FMD Capital Management

Posts Tagged: etf

Watch For These Key ETF Milestones In 2018

Written by David Fabian, December 06th, 2017

While 2017 is not quite yet in the books, some investors are already looking ahead to what the New Year might have in store for their portfolios. ETF investors have been repeatedly rewarded over the last decade with fresh and innovative funds, lower costs, and better liquidity. They are also becoming more discerning over the expenses and quality of their holdings rather than falling for marketing gimmicks or advisor distribution pipelines.

This foresight will come in handy as these products become even more mainstream in the coming years and 2018 will certainly bring many interesting funds to market. The following are some ETF insights to look out for in the New Year.

Read the complete article at NASDAQ.com

3 ETFs For 2017 Tax-Loss Harvesting

Written by David Fabian, November 28th, 2017

Tax-loss harvesting is one of the more underutilized strategies for taxable investment accounts. This approach involves selling holdings at a loss in the current calendar year to offset capital gains and income. Furthermore, there is the opportunity to replace a mutual fund or ETF with a similar investment to maintain a like-kind asset allocation. The net effect is to mitigate the impact of taxes in a particularly bountiful year.

The first step in this process is identifying holdings that are sitting at a loss and may be ripe for a transition. Your monthly brokerage statement or online portfolio view should allow you to easily spot these culprits. The following categories may be the most easily exploited tax-loss harvesting opportunities for 2017.

Read the complete article at NASDAQ.com

What’s The Bull Case For International Bond ETFs?

Written by David Fabian, November 21st, 2017

This week’s ETF column was spawned by a thought-provoking statement on Twitter from one of my favorite follows @econompic.  He deftly pointed out the disparity in current yield between a risk-free savings account in the United States versus the paltry income derived from broad-based international bond ETFs.

For example, one can now easily earn 1.25% (or greater) in a savings or money market account versus the 0.73% current yield of the Vanguard International Bond ETF (BNDX).  This exchange-traded fund is considered one share class of the broader Vanguard International Bond mutual fund series, which combined house over $94 billion in total assets.

Read the complete article at NASDAQ.com

Defensive Strategies For High Yield Bond ETFs

Written by David Fabian, November 15th, 2017

Since early 2016, the trend in credit-sensitive securities has been predominantly higher as yield spreads compress and risk behavior leans on the bullish side. Income-focused investors have poured billions of dollars into exchange-traded funds that track these markets, led by the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and SPDR High Yield Corporate Bond ETF (JNK).

More recently, HYG and JNK have exhibited several sharp down days despite the relative calm buoying the global equity markets.  This divergence has many bond investors worried about the future growth prospects of high yield debt and whether they should shield their gains from a potential correction in risk assets.

Read the complete article at NASDAQ.com

PIMCO Plays It Safe With Multi-Factor Equity ETFs

Written by David Fabian, November 07th, 2017

PIMCO has long been known as a fixed-income powerhouse with an abundance of investment management talent and enviable track record. They are also one of the most successful purveyors of actively managed exchange-traded funds focused primarily on the bond market to-date.

That dynamic changed recently with the launch of three new multi-factor equity ETFs that successfully complement the existing PIMCO fund lineup. These new funds are backed by a stringent research and stock selection criteria created by Rob Arnott of Research Affiliates, who has a well-respected background in building smart beta portfolios.

Read the complete article at NASDAQ.com