Despite 10.14% rise during 2020, the index still underperformed a 60/40 stock-bond portfolio.
The Endowment Index calculated by Nasdaq OMX rose 10.14% to 1,517.54 in 2020 to end a second straight year with a record high. However, the index still underperformed a global portfolio of 60% equities and 40% fixed income, which returned 13.77% during the year.
Not surprisingly, the index had a rough start to the year as the COVID-19 pandemic exploded during the first quarter and sent global stock markets crashing. As a result of the global asset sell-off, the index tumbled to 987.70 on March 23. But, from that point, the index soared nearly 54% during the remainder of the year.
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APPLETON, Wis., Jan. 14, 2021 /PRNewswire/ The Endowment Index® calculated by Nasdaq OMX® (Symbol: ENDOW) closed at 1,517.54 to end 2020, the second consecutive year that the Index closed at a record. The Index gained 10.14% in 2020 (on a total return basis), which compares to a Global 60-40 portfolio which increased 13.77% for the same period. For the fourth quarter, the Index gained 13.91% compared to a 10.08% increase for the Global 60-40 Portfolio.
The Index got off to a rocky start in 2020 as fears of a widespread global health crisis began to build during Q1. The global asset selloff pushed the Index to a Covid-crisis closing low of 987.70 on March 23. Governments around the world unleashed an unprecedented response to the health crisis, including severe economic shutdowns and travel restrictions, massive monetary and fiscal stimulus, and a furious R&D effort to develop a vaccine. These efforts restored investor confidence and gl