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Model portfolio assets near $1T as net inflows accelerate in 2025
Morningstar data cited by ETF Trends shows third-party model portfolio assets reached about $943 billion by end of March 2026, up 46% year over year.
ETF Trends points to rising use of model portfolios in the U.S., citing Morningstar’s 2026 US Model Portfolio Landscape. The research estimates that third-party model portfolio assets were nearing $1 trillion, at about $943 billion as of the end of March 2026, up 46% from a year earlier.
According to the same Morningstar data summarized by ETF Trends, model portfolios are also drawing significant flows. Across 2025, model portfolios accrued $42.6 billion in net inflows, an increase of 42% versus 2024.
ETF Trends says the momentum reflects the appeal of pre-built portfolios for advisors and investors. Model portfolios can simplify portfolio construction by offering a ready-made mix of securities, let clients match portfolios to goals and risk profiles, and provide diversification through multiple security types within one allocation.
The outlet also notes tradeoffs, including limited control for clients because advisors or portfolio managers make day-to-day allocation decisions. ETF Trends adds that, from March 2021 through March 2026, ETFs overtook mutual funds as the top underlying investment vehicle in model portfolios.