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Three ETF issuers have joined forces to roll out a new model portfolio platform aimed at financial advisors and their clients.
Powered by ETFs, based in Reston, Va., combines the portfolio management expertise of Burney Co., Clough Partners, and Rayliant to offer a five-model platform that will lean heavily on actively managed ETFs.
The current models, which range from conservative to aggressive, incorporate the seven ETFs managed by the three partner firms, but also include ETFs from other issuers, including the Vanguard Group as well as at least one mutual fund from Eaton Vance.
Lowell Pratt, president of Burney, said the objective is to help meet the growing demand for actively managed strategies inside model portfolios.
The platform, which debuted last week, does not charge any fees beyond those of the underlying ETFs. While Powered By ETFs is open to both financial advisors and individual investors, Pratt said the target market is professional advisors.
ETF Issuers’ New Platform Targets Professional Advisors
The funds from the three partner firms include the Burney U.S. Factor Rotation ETF (BRNY) for domestic equity exposure.
Clough also provides equity exposure with an alternative twist through the Clough Select Equity ETF (CBSE) and the Clough Long/Short Equity ETF (CBLS).
Rayliant, meanwhile, contributes the international exposure with the Rayliant Quantamental Emerging Market Equity ETF (RAYE)the Rayliant Quantitative Developed Market Equity ETF (RAYD)the Rayliant Quantamental China Equity ETF (RAYC)and the Rayliant SMDAM Japan Equity ETF (RAYJ).
Lowell said, “the seven ETFs are the bulk of the commitment in each model.”
The most aggressive model, for example, has a 52% weighting in BRNY and zero fixed income exposure from outside ETFs.
But on the other end of the continuum, the most conservative model has a 52% weighting in the Vanguard Short-Term Treasury Index ETF (VGSH).
Of the three underlying ETF issuers, Burney has the longest history. It was founded in 1974 and has $2.9 billion in assets under management.
Clough was founded in 1999 and manages $1.3 billion, while Rayliant, founded in 2016, has $17.3 billion in AUM.
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