FMD Capital Management

Posts Tagged: factor

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

3 Value ETFs For Factor Purists

Written by David Fabian, September 18th, 2017

Classifying stocks as either growth or value is one of the oldest and most studied fundamental investment pillars.  This process traditionally involves the analysis of various balance sheet statistics to determine a company’s intrinsic net worth relative to its peers and historical benchmarks.

Being that “value” is such a sought-after characteristic, it’s no surprise that over 50 exchange-traded funds are dedicated to the pursuit.  The largest of which include the iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV).  Read more

3 Smart Beta Bond ETFs You Need To Check Out

Written by David Fabian, July 12th, 2017

The world of bond funds is generally split along two distinct lines: active and passive. You either own the benchmark or you place your bets with the fund manager who is proactively trying to beat it. Both strategies offer numerous benefits and risks depending on your investment objectives.

With a passive index, you know exactly what you own and that you are going to get every tick of associated price movement from the portfolio. There are strict rules on what securities can be admitted and when they are rebalanced. These funds also offer the lowest costs in terms of direct investment expenses.

Read the complete article at NASDAQ.com

What Makes ‘Quality’ ETFs Special

Written by David Fabian, June 07th, 2016

As exchange-traded funds have evolved over the years, we have seen greater interest in funds that screen for a specific factor.  This may include historical volatility, size, momentum, or even “quality” characteristics.  This last term in particular is one that is often used with great reverence, but may mean vastly different things to different investors.

Quality can stand for superior products or services, low debt ratios, profitability trends, sustainable dividends, or stable earnings growth.  In practice, several of these screens may applied to a large universe of stocks in order to find companies showing superior balance sheet characteristics versus their peers.

Read the complete article at NASDAQ.com

3 Diversified Factor ETFs Making Traction In This Market

Written by David Fabian, May 06th, 2016

Looked at a chart of stocks lately?  It’s difficult to conjure up any sense of enthusiasm in the price action over the last year.  We have endured two pernicious drops that have been snatched from the jaws of defeat at seemingly the last moment.  Only to experience a concomitant rip roaring rally that fizzles near the highs.  This type of whipsaw action is where nervous investors get shaken out near the lows and stressfully forced back in at the worst possible time. Read more