When using model portfolios, keeping it simple often drives the best outcomes, said the speakers at Inside ETFs+, part of Wealth Management EDGE at The Diplomat Beach Resort in Hollywood Beach, Fla.

Advisor adoption of actively managed portfolios will continue to grow for some time because the products simplify advisors’ lives, noted John Davi, CEO and founder of Astoria Portfolio Advisors. Advisors are using managed portfolios for a variety of functions, only some of which involve achieving higher returns. For many, it’s a way to safeguard against surprises. Using model portfolios also makes it easier to focus on achieving clients’ insurance and tax planning objectives while streamlining the process for advisors and ensuring succession planning, he said.

Darren Hinshaw, director of research with NBC Securities, added that model portfolios allow advisors to build core holdings for clients while leaving enough room for customization.

“You are talking about the serious money being managed in a proper, consistent way, and that really may help keep clients up in down markets,” said Hinshaw