The Endowment Index™ calculated by Nasdaq OMX® declined 9.09 percent (on a total return basis) for the year ended Dece. 31, 2018. This compares to the S&P 500, which declined 4.38 percent for the same period. For the fourth quarter, the Index declined 10.22 percent compared to a 13.52 percent decline in the S&P 500.
After a good start to the year, volatility returned in 2018. A stronger U.S. dollar weighed on international and emerging markets throughout most of the second half of 2018, although there was no shortage of other investor concerns. Global recession fears, U.S. Federal Reserve Rate hikes and higher interest rates, slowdown in corporate profits, an escalation in the U.S.-China trade dispute and other factors resulted in a late-year global asset selloff that left few asset classes untouched.
Only three of the Index's 19 components posted gains in 2018. International developed fixed income (+2.94 percent), US T-Bills (+1.70 percent), and managed futures (+0.32 percent). Eight of the Index's components posted double digit losses for the year with the worst three being emerging markets-China (-28.05 percent), commodities-timber (-21.11 percent), and commodities oil & gas (-19.36 percent).
