The Vanguard CRSP 60%Equity/40%Fixed Income model portfolio was the fastest growing strategy last year, attracting $298.5 million in assets with a 1-year growth rate of 134.4%, according to Morningstar data. The portfolio has returned 6.9% over 2014, 11.1% over the past three years and 9.3% over the past five years.
There were 699 ETF model portfolio strategies from 146 firms with $91 billion total assets under management as of the end of December 2014. Assets shrunk 5% over the fourth quarter. [A Rough Q3 Tempered ETF Managed Portfolio Growth]
ETF managed portfolios are investment strategies that hold more than 50% of assets invested in ETFs and represented one of the fastest growing segments in the separate accounts space. Specifically, ETF managed portfolios offer three major investment themes: tactical, strategic and hybrid mix. The tactical offerings provide short-term plays to capitalize on investment opportunities that are forming, whereas the strategic play provides long-term allocation across sectors and asset classes. Additionally, the hybrid mix includes a combination of tactical and strategic elements.
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Max Chen contributed to this article.