APPLETON, Wis., Oct. 15, 2020 /PRNewsCentre/ — The Endowment Index® calculated by Nasdaq OMX® (Symbol: ENDOW) gained 5.05% (on a total return basis) for the third quarter ended September 30, 2020. This compares to the Global 60-40 Portfolio (60% Stocks, 40% Bonds), which increased 5.89% for the same period.
The economic recovery continued in Q3 2020 and overall, equity markets posted strong gains with the S&P 500 Index rising 8.9%. The gains were not limited to U.S. markets as developed and emerging market equities were up 9.77% and 8.04%, respectively for the quarter.
Twenty-one of the Index’s twenty-four components posted gains for Q3 2020, with four posting double digit gains. The top four performing components of the Index for Q3 2020 were emerging market equity – China (+15.57%), timber (+14.57), private agriculture (+12.13) and commodities/diversified futures (+11.59%). Publicly traded MLP’s and oil & gas were the two laggards, posting losses of -16.65% and -20.35%, respectively.
Em. Market Equity – China
Intl. Real Estate
Commodity – Timber
Commodity –Pvt. Agriculture
Emerging Mkt Fixed Inc
Commodity – Met/Mining
Domestic Real Estate
Commodity -Natural Resources
Intl Developed Fixed Inc
Domestic Fixed Inc.
Liquidity – TBills
Intl Developed Equity
Publicly Traded MLP’s
Private Eq-Distressed Debt
Commodity – Oil & Gas
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 Endowment Index measures performance for a multi-asset, globally-diversified, three-dimensional portfolio that includes Global Equity, Global Fixed Income, and Alternative Investments (like Private Equity, Hedge Funds and Real Assets) The Index applies an objective, rules based construction methodology based upon portfolio allocation data obtained from over 770 educational institutions that collectively manage over $630 billion as of 6/30/19. Each of the 24 sub-indexes that currently comprise the Index are investable and contained within those sub-indexes are over 44,000 underlying securities.
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.
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SOURCE: ETF Model Solutions, LLC