FMD Capital Management

Posts Tagged: etn

The House Always Wins With Volatility ETFs

Written by David Fabian, June 10th, 2016

Pick your favorite casino vice – craps, roulette, black jack – each of these games involves a little bit of skill and luck to leave the table with more money than you started with.  Nevertheless, every gambler knows that overstaying your welcome will lead to tragic results.

Put simply, over a long enough time frame, the house always wins.

This same philosophy can also be applied to funds that track volatility futures.  These indexes can experience sharp rallies that quicken the pulse and dilate your pupils, but they also have led to consistent wealth destruction over the last seven years. Read more

The Benefits And Risks Of MLP ETFs

Written by David Fabian, June 30th, 2015

Master limited partnerships (or MLPs) have long been favored by income investors for their high yields and non-correlated returns. Most MLPs operate a toll-road style infrastructure of pipelines, storage facilities, and transport for the oil and gas industry. Because of their specific legal structure, they are able to return a high portion of their earnings to shareholders in the form of dividends.

While many investors prefer to own publicly traded MLPs directly, you can also access a basket of these securities through an exchange-traded fund (ETF).  Read the complete article at

Why You Should Shy Away From Leveraged Dividend ETNs

Written by David Fabian, February 13th, 2015

UBS just launched their latest leveraged exchange-traded note (ETN) designed to capitalize on the opportunities in small cap dividend stocks. By my count, that now makes four diversified investment vehicles in the UBS product suite that are geared towards common equity dividend paying indexes with an underlying leverage component. Read more

Half Time Review: The Best New ETFs Of 2014

Written by David Fabian, July 15th, 2014

The ETF universe is one that is continually changing in an evolutionary fashion. Each year new ETFs are created and others delisted in a Darwinian-style “survival of the fittest” environment that allows the best funds to thrive while the weakest die off.

Through the first six months of 2014, we have seen total U.S.-listed ETF assets surpass $1.8 trillion. That includes net inflows of $73 billion this year alone. The total count of exchange-traded products, including both ETFs and ETNs, now stands at more than 1,600 available options with the list expanding rapidly.

Read the full article at

Commodities: Buy The Momentum Or Sell The Rally?

Written by David Fabian, April 01st, 2014

Commodities as a whole have vastly underperformed the more traditional asset classes like stocks and bonds over the last three years.  A combination of tepid global growth and below-average inflationary statistics has capped the upside of commodities futures markets.  Most investors are likely underweight exposure to this asset class which can provide non-correlated returns in a diversified portfolio.  As a result, you may have overlooked the recent surge in prices that has been steadily gaining momentum this year.  Read more