Written by David Fabian, June 20th, 2017
Setting reasonable expectations for dividend income is an aspect of investing that many retirees have yet to embrace. With 10-Year Treasury yields hovering in the low two percent range, there is generally a need for other investment options to supplement high quality fixed-income. This is often when investors turn to exchange-traded funds that track a basket of riskier assets to generate the income they desire or to chase a top-performing market sector.
Read the complete article at NASDAQ.com
Written by David Fabian, May 18th, 2017
I was fortunate enough to be invited to speak at the Las Vegas Money Show this week and chose to deliver an educational presentation on closed-end funds (CEFs). My focus was on the right way to analyze, select, size, and trade these unique investment vehicles.
There are a number of advantages to using CEFs in your portfolio – from bolstering your high yield exposure to tapping into an active investment managers’ prowess. Whatever your goal may be, these tools can be an effective way to generate income and alpha when used correctly. Below are the PowerPoint slides from my presentation that you can download to view.
May 2017 CEF Presentation Slides
Written by David Fabian, April 28th, 2017
The hot hand in the closed-end fund marketplace this year are global equity funds. These diversified portfolios own a mix of U.S. and international stocks with the added boost of embedded leverage. Some also employ options or other derivative strategies to generate a portion of the abundant income that is distributed to shareholders. Read more
Written by David Fabian, February 02nd, 2017
Emerging market bonds were one of the few bright spots across the fixed-income landscape in 2016. This category trailed only U.S. high yield debt by total return metrics despite some meaningful volatility in the aftermath of the U.S. election. Investors also took notice of this outperformance and the favorable yields to boot. Read more
Written by David Fabian, January 17th, 2017
Investors who have held onto their U.S.-focused dividend ETFs have been rewarded in both income and capital appreciation during the breadth of this bull market. The combination of relative momentum, low volatility, and steady accumulation of quarterly distributions have been the hallmarks of this steady trade.
Yet, those who study market history know that price performance that outstrips company fundamentals comes at a cost. Namely higher statistical valuation measures, alongside slowly decreasing yield for new investors. As a result, dividend stocks that looked attractive several years ago are now starting to rise into the expensive zone relative to other global opportunities.