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.