FMD Capital Management

Posts Tagged: Currency

3 High Yield International Bond ETFs

Written by David Fabian, August 22nd, 2017

The high yield credit markets have been a smooth ride for income investors throughout 2017. The combination of a steady global equity market uptrend, low volatility, and an abundant thirst for yield has been a tailwind for riskier fixed-income securities.

While many investors have been fixated on the risks and opportunities for owning U.S. corporate debt, the international markets have been steadfastly climbing to new heights. This trend has produced some impressive total return statistics for exchange-traded funds that track these assets.

Read the complete article at NASDAQ.com

Taking A Tour Through Europe ETFs

Written by David Fabian, May 02nd, 2017

The concept of investing in European stocks seems difficult to stomach considering the decade of lost returns versus their U.S. counterparts.  A new post by Michael Batnick, Director of Research for Ritholtz Wealth Management, details the difficult 10-year journey for this foreign investment class.  The U.S. has simply been the star outperformer on the global stage for so many consistent years that the home-bias phenomenon has been taken to a new level.

According to their research, U.S. stocks now make up 80% of the average U.S. investor’s equity portfolio.  The remaining 20% is likely split among a variety of European, Asian, and emerging market exposure.  This overweight exposure towards a high-flying asset class ultimately leaves many investors susceptible to being caught off guard as the pendulum swings in the opposite direction.

Read the complete article at NASDAQ.com

Emerging Market Bonds: Time For Local Currency To Shine?

Written by David Fabian, February 02nd, 2017

Emerging market bonds were one of the few bright spots across the fixed-income landscape in 2016.  This category trailed only U.S. high yield debt by total return metrics despite some meaningful volatility in the aftermath of the U.S. election.  Investors also took notice of this outperformance and the favorable yields to bootRead more

The Pros and Cons Of Currency ETFs

Written by David Fabian, January 10th, 2017

The impact of currency fluctuations is a dynamic that more and more investors have taken an interest in over the last several years.  A decade ago, it was difficult to trade the currency markets without a dedicated forex account and sophisticated knowledge of the landscape.  This was the realm of institutional investors and macro hedge funds.  Fast forward to 2017 and there is a myriad of mainstream options to take advantage of these markets in a normal brokerage account.

At present, there are 32 exchange-traded products dedicated to currency trading pairs or indexes.  There are also countless other ETFs and mutual funds with embedded currency strategies coupled with stock or bond holdings.  These “local currency” or “currency hedged” indexes allow ETF investors the ability to mitigate certain risks of owning foreign investments or take advantage of a specific currency trend.

Read the complete article at NASDAQ.com

Brazil ETFs Surge As Olympic Ceremonies Approach

Written by David Fabian, July 12th, 2016

We are now down to less than a month before the 2016 Summer Olympics in Rio de Janeiro, Brazil kick off on August 5th.  As is often the case every four years, many people will be tuning in to the host country’s economic and social aspects as much as the global athletic achievements.

From an investment standpoint, Brazil is considered by many to be an emerging market nation similar to China, India, and Mexico.  It is also one of the largest economies in South America.  Brazilian stocks make up just over 7% of the broad-based Vanguard FTSE Emerging Market ETF (VWO) and are the fifth largest nation represented in the index.

Read the complete article at NASDAQ.com