Taking a clearer view of how clients really think about model portfolios, an extensive research study into model portfolio perception and adoption conducted by WisdomTree has found that many financial advisors have misconceptions about how clients perceive model portfolios.
In the upcoming webcast, What Clients Really Think About Model Portfolios, Ryan Krystopowicz, Associate Director, Product Solutions Specialist, WisdomTree Asset Management, will discuss how financial advisors are missing out on opportunities to incorporate model portfolio strategies into their practices.
WisdomTree model portfolios implement an index-centric approach, seeking to add value through both asset allocation and ETF selection relative to composite cap-weighted benchmarks. While the models are strategic in nature, they also reflect tactical tilts based on market conditions. By incorporating ETFs that provide representative exposure and rebalance back to measures of relative value, WisdomTree seeks to increase absolute- and risk-adjusted returns compared to traditional approaches that predominantly use market-cap weighted funds.
WisdomTree model portfolios seek to provide a diversified allocation of stocks and bonds within their respective portfolios using WisdomTree and non-WisdomTree ETFs. Each portfolio’s objective is both capital appreciation and preservation, with an additional focus on risk mitigation.
WisdomTree recently introduced the Model Adoption Center, or MAC. The MAC is the result of research with over 6,000 investors that have been interviewed over several years, with over 2,000 in-depth model conversations. Hundreds of advisors that proved that third-party models can actually help reinforce value as an advisor.
According to recent surveys and research findings, 63% of the investors surveyed believe that applying a third-party model to their portfolio would positively impact them, and 90% of these investors thought it acceptable for their advisor to use a preset investment model portfolio.
“According to our investors, you can and likely should be using third-party models to leverage expertise and focus on the more important aspects of your client relationships,” according to WisdomTree.
Financial advisors who are interested in learning more about ETF model portfolios can register for the Friday, May 7 webcast here.