Vanguard Launches Dynamic Active-Passive Model Portfolio Series for Financial Advisors

Vanguard has launched a new Dynamic Active-Passive Model Portfolio series, further expanding the firm’s lineup of model portfolios for financial advisors. The series is designed to help advisors efficiently implement a dynamic active‑passive investment approach for clients at scale.

The series offers models to advisors seeking to outperform an index benchmark that combine the cost efficiency and transparency of passive management with the benefits of active management, supported by a dynamic asset allocation framework that is adjusted throughout the year. Leveraging these models can help advisors alleviate time spent selecting and continuously monitoring active managers.

“Our Dynamic Active-Passive Model Portfolios simplify some of the most complex parts of portfolio construction and management,” said Amma Boateng, Managing Director, Financial Advisor Services. “By leveraging model portfolios, advisors can continue delivering disciplined portfolio construction while spending more time with clients during moments that matter.”

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What are Vanguard’s Dynamic Active-Passive Model Portfolios?

This dynamic active-passive approach is available in seven different risk sleeves, ranging from most conservative (100% fixed income) to most aggressive (100% equities). These can be used as standalone products or to complement other portfolio holdings.

“Our Dynamic Active-Passive Model Portfolio series builds on the success of our Strategic Active-Passive Model Portfolio series and reflects what we’re hearing from advisors: they want a disciplined, scalable way to blend low-cost, transparent index building blocks with active strategies,” said Eve Cout, Head of Advisor Solutions, Financial Advisor Services. “These models help advisors implement that approach without adding complexity—and we’ll pair them with client-ready materials and practice-management resources to help them deepen client relationships.”

The dynamic model portfolios’ allocations are recalibrated through a systematic process that integrates Vanguard’s evolving economic and market views with forward-looking capital markets assumptions. This process leverages insights from the Vanguard Capital Markets Model (VCMM), alongside the Vanguard Asset Allocation Model (VAAM), to inform portfolio construction and positioning.

“The Vanguard Capital Markets Model plays a critical role in how we think about future market returns,” said Victor Zhu, Global Head of Model Portfolio Solutions. “By integrating forward‑looking return distributions with our evolving economic and market perspectives, our Dynamic Active-Passive Model Portfolios are designed to balance risk and return through a disciplined and repeatable process, helping investors navigate changing market conditions over time.”

A combination of bottom-up security selection within the active strategies and dynamic asset allocation using Vanguard’s capital market forecast creates the additive opportunity for outperformance. The active strategies included in the models are selected through Vanguard’s rigorous fund evaluation process, which emphasizes experienced management, repeatable investment processes, and competitive long-term outcomes.

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