Endowment Index™ Q3 Performance Update

By S Moore
In October 10, 2019
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Appleton, WI, October 10, 2019 — The Endowment Index™ calculated by Nasdaq OMX® (Symbol: ENDOW) declined 0.17% (on a total return basis) for the quarter ended September 30, 2019. This compares to the Global 60-40 Portfolio (60% Stocks, 40% Bonds), which gained 0.33% for the same period. Year-to-date, the Index has increased 12.64%, which compares to the Global 60-40 Portfolio, which has gained 12.56% thus far in 2019.

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
Gold 5.35 Hedge Funds -0.01
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    

 

Visit EndowmentIndex.com to download longer term index price and performance data.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.

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.

Info: www.ETFModelSolutions.com or www.EndowmentIndex.com

Contact: Tim Landolt

920.785.6012

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.

ETF Model Solutions, LLC

2200 North Richmond Street, Suite 200

Appleton, WI 54911

920.785.6010

www.ETFModelSolutions.com