With over 2,000 U.S.-listed ETFs traded on the market, investors and advisors are spoiled for choice, but they may also need some direction to find the best fitting investment for their portfolio and long-term goals.
Consequently, more fund providers are coming out with investment tools to help investors and financial advisors better manage the way they invest. For instance, at WisdomTree, advisors can utilize a digital portfolio developer tool through the provider’s portfolio construction services platform.
“There’s really two aspects to the way we can help on portfolio construction,” Alisa Maute, Head of US Distribution at WisdomTree, said at the Charles Schwab Impact Conference. “One is through the human dynamic where you can work directly with our asset allocation team to solve complex solutions.”
An advisor would have a portfolio and they can share it with a fund provider, like WisdomTree, to gain suggestions on best practices to model a portfolio so as to lean toward a specific strategy or outcome, or “optimize around certain stock positions,” Maute said.
“One of the things we’re most excited about is actually our new digital portfolio developer tool, which is a digital version of portfolio construction,” Maute added.
The free-to-use tool helps advisors optimize portfolios for income,fees or risk-adjusted performance, among many other options. The tool also provides stress testing through FinMason, a financial tech firm, to see how a portfolio performs during various scenarios. Lastly, the tool provides factor loading information to better understand how a portfolio may tilt toward various factors like quality or value.
To learn more about WisdomTree’s Advisor Solutions platform, visit www.wisdomtree.com/advisor-solutions.