August was mixed for U.S. equities but ended on a high note. The S&P 500 rose 0.31%, and the NASDAQ Composite gained 1.43%. Small and mid-cap stocks underperformed large-cap stocks while growth continues to outperform value. The Stadion Tactical Defensive Fund is a conservative equity fund seeking to participate in expanding market cycles, with the ability to become 100% defensive as conditions deteriorate. The Fund combines two elements of trend following. The first element focuses on longer-term cyclical trends (the core portfolio), while the second element aims to balance safety and return among shorter to intermediate trends (the satellite portfolio). The combination of the two elements seeks to achieve capital appreciation over a full market cycle.
The Fund entered the month fully invested in a globally diversified portfolio of Exchange-Traded Funds (ETFs). In early August, increasing tensions with North Korea weighed on equity prices as President Donald Trump warned North Korea against making any more threats to the U.S., saying “They will be met with fire and fury like the world has never seen.” Back in Washington President Trump’s rifts with both Republicans and Democrats widened as he threatened a government shutdown. Over this period, the VIX volatility as measured by the Chicago Board Options Exchange (CBOE) Volatility Index spiked from 10 to 16. At the same time, the Stadion proprietary short-term measures were turning negative, resulting in the satellite portion of the portfolio moving to holding cash equivalents. The core portion of the portfolio stayed fully invested through this period.
By months end, investor sentiment began to focus on improving global economic growth, hopes of changes in the tax system, and the satellite portion of the portfolio was back to a fully invested position. As a defensive Fund with an increase in volatility and quick reversal the Fund lost 1% versus gains in the S&P 500 and the Morningstar Tactical Asset Allocation Category of 0.31% and 0.39% respectively.
To view the most recent performance for the Stadion Tactical Defensive Fund, click here.
Performance data quoted represent past performance. Past performance is no guarantee of future results. Investments are subject to risk, and any of Stadion’s investment strategies may lose money. Stadion’s actively managed portfolios may underperform in bull markets. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance data may be lower or higher than the performance data quoted. To review our most recent monthly performance, please visit www.stadionfunds.com.
An investor should consider the investment objectives, risks, and charges and expenses of the Stadion Funds carefully before investing. The prospectus contains this and other information about the Funds. A copy of the prospectus is available by calling Stadion Funds directly at (866) 383-7636 or Stadion Money Management, LLC, the investment advisor, at (800) 222-7636. The prospectus should be read carefully before investing.
The index shown is defined as follows.
The NASDAQ Composite is a stock market index of the common stocks and similar securities listed on the NASDAQ stock market and it is highly followed in the U.S. as an indicator of the performance of stocks of technology companies and growth companies.
The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices. All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends.
The VIX is the Chicago Board Options Exchange Market Volatility Index, a popular measure of the implied volatility of S&P 500 index options. Often referred to as the fear index or the fear gauge, it represents one measure of the market's expectation of stock market volatility over the next 30-day period.
The Morningstar Tactical Allocation Category is a benchmark created and published by Morningstar and is defined as “Portfolios seek to provide capital appreciation and income by actively shifting allocations between asset classes.”
One cannot invest directly in an index. All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends.
Diversification does not eliminate the risk of experiencing investment losses.
The Reports’ commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the Author, and are subject to change at any time without notice.
There are additional costs and potential risks associated with investing in domestic and international Exchange-Traded Funds (“ETF’s”). Investment in the Fund is subject to investment risks, including, without limitation, market risk, management style risk, risks related to “fund of funds” structure, sector risk, fixed income risk, tracking risk, risks related to ETF net asset value and market price, foreign securities risk, risks related to portfolio turnover and small capitalization companies risk. Since each Stadion Fund is a “fund of funds,” an investor will indirectly bear fees and expenses charged by the underlying ETFs and investment companies in which a Stadion Fund invests in addition to a Stadion Fund’s direct fees and expenses. More information about these risks and other risks can be found in the Fund’s prospectus.
There are risks associated with the potential investment of the Tactical Defensive Fund’s assets in fixed income investments, which include credit risk, interest rate risk, and maturity risk. Investment objective: Seek capital appreciation.
The Fund’s foreign investments generally carry more risks than funds that invest strictly in U.S. assets, including currency risk, geographic risk, and emerging market risk. Risks can also result from varying stages of economic and political development; differing regulatory environments trading days, and accounting standards; and higher transaction costs of non-U.S. markets.
The Stadion Funds are distributed by ALPS Distributors, Inc.
An investor should consider the investment objectives, risks, and charges and expenses of the Stadion Funds carefully before investing. The prospectus contains this and other information about the Funds. A copy of the prospectus is available by calling Stadion Funds directly at (866) 383-7636 or Stadion Money Management, LLC., the investment advisor, at (800) 222-7636. The prospectus should be read carefully before investing.
The Stadion Funds are distributed by ALPS Distributors, Inc. An investment in the Funds involves risk, including loss of principal.