FMD Capital Management

3 Extended Market ETFs To Round Out Your Portfolio

Written by David Fabian, February 22nd, 2017

ETF investors are spoiled by the tremendous number of quality choices for building their diversified stock allocations.  The sheer breadth of selection across market cap, sector, industry, and factor-based strategies ensures there is something for virtually everyone.

Yet, one of the lesser understood qualities of exchange-traded funds are their ability to simplify your portfolio.  You can own hundreds or even thousands of stocks in a single holding with extremely low costs and impeccable tracking efficiency.  That eliminates the need to screen numerous positions and creates benefits of widening your exposure profile.

Read the complete article at NASDAQ.com

Are High Yield ETFs Becoming Too Hot To Handle?

Written by David Fabian, February 17th, 2017

Love is in the air this Valentines week and many income investors are smitten with the returns of their high yield investments.  The steady march higher in assets like junk bonds, preferred stocks, emerging market debt, and even leveraged closed-end funds has remunerated shareholders for their faith.

The poster child of this strength may well be the iShares iBoxx $ High Yield Corporate Bond ETF (HYG).  This well-known fund, which invests in a passive index of high yield U.S. corporate debt, has gained more than 22% over the last year.  That jump includes both price gains and income distribution over a 52-week period.  It also bests every corner of the U.S. fixed-income sector map by a wide margin.  Read more

Biotech ETF On The Brink Of A Breakout

Written by David Fabian, February 16th, 2017

The volatility in the biotech space over the last two years has been quite a sight to behold.  I’m not strictly speaking of volatility in terms of downside either.  There has been money to be made on both sides of the market for those that have been nimble in their trades.

Most ETF investors are probably familiar with trading the iShares NASDAQ Biotechnology ETF (IBB).  This market-cap weighted giant has $8.2 billion dedicated to a basket of 164 stocks in the biotech research and medical services fields.  As you can see on the chart below, this index has been on a rollercoaster ride of whipsaws in both directions over the last year.

Read the complete article at Seeitmarket.com

Evaluating Counter-Trend Opportunities In Retail ETFs

Written by David Fabian, February 15th, 2017

Retail stocks have become a highly-publicized area of the market in recent years as the continued struggle for brick and mortar relevance battle the efficiency of online sales.  The trend has been exacerbated with the steady expansion of retail juggernaut Amazon Inc (AMZN) into more and more households.  The strength of Amazon has unavoidably weighed on the share prices of more traditional retailers that find themselves strung with slowing sales and inescapable costs.

There is no doubt that consumerism is alive and well in the heart of the American economy.  Which is why it’s worth considering if the pendulum of momentum will eventually swing back in the direction of numerous stalwart retail competitors.

Read the complete article at NASDAQ.com

3 CEFs for Tax-Efficient Total Return

Written by David Fabian, February 10th, 2017

Income investors with large taxable accounts are consistently focused on maximizing their total return and minimizing the impact of taxes on their nest egg.  That means seeking out funds that are sensitive to the type of income they produce and the implications of using capital losses to offset gains.

Exchange-traded funds (ETFs) are one avenue for investors to consider in this pursuit.  Many ETFs that track a passive index have low portfolio turnover rates and often pay little to zero capital gains at year-end.  These make for a truly inexpensive and effective vehicle for tax-conscious investors that want diversified stock or bond exposure. Read more