FMD Capital Management

Posts Tagged: etfs

Presentation: The Benefits Of ETFs

Written by David Fabian, May 04th, 2017

This last week I had the privilege of honing my speaking skills by delivering a presentation on ETFs to a group of college students.  My first impression of these eager future investors was their thirst for knowledge of how ETFs work.  They were intrigued by how indexes are constructed, the low costs compared to mutual funds, and how investing in ETFs is far easier than picking individual stocks.

I covered these topics in an hour-long PowerPoint that is available for download here.  This information may be review for ETF veterans, but even the most battle-hardened investors may pick up some tidbits from the slides.

If you have any questions after reviewing this presentation, don’t hesitate to reach out to us.

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

Preparing Your ETF Portfolio For Success In 2017

Written by David Fabian, December 28th, 2016

Preparation is an important part of executing any successful plan.  There are some instances where luck plays an unexpected role in investment success.  However, most investors are going to achieve their goals through careful planning and execution of a disciplined investment approach.

In my opinion, the best tools you can use for this task are exchange-traded funds (ETFs).  These simple vehicles are highly diversified, tax efficient, low-cost, and easy to trade.  They allow you to own broad swaths of the investment universe or hone in on specific themes to suit your outlook.  Put simply, the careful and practiced use to ETFs in your portfolio is going to go a long way towards a successful outcome over your lifetime.

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ETFs Are Making It Easy To Be A Socially Responsible Investor

Written by David Fabian, November 01st, 2016

Socially responsible investing used to be very low on the priority list for most fund providers.  Some may even relegate it to a niche trend with small market potential when compared to the overwhelming demand for income or smart-beta indexes.  However, the rise of gender equality, environmental impact, and other social issues has created a booming new category within the ETF universe.

This year alone, there have been 12 new ETFs released that focus on “Environmental, Social, or Governmental” issues, otherwise known as ESG.  These new funds are aimed at greater control over company, sector, geographical, and factor exposure in a low-cost and diversified investment vehicle.

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How To Properly Utilize Growth and Value ETFs

Written by David Fabian, October 06th, 2016

One of the tremendous benefits of using exchange-traded funds (ETFs) is the ability to customize your exposure to target a specific theme.  This flexibility allows for greater control of your sector and position sizing relative to a broad-market benchmark such as the S&P 500 Index. Read more