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Endowment Index™General

Could Endowments Do Better With an All-ETF Portfolio? (Maybe they should check out the Endowment Index®)

By September 21, 2017No Comments

The $37.1 billion Harvard endowment reported results of 8.1% return for their fiscal year ended Small- and mid-sized endowments and foundations without economies of scale and access to star managers should consider moving to an all-ETF portfolio suggests Hossain Kazemi, senior advisor to the Chartered Alternative Investment Analyst, or CAIA®Association. Based on a study of university endowments, its possible for a multi-asset ETF portfolio may provide similar rates of return with slightly higher volatility. The added benefit of such a strategy would be reduced staff and overhead expenses. Read the full article on Barrons.

Comparatively, the Endowment Index® calculated by NasdaqOMX® was up 13.86% for the same time period. Using data collected from over 800 college and university endowments, the Endowment Index® seeks to track the performance of the average asset allocation across those entities using investable components (ETFs).

Past performance not necessarily indicative of future results. You cannot invest directly in an index. Indexes do not have fees.


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