FMD Capital Management

Posts Tagged: liquidity

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

Data Proves ETF Investors Prefer Battle-Tested Funds

Written by David Fabian, August 15th, 2017

One of the bigger concerns in the world of exchange-traded fund is the overall growth of the industry over the last decade. As these vehicles swell in popularity, so too does the number of funds that are launched every year and the amount of money that investors entrust to this diversified vehicle.

Some market watchers fear that ETFs themselves are becoming inherently risky for two reasons:

Read the complete article at NASDAQ.com

Faceoff: SPY vs QQQ

Written by David Fabian, July 13th, 2016

The biggest and most heavily-traded ETFs are often the ones that investors default to for stock exposure.  The most obvious benefits are liquidity, low-cost, and flexibility to be either long or short the market in size.

For traders, the clear favorites are the SPDR S&P 500 ETF (SPY) and PowerShares QQQ (QQQ).  Both of these funds provide broad-based exposure to a wide range of stocks in a single investment vehicle.  They are also two of the most heavily traded ETFs in the market on a daily basis.  This makes them exceptional tools as either core holdings or tactical trading vehicles.   Read more

4 Mistakes To Avoid When Trading ETFs

Written by David Fabian, April 21st, 2015

It is always a good idea for investors that are getting used to the structure of exchange-traded funds to review some common trading mistakes. That way you won’t fall into the same pitfalls that even large professional traders have been known to make.

While most ETF trading falls into a similar category as individual stocks, there are some definable nuances that must be addressed to successfully buy and sell these vehicles. After all, the costs associated with slippage, liquidity, or incomplete information can immediately put you at a disadvantage and are easily avoided.

Read the full article at NASDAQ.com