FMD Capital Management

Posts Tagged: ishares

2017 Mid-Year ETF Review And Market Update

Written by David Fabian, July 05th, 2017

2017 is already halfway in the books and it has been a banner start for exchange-traded funds (ETFs).  These prior six months saw nearly $250 billion flow into ETF coffers as both stock and bond indexes surged to new heights.  That type of fund flow would typically be indicative of a tremendous full calendar year.  However, as the bull market steams ahead, investors are throwing their weight behind the minimal cost, diversification, transparency, and liquidity that ETFs are famous for.

The biggest recipients of this new money are BlackRock and Vanguard, who easily dominate the competition. These industry titans are the only two companies represented in the top 10 ETFs by net asset flows through June 30.

Read the complete article at

Why I Broke Up With My Low Volatility ETF

Written by David Fabian, June 26th, 2016

This last week, we took an important step for client portfolios by eliminating a low volatility ETF that we have held for over two years now.  It was actually one of my favorite positions to own.  Not for the fact that it performed above our expectations, but because it allowed us the freedom to stay invested through all the mini-crises that arose during this period.  Read more

Chart Watch: European Financials

Written by David Fabian, June 20th, 2016

The carnage in banking stocks of developed countries in Europe has been a persistent theme throughout the last year. The combination of adverse economic progress coupled with negative interest rates in many developed countries has wreaked havoc with European financial institutions such as Credit Suisse Group (CS) and Deutsche Bank AG (DB).

One little-known exchange-traded fund that tracks this group is the iShares MSCI European Financials ETF (EUFN). This ETF has $194 million dedicated to a group of 100 European stocks in the financial sector. Top country allocations include the United Kingdom, France, Switzerland, and Germany.

Read the complete article at

Emerging Market ETFs: Value Trade Of The Next Decade?

Written by David Fabian, April 19th, 2016

The concept of value investing is one that has proven its worth over decades of cyclical investment trends.  Most often, investors who adhere to this practice are trying to uncover stocks or areas of the globe that are fundamentally mispriced in relation to more expensive alternatives.  Buying at a low relative valuation, with a long-term time horizon, can provide fruitful results as mature trends fade and fresh momentum takes shape.

One stunning example of this valuation gap can be seen in the divergence between emerging market stocks and those here in the United States.  The iShares MSCI Emerging Market ETF (EEM) has $26 billion dedicated to an index of 842 publicly traded companies in China, South Korea, Taiwan, India, Brazil and many others.

Read the complete article at

Growth Investing: Seasonality Favors Small Cap ETFs

Written by David Fabian, November 04th, 2015

Seasonality is an anachronism that is derived from certain asset classes historical penchant for over or under performance during certain times of the year. While it doesn’t always hold true in every instance, there is typically a trend towards strength in the fourth quarter that acts as a tailwind for certain stocks. Read more