Orion deepens Capital Group alliance with ETF portfolio tie-up

Orion is extending its reach into the ETF model portfolio space through a new partnership with Capital Group.

The leading fintech provider has introduced a new suite of model portfolios built entirely with Capital Group ETFs. The portfolios, managed by Brinker Capital, will be available exclusively on Orion’s platforms.

This development provides financial advisors with portfolios that leverage Capital Group’s well-regarded active management strategies to support their clients' financial goals.

The new Brinker Capital portfolios are available on Orion Portfolio Solutions and Brinker platforms, the fintech firm said.

By offering these portfolios, Orion says it's strengthening its collaboration with Capital Group, which oversees more than $2.7 trillion in assets globally. Capital Group’s long-standing commitment to active management aligns well with Orion’s wealth technology solutions encompassing $4.4 trillion in AUM and $69.4 billion in wealth management platform assets.

Capital Group has grown into a force to be reckoned with in the active ETF game, particularly as it claims a 20 percent share of active ETFs that shot past the $1 billion AUM mark in the past two years. By the end of 2023, assets in active ETF strategies amounted to $530 billion, according to a May report by Morningstar.

“We are excited to offer these innovative ETF portfolios exclusively to our advisors,” Ron Pruitt, president of Orion Wealth Management, said in a statement. “Capital Group’s long-term focus and robust investment strategies align perfectly with Orion’s commitment to providing advisors with the tools to help their clients succeed.”

Capital Group’s wealth management director of national accounts and product, Pete Thatch, emphasized how the new portfolios align with advisors' needs.

“All of our ETFs focus on major asset allocation categories used by advisors when constructing client portfolios,” he said. 

The new suite offers advisors portfolios with dynamic asset allocation, drawing on Brinker Capital’s two decades of experience managing ETFs. The portfolios come with a minimum investment threshold of $5,000, making them a practical option for advisors seeking to offer diversified, actively managed solutions to their clients.

Orion's new partnership is emblematic of a broader trend in the model portfolio space toward ETFs. According to one report by Broadridge, ETF assets overtook mutual funds for the first time in 2023. That hasn't slowed down this year, the report said, with ETFs representing 53 percent of model portfolio assets by Q2 2024, compared to 47 percent for mutual funds.