FMD Capital Management

Posts Tagged: growth investing

Say Hello To Artificial Intelligent ETFs

Written by David Fabian, February 06th, 2018

Artificial intelligence is one of those buzz words that sound so futuristic. A computer that functions with the speed and intellect of a human without all the underlying emotion. Scientists and technology experts have spent decades working to develop this next innovative leap with mixed results. While some may argue that we aren’t all the way there yet, it should come as no surprise that investors can apply these themes directly in their portfolio using exchange-traded funds.

There are really two ways to accomplish this feat: 1) invest in companies that are working on artificial intelligence and robotics projects or 2) use intelligent algorithms to select stocks for you.

Read the complete article at NASDAQ.com

Understanding High Beta ETFs

Written by David Fabian, October 31st, 2017

One important dynamic of portfolio construction and risk management is understanding how your stocks fluctuate in relation to the broader market. This factor is often referred to as “beta,” which is essentially the historical volatility of a stock or fund in relation to a benchmark such as the S&P 500 Index.

The higher the measured beta of your holdings, the greater price fluctuations they will have in comparison to the benchmark. A high beta score doesn’t necessarily mean that your investments will outperform on the upside or underperform on the downside. It simply means they have exhibited characteristics of outsized moves or over-reactions in the past.

Read the complete article at NASDAQ.com

Thematic ETFs Are Finally Gaining Some Much-Needed Respect

Written by David Fabian, September 26th, 2017

Thematic funds have long been one of the more dubious areas of the ETF industry. In a broad sense, this genre is all about taking an investment concept with potentially long-term, cyclical implications and finding a group of stocks that fit the criteria. It’s more about investing in a story rather than identifying companies based on strict fundamentals or sector prowess.

Want to invest in the trend of weight loss, clean energy, or social media growth? There are now multiple funds to choose from in each category.

Thinking that you want your portfolio positioned according to your political, religious, or ethical beliefs? I can easily point you in the right direction with several options to choose from.

Read the complete article at NASDAQ.com

FANG ETF Takes Performance Chasing To The Next Level

Written by David Fabian, July 15th, 2017

We’ve finally hit peak “FANG”.  The acronym used to describe a handful of high growth stocks including Facebook, Amazon, Netflix, and Google.  It’s a way for market watchers and CNBC aficionados to easily reference these big winners without overtaxing their jaw muscles.

All four of these household names have gained more than 30% over the last 52-weeks.  Their momentum has become so unstoppable that someone felt it would be a good idea to create an ETF geared specifically towards this theme. Read more

Sector Rotation: Sell Tech and Buy Energy?

Written by David Fabian, June 15th, 2017

Every year brings with it new challenges with respect to sector leaders and laggards.  This is particularly acute for investors that own individual stocks or that like to add tactical exposure via sector-focused ETFs.  Sometimes you are in the sweet spot and other times you miss the mark entirely.

That scenario perfectly encapsulates the recent divergence between the top and bottom performing sectors this year.  Technology has been the big outperforming growth theme that has been driven by tremendous momentum and enthusiastic sentiment.  Conversely, energy stocks have languished by the wayside as falling oil and natural gas prices weigh on valuation prospects.  Read more