FMD Capital Management

Growth Investing

Forget Target Date ETFs And Consider These Options Instead

Written by David Fabian, August 21st, 2014

Recently Blackrock announced it will be shuttering 18 ETFs, including 10 target-date funds that were designed to be used for long-term investors that are seeking an easy way to save for retirement.

It’s not likely that many investors are going to miss these ETFs as they only had approximately $310 million in total assets. No single ETF in this group totaled over $100 million as well.   Read more

The Cost of Doing Nothing

Written by Michael Fabian, August 20th, 2014

Whenever the market corrects even for a brief period of time I’m always reminded of the countless investors we’ve spoken with over the years that said they were going to go “all-in” during the next pullback in equities.  Even more shocking is that train of thought isn’t limited to just retirees, but all types of investors.  Even millennials, the youngest and seemingly most aggressive investors can’t stomach the pain of investing at the wrong time.   Yet with few pullbacks in sight during recent years, and many people having convinced themselves that they are a de-facto money manager, what could possibly go wrong? Read more

The Pros And Cons of Smart Beta ETFs

Written by David Fabian, August 19th, 2014

Many investors have traded in their passive indexes for smart beta ETFs over the last five years as these innovative strategies have shown promising results. The allure of creating a “better investment strategy” is an admirable objective for these semi-active funds. However, investors need to fully understand how the index is constructed and how much more they will pay in fees before deciding to invest in this arena.

Read the complete article at NASDAQ.com

Measuring Investors’ Appetite for Risk Using ETFs

Written by David Fabian, August 12th, 2014

Each individual investor has a unique appetite for risk that should be respected when constructing a portfolio of ETFs to weather the market’s machinations. While some investors are more aggressive or trading oriented, others might lean towards a conservative mix of assets to meet their goals. Both styles should be embraced despite the tendency to not understand the risk-taking mentality of the opposite group.

But how do you define risk in the market on an intra-day basis using ETFs?  Read how at NASDAQ.com