ETF Trends
ETF Trends

Richard Bernstein Advisors has launched several model strategies using exchange traded funds as more advisors utilize ETFs to build model portfolios.

CEO Richard Bernstein is the former chief investment strategist at Merrill Lynch and noted market commentator.

The model portfolios are called Sector Model Rotation, or SMRT, and will use the First Trust AlphaDEX sector ETFs. [Should Advisors Use ETF Managed Portfolios?]

The portfolios will “combine RBA’s top-down approach and proprietary earnings and valuation analyses,” according to a press release.

“SMRT portfolios are designed to manage beta through a market cycle,” the firm said. “RBA believes that beta is the primary driver of stock returns vs. individual stock selection and thus ETFs are ideal vehicles for the SMRT portfolios.”

The ETF model portfolios will initially be offered on select unified managed account platforms. They are:

  • Richard Bernstein Advisors SMRT Tactical Equity Portfolio
  • Richard Bernstein Advisors SMRT Strategic Equity Portfolio
  • Richard Bernstein Advisors SMRT All-Asset Moderate Portfolio

RBA oversees $800 million in assets. [Why Managed ETF Portfolios are Hot]

Earlier this year, investment researcher Morningstar estimated the total ETF managed portfolio space is likely between $40 billion and $100 billion. [Managed ETF Portfolios]

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.