Wall Street Creates $3 Trillion Whale in Model Portfolio Boom

  • Large fund flows have been linked to off-the-shelf strategies
  • BlackRock models lure $1 billion a month as ETFs boost growth
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A multitrillion-dollar beast is prowling Wall Street, making huge market moves that few can see coming -- and it’s getting bigger.

Known as model portfolio investing, it’s a booming corner of money management in which the likes of BlackRock Inc., Vanguard Group and Charles Schwab Corp. bundle funds into ready-made strategies.