Endowment Target Risk Models

  • Endowment Conservative Allocation
  • Endowment Moderate Allocation
  • Endowment Aggressive Allocation

Information for Plan Sponsors

The Endowment Target Risk Models managed by ETF Model Solutions, LLC ais designed to be utilized within qualified retirement plans, such as defined contribution/401(k) and defined benefit/pension plans.  The models are a highly diversified portfoliso that enhances a two-dimensional portfolio of traditional assets such as equities and fixed income securities, with a third major asset class of alternative investments to create three-dimensional portfolios. The Endowment Target Risk Models utilize the Endowment Investment Philosophy®, a long-term strategic approach to investing pioneered by large university endowment fund managers intended to improve longer-term risk-adjusted returns.  Comprised of 19 ETFs, each model effectively contains over 33,000 individual securities, including domestic, international and emerging market fixed income and equity securities, along with alternative strategies, such as hedge funds, private equity and real assets (commodities, precious metals, real estate, infrastructure and other hard assets).

The Endowment Target Risk Models may be positioned as a globally-diversified core holding as an alternative to a traditional balanced or target date fund..

Seven Reasons To Add the Endowment Collective as an Investment Alternative to your 401(k) Plan

  1. Utilizes the Endowment Investment Philosophy®: The Endowment Risk Models use the Endowment Investment Philosophy® which integrates a third major asset class (Alternatives/Risk Managed) with a historical two-dimensional Global Equity and Global Fixed Income portfolio seeking to deliver improved risk-adjusted returns while reducing overall portfolio volatility to help plan participants remain committed to their long term investment goals and create sustainable wealth
  2. Expanded Global Diversification: The Endowment Target Risk Models provide a 3-dimensional allocation that includes 19 ETF indices comprised of over 30,000+ individual securities
  3. Lowers the Cost of Investing: The Endowment Target Risk Models utilize ETFs and a strategic allocation investment approach that minimizes trading activity in an effort to reduce overall investment costs relative to actively managed mutual funds.
  4. Reduced Interest Rate Risk Exposure: The Endowment Target Risk Models are positioned to reduce interest rate risk when compared to portfolios with greater bond allocations.  After a 30+ year secular bull market in core bonds, participants in portfolios with higher bond allocations, such as many “target date”,“60-40”, and balanced funds, may be over-allocated to core fixed income, leaving participant portfolios vulnerable to significant future interest rate risk should rates rise in the next 30+ years.
  5. Hedge Inflation Risk: The Endowment Target Risk Models seek to reduce the potential threat of inflation, which can erode the purchasing power of participant portfolios, by incorporating real assets, such as real estate, precious metals, commodities, infrastructure and other real assets into the portfolio to seek to protect the purchasing power of participants’ savings.
  6. Improve Participant Satisfaction: The Endowment Target Target Risk Models enable participants to make a single investment selection designed to address a broad range of retirement goals and investor concerns.  Most Plans include too many specialized investment choices and expect participants to understand how to build their own portfolio. An improved understanding of their investment choice can help increase participants’ long-term satisfaction with the Plan.



The Endowment Target Risk Models are available through retirement plan platform providers that maintain an agreement with Mid Atlantic Capital Group.


About the Manager of the Endowment Target Risk Models


ETF Model Solutions® is the Investment Manager for the Endowment Target Risk Models

  • ETF Model Solutions® is a third party investment strategist that creates globally-diversified, ETF-based asset allocation models for retirement plans with the goal of improving risk-adjusted returns while reducing overall plan costs
  • Our models are guided by the Endowment Investment Philosophy®, which incorporates liquid alternative (risk-managed) investments as a third dimension in the overall investment allocation
  • The team at ETF Model Solutions® has 100+ years of combined experience, including 25+ years combined history creating, managing and marketing ETF-based investment models
  • ETF Model Solutions® functions as a discretionary investment advisor under ERISA with respect to assets  managed within our ETF model portfolios in retirement plan accounts
  • ETF Model Solutions® is a Co-Creator of the Endowment Index™ (Symbol: ENDOW) calculated by Nasdaq OMX®.

The Endowment CIF is available to most 401(k)/defined benefit/defined contribution plans through major retirement plan platforms. The Endowment CIF is not available for individual IRAs or 403b Plans.


How To Add Endowment Target Risk Models to a Company Retirement Plan

Adding the Endowment Risk Models to a retirement plan is easy.  Contact ETF Model Solutions® at:  920.785.6012 or email us at: Tim@ETFModelSolutions.com.