FMD Capital Management

Posts Tagged: etf portfolio

4 Key Factors To Consider Before Selecting An Active ETF

Written by David Fabian, June 13th, 2017

ETF investors have wholeheartedly embraced the transparency and low-cost of passively managed investment vehicles.  Billions of dollars every year since the great financial crisis have left the obfuscated world of high-priced mutual funds and transitioned into index-based ETFs.

This rotation is almost entirely based on the foundation that you know exactly what you own, why you own it, and what the minimal expenses will be. There is a comfort and reliability that the fund will perform to an exacting standard with very little deviation from its benchmark.

Read the complete article at NASDAQ.com

Great Investment versus Great Timing

Written by David Fabian, June 05th, 2017

The investment universe is littered with articles touting the advantages of various funds or strategies.  I should know.  I have written for the last five years about the characteristics of ETFs and closed-end funds that we consider for our clients.  Some pass my rigorous test, while others are weeded out through careful analysis.

Throughout this time, I have realized it’s easy to compare two or three funds in a vertical category and dissect their merits.  Some will stand out based on costs, while others may promote index methodology, tax efficiency, or security selection as their primary benefits.  Read more

Investment Advisors Aren’t Worth The Money

Written by David Fabian, April 19th, 2017

I had a conversation with a prospective client the other day who called me inquiring as to what we do.  I gave him the typical run down that we are a fee-only investment advisor specializing in ETF portfolios.  In other words, we provide discretionary management of client accounts using low-cost investment tools.

His response {paraphrasing}: “Mr. Fabian, I know a CFO of a big publicly traded company.  He told me they did a big study about the use of investment advisors and that they aren’t worth the 1% fee.  That all you need to do is buy ETFs to reduce the drag of expenses on your portfolio.  What do you have to say to that?” 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

Are High Yield ETFs Becoming Too Hot To Handle?

Written by David Fabian, February 17th, 2017

Love is in the air this Valentines week and many income investors are smitten with the returns of their high yield investments.  The steady march higher in assets like junk bonds, preferred stocks, emerging market debt, and even leveraged closed-end funds has remunerated shareholders for their faith.

The poster child of this strength may well be the iShares iBoxx $ High Yield Corporate Bond ETF (HYG).  This well-known fund, which invests in a passive index of high yield U.S. corporate debt, has gained more than 22% over the last year.  That jump includes both price gains and income distribution over a 52-week period.  It also bests every corner of the U.S. fixed-income sector map by a wide margin.  Read more