APPLETON, Wis., Oct. 12, 2018 /PRNewswire/ -- The Endowment Index™ calculated by Nasdaq OMX® (Symbol: ENDOW) gained 2.04% (on a total return basis) for the quarter ended September 30, 2018. This compares to the S&P 500, which gained 7.71% for the same period. Year-to-date, the Index has gained 0.92%, which compares to the S&P 500, which has gained 11.01% thus far in 2018.
The primary economic news of the third quarter was the continued strength of the US economy, as illustrated in the Index's top performing constituent domestic equity. The Federal Reserve carried out their planned interest rate hikes in Q3, raising rates a quarter percentage in September. Emerging markets, particularly China, remained in poor favor as global trade protectionism persisted between the US and China.
Eleven of the Index's nineteen components posted gains during Q3, six of the index's constituents gained more than two percent. The top six gainers included domestic equity (+7.10%), private equity (+5.08%), commodities- oil & gas (+2.41%), emerging markets- fixed income (2.37%), managed futures (+2.21%), and private equity-distressed debt (+2.11%). Of the 8 components posting declines, gold (-5.11%), emerging markets-China (-4.44%), commodities (-2.83%) and international real estate (-2.73%) were the most significant.
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.
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.