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The Model Moment: From Scale to Sophistication

For years, the story of model portfolios has been one of growth. But as the market becomes more crowded, we believe the next chapter will be defined by how portfolios are built, with greater intentionality, customization and a sharper focus on the evolving needs of advisors and their clients.

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A shift towards sophistication

In a market where many portfolios share similar building blocks, differentiation is becoming increasingly tied to how portfolios are constructed. Asset managers are exploring new approaches to customization, active management, portfolio design, and implementation in an effort to better align portfolios with advisor and client needs. This shift is influencing how model portfolios are built, delivered, and supported across the wealth management landscape.

Models sit at the center of the industry's transition from product selection to portfolio construction. A single allocation decision can scale investment implementation.

Armando SenraHead of Americas Institutional Business, Canada, and LatAm, BlackRock

Four focus areas for the modern model portfolio

Building beyond scale

Model portfolios have experienced significant growth in recent years, but as the industry evolves, differentiation is becoming increasingly important. Asset managers are evaluating how portfolio design, investment philosophy, and implementation decisions can help distinguish their offerings in an increasingly competitive landscape.

ETFs have become the new foundation

ETFs have become a central building block of modern model portfolios, offering flexibility across a range of portfolio construction approaches. Model builders are increasingly evaluating how ETFs can be used to implement investment views, refine allocations, and access a broader opportunity set.

Customization comes into focus

As advisors seek to address a broader range of client objectives, customization is becoming a more prominent consideration in portfolio construction. More tailored portfolio approaches are prompting new conversations around how model portfolios can support diverse investor needs.

The next chapter of model portfolios is customization. Advisors have already embraced models to improve efficiency, but increasingly they're extending these solutions to high-net-worth clients who require greater personalization, tax management, and access to diversified sources of return across public markets and private markets. This shift is happening because it enables advisors to grow while spending more time serving complex client needs at scale.

Jaime MagyeraHead of U.S. Wealth and Head of Retirement, BlackRock

Distribution as a differentiator

Strong portfolio construction remains fundamental, but increasingly, asset managers are also focused on how model portfolios are delivered, supported, and adopted. Beyond portfolio design, attention is expanding to the factors that can influence advisor engagement and implementation.

Additional Resources

Resources to connect market themes with strategic and tactical allocation discussions.

Investment Directions

Informed by continuous client engagement, the report focuses on some of the top questions investors are asking.

Read what investors are asking?

Flow & Tell

Through analysis of ETF flows and investor positioning, the report provides clear insights that may help navigate evolving market dynamics.​

Read the latest ETF insights

Investing with iShares ETFs

iShares ETFs can go beyond traditional exposures— helping institutions build resilient core portfolios, manage

Explore iShares ETFs

Discuss your portfolio objectives

Explore how BlackRock's integrated investment platform can help support portfolio construction, asset allocation, and risk management through a whole portfolio view.

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Frequently asked questions

What is a model portfolio?

Model portfolios are professionally constructed investment strategies that combine multiple asset classes and vehicles—such as ETFs, mutual funds and alternatives—into a single, diversified portfolio aligned to a specific investment objective.​

Designed and managed by investment professionals, model portfolios provide a framework for asset allocation, portfolio construction and ongoing management. They can be customized to meet client-specific needs while maintaining a consistent, scalable investment approach.​

How are model portfolios evolving?

As model portfolios continue to evolve, asset managers are increasingly focused on customization, portfolio construction, implementation, and advisor adoption. Many providers are expanding beyond traditional asset allocation approaches by incorporating active strategies, alternative investments, and more tailored portfolio solutions designed to address a broader range of investor needs.

What roles do ETFs play in modern model portfolios?

ETFs have become an important building block in model portfolio construction, providing access to a broad range of asset classes, investment styles, and portfolio exposures. Today, model builders use ETFs across equities, fixed income, and alternatives to help implement asset allocation decisions, express investment views, and build more flexible portfolio solutions.

How can asset managers build and grow model portfolio businesses?

As model portfolios become increasingly sophisticated, many asset managers are evaluating how to access the analytics, technology, distribution capabilities, and market insights needed to compete in a rapidly evolving landscape.

GROW by BlackRock can help support model portfolio businesses through four key capabilities:

G | Game-changing models

Game-changing models brings industry intelligence through resources like: Models IQ, a quarterly look at how model builders are adapting to shifting markets and differentiating their portfolios; the BlackRock Industry Study, a one-to-one analysis of your suite's construction and risk against more than 2,800 third-party target risk models; and ETF Wrap, a monthly iShares update on product launches, enhancements and ETF flow trends

R | Resources and research

Resources and research covers portfolio consulting, trade analysis, access to BlackRock research and Fund Finder, an ETF screening tool for identifying and monitoring funds across the universe of U.S.-listed ETFs.

O | Outreach and marketing

Tap into BlackRock's marketing capabilities through co-branded content, advisor engagement opportunities, and collaborative events designed to help expand visibility and reach.

W | Win with technology

Integrate model portfolios into Aladdin Wealth technology, enabling advisors to access, analyze, and implement investment solutions through a platform used by thousands of advisors.

By combining portfolio intelligence, consulting resources, marketing support, and technology capabilities, GROW by BlackRock helps asset managers build, scale, and differentiate model portfolio offerings.