FMD Capital Management

Posts Tagged: income investing

What’s The Bull Case For International Bond ETFs?

Written by David Fabian, November 21st, 2017

This week’s ETF column was spawned by a thought-provoking statement on Twitter from one of my favorite follows @econompic.  He deftly pointed out the disparity in current yield between a risk-free savings account in the United States versus the paltry income derived from broad-based international bond ETFs.

For example, one can now easily earn 1.25% (or greater) in a savings or money market account versus the 0.73% current yield of the Vanguard International Bond ETF (BNDX).  This exchange-traded fund is considered one share class of the broader Vanguard International Bond mutual fund series, which combined house over $94 billion in total assets.

Read the complete article at NASDAQ.com

3 Underrated Bond ETFs For Your Income Portfolio

Written by David Fabian, August 25th, 2017

I write a ton of words every week on the topic of building income portfolios using exchange-traded funds.  Some articles are purely an exercise in research and education, while others are directed towards real-world concepts that we are implementing for clients of our firm.

It’s through this process that I often dive into a new fund or sector and compare it to an established group of peers.  It’s also refreshing to see funds that I have reviewed favorably in the past live up to (or exceed) their lofty expectations.  Read more

3 High Yield International Bond ETFs

Written by David Fabian, August 22nd, 2017

The high yield credit markets have been a smooth ride for income investors throughout 2017. The combination of a steady global equity market uptrend, low volatility, and an abundant thirst for yield has been a tailwind for riskier fixed-income securities.

While many investors have been fixated on the risks and opportunities for owning U.S. corporate debt, the international markets have been steadfastly climbing to new heights. This trend has produced some impressive total return statistics for exchange-traded funds that track these assets.

Read the complete article at NASDAQ.com

Volatility In CEFs Is Creating New Opportunities

Written by David Fabian, August 21st, 2017

Virtually every corner of the closed-end fund (CEF) marketplace has been on an unrelenting grind higher over the last 18-months.  Very few pullbacks have meant that you either had to be in these vehicles to capture the capital appreciation from the get-go or grind your teeth and jump in at some random point along the way. Read more

It’s Been A Dreary Year For High Dividend ETFs

Written by David Fabian, July 25th, 2017

If there is one asset class that conservative investors love to own, it’s dividend stocks. These high payout companies differentiate themselves from their growth-oriented peers by electing to return earnings to shareholders in the form of quarterly income. This presents an attractive way for retirees and other income-focused investors to participate in the equity markets as well as boost the aggregate yield of their portfolio.

Dividend stocks are unique in that their business models are generally well-established with healthy cash flow or capital financing capabilities. In some instances, these attributes can also lend themselves to lower volatility than a basket of high growth stocks focused on cash burn and product or services innovation.

Read the complete article on NASDAQ.com