The Endowment Index gained 2.04% in the third quarter, according to data shared by Nasdaq.
The 2.04% index gain significantly trailed the S&P 500, which gained 7.71% during the quarter. Year-to-date, The Endowment Index is up 0.92%, compared with the S&P 500 climbing 11.01% as of the end of the quarter.
The primary economic news of the third quarter was the continued strength of the U.S. economy, and this was reflected in domestic equity representation in the index, which was the best performing category, according to Nasdaq. Emerging markets, on the other hand, particularly China, remained in poor favor as trade relations between the U.S. and China are strained.
Eleven of the index’s 19 components posted gains during the third quarter, with six of them up more than 2%. These were domestic equity (7.10%), private equity (5.08%), commodities/oil and gas (2.41%), emerging markets/fixed income (2.37%), managed futures (2.21%) and private equity/distressed debt (2.11%).
Eight components posted declines, with the biggest losses in gold (-5.11%), emerging markets/China (-4.44%), commodities (-2.83%) and international real estate (-2.73%).
Fiduciaries, trustees, portfolio managers, consultants and advisers to endowments, foundations, trusts, defined benefit/contribution plans and individual investors use the index as a performance benchmark.