CA and baking powder mixed and quickly installed via a toothpick. Sand-able and doesn't shrink.
Some people swear by this method, I would never use baking soda! There are lots of horror stories about this concoction!
While it is true that baking soda will act as a filler and accelerator for CA glue, it can also cause a mess. First of all, the hardening reaction happens way too fast (it even smokes) and it gets hot. That can cause damage. Second, not all of the baking soda always absorbs the glue. If some baking soda is exposed to the ambient air (either because it is poking out through the CA glue or because of sanding the concoction down, and if the ambient air is humid, the baking soda will absorb the moisture and will start slowly dissolving (causing it too ooze out of the CA glue). Really messy.
There are plenty of other fillers (and CA accelerators designed for the job) if a filler is needed. Talcum powder, wood shavings or even plastic shavings can be used as CA filler. A dab of BSI accelerator (my favorite one) will harden the glue in seconds without a violent reaction.
But if all that needs to be filled is a hole for a handrail (probably around 0.010") then I don't even see a need for any filler. Just some medium or thick viscosity CA glue should work).