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BlackRock Model Portfolios, Here is How The World’s Largest Wealth Manager Invest

Blackrock-model-portfolios

This is the article displaying the model portfolios by BlackRock. Here you will find a description, performance, and resources for the model portfolios as well as detailed information on how to implement them yourself.

BlackRock Model portfolios here is how the world’s largest wealth manager invests

Description of BlackRock model portfolios

BlackRock requires no introduction. But just in case let me give you a quick primer. BlackRock are the guys behind iShares. They bought iShares from Barclays back in 2009. A move that is most likely regretted by Barclays today.

BlackRock is the largest wealth manager in the world with $7.4 trillion under management as of 2019.

Because of their size, they carry a tremendous amount of weight when they choose to speak up concerning corporate governance, investing and asset management.

In a recent statement Larry Fink, the CEO of BlackRock warned the CEOs of all the worlds’ companies to take the challenge of climate seriously.

“Every government, company, and shareholder must confront climate change.”

– Larry Fink, CEO BlackRock

In 2020 BlackRock put action behind the words. The firm is in the process of removing, from its actively managed portfolios, stocks, and bonds of companies that get more than 25% of their revenue from thermal coal production.

So what do the model portfolios of the world’s’ largest wealth manager look like?

The client model portfolio

The BlackRock model portfolio tool is available to independent advisors building portfolios for their clients. The model portfolios are simple 2-4 fund portfolios so they are easy to implement and maintain. The model portfolios use iShares ETFs as building blocks. You could also use comparable Vanguard ETFs or Charles Schwab ETFs.

Their simplicity is akin to Rick Ferri’s core-4 portfolios Rick Ferri Portfolio, Can It Bring You Enough Returns?

And to the 3-fund portfolio Three Fund Portfolio: Did Awesomeness Find Trinity?

We display 13 model portfolios but they have many more.

Performance of BlackRock model portfolios

Portfolio nameAsset class count1 year return (2019)Year to date10 year returnCAGR since 1989DrawdownRisk LevelExpense ratioYield
S&P 500 (Benchmark)131.46%3.69%13.52%10.54%-37.63%5 - very high risk0.04%1.79%
BlackRock LifePath Retirement Index Fund616.32%1.51%6.64%7.55%-13.50%2 - low risk0.05%1.97%
BlackRock LifePath Index 2060 Fund (25 year old)527.58%2.17%10.63%9.02%-38.83%5 - very high risk0.07%2.44%
BlackRock LifePath Index 2050 Fund (35 year old)627.60%2.19%10.65%9.03%-38.75%5 - very high risk0.07%2.44%
BlackRock LifePath Index 2040 Fund (45 year old)725.80%2.11%10.05%8.87%-34.50%5 - very high risk0.06%2.35%
BlackRock LifePath Index 2030 Fund (55 year old)722.03%1.87%8.71%8.42%-26.15%3 - medium risk0.06%2.20%
BlackRock Model Portfolio 100% Stocks226.81%1.80%9.91%8.26%-40.05%5 - very high risk0.06%2.31%
BlackRock Model Portfolio 91% Stocks325.01%1.70%9.25%8.11%-36.11%5 - very high risk0.06%2.32%
BlackRock Model Portfolio 85% Stocks324.05%1.73%9.03%8.13%-33.30%4 - high risk0.05%2.29%
BlackRock Model Portfolio 80% Stocks423.00%1.67%8.67%8.00%-31.10%4 - high risk0.06%2.22%
BlackRock Model Portfolio 70% Stocks421.41%1.73%8.32%7.99%-26.37%3 - medium risk0.05%2.12%
BlackRock Model Portfolio 65% Stocks420.67%1.78%8.18%8.00%-23.97%3 - medium risk0.05%2.05%
BlackRock Model Portfolio 55% Stocks417.97%1.69%7.28%7.64%-17.68%2 - low risk0.06%1.91%
BlackRock Model Portfolio 51% Stocks418.72%1.70%7.48%7.73%-19.53%2 - low risk0.05%2.02%
BlackRock Model Portfolio 40% Stocks417.97%1.69%7.28%7.64%-17.68%2 - low risk0.06%1.91%
BlackRock Model Portfolio 36% Stocks416.25%1.78%6.88%7.53%-12.45%2 - low risk0.05%1.79%
BlackRock Model Portfolio 20% Stocks415.54%1.77%6.65%7.43%-10.62%1 - very low risk0.05%1.76%
BlackRock Model Portfolio 15% Stocks412.46%1.64%5.46%6.85%-3.51%1 - very low risk0.05%1.72%
BlackRock Model Portfolio 10% Stocks311.81%1.73%5.36%6.82%-2.84%1 - very low risk0.05%1.66%

