FMD Capital Management

Posts Tagged: diversification

It’s Been A Dreary Year For High Dividend ETFs

Written by David Fabian, July 25th, 2017

If there is one asset class that conservative investors love to own, it’s dividend stocks. These high payout companies differentiate themselves from their growth-oriented peers by electing to return earnings to shareholders in the form of quarterly income. This presents an attractive way for retirees and other income-focused investors to participate in the equity markets as well as boost the aggregate yield of their portfolio.

Dividend stocks are unique in that their business models are generally well-established with healthy cash flow or capital financing capabilities. In some instances, these attributes can also lend themselves to lower volatility than a basket of high growth stocks focused on cash burn and product or services innovation.

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Sensible Tips For Constructing A Well-Balanced Portfolio

Written by David Fabian, March 27th, 2017

Constructing a well-balanced portfolio is a fine art that can be lost among the shuffle of collecting individual positions.  Too often, investors are more concerned about finding the right stock or jumping on a new trend, rather than analyzing how it fits within their accounts.

Jumbling together a random series of stocks or funds without any sense of cohesion makes it more likely that you will abandon them at random (inopportune) moments.  That path leads to uncertainty of past decisions, weak correlation with the markets, and streaky performance at best.  Instead, matching all the right pieces together to suit your risk tolerance and investment strategy will have a meaningful impact on your behavioral choices through good times and bad. Read more

3 ETFs For True Total Market Coverage

Written by David Fabian, January 31st, 2017

ETF investors often spend an inordinate amount of time trying to find the best spot in the market.  They love focusing on specific sectors, factors, or tactical strategies that are showing a promising edge.  However, there is often a fundamental need for simple and diversified stock exposure at the lowest possible cost.

This type of core foundation is the essence behind total stock market funds.  They allow you to stay correlated with the broadest possible indexes and charge expenses that are so fractional as to be almost non-existent.  They embody the true spirit of the ETF philosophy in their liquidity, tax efficiency, and transparency.

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3 Tips For Finding Your First ETF

Written by David Fabian, January 25th, 2017

Finding your first exchange-traded fund (ETF) is much the same as searching for a new TV.  You know you have a specific need that is easy to fulfill in today’s expansive marketplace. However, the list of options is overwhelming, prices vary wildly, and opinions from friends or family can be conflicting.  There is a confidence gap that must be filled through a combination of research, observation, and experience.

Fortunately, there are several ways to easily narrow this gap so that you can make a poised decision with little risk of regret.  The following are tips for both new investors who are just getting started on this journey and those who have decades of investing experience.

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4 BlackRock ETFs For Steady Retirement Income

Written by David Fabian, December 16th, 2016

Retired investors are often looking for core exposure in funds that demonstrate low costs and steady income.  These two attributes are key to maintaining a correlation with the market, while creating a passive stream of dependable dividends to offset living expenses.  One fund company that offers several different options in this arena is the iShares suite of ETFs from BlackRock.  Read more