The question every endowment and foundation should honestly ask themselves: “Can we beat a low-cost ETF?”
The answer for nearly all of them is “No”.
“We study nearly 375,000 nonprofit organizations, including about 40,000 that maintain endowment assets…Many funds underperform simple passive benchmarks, and governance practices are closely linked to these outcomes…The average net return across all endowments is 4.3% per year.” via @AndrewWLo
The Risk, Reward, and Asset Allocation of Nonprofit Endowment Funds
