FMD Capital Management

Growth Investing

Face-Off: Two Active ETFs For Momentum Investors

Written by David Fabian, September 20th, 2016

Owning stocks with a high degree of momentum has been a strategy that many investors have sought to capture over time.  This single factor is often described as a security that has higher recent performance than that of its peer group.  Put simply, stocks that are showing strong trends tend to maintain that outperformance as more investors become aware of the story.  Relative performance is often reason enough to lure in more buyers and extend the existing motion that is already in place.

It should come as no surprise that there are a number of exchange-traded funds that seek to isolate this factor in a diversified basket of stocks.  The first generation of which are based on passive indexes with rules-based criteria to identify top performers.

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3 ETFs With Top Exposure To Apple Stock

Written by David Fabian, September 09th, 2016

Whenever I am asked about which ETFs have the most exposure to a specific stock, I turn to my friends at  Their free stock exposure tool is an excellent way to quickly assess the weight of any given company within the ETF universe.  You can check it out here. Read more

What Are Inverse ETFs and How To Use Them

Written by David Fabian, September 07th, 2016

The ubiquitous nature of ETFs ensures that they are accessible to virtually any type of investor in any type of account.  That’s generally a good thing for the majority of these low-cost, diversified, and tax-efficient tools.  Nevertheless, it also opens the door for complex and potentially unsuitable investments to make their way into places they should likely never appear.

Case in point is the growing use of short ETFs, which are also referred to as bear market or inverse funds.  These contrarian vehicles have become a “go to” tool for many active investors who wish to make a bet that the market will fall.

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These Beloved Equal Weight ETFs Are Hidden In Plain Sight

Written by David Fabian, August 30th, 2016

The first indexes to ever grace the field of exchange-traded funds were all market-cap weighted baskets.  This structure gives the largest share of assets to the stocks with the biggest outstanding share floats.  In many ways this makes sense, because it provides investors with the same distribution of wealth that market prices have already factored in.  This is the reason why Apple Inc (APPL) is the largest holding in the market-cap weighted SPDR S&P 500 ETF (SPY) at 3.09%.

In the pervasive quest to outperform these well-known benchmarks, the concept of equal weight indexes was introduced.  An equal weighted methodology takes a certain number of stocks and gives them a similar distribution of invested capital.

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Social Media ETF On A Breakout Track

Written by David Fabian, August 19th, 2016

Social media companies may seem like an obvious avenue for growth in relation to the larger technology sector.  However, the highly competitive landscape often resulted in a growing chasm between big winners and downtrodden losers in the public equity markets.  The well-publicized success of Facebook Inc (FB) has become the benchmark from which all others are summarily measured. Read more