10 Best Model Portfolios Of 2024 (2024)

The Navigator Small Cap Core U.S. Equity model portfolio from Clark Capital Management Group is a long-only strategy focused on high-quality, undervalued, small-cap companies that are pursuing compelling long-term goals. The portfolio’s benchmark is the Russell 2000 index, although it aims to generate less volatility than its bogie.

This model portfolio invests in stocks that have durable competitive advantages and low earnings variability. It uses a disciplined, research-backed process to identify companies with superior anti-fragility, compelling value and improving business prospects.

In the past three years, the Navigator Small Cap Core U.S. Equity model has generated a net average annual return of 15.7% (after fees), compared to a 10.8% average annual return for its benchmark. The portfolio charges an annual advisory fee of 3%.

The Alpha Vee Green Transportation portfolio is managed by Alpha Vee Solutions, and it is designed to allow investors to capture returns generated by growth in the green transportation supply chain. The portfolio invests in electric vehicle suppliers and component manufacturers, including producers of batteries, fuel cells, autonomous vehicles, sensors, power trains and other materials.

This model portfolio owns public companies that trade on major U.S. exchanges, with a market capitalization of at least $100 million and a minimum average daily trading volume of at least $1 million. The Alpha Vee Green Transportation portfolio has generated a three-year annual return of 12% compared to a 13.4% return for over the same period.

The BlackRock 80/20 Target Allocation Fund offers a model portfolio that holds 80% stocks and 20% fixed-income investments. With low fees and a major allocation to equities, this is a great choice for investors who are comfortable with a more aggressive risk profile.

This model portfolio has a composite benchmark made up of several indexes. The MSCI ACWI Index accounts for 56% of the benchmark, 24% is the MSCI US Index and 20% is the US Universal Index. In the past three years, the portfolio has generated an average annualized return of 7.1%, compared to the benchmarks’ 6.8% return.

The BlackRock 80/20 Target Allocation Fund owns 16 funds—Blackrock funds, iShares ETFs and third-party mutual funds—and it charges a net expense ratio of 0.29%. Prior to June 2015, the fund followed different investment strategies and was called the BlackRock Aggressive Growth Prepared Portfolio.

The Clark Navigator SMID Cap Core U.S. Equity model portfolio seeks out stocks that can navigate changing economic conditions, are undervalued based on multiple valuation metrics and demonstrate accelerating business momentum.

The portfolio’s primary goal is to deliver consistent returns throughout broad market cycles. It’s structured and managed in a similar way to the Clark Navigator Small Cap Core U.S. Equity portfolio. It shares the same benchmark—the Russell 2000—but it also adds in mid-cap stocks.

In the past three years, the Navigator SMID Cap Core U.S. Equity model has generated a net average annual return of 13.9% (after fees) compared to 12.2% for its benchmark index. The portfolio has a model investment advisory fee of 3%.

The American Funds Retirement Income Portfolio – Enhanced model portfolio prioritizes income generation and preserving capital over the long-term. This makes it a good choice for investors who are approaching or already in retirement and who want dependable income.

The portfolio owns a mix of American Funds, primarily drawn from the balanced, equity income and growth-income categories. The portfolio is made up of roughly 43.5% U.S. equities, 27.5% U.S. bonds, 18.4% non-U.S. equities, 5.9% cash and equivalents and 4.7% non-U.S. bonds.

Because it’s more income-oriented than other portfolios on this list, this portfolio’s average annualized three-year returns are just 4.7%. The weighted average yield of its bond holdings is 3.9%. The portfolio has an annual expense ratio of 0.64%

The BlackRock 100/0 Global Allocation Selects model portfolio invests in a diversified basket of mutual funds and ETFs. The management team’s strategy includes active, index and factor investing approaches.

The fund owns iShares ETFs as well as third-party funds. Top holdings include the Schwab US Large-Cap Growth ETF (SCHG), iShares MSCI USA Quality Factor ETF (QUAL) and the Invesco S&P 500 GARP ETF (SPGP).

This model portfolio has generated an average annualized return of 13.4% over the past three years, compared to a 16.4% annual return by its benchmark, the MSCI World Net Total Return Index. The portfolio charges an annual advisory fee of 3%.

The Clark Capital Navigator U.S. Sector Opportunity portfolio is a momentum play that invests in outperforming market sectors and industries exhibiting strength while avoiding underperforming sectors. Managers monitor the markets and adjust holdings when market conditions change.

This model portfolio owns between six and 16 ETFs, depending on market conditions. Over the past three years, it has generated a net average annual return of 12.2% compared to a 14.6% annual return of its benchmark, the S&P 500. The portfolio’s net returns reflect a deduction of an annual advisory fee of 3%.

The Morningstar Aggressive Growth-Tax Sensitive portfolio invests in diversified domestic and international equity mutual funds. Morningstar recommends the portfolio only for financially stable investors who have a high tolerance for market volatility and a time horizon of at least 15 years.

This model portfolio is designed to minimize taxes, and its holdings consist of 80% to 100% equities. It has a three-year average return of 16.4%.

The Clark Navigator All Cap Core U.S. Equity model portfolio takes a similar approach to the other two Clark portfolios above, but it follows the Russell 3000 as its benchmark index, shifting its focus more to large-cap stocks. Its top holdings as of June 2023 were Microsoft (MSFT), Apple (AAPL) and Alphabet (GOOG, GOOGL).

Like its sibling portfolios, the All Cap Core is focused on stocks that have a durable competitive advantage, are trading at a discount to fair value and have improving business prospects. In the past three years, it has generated a net average annual return of 11.5% compared to a 13.8% return for its benchmark. Net returns deduct a 3% annual advisory fee.

The BlackRock Global Long-Horizon Equity model portfolio invests globally, with at least 70% of its total assets in stocks. Managers seek out companies with sustained competitive advantages over a long-term investing horizon. Roughly two-thirds of the portfolio is currently allocated to U.S. stocks, and its most heavily weighted sectors are health care and financial stocks.

This model portfolio has generated a cumulative three-year return of 37.7% and a cumulative return since launch of 767.5%. Top fund holdings include Microsoft (MSFT), Otis Worldwide (OTIS) and American Express (AXP). The portfolio has a maximum initial charge of 5% and a 1.5% annual management fee.