FMD Capital Management

Posts Tagged: etf portfolio

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

The Most Important Component In Any Long-Term ETF Strategy

Written by David Fabian, February 07th, 2017

Ask a room full of experts what the most important part of a successful investment strategy is and you will likely get a range of candid responses.  Most would gravitate towards answers like security selection, position size, time, or cost as their primary recommendations.

Those characteristics are certainly important and should not be overlooked.  However, the data behind ETF asset flows and fund returns continues to signify a tremendous deficiency in net performance for individual investors.  Much of this gap can be attributed to behavioral choices – i.e. buying high or selling low.

Read the complete article at NASDAQ.com

The Value Of Incremental Steps In Your Investment Portfolio

Written by David Fabian, February 03rd, 2017

Investing is a stressful endeavor – plain and simple.  You never have all the facts to make a perfect decision.  You are only able to see the right answer with the benefit of hindsight.  Things are always slow on the way up and frenetic on the way down.  This all leads to emotions taking their toll on every single one of us.  Read more