Investment Management

Model Portfolios

Curated low-cost, multi-manager, outcome-oriented ETF model portfolios designed for modern and scalable wealth management.
Get in Touch
Model Topology
Explore Models

Model Portfolio Updates

Thursday, July 30, 2026

Tactical Equity Model

We are implementing the following updates to our Tactical Equity model to raise portfolio beta closer to 1.0, broaden our participation in the global artificial intelligence (AI) adoption cycle, and diversify our ex-US exposure across emerging markets and international value. These changes shift the portfolio from a defensive posture that has served us well into a more direct, actively managed expression of where we believe the next leg of AI-driven returns will be earned.

We are removing our overweights in Consumer Staples and Health Care (SCHD, XLV), introducing the ALPS Active Equity Opportunity ETF (RFFC) and Invesco S&P 500 Momentum ETF (SPMO), and reallocating our international exposure across the Avantis Emerging Markets Equity ETF (AVEM) and Dimensional International Value ETF (DFIV) alongside a continued anchor position in iShares Core MSCI International Developed Market ETF (IDEV). These changes are based on the following rationale:

  • Our defensive tilts toward staples and health care did their job through the drawdown in momentum and the mega-cap AI complex. With that risk reduction now realized, we are explicitly raising the beta of the portfolio back closer to 1.0 to capture our tactical positioning rather than dampen it.

  • We believe enterprise AI adoption is accelerating and will separate winners from losers within, not merely across, sectors. This is a dispersion that index and factor exposure do not capture as well. RFFC allows us to position nimbly in companies vetted by our investment team, effectively adding a single-stock layer of tactical management on top of our factor sleeves.

  • We believe AI will be a global phenomenon rather than a US one. We are holding total ex-US exposure at 30% while redeploying it away from a single developed-markets vehicle and into emerging markets (AVEM) and international value (DFIV), where we see both AI supply-chain participation and more attractive starting valuations.

New Weights:

  • ALPS Active Equity Opportunity ETF (RFFC)  |  20.0%

  • Schwab US Large Cap Growth ETF (SCHG)  |  14.5%

  • Dimensional International Value ETF (DFIV)  |  10.5%

  • iShares Core MSCI International Developed Markets ETF (IDEV)  |  10.5%

  • Avantis US Large Cap Value ETF (AVLV)  |  9.8%

  • iShares Core S&P Mid-Cap ETF (IJH)  |  9.8%

  • JPMorgan US Quality Factor ETF (JQUA)  |  9.5%

  • Avantis Emerging Markets Equity ETF (AVEM)  |  9.0%

  • Invesco S&P 500 Momentum ETF (SPMO)  |  5.0%

  • iShares Expanded Tech-Software Sector ETF (IGV)  |  1.4%

Expected Impacts:

  • Portfolio beta raised closer to 1.0 versus the global equity benchmark.

  • Greater active share and security-level differentiation through RFFC.

  • Broader ex-US diversification at an unchanged 30% total allocation.

  • Distributable yield essentially unchanged at approximately 1.66%.

  • Increase in underlying ETF expense ratios by an estimated 13 basis points (bps) (7.8 bps to 20.7 bps) to gain active management and increased factor breadth. 

 

Tactical US Equity Model

We are implementing parallel updates to our Tactical US Equity model to raise portfolio beta closer to 1.0 and to express our view on enterprise AI adoption through active security selection in addition to broad sector and factor exposure.

We are removing our overweights in Consumer Staples and Health Care (SCHD, XLV), introducing the ALPS Active Equity Opportunity ETF (RFFC) and Invesco S&P 500 Momentum ETF (SPMO), and reducing our passive growth and quality exposure to fund them. These changes are based on the following rationale:

  • Our defensive tilts toward staples and health care did their job through the drawdown in momentum and the mega-cap AI complex. With that risk reduction now realized, we are explicitly raising the beta of the portfolio back closer to 1.0 to capture our tactical positioning rather than dampen it.

  • We believe enterprise AI adoption is accelerating and will separate winners from losers within, not merely across, sectors. This is a dispersion that factor and index exposure do not capture as well. RFFC allows us to position nimbly in companies vetted by our investment team, effectively adding a single-stock layer of tactical management on top of our factor sleeves.

  • Re-establishing a dedicated momentum position through SPMO reflects our view that the leadership rotation following the recent drawdown is more likely to persist than to reverse.

New Weights:

  • ALPS Active Equity Opportunity ETF (RFFC)  |  28.6%

  • Schwab US Large Cap Growth ETF (SCHG)  |  20.7%

  • Avantis US Large Cap Value ETF (AVLV)  |  14.0%

  • iShares Core S&P Mid-Cap ETF (IJH)  |  14.0%

  • JPMorgan US Quality Factor ETF (JQUA)  |  13.6%

  • Invesco S&P 500 Momentum ETF (SPMO)  |  7.1%

  • iShares Expanded Tech-Software Sector ETF (IGV)  |  2.0%

Expected Impacts:

  • Portfolio beta restored closer to 1.0 versus the US broad-based benchmark.

  • Greater active share and security-level differentiation through RFFC.

  • Reduction in distributable yield from approximately 1.10% to 0.78%, reflecting the removal of Schwab US Dividend Equity ETF (SCHD).

  • Increase in underlying model expenses by an estimated 12 bps (9.0 bps to 20.7 bps), substantially all of it attributable to RFFC, a cost we believe is warranted where security-level dispersion will be a dominant driver of return.

The Target Risk Series

Featuring three model sets, each of which is designed to customize asset allocation based on specific investment goals, while also considering important factors like tax treatment and turnover constraints:

Taxable Model Set

Strategic Model Set

Tactical Model Set

The Model Portfolios

Inside the Target Risk Series are model portfolios—each crafted to address three client positioning criteria: Objective, Risk Tolerance and Tax Considerations:

the-model-portfolios

 

Which Model Portfolio is Right for My Client?

When it comes to picking the perfect portfolio, three things matter most:

1. Objective (client's investment horizon and objective for their age/life stage): grow, preserve or distribute.2. Risk Tolerance (client's tolerance and capacity for volatility and drawdowns): protective (20% equity/80% bonds); conservative (35% equity/65% bonds); balanced (50% equity/50% bonds); mod. aggressive (65% equity/35% bonds); aggressive (80% equity/20% bonds); all equity (100% equity/0% bonds).

3. Tax Considerations (tax structure of client's account): taxable account (accounts that do not have any tax benefits -- taxable and strategic model sets) and qualified accounts (accounts that are generally either tax-deferred or tax-exempt -- tactical and strategic model sets).

Dive into our comprehensive model portfolio offerings designed to support client goals and evolving market conditions.

Explore Models

Unlock the full toolkit—intelligent and comprehensive RIA tech solutions, available in partnership with SS&C Black Diamond® Wealth Solutions.

View RIA Tech

Consult with an ALPS Advisors team member to learn how our models can help your clients aim for new heights (and get there).

Get in Touch