Insights

Due Diligence: 8 Factors to Consider When Selecting an ETF Model Portfolio

  • With the growing number of model portfolios available, model selection has become a more complex task.
  • A comprehensive due diligence framework may serve as a guide when selecting a model portfolio and distinguishing one provider from another.

ETF model portfolios each have unique characteristics and finding the right strategy can be a challenging task. When using models, remember that you are not just buying a portfolio — you are also selecting a provider to partner with over the long term. As a result, you may want to implement some best practices when conducting due diligence on models and their providers.

State Street Global Advisors partnered with Greenwich Associates to conduct a study to better understand what investors are looking for in their model portfolio strategies and providers. From this research, we developed a comprehensive due diligence framework that may help you differentiate between model providers and select the best partner to help you achieve your specific goals.

The eight factors are:









Source: State Street Global Advisors in partnership with Greenwich Associates, ETF Model Portfolios: The Due Diligence Factor, 2018.