimizing fixed income allocations to reflect client goals can make a meaningful impact on investing outcomes. To help ensure portfolios are appropriately positioned, consider these two new dynamic Vanguard fixed income ETF model portfolios.
Vanguard Perspective
Introduction of two new Dynamic model portfolio series, Vanguard Income Model Series and Vanguard Tax-Aware ETF Model Series.
Expert Perspective
Model portfolios can help you streamline your practice for greater efficiency and time management.
Vanguard Perspective
For advisors looking to retire soon, having a succession plan in place is the best way to get the most value for your book of business while also providing continuity for clients and transferring the trust that’s been built over time.
Have questions? Contact us.
Disclosures and footnotes
1 Vanguard and Morningstar, Inc., as of December 31, 2024.
2 Debbie Carlson, 2025. Barron’s Best Fund Families of 2024. Barron’s (February 27). https://www.barrons.com/articles/best-fund-families-nvidia-market-810af9e6. Rankings based on data from Refinitiv Lipper. Barron’s Fund Family rankings look at the 1-, 5-, and 10-year relative performance of fund firms that offer diversified lineups of actively managed mutual funds and ETFs. To qualify for this ranking, firms must offer at least three active mutual funds or actively run ETFs in Lipper’s general U.S. stock category; one in world equity; and one mixed asset, such as a balanced or an allocation fund. They also need to offer at least two taxable bond funds and one national tax-exempt bond fund. All funds must have a track record of at least one year. While the ranking excludes index funds, it does include actively managed ETFs and “smart beta” ETFs, which are run passively but built on active investment strategies.
For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
All investing is subject to risk, including possible loss of principal. Diversification does not ensure a profit or protect against a loss.
Vanguard does not, and will not, make any representations about whether a model portfolio is in the best interest of any investor, is not, and will not be, responsible for the determination of whether a model portfolio is in the best interests of any investor; and is not acting as an investment advisor to any investor. It is the investment advisor's responsibility to determine the appropriateness of the model portfolios, or any of the securities included therein, for any client.
Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.
These risks are especially high in emerging markets.