Workflow
Fiduciary Advice
icon
Search documents
Model Portfolios Decide Which ETFs Succeed. That Might Not Be a Good Thing
Yahoo Finance· 2025-12-03 11:05
Group 1 - The trend of model portfolios being influenced by issuers is concerning, as it may compromise the unbiased nature of fiduciary advice provided by advisors [1][2] - The iShares Systematic Bond ETF (SYSB) experienced a rapid increase in assets under management (AUM), growing from $67 million to over $600 million after being added to a BlackRock portfolio, highlighting the impact of model portfolio inclusion [2] - BlackRock's decision to include SYSB was influenced by its expense ratio of 25 basis points compared to a similar product's 6 basis points, which could generate significant annual revenue based on the funds' assets [2] Group 2 - Advisors are increasingly relying on model portfolios, which may lead to less due diligence and awareness of the underlying fund providers and their selection criteria [3] - There is a call for tools that can compare not only ETFs but also model portfolios to assist advisors in making informed decisions [3] - Advisors are encouraged to choose model providers that are agnostic regarding fund selection to ensure unbiased recommendations [3]