Market Risk is Undiversifiable
Market risk, also called systematic risk, is undiversifiable. Although managing risk through equity diversification sounds promising, the heightened correlation between equity asset classes and sectors during bear markets has shown that diversification does little to reduce losses.
A Tactical Approach Can Reduce Equity Exposure When Markets Decline
Unlike buy and hold or benchmarked investing, a tactical approach can reduce equity exposure during bear markets.
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Emerging Markets: The MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. International: The MSCI EAFE 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. Large Cap Growth: S&P 500 Growth Index is a market capitalization-weighted index developed by Standard and Poor’s consisting of those stocks within the S&P 500 Index that exhibit strong growth characteristics. Large Cap Value: S&P 500 Value Index is a market-capitalization-weighted index developed by Standard and Poor’s consisting of those stocks within the S&P 500 Index that exhibit strong value characteristics. The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is widely recognized, unmanaged index of common stock prices. Small Cap: The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. Small Cap Growth: The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. Small Cap Value: The Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. It is not possible to invest directly in indexes (like the S&P 500) which are unmanaged and do not incur fees and charges. Investments are subject to risk and any of Stadion’s investment strategies may lose money. Past performance is no guarantee of future results. Stadion and the Stadion S are a registered service mark of Stadion Money Management, LLC.
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.