FMD Capital Management

Posts Tagged: fund flows

2017 Mid-Year ETF Review And Market Update

Written by David Fabian, July 05th, 2017

2017 is already halfway in the books and it has been a banner start for exchange-traded funds (ETFs).  These prior six months saw nearly $250 billion flow into ETF coffers as both stock and bond indexes surged to new heights.  That type of fund flow would typically be indicative of a tremendous full calendar year.  However, as the bull market steams ahead, investors are throwing their weight behind the minimal cost, diversification, transparency, and liquidity that ETFs are famous for.

The biggest recipients of this new money are BlackRock and Vanguard, who easily dominate the competition. These industry titans are the only two companies represented in the top 10 ETFs by net asset flows through June 30.

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Defensive ETFs Are Surging Despite All-Time Highs In Stocks

Written by David Fabian, February 28th, 2017

The strength of broad domestic stock market indices in 2017 has been the dominating story in global financial markets.  The expectation of new government policies, coupled with the lack of risk asset volatility, has many investors feeling confident in a continuation of the bullish trend.

As of last week, ETFs trading in the United States have accumulated over $75 billion in fresh capital inflows since the start of the year.  The majority of that money has gone towards stock-focused index funds such as the SPDR S&P 500 ETF (SPY).

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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.

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The Great Bond Shift Rolls On

Written by David Fabian, September 01st, 2016

If there is one major theme that pervades the financial markets this year, it’s the shift from stocks to bonds.  You can romanticize about the momentum in gold stocks.  You can peek over at emerging market strength, but nothing compares to the pervasive re-allocation of global assets.  Read more

Mid-Year ETF Roundup: Defense Wins Championships

Written by David Fabian, July 06th, 2016

The mid-point of 2016 is an excellent occasion to review the exchange-traded fund (ETF) landscape.  The native transparency of ETFs allows us to visualize where investors are placing their hopes and where fund companies believe the next important trends will emerge.

Often times we see these big picture themes continue to develop for months and years as gathering momentum takes hold.  Furthermore, global market forces can have a significant impact on portfolio positioning and investor sentiment to further embellish winners or burden out-of-favor sectors.

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