FMD Capital Management

Growth Investing

Thematic ETFs Are Finally Gaining Some Much-Needed Respect

Written by David Fabian, September 26th, 2017

Thematic funds have long been one of the more dubious areas of the ETF industry. In a broad sense, this genre is all about taking an investment concept with potentially long-term, cyclical implications and finding a group of stocks that fit the criteria. It’s more about investing in a story rather than identifying companies based on strict fundamentals or sector prowess.

Want to invest in the trend of weight loss, clean energy, or social media growth? There are now multiple funds to choose from in each category.

Thinking that you want your portfolio positioned according to your political, religious, or ethical beliefs? I can easily point you in the right direction with several options to choose from.

Read the complete article at NASDAQ.com

Financial ETFs Are Struggling To Regain Momentum

Written by David Fabian, September 19th, 2017

Financial stocks received a much-needed boost in the immediate aftermath of the 2016 presidential election. Now, almost a year later, these stocks are struggling to regain momentum as the prospects dim for industry-wide deregulation and expansive earnings growth.

Further aggravating the macro picture for the financial sector is the continued slide in interest rates that stifle gains in publicly traded banks, brokerages, and insurance companies. These entities have historically experienced a positively correlated relationship to domestic interest rate fluctuations in large part due to their core business and financing activities.

Read the complete article on NASDAQ.com

A Guide To Finding the Right Mid-Cap ETF

Written by David Fabian, September 05th, 2017

Most ETF portfolios I look through are heavily weighted towards large-cap stocks as the fundamental building blocks of an equity allocation.  Those who might have a higher risk tolerance or seek greater diversification qualities may also own some small cap exposure as a component of their investment strategy as well.  Because of this barbell type positioning, the most easily overlooked area is the middle ground known as mid-cap stocks.

Investopedia defines mid-cap stocks as those companies with market capitalizations between $2-$10 billion.  While those are fair guidelines, in practice there are many indexes that stretch the bounds of their capitalization requirements to even wider ranges.  Much of this is likely due to the extreme range of the large-cap group, which stretch from a lower bound of $10+ billion all the way to upwards of $800 billion at present market conditions.

Read the complete article at NASDAQ.com

The Ins and Outs Of Low Volatility ETFs

Written by David Fabian, August 31st, 2017

If there’s one thing investors love, it’s consistency and reliability.  Two attributes that deftly describe the trend of exchange-traded funds that track low volatility stocks.

This unique category of the ETF universe has rapidly expanded in recent years through a combination of persistent fund flows and sector momentum.  The factors that ultimately shape low volatility indexes have proven to offer attractive characteristics for conservative investors that want equity exposure without the downside risk of a typical broad-based benchmark. Read more

Are Active Stock Picking ETFs Missing The Point?

Written by David Fabian, August 29th, 2017

The influx of capital into exchange-traded funds has prompted many active managers to take a hard look at their business models. The old days of high-fee mutual funds, hedge funds, and separate accounts are becoming harder to justify. Investors want transparency, they want liquidity, and they want low-cost.

Those are the hallmarks of the exchange-traded fund platform. It’s why companies like BlackRock and Vanguard have expanded their asset management businesses by hundreds of billions of dollars over the last several years. This is a freight train of capital moving in virtually one direction with no signs of slowing down.

Read the complete article at NASDAQ.com