FMD Capital Management

Income Investing

3 Value ETFs For Factor Purists

Written by David Fabian, September 18th, 2017

Classifying stocks as either growth or value is one of the oldest and most studied fundamental investment pillars.  This process traditionally involves the analysis of various balance sheet statistics to determine a company’s intrinsic net worth relative to its peers and historical benchmarks.

Being that “value” is such a sought-after characteristic, it’s no surprise that over 50 exchange-traded funds are dedicated to the pursuit.  The largest of which include the iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV).  Read more

3 Underrated Bond ETFs For Your Income Portfolio

Written by David Fabian, August 25th, 2017

I write a ton of words every week on the topic of building income portfolios using exchange-traded funds.  Some articles are purely an exercise in research and education, while others are directed towards real-world concepts that we are implementing for clients of our firm.

It’s through this process that I often dive into a new fund or sector and compare it to an established group of peers.  It’s also refreshing to see funds that I have reviewed favorably in the past live up to (or exceed) their lofty expectations.  Read more

3 High Yield International Bond ETFs

Written by David Fabian, August 22nd, 2017

The high yield credit markets have been a smooth ride for income investors throughout 2017. The combination of a steady global equity market uptrend, low volatility, and an abundant thirst for yield has been a tailwind for riskier fixed-income securities.

While many investors have been fixated on the risks and opportunities for owning U.S. corporate debt, the international markets have been steadfastly climbing to new heights. This trend has produced some impressive total return statistics for exchange-traded funds that track these assets.

Read the complete article at NASDAQ.com

Volatility In CEFs Is Creating New Opportunities

Written by David Fabian, August 21st, 2017

Virtually every corner of the closed-end fund (CEF) marketplace has been on an unrelenting grind higher over the last 18-months.  Very few pullbacks have meant that you either had to be in these vehicles to capture the capital appreciation from the get-go or grind your teeth and jump in at some random point along the way. Read more

3 Dividend Growth ETFs You Should Get To Know

Written by David Fabian, August 11th, 2017

Dividend growth stocks are public companies that have shown a track record of successive year-over-year increases in their dividend payments to shareholders.  They represent an attractive way for income investors to augment and further diversify their portfolios away from a strict high yield focus.

One of the easiest ways to own this group is through a low-cost and liquid exchange-traded fund.  If you’ve been around the ETF space for a while, you have probably heard of the Vanguard Dividend Appreciation ETF (VIG) or the ProShares S&P 500 Dividend Aristocrats ETF (NOBL).  Both funds own a basket of stocks with dividend growth characteristics and have proven to be sound investment vehicles in their own ways. Read more