FMD Capital Management

2 New Alternative ETFs Seek Absolute Returns In Any Market

Written by David Fabian, April 11th, 2017

The premise of positive returns in any market is an alluring proposition for risk adverse investors.  These types of alternative strategies were once the realm of sophisticated hedge funds and institutional portfolios.  However, they are now starting to make their way into the accounts of mainstream investors via exchange-traded funds (ETFs).

Alternative strategies are generally given more flexibility than a traditional passive index tracking a basket of stocks or bonds.  They may have the capability to own futures contracts, short positions, currency pairs, or even volatility-linked products. Put simply, these “go anywhere, do anything” investment styles have the freedom to select virtually asset classes they feel are most appropriate for the current market environment.

Read the complete article at NASDAQ.com

5 High Yield ETFs of CEFs For Tactical Income Investors

Written by David Fabian, April 07th, 2017

Many investors are making the right choice to build their core portfolios around low-cost, liquid, and diversified ETFs geared towards dividend paying stocks and bonds.  These funds provide transparent exposure to a broad range of asset classes without the drag of high expenses.

While this core exposure is important, there may also be a desire to further diversify your holdings towards alternative investment styles with a penchant for higher yields.  This is the foremost objective behind ETFs that invest in a basket of closed-end funds (CEFs).  Read more

The Investment Advisor You Need vs The Advisor You Want

Written by David Fabian, April 06th, 2017

There isn’t a perfect formula or road map for hiring someone to look after your hard-earned wealth.  It’s a unique journey that every investor must carry out based on their objectives and experience.  It’s about knowing the right questions to ask and identifying with a professional that understands their craft and will put your interests ahead of theirs.   Read more

Emerging Market ETFs Ignite 2017 Growth Prospects

Written by David Fabian, April 04th, 2017

Emerging market stocks have been the perennial underdog for the last half decade.  Their persistent underperformance has been blamed on commodity fluctuations, currency woes, and a host of other fundamental headwinds.  Nevertheless, these regional stocks are making a bold statement in the first quarter of 2017 that may ignite further interest in their ongoing growth potential.

A screen of the top performing, non-leveraged or inverse exchange-traded funds through the first three months of the year reveals a pointed theme.  Brazil, China, India, Argentina, and other emerging market indexes mounted the strongest returns of all asset classes.  Of those nations, smaller company shares were the biggest standouts.

Read the complete article at NASDAQ.com

Why You Shouldn’t Trade Volatility

Written by David Fabian, March 31st, 2017

One of the top stories on CNBC today is about a trader who is relentlessly buying VIX futures despite millions in realized losses.  No one can seem to figure out what the purpose of this play is other than the obvious lottery ticket event of a sharp jump in volatility in the S&P 500 Index.

I would normally read this type of article with the knowledge that this is probably a one-off kamikaze trader with more money than sense.  Maybe they are some massive hedge fund with a sophisticated trading algorithm or a family office that is hedging some other unforeseen risk. Read more