The 2019 rally continued in April with markets climbing to all-time highs. As technology remained the top sector on a year-to-date basis, the NASDAQ climbed 4.78%. The tech-focused index outperformed both the S&P 500 Index (+4.05%) and the Dow Jones Industrial index (+2.66%). Following optimistic news from the US-China Trade War negotiations and the world's central banks committing, at least temporarily, to monetary stimulus international markets ended April with positive returns. The international developed market represented by the MSCI EAFE Net Total Return Index rose 2.81%. Emerging markets represented by the MSCI Emerging Markets Index increased 2.11%.
Our allocation on March 31, 2019 was moderately aggressive and consisted of 77% Equities [47% U.S. & 30% International], 18% Fixed Income, 3% Precious Metals, and 2% Cash. We made no changes to our holdings during the month of April. The Stadion Tactical Growth Fund returned 2.06% for the month of April while our benchmark, Morningstar Moderately Aggressive Target Risk returned 2.53%.
The fund's equity holding are in line with our long-term average, however, a larger than typical percentage of these are in international exchange traded funds (ETFs). Of these, they're diversified on an across-the-board basis, albeit slightly overweight toward Asia, and include both developed and developing nations.
Our U.S. Equity ETFs have rebounded and posted strong returns in April and are now in sight of our entry point. Our ranking system rewards an ETF whose short-term Sharpe ratio has a large spread above their Sharpe long-term ratio and many of the Domestic Equity funds have not topped our rankings due to their weak data.
Our present allocation is 77% Equities [47% U.S. & 30% International], 18% Fixed Income, 3% Precious Metals, and 2% Cash. We will continue to monitor our rankings and holdings and attempt to build a diversified portfolio of ETFs that compensate well for risk.
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 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 Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange.
The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk.
Short term Sharpe ratio refers to a Sharpe ratio that is calculated using data from a time period shorter than six months. Long term Sharpe ratio refers to a Sharpe ratio that is calculated using data from a time period of six months to one year. The spread is the difference between the short and long term Sharpe ratios.
The MSCI EAFE Net Total Return Index is a free float-adjusted market capitalization index that is designed to offer a representation of equity market performance of developed markets in Europe, Australasia and the Far East.
The MSCI Emerging Markets Index consists of 23 economies including Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and the United Arab Emirates. The MSCI is a float-adjusted market capitalization index.
The Morningstar Moderate Aggressive Target Risk Index seeks approximately 80% global equity exposure.
One cannot invest directly in an index.
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.
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.