APPLETON, Wis., Jan. 6, 2017 /PRNewswire/ -- The Endowment Index® calculated by Nasdaq OMX® (Symbol: ENDOW) gained 7.19% (on a total return basis) for the year ended December 31, 2016. This compares to the S&P 500, which gained 11.96% for the same period.
After starting the year at 1,000.17, the Index declined steadily in early 2016, as a deepened correction in energy prices expanded to global financial markets. The Index marked its low for the year on February 11th, at 909.70. However, by March 17th the Index was back to breakeven. The Index powered mostly higher during much of the remainder of 2016, despite a sharp 5.2% decline over two days in June caused by the Brexit scare. The Index marked its high for the year, as well as an all-time closing high on December 9th at 1,088.42 before ending 2016 at 1,072.11.
Sixteen of the Index's 19 components posted gains in 2016. Natural resources-metals & mining (+57.16%), natural resources- oil & gas (+25.09%), U.S. equities (+12.68%), private equity – distressed debt (+12.29%) and private equity (+10.32%) all posted double-digit gains. Three components fell for the year: emerging market equity- China (-15.06%), real assets-commodities (-1.22%), and real assets-managed futures (-1.01%).
On an attribution basis, domestic equity (28.1%), private equity (21.5%) and natural resources-metals and mining (15.2%) provided the greatest share of the index's 2016 gain.
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 designs ETF-based investment solutions for advisers, institutions, retirement plans and individual investors based upon the Endowment Investment Philosophy®. The firm is the investment manager for the Endowment Multi Asset ETF Collective Investment Fund (CUSIP 26923F105) available for use in 401(k) Plans. The Firm creates and manages 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.
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 investment adviser registered with the State of Wisconsin. 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 each firm's respective disclosure document, Form ADV Brochure Part 2, is available upon request.
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SOURCE ETF Model Solutions LLC