FMD Capital Management

Posts Tagged: fundamentals

Value ETFs: Lost But Not Forgotten

Written by David Fabian, December 19th, 2017

The 2017 market has been defined by momentum-driven trends in high growth sectors such as technology and consumer discretionary stocks. The pervasive strength can be attributed to a cadre of household names that have made impressive new highs this year. Apple, Amazon, Facebook, Google, Netflix and others have crushed traditional broad-market benchmarks as their stock prices surge and volatility remains muted.

As these market forces exert themselves, the concomitant effect is that conventional value stocks have shown a far more muted pace. Companies in the energy, financial, utility, and consumer staples sectors have lagged the major indexes as investors focus on chasing the strongest performers of the year.

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

Digging Beneath The Surface Of Two Concentrated Value ETFs

Written by David Fabian, September 05th, 2015

We have seen a big shift in investor appetite away from traditional value companies and into high flying growth names over the last several years. That trend has continued in 2015, yet the recent volatility may have investors reconsidering the fundamental qualities of the stocks in their portfolio. Read more