Six Reasons You Should Consider Adding the Endowment Target Risk ETF Allocation Models as an Investment Option Within Your Plan Lineup:


  1. Utilizes the Endowment Investment Philosophy®:The models follow 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 models provide a 3-dimensional allocation that include ETF indices comprised of over 33,000+ individual securities.
  3. Lowers the Cost of Investing:The 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 models seek 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 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 others into the portfolio to seek to protect the purchasing power of participants’ savings.
  6. Improve Participant Satisfaction:The models enable participants to make a single investment selection designed to address a broad range of retirement goals and investor concerns.  Many 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.