October 9, 2020
While U.S. stocks continue to trend positively overall, September closed the month in the red. The reasons, it seems, are myriad—from ongoing COVID concerns, to continued reports of distressing unemployment numbers, to the upcoming Presidential election-- and though investors of all stripes have poured money into the markets this year there seems to be ongoing skittishness which is lending itself to fairly wild swings.
The Federal Reserve has indicated that it expects to keep rates at their current historical lows until at least 2023—a sign of both inflation and unemployment numbers being far away from their targets—and markets appear to have already priced in that there is no quickly incoming fiscal stimulus on the horizon. Historically speaking, September typically closes down for the month during an election year and September 2020 certainly fit that trend.
The NASDAQ finished the month down -5.11% while the S&P 500 lost -3.80%, and the Dow Jones Industrial Average dropped -2.18% for the month.
The Stadion Tactical Growth Fund’s allocation on September 1 was 64% U.S. Equities, 5% International Equities, 20.5% Fixed Income, 5% Precious Metals, and 5.5% Money Market. We made three changes to the portfolio during September. On the 4th we sold our Biotechnology ETF; on the 28th we sold our International ETF; and on the 28th we bought a Basic Materials ETF. Our holdings at the end of September are 68% U.S. Equity, 10.5% Fixed-Income, 5.5% Precious Metals, and 16% Money Market. We are running our proprietary rankings daily and hope to put a portion of our cash to work soon.
For September, the Stadion Tactical Growth Fund Class I returned -3.72% versus its benchmark Morningstar Moderately Aggressive Target Risk which returned -2.24%.
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 Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange.
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 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 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 statement of additional information (“SAI”). Investment Objective: Seek long-term capital appreciation.
Not all investors are eligible for each share class, including I shares. Performance and expense may vary between share classes.
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.