FMD Capital Management

Growth Investing

PIMCO Plays It Safe With Multi-Factor Equity ETFs

Written by David Fabian, November 07th, 2017

PIMCO has long been known as a fixed-income powerhouse with an abundance of investment management talent and enviable track record. They are also one of the most successful purveyors of actively managed exchange-traded funds focused primarily on the bond market to-date.

That dynamic changed recently with the launch of three new multi-factor equity ETFs that successfully complement the existing PIMCO fund lineup. These new funds are backed by a stringent research and stock selection criteria created by Rob Arnott of Research Affiliates, who has a well-respected background in building smart beta portfolios.

Read the complete article at NASDAQ.com

Understanding High Beta ETFs

Written by David Fabian, October 31st, 2017

One important dynamic of portfolio construction and risk management is understanding how your stocks fluctuate in relation to the broader market. This factor is often referred to as “beta,” which is essentially the historical volatility of a stock or fund in relation to a benchmark such as the S&P 500 Index.

The higher the measured beta of your holdings, the greater price fluctuations they will have in comparison to the benchmark. A high beta score doesn’t necessarily mean that your investments will outperform on the upside or underperform on the downside. It simply means they have exhibited characteristics of outsized moves or over-reactions in the past.

Read the complete article at NASDAQ.com

Meet The New State Street Portfolio ETFs

Written by David Fabian, October 24th, 2017

The investment management fee wars just escalated to a new level with the announcement that State Street is dropping expenses and re-naming 15 of its diversified exchange-traded funds. This transformed group will be dubbed the “SPDR Portfolio” series and is aimed squarely at the likes of Vanguard, BlackRock, and Charles Schwab in testing the ultimate boundaries of minimalist fund costs.

The new average expense ratio across all 15 SPDR portfolio ETFs is an astounding 0.06%, with several offerings being listed for as low as 0.03%. That’s just $30 per year in embedded expenses for every $100,000 invested and marks a strong advancement for ETF portfolio construction. State Street has also partnered with TD Ameritrade to make these funds commission-free to trade on their brokerage platform, further maximizing the total return of these funds for shareholders.

Read the complete article at NASDAQ.com

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