Asset Allocation for BlackRock model portfolios

BlackRock Model Portfolio 10% Stocks

15.00%  US Total Stock Market   (VTI)
59.00%  Total US Bond Market    (BND)
26.00%  Non-US Bonds   (BNDX)

BlackRock Model Portfolio 15% Stocks

15.00%  US Total Stock Market   (VTI)
5.00%    International All-World ex-US     (VEU)
55.00%  Total US Bond Market    (BND)
25.00%  Non-US Bonds   (BNDX)

BlackRock Model Portfolio 20% Stocks

26.00%  US Total Stock Market   (VTI)
10.00%  International All-World ex-US     (VEU)
41.00%  Total US Bond Market    (BND)
23.00%  Non-US Bonds   (BNDX)

BlackRock Model Portfolio 36% Stocks

28.00%  US Total Stock Market   (VTI)
12.00%  International All-World ex-US     (VEU)
38.00%  Total US Bond Market    (BND)
22.00%  Non-US Bonds   (BNDX)

BlackRock Model Portfolio 40% Stocks

31.00%  US Total Stock Market   (VTI)
20.00%  International All-World ex-US     (VEU)
31.00%  Total US Bond Market    (BND)
18.00%  Non-US Bonds   (BNDX)

BlackRock Model Portfolio 51% Stocks

33.00%  US Total Stock Market   (VTI)
22.00%  International All-World ex-US     (VEU)
33.00%  Total US Bond Market    (BND)
12.00%  Non-US Bonds   (BNDX)

BlackRock Model Portfolio 55% Stocks

31.00%  US Total Stock Market   (VTI)
20.00%  International All-World ex-US     (VEU)
31.00%  Total US Bond Market    (BND)
18.00%  Non-US Bonds   (BNDX)

BlackRock Model Portfolio 65% Stocks

40.00%  US Total Stock Market   (VTI)
25.00%  International All-World ex-US     (VEU)
25.00%  Total US Bond Market    (BND)
10.00%  Non-US Bonds   (BNDX)

BlackRock Model Portfolio 70% Stocks

41.00%  US Total Stock Market   (VTI)
29.00%  International All-World ex-US     (VEU)
22.00%  Total US Bond Market    (BND)
8.00%    Non-US Bonds   (BNDX)

BlackRock Model Portfolio 80% Stocks

44.00%  US Total Stock Market   (VTI)
36.00%  International All-World ex-US     (VEU)
15.00%  Total US Bond Market    (BND)
5.00%    Non-US Bonds   (BNDX)

BlackRock Model Portfolio 85% Stocks

48.00%  US Total Stock Market   (VTI)
37.00%  International All-World ex-US     (VEU)
15.00%  Total US Bond Market    (BND)

BlackRock Model Portfolio 91% Stocks

50.00%  US Total Stock Market   (VTI)
41.00%  International All-World ex-US     (VEU)
9.00%    Total US Bond Market    (BND)

BlackRock Model Portfolio 100% Stocks

57.00%  US Total Stock Market   (VTI)
43.00%  International All-World ex-US     (VEU)

Check the best mutual funds and ETFs here.

Resources for BlackRock model portfolios

BlackRock’s podcast The Bid.

Conclusion

The world’s largest wealth manager recommends the above portfolios to investment advisors. They, in turn, recommended them to their clients.

What’s one thing you don’t like about BlackRock’s model portfolios?

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