Advisors Favor Large Caps, ETFs in Portfolio Strategy
In building portfolios for clients, financial advisors are leaning into large cap group domestic equities, developed markets for international equities, high-yield bonds in fixed-income allocations and liquid alternatives as a volatility buffer while increasingly using ETFs as a wrapper for those strategies.
That’s according to the latest analysis from Fidelity’s portfolio construction team based on analysis of 3,198 advisor-managed portfolios from April to June 2025.
“For the near-term, fundamentals look strong, such as corporate earnings. The only uncertainties are policy uncertainty as well as the consistent risk of inflation,” said Mayank Goradia, head of portfolio construction at Fidelity Investments. “It reinforces the…
