APPLETON, Wis., April 12, 2021 /PRNewswire/ -- The Endowment Index® calculated by Nasdaq OMX® (Symbol: ENDOW) increased 4.43% (on a total return basis) for the quarter ended March 31, 2021. This compares to a Global 60-40 Index (60% Stocks, 40% Bonds), which gained 1.02% for the same period.
Equity markets continued their march forward in Q1, primarily driven by the passage of the $1.9 trillion stimulus package as well as strong progress in the vaccine rollout. Two noteworthy trends within equity markets were the rotations from growth to value and large-cap to small-cap. Beyond equities, the 10-year Treasury yield increased 83 bps & the U.S. dollar strengthened throughout the quarter. Of the 22 index components, 14 were up and 8 were down.
The top performing component of the Index for Q1 2021 was oil & gas, which gained 36.30%. The other two gainers which gained over 10% for the quarter were publicly traded MLPs (+21.55%) and metals & mining (+14.08%). The two greatest declines during Q1 were gold and emerging fixed income with losses of -10.63% and -5.41%, respectively.
As part of the Index's annual review, it was reconstituted and rebalanced during Q1. The broad allocations between equities & fixed income changed slightly with the allocation toward equities declining by 1% and the allocation to fixed income increasing 1%.
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 $630 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.
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.
Definitions: Global 60-40 Stock-Bond Portfolio is an index comprised of 60% MSCI All-Country World Index + 40% Barclays Global Aggregate Bond Index.
SOURCE ETF Model Solutions, LLC