Packaging ETFs together in so-called model portfolios for financial advisors and their clients will continue to be a key driver of the industry’s growth in coming years. The low-cost and index-based financial products are ideal portfolio building blocks.
Market share leader BlackRock (NYSE: BLK) is pushing its new model portfolio services to help advisors utilize ETFs and learn more about how the funds work, Ignites.com reported recently.
“The model portfolios are the latest visible sign of BlackRock’s move to more closely align the iShares exchange traded fund group with other parts of BlackRock’s business, and part of CEO Larry Fink’s strategy of providing a variety of investment capabilities to meet client needs,” according to the report.
Another sign of the importance and integration of the ETF business at BlackRock is the recent promotion of Russ Koesterich to chief investment strategist, a new role at the firm. Koesterich will continue to serve as global investment strategist for BlackRock’s iShares business, a role he has held since 2010.