FMD Capital Management

ETFs

Are High Yield ETFs Becoming Too Hot To Handle?

Written by David Fabian, February 17th, 2017

Love is in the air this Valentines week and many income investors are smitten with the returns of their high yield investments.  The steady march higher in assets like junk bonds, preferred stocks, emerging market debt, and even leveraged closed-end funds has remunerated shareholders for their faith.

The poster child of this strength may well be the iShares iBoxx $ High Yield Corporate Bond ETF (HYG).  This well-known fund, which invests in a passive index of high yield U.S. corporate debt, has gained more than 22% over the last year.  That jump includes both price gains and income distribution over a 52-week period.  It also bests every corner of the U.S. fixed-income sector map by a wide margin.  Read more

Biotech ETF On The Brink Of A Breakout

Written by David Fabian, February 16th, 2017

The volatility in the biotech space over the last two years has been quite a sight to behold.  I’m not strictly speaking of volatility in terms of downside either.  There has been money to be made on both sides of the market for those that have been nimble in their trades.

Most ETF investors are probably familiar with trading the iShares NASDAQ Biotechnology ETF (IBB).  This market-cap weighted giant has $8.2 billion dedicated to a basket of 164 stocks in the biotech research and medical services fields.  As you can see on the chart below, this index has been on a rollercoaster ride of whipsaws in both directions over the last year.

Read the complete article at Seeitmarket.com

Evaluating Counter-Trend Opportunities In Retail ETFs

Written by David Fabian, February 15th, 2017

Retail stocks have become a highly-publicized area of the market in recent years as the continued struggle for brick and mortar relevance battle the efficiency of online sales.  The trend has been exacerbated with the steady expansion of retail juggernaut Amazon Inc (AMZN) into more and more households.  The strength of Amazon has unavoidably weighed on the share prices of more traditional retailers that find themselves strung with slowing sales and inescapable costs.

There is no doubt that consumerism is alive and well in the heart of the American economy.  Which is why it’s worth considering if the pendulum of momentum will eventually swing back in the direction of numerous stalwart retail competitors.

Read the complete article at NASDAQ.com

The Most Important Component In Any Long-Term ETF Strategy

Written by David Fabian, February 07th, 2017

Ask a room full of experts what the most important part of a successful investment strategy is and you will likely get a range of candid responses.  Most would gravitate towards answers like security selection, position size, time, or cost as their primary recommendations.

Those characteristics are certainly important and should not be overlooked.  However, the data behind ETF asset flows and fund returns continues to signify a tremendous deficiency in net performance for individual investors.  Much of this gap can be attributed to behavioral choices – i.e. buying high or selling low.

Read the complete article at NASDAQ.com

The Value Of Incremental Steps In Your Investment Portfolio

Written by David Fabian, February 03rd, 2017

Investing is a stressful endeavor – plain and simple.  You never have all the facts to make a perfect decision.  You are only able to see the right answer with the benefit of hindsight.  Things are always slow on the way up and frenetic on the way down.  This all leads to emotions taking their toll on every single one of us.  Read more