Vanguard launches customizable model portfolios for financial advisors

Vanguard has launched new customizable model portfolios designed to allow financial advisors to tailor existing investment strategies to specific client preferences, such as tax management and personal values. The offering targets the independent advisor channel, enabling the creation of unique models for specific practices.

Advisors can implement these models through partnerships with Vestmark, Orion, or SS&C Black Diamond Wealth Solutions. These integrations facilitate essential functions including trading, rebalancing, and tax management. The initial rollout includes four model families: active-passive, dynamic active-passive, fixed-income, and income-oriented products.

Vanguard stated it will not charge additional fees for the ability to customize these models, aiming to provide personalized solutions while maintaining its established cost proposition. This move follows a significant industry trend toward personalization; according to Morningstar data, custom model portfolio assets reached $258 billion in March, marking a 40% increase year-over-year.