FMD Capital Management

Growth Investing

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

China ETFs Steam To Multi-Year Highs

Written by David Fabian, August 04th, 2017

Emerging markets have been off to the races in 2017 and China has played a huge role in fueling that growth.  The world’s second largest economy felt the heavy contraction that plagued many stock markets throughout 2015 as commodity and currency volatility took their toll.  However, its turning point coincided with a global rally in risk assets that has been persistently strengthening over the last eighteen months. Read more

Transportation ETFs Slam On The Brakes

Written by David Fabian, August 01st, 2017

The transportation sector of the stock market is one with a rich and impactful history. Technicians, economists, and forecasters often lean on this industry to predict major changes in global growth trends. When transport companies are thriving, it is commonly viewed as a positive sign of worldwide trade and business activity. Conversely, when they are contracting, it can be deemed as a negative omen of shrinking commerce.

Read the complete article at NASDAQ.com