The Turning Point?

2020 was good for investors. The S&P 500 returned 18% despite the enormous economic shock caused by COVID-19. Growth and tech stocks performed very well this year, with the NASDAQ returning 45%. Value, small cap, and international stocks lagged behind for most of 2020, but they rebounded strongly in the fourth quarter following the results of the presidential election and terrific vaccine news. The arrival of the Pfizer-BioNTech and Moderna vaccines marked a turning point in the pandemic.

Despite extensive economic and human costs, 2020 may be a turning point in multiple ways. The speed of the U.S. economic recovery indicates that the U.S. economy is far more resilient than previously acknowledged. The rapid development of a coronavirus vaccine showcased the astonishing capabilities of modern biotechnology firms financed by governments and capital markets. In addition, this year’s innovations in fiscal and monetary policy might become a new standard. Much hinges on whether the Biden administration can implement its agenda of accommodative fiscal policy and strict climate change regulations.

New Frontier Global and U.S. Index Performance

All of New Frontier’s core global and U.S.-based ETF strategies, as calculated by S&P Dow Jones Indices, performed very well this year relative to their benchmarks.

The New Frontier Global (60/40) Institutional Index (NFGBI) returned 14.5% in 2020, outperforming by 3.9% a blended benchmark of 60% ACWI IMI and 40% T-Bills.[1] The New Frontier U.S. (60/40) Institutional Index (NFDBI) returned 15.4% this year, outperforming its blended benchmark, 60% S&P 500 NR and 40% T-Bills, by 3.9%. The New Frontier (100/0) Global Equity Index (NFGEI) returned 16.8% this year, while the ACWI IMI returned 16.3%. On the other hand, the New Frontier U.S. Equity Index (NFDEI) had a banner year, returning 23.3%, outperforming the S&P 500 NR by 5.5%.

Global and U.S. Institutional Index Performance: 2020

Performance data as of 12/31/20.

Global and U.S. Equity Index Performance: 2020

Performance data as of 12/31/20.