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 international bourses performed reasonably well in-light of rising geopolitical tensions. The MSCI Developed Market Index ended unchanged, and the MSCI Emerging Market Index gained 2.23%.
Various domestic and international equities continued their rally through August; however “safe havens” such as Commodities and Fixed Income saw significant inflows over other asset classes. This month’s gold spot prices rose to their highest point in 2017 returning 3.90% with the Barclays Global Aggregate Bond Index posting its best month in 2017 returning 0.90%.
The Stadion Tactical Growth Fund ranks over 2000 exchange traded funds (ETFs) daily to identify alpha generating opportunities. By using this Sharpe-ratio based selection process across key market dates, Stadion Tactical Growth Fund seeks to construct a well-diversified portfolio that accounts for both shorter term market volatility and longer term capital appreciation.
During the month, rising political tensions between the U.S. and North Korea sparked greater market volatility in asset prices and increased demand for “safe-haven” assets. The Sharpe-ratio driven Stadion Tactical Growth Fund signaled for small rotations in favor of these types of non-correlated assets by adding small allocations to gold and silver ETFs while scaling back the Fund’s emerging markets position to India and rotating out of its higher beta U.S. Biotech position.
The Fund’s current allocation is approximately 66% U.S. equities, 10% International equities, with the remaining 24% allocation to non-correlated holdings such as fixed income and commodities. Going forward, we will continue monitoring the changing market dynamics and geopolitical factors through the Fund’s Sharpe-ratio process to determine future allocations between and within our correlated and non-correlated holdings.
To view the most recent performance for the Stadion Tactical Growth 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 broad based capitalization-weighted index of all NASDAQ National Market and Small Cap Stocks.
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 price.
The Sharpe ratio measures the excess return per unit of deviation, or risk.
The MSCI Emerging Markets Index is a float-adjusted market capitalization index that consists of indices in 21 emerging economies: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.
A bourse is a market organized for the purpose of buying and selling securities, commodities, options and other investments. A bourse is more commonly known as a stock exchange. The word "bourse" is based on the house, belonging to Van der Burse, where merchants would gather and trade with one another.
The Barclays Global Aggregate bond Index is an index used by bond funds as a benchmark to measure their relative performance. The index includes government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. The maturities of the bonds in the index are more than one year.
Beta is a measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager’s return series to match that of the benchmark used to measure beta.
One cannot invest directly in an index.
Sharpe ratio: Measures the excess return per unit of deviation, or risk.
Alpha is a risk-adjusted measure of the so-called active return on an investment.
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 (ETFs). 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 Fund’s assets in fixed income investments, which include credit risk, interest rate risk, and maturity risk among others. These risks could affect the value of investments of the Fund, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments. Additional information about fixed income risks can be found in the Fund’s SAI. Investment Objective: Seek long-term 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.