Model Portfolio Landscape: 2023 in Review

Model portfolios continue to expand, increasing to nearly $424 billion USD.

Assets in model portfolios have surged by 48% over two years, reflecting their growing popularity and effectiveness in providing strategic asset distribution while maintaining advisory discretion. This and many other reasons are why model portfolios are gaining traction, with advisors seeking structured investment solutions using various portfolio allocation models.

Advisors now face the challenge of evaluating numerous options designed for different risk profiles. Diversified investments play a crucial role in these models by mitigating risk and enhancing returns. As competition intensifies, model providers are also focusing on customization and unique features like tax-management overlays to differentiate their offerings.

Download this report now to see how Morningstar’s evaluation tools and enhanced rating systems can help you make informed choices in this crowded market.