Model portfolios

How model portfolios can transform your practice

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OVERVIEW

Advisor use cases for model portfolios

Vanguard model portfolios create efficiency for building and managing client portfolios without compromising quality or your expertise.

We’ve built flexibility into our models to support your practice at every stage:

Wherever you are on your journey, our solutions help you move forward with confidence.

Are you ready to transform your practice? Get started with our model portfolios today.

Check out our models

Free up your time from money management

Save more than nine hours per week. Use your extra time for continuing education or other beneficial activities.1

Spend more time cultivating client relationships

Quality time with your clients matters. About 65% of clients cited poor service levels or personality conflicts as the reason for switching to a new advisor.2

Grow your practice by expanding your client base

Research shows that 50% of clients used referrals to select a new advisor.2 Do more for your current clients and still have the time to prospect for new ones.

High-growth practices

How model portfolios are ideal for high-growth practices

Add hours to your day with streamlined portfolio construction and management.

When your practice is growing, you may feel that you spend too much time on portfolio strategy and construction, and not enough time with your new and existing clients.

Vanguard models simplify the portfolio-building process, allowing you to have more time to focus on what matters most:

  • Broadening your book of business. Onboard smaller accounts with long-term asset growth potential.
  • Reducing your administrative burden. Spend more time understanding and addressing your clients’ full financial picture.
  • Managing more client assets with confidence. Offer clients Vanguard-vetted investment strategies with consistent returns to boost client satisfaction and increase AUM.

See our related expert perspective: Increase efficiency and add scale to your practice with model portfolios.

What are you waiting for?

Get growing today

Practices using CMAS

How model portfolios offer CMA-level consistency

Vanguard model portfolios share the same investment approach as centrally managed accounts (CMAs). They also offer more investment options, faster implementation, and broader client reach.

Model portfolios can meet a variety of practice needs and goals:

Improve consistency and reduce drift

Transition legacy CMA portfolios into new models-based strategies that offer more stable returns. We can also help you with ongoing monitoring and adjustments to allocations so the portfolios you choose can be automatically rebalanced.

Align strategies with your firm’s philosophy

Model portfolios allow you to quickly create new CMAs targeted for your practice’s investment approach.

Access multiple model variations

Model portfolios offer you more options for clients within a single risk profile, including active or passive management, growth or income, and multiasset or fixed income strategies. New fixed income models will be available later this year.

Check out our related article: The models advantage: More value for you and your clients.

Open the door to new opportunities for your practice.

Take the first step


advisors in transition

How model portfolios can help you navigate key practice transitions

Model portfolios can help you balance change with consistency.

You get a seamless, scalable solution to support you at every stage:

  • Just starting out. Build your client base with flexible, ready-to-use investment strategies tailored to specific client goals. No expensive subscriptions or technology needed.
  • Transitioning your book. Improve client retention through a smooth transition process. Spare clients the stress of asset transfers, re-onboarding, or changes to your investment approach. Learn more in the Vanguard perspective article Using models to ease your transition to a new firm.
  • Planning succession. A consistent investment approach can improve practice valuations. With their ready-made investment framework, model portfolios promote service continuity for your clients. Learn more in the Vanguard perspective article Model portfolios can help advisors with succession.

Welcome your practice changes with confidence.

Move forward today


Key advantages

The Vanguard model portfolios difference

Vanguard model portfolios provide more than just efficiency and time savings. They offer:

Low expense ratios:  Our low expense ratios keep more of your clients' money in their portfolios and positioned for additional growth.

Less return variability: Our model portfolios are developed with broad diversification through exposure to stocks and investment-grade bonds, which can reduce concentration risk. Additionally, they are managed to return lower variability and turnover.

Transparency: Access monthly performance and allocation updates, quarterly fact sheets, commentary, and trade updates.

Customization: Tailor portfolios to fit each client’s goals for growth or income, active or passive strategies, risk tolerance, and trading frequency.

86%

of Vanguard mutual fund and ETF assets are in the lowest-cost deciles of their peer groups.3

0.04%

Our average expense ratio for index fixed income ETFs is only 0.037%.4

0.1%

Our active fixed income ETFs have an average expense ratio of 0.105%, the lowest among leading issuers of such ETFs.5
Patrick moore portrait shot

When to use model portfolios

Pat Moore, model portfolios senior product manager, discusses the many investing scenarios that can benefit from model portfolios' systematic investment process.

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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.

  • PDF

    The models advantage More value for you and your clients

    You know Vanguard as a trusted name in portfolio construction, active management, and indexing. You likely know model portfolios as an efficient strategy that can free up time, allowing you to deepen relationships and grow your practice. But do you know the Vanguard models advantage?

Have questions? Contact us.

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Disclosures and footnotes

1 Cerulli Associates, 2023. Analyst Note: Responses are from practice management professionals.

2 Vanguard Investment Advisory Research Center's analysis using data from Cerulli Associates, 2023.

3 Vanguard calculations, based on data as of November 30, 2024, from Morningstar Direct. Peer groups are defined as products with the same Morningstar category, investment type, and management style.

4 Vanguard calculations, based on data as of November 30, 2024, from Morningstar Direct. Average expense ratio is asset weighted.

5 Vanguard calculations, based on data as of November 30, 2024, from Morningstar Direct. Average expense ratio is asset weighted. Leading active fixed income ETF issuers are based on assets under management in such funds. Vanguard's average expense ratio was lower than the top 10 active fixed income ETF issuers.

For more information about Vanguard funds and ETFs, visit advisors.vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund 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. 

Vanguard is owned by its funds, which are owned by Vanguard s fund shareholder clients.

Diversification does not ensure a profit or protect against a loss.

Investments in bonds are subject to interest rate, credit, and inflation risk.

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.

Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.

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.