Vanguard has launched its new Dynamic Active-Passive Model Portfolio series, expanding the firm’s lineup of model portfolios for financial advisors.
The series is designed to help advisors implement a dynamic active‑passive investment approach for clients at scale. It offers models to advisors wanting to merge passive management with active management, supported by an asset allocation framework that is adjusted throughout the year.
“Our Dynamic Active-Passive Model Portfolios simplify some of the most complex parts of portfolio construction and management,” said Amma Boateng, managing director of Financial Advisor Services. “By leveraging model portfolios, advisors can continue delivering disciplined portfolio construction while spending more time with clients during moments that matter.”
The approach is available in seven different risk sleeves, ranging from most conservative at 100% fixed income, to most aggressive at 100% equities. These can be used as standalone products or to complement other portfolio holdings, Vanguard states.
“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,” said Eve Cout, head of Advisor Solutions, Financial Advisor Services. “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.”
According to Vanguard, allocations are recalibrated through a systematic process that integrates Vanguard’s economic and market views with capital markets assumptions. The process leverages insights from the Vanguard Capital Markets Model (VCMM), alongside the Vanguard Asset Allocation Model (VAAM), to inform portfolio construction and positioning.
“The Vanguard Capital Markets Model plays a critical role in how we think about future market returns,” said Victor Zhu, global head of Model Portfolio Solutions. “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.”