FMD Capital Management

Money Market Reform Likely To Stir Short-Term Bond ETFs

Written by David Fabian, August 23rd, 2016

In 2014, the Securities and Exchange Commission (SEC) legislated new guidelines concerning the function of money market funds.  These rules will finally take effect in October 2016 as a response to the liquidity issues that several banks and fund companies experienced during the 2008-2009 financial crisis.

At the core of the new rulebook is a stipulation that certain institutional money market funds will now be subject to a floating net asset value (NAV).  This removes the prior “stable value” of a $1.00 NAV that has been the standard for decades.  During times of stress, these subjected funds can also charge redemption fees to help stem a potential outpouring of assets.

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Don’t Leave Your Old 401(k) Behind!

Written by David Fabian, August 22nd, 2016

I recently went to an early pre-season NFL football game in Los Angeles with my best friend from college.  During the course of the game, he filled me in on the latest ins and outs of his life.  This included the fact that he purposefully left his old job, took a sabbatical for several months, and is now looking to re-enter the workforce.  We talked about the opportunities he is exploring and it gave me the chance to ask him what he has done with his legacy 401(k) from his old job. Read more

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

Ask Yourself This Question Before You Resolve To Sell A Stock

Written by David Fabian, August 17th, 2016

Every now and then I get an email from a reader asking whether they should sell a particular stock. This request typically comes in the form of an errant position that is not shaping up like the rest of the market.

For instance, maybe you own 15 or 20 holdings that are all positive on the year.  But that one persistently red security just doesn’t want to behave like everything else. Read more

These 3 Dividend Growth ETFs Deserve Your Attention

Written by David Fabian, August 16th, 2016

Today’s investors are increasingly focused on high yield stocks and bonds to enhance their portfolio income stream.  This can often lead to asymmetric risk appetite in certain volatile areas of the global investment landscape.

Yet, one characteristic that is often overlooked is the advantage of quality companies that have consistently grown their dividends on a year-over-year basis.  These stocks can offer an attractive counterpoint with differing risk characteristics than a traditional high yield or broad market benchmark.

There are several diversified ETFs in this category that solely look for stocks with steady and incremental income enhancements.

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