The shortest month of the year is now closed and Large Cap stocks continue to lead the rally under President Trump. The S&P 500 finished up nearly 4% for the month on a total return basis, leaving it up almost 6% in only the first two months of the year. Possibly even more impressive, the S&P finished positive 15 out of the 19 market days in February—79% of the time. And of the 4 days that finished down, they were down only -0.25% or less. Other indices measuring small-cap and mid-cap stocks didn’t fare quite as well. Treasuries reversed course slightly from January with a 6 basis point dip in the 10 year U.S. Treasury yield and a slight flattening of the curve.
As a dynamic asset allocation strategy, the Stadion Tactical Growth Fund follows an investment framework that analyzes the Sharpe ratio of all Exchange Traded Funds (ETFs) over multiple time periods. Given the simplicity of the ratio, we get a unique lens into market activity by seeing the interaction of risk and return. Our rankings evaluate over 1500+ ETFs, with our focus list concentrating on those that track well known asset classes, indexes, and markets. Following this process, no model changes were made for the month as the risk/return profiles of our existing holdings did not shift significantly enough to cause a change in position. As such, our holdings remain with the majority of the portfolio weighted toward equity returns: 40% in broad market exposure, 11% sector targeted, 25% small-cap, 14% cash and short duration fixed income, and the remaining 10% in a position to gain if rates continue higher.
We will continue to use our time-tested Sharpe ratio ranking process to help us align the Stadion Tactical Growth Fund based on current readings.
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 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.
One cannot invest directly in an index.
All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends.
Sharpe ratio: Measures the excess return per unit of deviation, or risk.
Diversification does not eliminate the risk of experiencing investment losses.
Correlation is a measure of how investments move in relation to one another. A correlation of 1 means two asset classes move precisely in line with each other, while a correlation of -1 means they move in the exact opposite direction.
*Performance numbers as of February 28, 2017
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.