04.15.24

ETFs Surge to Dominant Position in US Model Portfolios

by: Steve Johnson

Exchange-traded funds (ETFs) have taken over as the dominant holding in the US model portfolio market, helping to turbocharge their already rapid growth. ETFs accounted for 51% of underlying assets at the end of last year, up from 46.7% in early 2022, according to data from Broadridge Financial Solutions, which puts the size of the US model portfolio market at $5.1 trillion. “The share of ETFs in model portfolios is only going to be going one way,” said Andrew Guillette, vice-president of global insights at Broadridge. “Models make sense to advisors. They help them optimize their portfolio construction to let them spend more time with clients, which ultimately is the end goal.”

Read the full article on Financial Times