21 Sep Could Endowments Do Better With an All-ETF Portfolio?
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).
MyRoboAdviser‘s recommended ETF portfolios are based on the components within the Endowment Index™.
Past performance not necessarily indicative of future results. Current returns may vary from past returns. You cannot invest directly in an index. Indexes do not have fees.