10 Oct Endowment Index™ Q3 2019 Performance Update
APPLETON, Wis., October 10, 2019 /PRNewswire/ — The modest decline posted by the Endowment Index for the third quarter belied the price and news volatility that investors experienced during Q3. Fears of a global economic slowdown, continuing U.S.-China trade war rhetoric, a 50-year low in U.S. unemployment, an inverted yield curve (U.S.), continued negative interest rates in many developed countries and other headlines created a fluid news environment for markets to digest.
Eleven of the Index’s nineteen components posted gains during Q3, however most of the gains were modest with five of the eleven gainers increasing by less than 1.00%. The top gainers included domestic real estate (+7.40%), gold (+5.35%) and international developed fixed income (+3.00%). Of the eight components which declined during Q3, commodities–metals & mining (-11.90%), commodities–oil & gas (-8.60%) and emerging markets–equities (-4.28%) experienced the sharpest declines.
|Asset Class||Q3 2019 Change (%)||Asset Class||Q3 2019 Change (%)|
|Domestic Real Estate||7.40||Intl. Real Estate||0.15|
|Intl Developed Fixed Inc||3.00||Intl Developed Equity||-0.94|
|Domestic Fixed Inc||2.41||Commodity/Div-Futures||-3.10|
|Emerging Mkt Fixed Inc||1.43||Em. Market Equity – China||-3.31|
|US Equity||1.10||Commodity – Timber||-3.97|
|Private Equity/VC||0.72||Emerging Markets||-4.28|
|Managed Futures||0.69||Commodity – Oil & Gas||-8.60|
|Liquidity-TBills||0.50||Commodity – Met/Mining||-11.90|
|Private Eq-Distressed Debt||0.19|
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.
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.
Tim Landolt, MBA
About the Endowment Index™ calculated by Nasdaq OMX®
The Endowment Index™ uses an objective, rules-based construction methodology based upon the portfolio allocations of over 800 educational institutions managing over $615 billion in total assets as of 12/31/2018. Each of the 19 sub-indexes that currently comprise the index are investable, and contained within those sub-indexes are over 34,000 underlying securities. Real-time pricing data on the Endowment Index™ can be viewed under the symbol “ENDOW” through major quote providers, including Bloomberg as well as public websites such as Google and Yahoo Finance. The Morningstar® Index ID for the Endowment Index™ is F00000TPG6.
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. 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 any level of skill or training, nor does it imply endorsement by the SEC or and other securities regulatory authority. You cannot invest directly in an index. Indexes do not contain fees. Performance information contained in this presentation is provided net of any underlying exchange-traded fund expenses, does not include any other fees or expenses. Past performance is not necessarily indicative of future results. A copy of the Firm’s disclosure document, Form ADV Brochure Part 2, is available upon request.