Endowment Target Risk ETF Allocation Models

  • Endowment Conservative ETF Allocation
  • Endowment Moderate ETF Allocation (seeks to replicate the Endowment Index® calculated by Nasdaq OMX®)
  • Endowment Aggressive ETF Allocation

The Endowment Target Risk ETF models are 3 ultra-diversified, multi-asset strategic asset allocation models that implement the Endowment Investment Philosophy®, a long-term strategic approach to investing pioneered by large university endowment fund managers seeking to improve longer-term risk-adjusted returns.

The Moderate Model employs an index-based approach utilizing data collected from over 800 college and university endowment funds, targeting the holdings and index weightings of the Endowment Index® calculated by Nasdaq OMX®. The Conservative and Aggressive models are adapted from the Moderate model by dialing the fixed income, equity and alternatives allocations to match the Aggressive and Conservative risk targets, respectively.

There are approximately 20 asset class and sub-asset class indexes held within each model.  The underlying individual securities within those models contain including domestic, international and emerging market fixed income and equity securities, along with liquid alternatives, such as hedge funds, private equity and real assets (commodities, precious metals, real estate, infrastructure and other hard assets).

These strategic models are intended as a core holdings for defined contribution/401(k) participant accounts.  Advisers, Plan Sponsors could consider the models as an alternative to traditional balanced or target date funds.

Availability: How to seamlessly add Endowment Target Risk Models as investment options to your retirement plan

Mid Atlantic Trust Company’s ModelxChange platform provides for the seamless integration of our ETF investment strategies into 401k Plans.  If your record keeper partners with Mid Atlantic, our models can easily be added as investment options your Plan.  Check MATC’s List of Record Keeper Partners

Advisers, Consultants, Plan Sponsors and Record Keepers: if you do not have access to Mid Atlantic and you would like to add the Endowment Target Risk Models to your Plan clients or participants, contact

Six Reasons To Recommend the Endowment Target Risk models for your Client Retirement Plans

  1. Utilizes the Endowment Investment Philosophy: The models use the Endowment Investment Philosophy which integrates a third major asset class (Alternatives/Risk Managed) with a historical two-dimensional Global Equity and Global Fixed Income portfolio seeking to deliver improved risk-adjusted returns while reducing overall portfolio volatility to help plan participants remain committed to their long term investment goals and create sustainable wealth
  2. Expanded Global Diversification: The models provide a 3-dimensional allocation through about 20 ETF indices comprised of over 33,000+ individual securities
  3. Lowers the Cost of Investing: The models utilize ETFs and a strategic allocation investment approach that minimizes trading activity in an effort to reduce overall investment costs relative to actively managed mutual funds.
  4. Reduced Interest Rate Risk Exposure: The models seek to reduce interest rate risk when compared to portfolios with greater bond allocations.  After a 30+ year secular bull market in core bonds, participants in portfolios with higher bond allocations, such as many “target date”,“60-40”, and balanced funds, may be over-allocated to core fixed income, leaving participant portfolios vulnerable to significant future interest rate risk should rates rise in the next 30+ years.
  5. Hedge Inflation Risk: By incorporating real assets, such as real estate, precious metals, commodities, infrastructure and other real assets into the portfolio, the models to seek to protect the purchasing power of participants’ savings.
  6. Improve Participant Satisfaction: The models enable participants to make a single investment selection designed to address a broad range of retirement goals and investor concerns.  Many retirement plans include too many specialized investment choices and expect participants to understand how to build their own portfolio. An improved understanding of their investment choice can help increase participants’ long-term satisfaction with the Plan.

Learn More:

To request information about the Endowment Target Risk ETF Models, contact Tim Landolt, Managing Director at 920.785.6012 or Tim@ETFModelSolutions.com.  Or, to receive recent fact sheets on the models, enter a valid email address in the box below.  In just a few seconds, a dialog box will pop up to confirm your valid email address.  Once your email has been validated, you can click on “Continue” and submit the rest of your information to complete your request.

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