Vanguard Launches Dynamic Active-Passive Model Portfolio Series for Financial Advisors

VALLEY FORGE, Pa., May 18, 2026 /PRNewswire/ -- Vanguard has launched a new Dynamic Active-Passive Model Portfolio series, further expanding the firm's lineup of model portfolios for financial advisors. The series is designed to help advisors efficiently implement a dynamic active‑passive investment approach for clients at scale.

The series offers models to advisors seeking to outperform an index benchmark that combine the cost efficiency and transparency of passive management with the benefits of active management, supported by a dynamic asset allocation framework that is adjusted throughout the year. Leveraging these models can help advisors alleviate time spent selecting and continuously monitoring active managers.

"Our Dynamic Active-Passive Model Portfolios simplify some of the most complex parts of portfolio construction and management," said Amma Boateng, Managing Director, Financial Advisor Services. "By leveraging model portfolios, advisors can continue delivering disciplined portfolio construction while spending more time with clients during moments that matter."

What are Vanguard's Dynamic Active-Passive Model Portfolios?

This dynamic active-passive approach is available in seven different risk sleeves, ranging from most conservative (100% fixed income) to most aggressive (100% equities). These can be used as standalone products or to complement other portfolio holdings.

"Our Dynamic Active-Passive Model Portfolio series builds on the success of our Strategic Active-Passive Model Portfolio series and reflects what we're hearing from advisors: they want a disciplined, scalable way to blend low-cost, transparent index building blocks with active strategies," said Eve Cout, Head of Advisor Solutions, Financial Advisor Services. "These models help advisors implement that approach without adding complexity—and we'll pair them with client-ready materials and practice-management resources to help them deepen client relationships."

The dynamic model portfolios' allocations are recalibrated through a systematic process that integrates Vanguard's evolving economic and market views with forward-looking capital markets assumptions. This process leverages insights from the Vanguard Capital Markets Model (VCMM), alongside the Vanguard Asset Allocation Model (VAAM), to inform portfolio construction and positioning.

"The Vanguard Capital Markets Model plays a critical role in how we think about future market returns," said Victor Zhu, Global Head of Model Portfolio Solutions. "By integrating forward‑looking return distributions with our evolving economic and market perspectives, our Dynamic Active-Passive Model Portfolios are designed to balance risk and return through a disciplined and repeatable process, helping investors navigate changing market conditions over time."

A combination of bottom-up security selection within the active strategies and dynamic asset allocation using Vanguard's capital market forecast creates the additive opportunity for outperformance. The active strategies included in the models are selected through Vanguard's rigorous fund evaluation process, which emphasizes experienced management, repeatable investment processes, and competitive long-term outcomes.

For more information on Vanguard's model portfolios, visit advisors.vanguard.com.

About Vanguard
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to tens of millions of individual investors around the globe—directly, through workplace plans, and through financial intermediaries. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.

For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing. 

Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.

Vanguard does not, and will not, make any representations about whether a model portfolio is in the best interest of any investor, is not, and will not be, responsible for the determination of whether a model portfolio is in the best interests of any investor, and is not acting as an investment advisor to any investor. It is the investment advisor's responsibility to determine the appropriateness of the model portfolios, or any of the securities included therein, for any client.

The Vanguard model portfolios are provided for illustrative and educational purposes only. The Vanguard model portfolios do not constitute research, are not personalized investment advice or an investment recommendation from Vanguard to any client of a third party financial professional and are intended for use only by a third party financial professional, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for its own clients. Such financial professionals are responsible for making their own independent judgment as to how to use the Vanguard model portfolios.

IMPORTANT: The projections and other information generated by the Vanguard Capital Markets Model (VCMM) regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. VCMM results will vary with each use and over time.

The VCMM projections are based on a statistical analysis of historical data. Future returns may behave differently from the historical patterns captured in the VCMM. More importantly, the VCMM may be underestimating extreme negative scenarios unobserved in the historical period on which the model estimation is based.

The Vanguard Capital Markets Model® is a proprietary financial simulation tool developed and maintained by Vanguard's primary investment research and advice teams. The model forecasts distributions of future returns for a wide array of broad asset classes. Those asset classes include U.S. and international equity markets, several maturities of the U.S. Treasury and corporate fixed income markets, international fixed income markets, U.S. money markets, U.S. municipal bonds, commodities, and certain alternative investment strategies. The theoretical and empirical foundation for the Vanguard Capital Markets Model is that the returns of various asset classes reflect the compensation investors require for bearing different types of systematic risk (beta). At the core of the model are estimates of the dynamic statistical relationship between risk factors and asset returns, obtained from statistical analysis based on available monthly financial and economic data from as early as 1960. Using a system of estimated equations, the model then applies a Monte Carlo simulation method to project the estimated interrelationships among risk factors and asset classes as well as uncertainty and randomness over time. The model generates a large set of simulated outcomes for each asset class over time. Forecasts represent the distribution of geometric returns over different time horizons. Results produced by the tool will vary with each use and over time.

Vanguard Marketing Corporation, Distributor.

SOURCE Vanguard