APPLETON, Wis., Jan. 10, 2020 /PRNewswire/ -- The Endowment Index™ calculated by Nasdaq OMX® gained 20.19% (on a total return basis) for the year ended December 31, 2019. This compares to the Global 60-40 Portfolio (60% Stocks, 40% Bonds), which gained 19.11%. The Index ended 2019 at an all-time closing high of 1,377.82.
2019 started off strong with asset prices rebounding from a dismal Q4 2018 and ended with several major indexes at or near record highs. The U.S.-China trade war dominated headlines and investor interest throughout the year until a 'phase 1' deal was reached in December. In response to both domestic and global economies showing signs of slowing, the Federal Reserve cut interest rates three times. In other economic news, the U.S. unemployment rate persisted at a 50-year low, inflation remained tame and the U.S. economic expansion continued into its 11th year, the longest in U.S. history.
Seventeen of the Index's nineteen components posted gains during 2019, with twelve increasing by more than 10%. The top performers included emerging market equity- China (+35.57%), private equity (+34.80%), U.S. equity (+30.80%) and domestic real estate (+28.91%). The two components that fell posted modest declines, commodity/diversified futures (-1.65%) and managed futures (-2.73%).
Asset Class | 2019 Change (%) | Asset Class | 2019 Change (%) | |
Em. Market Equity - China | 35.57% | Emerging Mkt Fixed Inc | 15.57% | |
Private Equity/VC | 34.80% | Private Eq-Distressed Debt | 13.22% | |
US Equity | 30.80% | Commodity – Oil & Gas | 9.55% | |
Domestic Real Estate | 28.91% | Domestic Fixed Inc | 8.71% | |
Commodity - Timber | 22.83% | Hedge Funds | 8.59% | |
Intl Developed Equity | 22.67% | Intl Developed Fixed Inc | 7.88% | |
Intl. Real Estate | 21.26% | Liquidity-TBills | 2.05% | |
Gold | 18.54% | Commodity/Div-Futures | -1.65% | |
Emerging Markets | 17.50% | Managed Futures | -2.73% | |
Commodity – Met/Mining | 16.48% | |||
The Endowment index™ represents the investable opportunity for managers of portfolios utilizing the Endowment Investment Philosophy™ or who otherwise incorporate alternative investments within a comprehensive asset allocation. The Index provides an objective tool used for portfolio comparison, investment analysis, and research and benchmarking by fiduciaries, trustees, portfolio managers, consultants and advisers to endowments, foundations, trusts, defined benefit/contribution plans and individual investors. All underlying asset classes within the Index are represented by ETFs.
Visit EndowmentIndex.com to download longer term index price and performance data.
ETF Model Solutions, LLC serves its clients as an ETF strategist, designing and managing ETF-based investment solutions for advisers, institutions, retirement plans and individual investors based upon the Endowment Investment Philosophy™. The Firm offers ETF-based diversified target-risk models and asset class models for use by investment advisers and retirement plans. ETF Model Solutions, LLC also provides digital investment services to individual investors through the website, www.MyRoboAdviser.com.
Disclosure: Information presented is for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies, nor shall it be construed to be the provision of investment advice. Past performance is not necessarily indicative of future results. Endowment Index™ results are presented net of any underlying constituent exchange-traded fund expenses. Investments involve risk and unless otherwise stated, are not insured or guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any investment strategies discussed herein. ETF Model Solutions, LLC is registered as an investment adviser with the SEC. ETF Model Solutions is an affiliate of Endowment Wealth Management, Inc., an SEC registered investment adviser. Registration does not imply a certain level of skill or training. You cannot invest directly in an index. Indexes do not contain fees. A copy of the Firm's disclosure document, Form ADV Brochure Part 2, is available upon request.
Definitions: Global 60-40 Stock-Bond Portfolio is an index comprised of 60% MSCI All-Country World Index + 40% Barclays Global Aggregate Bond Index.
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