Vanguard has launched a new Dynamic Active-Passive Model Portfolio series, expanding its lineup of model portfolios for financial advisors. The new series is designed to help advisors implement a dynamic active-passive investment strategy for clients at scale while simplifying portfolio construction and ongoing management.
The Dynamic Active-Passive Model Portfolio series combines the cost efficiency and transparency of passive investing with the potential advantages of active management. The portfolios are supported by a dynamic asset allocation framework that is adjusted throughout the year based on evolving market conditions and economic views. Vanguard said the models are intended to help advisors reduce the time spent selecting and monitoring active managers while maintaining disciplined investment processes.
The series includes seven different risk sleeves ranging from 100% fixed income allocations to 100% equity allocations. Advisors can use the portfolios as standalone investment solutions or alongside other portfolio holdings.
According to Vanguard, the portfolios are recalibrated using a systematic process that incorporates the firm’s evolving economic and market outlook alongside forward-looking capital market assumptions. The process draws on insights from the Vanguard Capital Markets Model (VCMM) and the Vanguard Asset Allocation Model (VAAM) to guide portfolio construction and positioning decisions.
The models are also designed to pursue potential outperformance through a combination of dynamic asset allocation and bottom-up security selection within the underlying active strategies. Vanguard noted that the active strategies included in the portfolios are selected through the firm’s fund evaluation process, which emphasizes experienced management teams, repeatable investment processes, and competitive long-term results.
Amma Boateng, Managing Director of Financial Advisor Services at Vanguard, said the model portfolios are intended to simplify some of the most complex aspects of portfolio construction and management for advisors.
Eve Cout, Head of Advisor Solutions for Financial Advisor Services at Vanguard, said the new series builds on the success of the company’s Strategic Active-Passive Model Portfolio series and addresses advisor demand for scalable solutions that blend low-cost index building blocks with active strategies.
Victor Zhu, Global Head of Model Portfolio Solutions at Vanguard, said the Vanguard Capital Markets Model plays an important role in shaping expectations for future market returns and supports the disciplined and repeatable investment framework behind the new portfolios.
KEY QUOTES:
“Our Dynamic Active-Passive Model Portfolios simplify some of the most complex parts of portfolio construction and management. By leveraging model portfolios, advisors can continue delivering disciplined portfolio construction while spending more time with clients during moments that matter.”
Amma Boateng, Managing Director, Financial Advisor Services, Vanguard
“Our Dynamic Active-Passive Model Portfolio series builds on the success of our Strategic Active-Passive Model Portfolio series and reflects what we’re hearing from advisors: they want a disciplined, scalable way to blend low-cost, transparent index building blocks with active strategies. These models help advisors implement that approach without adding complexity—and we’ll pair them with client-ready materials and practice-management resources to help them deepen client relationships.”
Eve Cout, Head of Advisor Solutions, Financial Advisor Services, Vanguard
“The Vanguard Capital Markets Model plays a critical role in how we think about future market returns. By integrating forward-looking return distributions with our evolving economic and market perspectives, our Dynamic Active-Passive Model Portfolios are designed to balance risk and return through a disciplined and repeatable process, helping investors navigate changing market conditions over time.”
Victor Zhu, Global Head of Model Portfolio Solutions, Vanguard
