FMD Capital Management

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

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

Stock Market Shortcuts & Hacks

Written by David Fabian, September 12th, 2017

Most people are hardwired to look for shortcuts.  The fastest way home from work.  The most efficient way to mow the lawn.  The chance to make our lives easier or more productive can be a positive in many work environments.  It may also make you feel more accomplished in other aspects of your life as well.

However, when that same impulse is applied to the stock market, it takes a much darker turn.  Read more

Meet The 3 Biggest ETFs of ETFs

Written by David Fabian, September 12th, 2017

The “fund of funds” style is a portfolio tactic that has been used successfully for many large investment companies. Think about those target-date or target-risk funds in your 401(k). They are essentially a single mutual fund filled with 8-12 underlying funds to create a highly diversified investment strategy using varying asset classes.

It was initially assumed that this same dynamic would be readily embraced in the exchange-traded fund format as well. However, after several failed attempts, it’s becoming apparent that ETF investors want certain attributes within a “fund of fund” strategy that they can’t find elsewhere. The following three examples highlight the largest of this breed and how they have developed over the last decade.

Read the complete article at NASDAQ.com

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