Rekenthaler Report

The S&P 500 Is Beating Yale's Endowment Fund

John Rekenthaler

Target Dates Good
For some 25 years, Yale's endowment has been its industry's shining city upon a hill, demonstrating to the masses the brilliance of institutional investing. Its chief investment officer, David Swensen, has become something of a celebrity, authoring a well-received how-to guide for everyday shareholders, as well as the occasional Op-Ed column.

The fund's reputation, however, owes to its earlier accomplishments. In the 10 years from mid-2008 through mid-2018 (the latter being the date of the fund's most recent report), Yale gained an annualized 7.4%. During that same time period, the three largest target-date 2035 mutual funds, from Vanguard, Fidelity, and T. Rowe Price, returned 7.3%, 6.7%, and 8.0%, respectively.

John Rekenthaler has a position in the following securities mentioned above: BRK.B MORN VTI. Find out about Morningstar's editorial policies.