FMD Capital Management

Posts Tagged: index

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

Are Active Stock Picking ETFs Missing The Point?

Written by David Fabian, August 29th, 2017

The influx of capital into exchange-traded funds has prompted many active managers to take a hard look at their business models. The old days of high-fee mutual funds, hedge funds, and separate accounts are becoming harder to justify. Investors want transparency, they want liquidity, and they want low-cost.

Those are the hallmarks of the exchange-traded fund platform. It’s why companies like BlackRock and Vanguard have expanded their asset management businesses by hundreds of billions of dollars over the last several years. This is a freight train of capital moving in virtually one direction with no signs of slowing down.

Read the complete article at NASDAQ.com

4 Key Factors To Consider Before Selecting An Active ETF

Written by David Fabian, June 13th, 2017

ETF investors have wholeheartedly embraced the transparency and low-cost of passively managed investment vehicles.  Billions of dollars every year since the great financial crisis have left the obfuscated world of high-priced mutual funds and transitioned into index-based ETFs.

This rotation is almost entirely based on the foundation that you know exactly what you own, why you own it, and what the minimal expenses will be. There is a comfort and reliability that the fund will perform to an exacting standard with very little deviation from its benchmark.

Read the complete article at NASDAQ.com

2 Key Factors For Judging Investment Returns

Written by David Fabian, May 07th, 2017

The ability to compare your historical returns to an index or benchmark is an important component of investment success.  This exercise allows you to judge whether your strategy is performing up to your expectations or review the effectiveness of someone else’s advice before you decide to hire them.  While this practice is commonplace throughout the industry, I often see investors making head-scratching conclusions based on biased or incomplete information. Read more

Presentation: The Benefits Of ETFs

Written by David Fabian, May 04th, 2017

This last week I had the privilege of honing my speaking skills by delivering a presentation on ETFs to a group of college students.  My first impression of these eager future investors was their thirst for knowledge of how ETFs work.  They were intrigued by how indexes are constructed, the low costs compared to mutual funds, and how investing in ETFs is far easier than picking individual stocks.

I covered these topics in an hour-long PowerPoint that is available for download here.  This information may be review for ETF veterans, but even the most battle-hardened investors may pick up some tidbits from the slides.

If you have any questions after reviewing this presentation, don’t hesitate to reach out to us.