FMD Capital Management

Posts Tagged: hyg

Defensive Strategies For High Yield Bond ETFs

Written by David Fabian, November 15th, 2017

Since early 2016, the trend in credit-sensitive securities has been predominantly higher as yield spreads compress and risk behavior leans on the bullish side. Income-focused investors have poured billions of dollars into exchange-traded funds that track these markets, led by the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and SPDR High Yield Corporate Bond ETF (JNK).

More recently, HYG and JNK have exhibited several sharp down days despite the relative calm buoying the global equity markets.  This divergence has many bond investors worried about the future growth prospects of high yield debt and whether they should shield their gains from a potential correction in risk assets.

Read the complete article at NASDAQ.com

How Safe Is Your High Yield ETF?

Written by David Fabian, October 18th, 2017

The strong outperformance of credit-related securities and progressive trend in interest rates has emboldened many investors to bulk up on high yield funds over the course of this bull market.  The minimal dividends from traditional CDs and high-quality Treasury bonds leaves little to be desired when compared to corporate or municipal debt yielding magnitudes of greater income.

The combination of high dividends, consistent capital appreciation, and relatively low volatility have made for an attractive opportunity for many income investors portfolios.

Read the complete article at NASDAQ.com

State Of The Market In 5 Charts – August 2017 Edition

Written by David Fabian, August 19th, 2017

The summer is rapidly closing and a new season will shortly be upon us.  The seasonality of the markets this time of year has always been a tricky proposition as well.  With that in mind, I’m going to outline my current thoughts on some of the big picture charts. 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

State Of The Market In 5 Charts – June 2017 Edition

Written by David Fabian, June 25th, 2017

The halfway point of 2017 is nearly upon us and as investors consider market dynamics, there is much to be both excited and worried about.  The following are some of the most interesting charts on my radar right now and their implications for your portfolio.

PowerShares QQQ (QQQ)

In my opinion, no other major index can define the resilience of growth stocks better than the NASDAQ-100 over the last several years.  This ebullient group of the 100 largest non-financial stocks on the NASDAQ Stock Exchange has now spent 137 trading days above its 50-day moving average.  That’s a new all-time record according to Charlie Bilello of Pension Partners. Read more