ETF Model Portfolios Can Help Streamline Financial Advisors' Business

As financial advisors look to optimize their practices, many are adopting exchange traded fund model portfolios in separate accounts to enhance their businesses.

“We think that in the future of advice and the way that things are going to look as we move forward, the most important thing you can do as an advisor is have that tight relationship with your client. And that means you need time,” Sue Thompson, Head of SPDR Americas Distribution, State Street Global Advisors, said at the Inside ETFs conference.

Consequently, financial advisors have utilized ETF model portfolios to help streamline their practices and provide them more time to interact with their clients.

State Street offers a range of ETF model portfolios, crafted by experts with each one designed and managed by the Investment Solutions Group. The strategies are backed by more than 50 portfolio managers, strategists, and analysts, covering a range of investment outcomes to provide diversification opportunities across a variety of asset classes and risk profiles.

For example, the Strategic Asset Allocation Portfolios pursue optimal capital efficiency over a long-term horizon.

The Strategic Opportunities ETF Model Portfolios seek to capture deviations in return profiles over an intermediate-term horizon.

The State Street Active Asset Allocation ETF Portfolios seek to capitalize on short- and long-term mispricing in the global equity and fixed income markets by overweighting asset classes that appear attractive and underweighting less attractive asset classes.

Providing Needs And Desires For Investors

They also provide Outcome-Based ETF Portfolios that solve for a range of investor needs and desired outcomes, such as the State Street Global Allocation Target Risk ETF Portfolio, State Street US Equity Sector Rotation Target Risk ETF Portfolio, State Street Flexible Allocation ETF Portfolio and State Street Income Allocation ETF Portfolio.

Lastly, there is a Specialized ETF Portfolio that pursues targeted objectives with sophisticated strategies. The State Street Multi-Asset Real Return ETF Portfolio seeks to provide thoughtful exposure to real assets, diversification, and additional return by using State Street Global Advisors’ tactical asset allocation process to drive active positioning.

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 typically 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.

Watch Sue Thompson Discuss Financial Advisors Strategies:

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category