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
Written by David Fabian, July 22nd, 2017
I’ve always been a big fan of actively managed bond funds as a way for investors to access risk managed or alpha-generating strategies. Unlike active stock pickers, the best managers from the likes of PIMCO, DoubleLine, Guggenheim, and Loomis Sayles have proven track records of adding value for their investors versus a passive benchmark. Fixed-income is still one of those asset classes where sector positioning, duration targeting, and credit selection can make a huge impact on net returns.
Look back through my blog and you will see numerous references to some of my favorite funds like the DoubleLine Total Return Bond Fund (DBLTX) or the PIMCO Income Fund (PONDX). We have owned both for our clients and in our own accounts for years. Read more
Written by David Fabian, July 12th, 2017
The world of bond funds is generally split along two distinct lines: active and passive. You either own the benchmark or you place your bets with the fund manager who is proactively trying to beat it. Both strategies offer numerous benefits and risks depending on your investment objectives.
With a passive index, you know exactly what you own and that you are going to get every tick of associated price movement from the portfolio. There are strict rules on what securities can be admitted and when they are rebalanced. These funds also offer the lowest costs in terms of direct investment expenses.
Read the complete article at NASDAQ.com
Written by David Fabian, March 30th, 2017
Forecasting the direction of the markets on a quarter by quarter basis is no easy feat. There are simply too many unknowns to determine exactly what will happen and how investors will react to future events on both a micro and macro level. Nevertheless, a look back at recent price action and examining seasonal trends can be helpful to frame expectations. It may also elevate the need for closer examination of your existing holdings and offer consideration for changes to reduce risk or capitalize on fresh opportunities. Read more
Written by David Fabian, January 06th, 2017
A reader recently sent me a question asking why you would own a bond fund when interest rates are on the move higher. This type of sentiment is more than likely on the minds of many investors as they prepare for 2017 and evaluate adjustments to their asset allocation.
The short answer is that every diversified portfolio should have bond exposure to balance out the risk of other asset classes – i.e. stocks and commodities. Bonds have historically provided a shock absorber for the equity side of the portfolio and have not shown any signs of relinquishing that trait. Simply letting go of all your bond exposure will unnecessarily tilt your risks and returns towards a single outcome. Read more