Why your stock and bond index funds outsmart Wall Street’s best and brightest
1. U.S. endowments lagged behind index funds by $468 billion over 20 years. 2. Average endowment annualized return: 6.7%, compared to 8.8% for a stock-bond portfolio. 3. Many endowments invested in risky alternative assets, underreporting volatility. 4. Current performance reports coincide with October endowment evaluations and market conditions. 5. Investing in index funds consistently beats professional fund management over long-term.