Our allocation at the end of September was moderately aggressive at 72.5% Equities [57.5% U.S. & 15% International], 15% Fixed Income, 5% Gold, and 7.5% Money Market. On October 8th we sold our remaining EAFE holdings to money market. On October 11th we added to our already existing positions in S&P 500-based ETFs, Real Estate, Large Growth, Developed International, and Technology. We also opened a position in Mexico. On October 15th we sold part of our Gold position and purchased shares in Nasdaq 100-composed Exchange Traded Funds (ETFs). Our portfolio at the end of October holds 79% Equities [61% U.S. & 16% International], 15% Fixed Income, 3% Gold, and 3% Money Market.
We believe our portfolio remains well diversified. Our equity exposure is at our long-term average and contains more than an average position in International. We lowered our holdings in tangible assets and captured small tax losses by selling a portion of our Gold. Our holdings in short-duration fixed income thankfully missed the move back up in long-term rates. We will continue to monitor our rankings and holdings and attempt to build a diversified portfolio of Exchange Traded Funds (ETFs) that compensate well for risk.
Stadion Tactical Growth returned 1.88% for the month of October while our benchmark, Morningstar Moderately Aggressive Target Risk returned 2.10%.
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 100 Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization.
The MSCI EAFE Net Total Index (Europe, Australasia, Far East) is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. As a total return index, it tracks the capital gains of a group of stocks over time and assumes reinvestment of any cash distributions.
An Exchange Traded Fund (ETF) is a fund that tracks a specific index (bonds, commodities, etc.) but trades on stock exchange in the same manner as common stocks. ETFs tend to have higher liquidity than mutual funds.
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.