In a volatile market environment, ETFs are one way to provide higher yields. But weeding through the vast universe of ETFs on the market can be an overwhelming process for many investors.
Which is why many turn to Paul Frank, manager of the Stadion Tactical Growth Fund, to do the heavy lifting. Today on CNBC's "Power Lunch", Frank said "The fund has an annual turnover of 225% so it is a very active management process. I personally look at 1,388 ETFs on an average day, before whittling them down to about a dozen names."
And Frank's tenacity has certainly paid off. Established in 2004, the Stadion Tactical Growth Fund, an ETF mutual funds, was rated five stars over three and five years by Morningstar.
Performance over the past year is 12.04 percent, the top three percent of its category.
"Right now, we are bullish on U.S. stocks, with 84 percent of the portfolio in domestics. But we've dialed down our bond exposure considerably. I was 26 percent in bonds back in October, but today, its just ten percent of the portfolio."
With an annual turnover rate of 225 percent, the fund is extremely active. "You have to be willing to make bold bets to get outsize returns," says Frank. "And even when we move into a defensive position, we rarely hide in cash. Our strategy is to remain overweight but selective.That means avoiding REIT, Utilities and Bond ETFs, preferring midcap, financials, telecom, consumer staples and health care ETFs right now.