The Endowment Index® calculated by Nasdaq OMX® gained 6.17% (on a total return basis) for the second quarter ended June 30, 2021. This compares to the Global 60-40 Portfolio (60% Stocks, 40% Bonds), which increased 6.11% for the same period.
Global equity markets continued their ascent higher in Q2 2021 with many indices setting fresh records throughout the quarter. The strong performance was attributable to the continued rollout of Covid-19 vaccines and overall strong economy. Beyond equity markets, inflation data received a lot of attention as the Consumer Price Index (CPI) showed high year-over-year increases and the US unemployment rate ticked lower to 5.9%.
Twenty-one of the Index’s twenty-two components posted gains for Q2 2021, with four posting double digit gains. The top performing component of the Index for Q2 2021 was publicly traded MLPs, which gained 22.00%. Short term treasuries were the only negative performer, posting a loss of -0.03% for the quarter.
Asset Class |
Q2 2021 |
Asset Class |
Q2 2021 |
|
Publicly Traded MLP’s |
22.00 |
Intl Developed Equity |
5.22 |
|
Commodity – Oil & Gas |
18.30 |
Commodity – Timber |
4.83 |
|
Commodity/Div-Futures |
13.79 |
Intl. Real Estate |
4.50 |
|
Domestic Real Estate |
11.66 |
Emerging Mkt Fixed Inc |
4.43 |
|
Commodity – Met/Mining |
9.22 |
Gold |
4.20 |
|
Private Equity/VC |
8.91 |
Commodity – Infrastructure |
3.08 |
|
US Equity |
8.28 |
Private Eq-Distressed Debt |
2.29 |
|
Global Equities |
7.08 |
Domestic Fixed Inc. |
2.00 |
|
Managed Futures |
5.96 |
Hedge Funds |
1.79 |
|
Emerging Markets |
5.78 |
Intl Developed Fixed Inc |
0.27 |
|
Em. Market Equity – China |
5.53 |
Liquidity – TBills |
-0.03 |
|
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 700 educational institutions that collectively manage over $637 billion as of 6/30/20. Each of the 22 sub-indexes that currently comprise the Index are investable and contained within those sub-indexes are over 47,000 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.
Contact: Tim Landolt MBA, Managing Director, 920.785.6012
Info: www.ETFModelSolutions.com or www.EndowmentIndex.com