2019 was a great year for U.S. stocks. At year's end, the S&P 500 had gained 31.48% and the NASDAQ was up 36.74%. For the month of December, the NASDAQ added 3.64% while the S&P 500 picked up another 3.01% in gains. With each of these indices charting new all-time highs during the final month of the year, it was a fitting way to close out the record-breaking decade.
The Stadion Tactical Growth Fund was allocated at the beginning of December at our long-term average holdings of 79% equities (apportioned at 57% U.S. and 22% International), 15% Fixed Income, 3% Gold, and 3% Money Market. On December 6 we sold our holdings of Gold and Mexico-based investments and added Biotech to the portfolio. On December 16, we sold our remaining Real Estate holdings and purchased investments in U.S. Regional Banks. We ended the year with an allocation of 81% Equities (apportioned at 62% U.S. & 19% International), 15% Fixed Income and 4% Money Market.
Our allocation is now moderately aggressive with Equity exposure slightly higher than our long-term average. We’ve lowered our International exposure while increasing our domestic holdings. We no longer own any tangible assets, having moved out of Gold and Real Estate. All of our Fixed Income holdings are highly rated and short-duration. We will continue to monitor our rankings and holdings and attempt to build a diversified portfolio of ETFs that compensate well for risk.
Stadion Tactical Growth returned 2.39% for the month of December while our benchmark, Morningstar Moderately Aggressive Target Risk returned 2.76%.
To view the most recent performance for the Stadion Tactical Growth Fund, click here.
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.
The NASDAQ is a broad based capitalization-weighted index of all NASDAQ National Market and Small Cap Stocks.
The Morningstar Target Risk Index family is designed to meet the needs of investors who would like to maintain a target level of equity exposure through a portfolio diversified across equities, bonds and inflation-hedged instruments. The Morningstar Moderately Aggressive Target Risk Index seeks approximately 80% global equity exposure.
One cannot invest directly in an index.
The Report’s commentary, analysis, opinions, advice, and recommendations represent the personal and subjective view 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 subjective 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 ad 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 fund in the Fund’s statement of additional information (“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.
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.