Global Equities Spur Endowment Index 6.17% Higher in Q2

Global equities spurred the Endowment Index 6.17% higher on a total return basis during the second quarter that ended June 30, compared with gains of 15.40% during the year-ago quarter and 4.43% during the first quarter. The performance just beat a 60/40 portfolio, which gained 6.11% during the period.

ETF Model Solutions, which created and owns the Nasdaq OMX-calculated index, attributed the strong performance to the continued rollout of COVID-19 vaccines and an overall strong economy. It also noted that investors have been keeping an eye on inflation data as the Consumer Price Index (CPI) showed high year-over-year increases, while US unemployment declined to 5.9%.

Of the 22 components that make up the index, 21 registered gains during the second quarter, four of which were in the double digits. Publicly traded master limited partnerships (MLPs) were the top performing component, surging 22%, followed by commodity oil and gas, which climbed 18.30%, and commodity/dividend-futures, which rose 13.79%. Domestic real estate and commodity – met/mining rounded out the top five, gaining 11.66% and 9.22%, respectively.

Liquidity – T Bills was the worst performing component, and the lone loser among the 22, though it declined only 0.03% during the quarter. International developed fixed income was the worst performing gainer, up only 0.27%, while hedge funds and domestic fixed income increased 1.79% and 2%, respectively.

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The Endowment Index measures performance for a multi-asset diversified portfolio that includes global equity, global fixed income, and alternative investments. Its methodology is based on allocation data obtained from more than 700 educational institutions that collectively manage over $630 billion as of June 30, 2020. Each of the 22 components are investable, and within those are more than 47,000 underlying securities.

Asset Class	Q2 2021 Change(%)
Asset Class	Q2 2021 Change(%)
Publicly Traded MLPs	22.00
Commodity – Oil & Gas	18.30
Commodity/Div-Futures	13.79
Domestic Real Estate	11.66
Commodity Met/Mining	9.22
Private Equity/VC	8.91
US Equity	8.28
Global Equities	7.08
Managed Futures	5.96
Emerging Markets	5.78
Em. Market Equity – China	5.53
Intl Developed Equity	5.22
Commodity – Timber	4.83
Intl. Real Estate	4.50
Emerging Mkt Fixed Inc	4.43
Gold	4.20
Commodity – Infrastructure	3.08
Private Eq-Distressed Debt	2.29
Domestic Fixed Inc.	2.00
Hedge Funds	1.79
Intl Developed Fixed Inc	0.27
Liquidity – T bills	-0.03