Dartmouth College’s endowment posted a 10.8% investment return for the 2025 fiscal year, an improvement over its 8.4% return the prior year but the lowest performance among Ivy League peers. The return was discussed during the College’s October Board of Trustees meeting, where officials also reported the endowment’s total value had grown from $8.3 billion to nearly $9 billion.
The endowment supports a significant portion of Dartmouth’s annual budget. This year, it distributed $453 million to the College, representing around 5.5% of its total value and accounting for roughly 30% of Dartmouth’s operating expenses. That spending rate exceeds the 5% distribution typically seen among U.S. institutions.
By comparison, Columbia University led Ivy League returns this year at 12.4%, and several other institutions also reported results above Dartmouth’s figure. Despite lagging behind, some faculty members noted that the College’s financial position remains strong when viewed in terms of spending per student and faculty resources.
Tuck School of Business professor Jonathan Lewellen said that Dartmouth appears financially healthy when measured on a per-student basis. “It makes us look pretty good,” he said. Economics professor Bruce Sacerdote emphasized the importance of the endowment to the College’s core functions, calling it “critical” to supporting financial aid, faculty salaries, research, teaching, housing and athletics.
Still, faculty expressed concerns about the increasing complexity and illiquidity of the endowment’s investment strategy. Economics professor Eric Zitzewitz noted that the portfolio has shifted away from the traditional model of 60% stocks and 40% bonds to a mix with greater exposure to private equity, venture capital and hedge funds.
While these alternative investments can generate strong returns in favorable conditions, they are harder to liquidate quickly during periods of economic or policy stress—an issue Zitzewitz said is drawing heightened concern among higher education leaders. “That’s something that’s increasingly concerning university leaders this year,” he said. “We have a bit of budgetary pressure coming from the various things that the Trump administration’s doing.”
In August, Dartmouth announced plans to borrow $450 million by issuing bonds to help fund upcoming capital projects, including new student housing. The move aligns with a broader surge in university bond issuance. According to Bloomberg, higher education institutions increased bond issuance by 36% in 2025.
Zitzewitz explained that the growing reliance on less-liquid assets, combined with policy uncertainties and the potential for an economic downturn, has heightened efforts to ensure financial preparedness. “University leaders want to make sure that the institution is going to be able to handle both an adverse policy environment and an economic recession if we happen to get both at the same time,” he said.
Dartmouth’s endowment consists of more than 6,600 individual endowed gifts, most of which are restricted for specific purposes, such as scholarships or program support. The Dartmouth Investment Office manages these funds as a single pooled portfolio. A College spokesperson declined to comment directly on this year’s endowment performance.
Despite underperforming its peers in 2025, Dartmouth’s endowment has steadily increased in value over the last several years. Zitzewitz praised the long-run investment results, and both he and his colleagues pointed to the College’s overall fiscal stability. “Only a very small number” of institutions, Zitzewitz noted, would not “happily change places” with Dartmouth in terms of long-term financial health. The College has also been increasing its federal advocacy efforts amid shifts in research funding.
