FMD Capital Management

Posts Tagged: momentum

FANG ETF Takes Performance Chasing To The Next Level

Written by David Fabian, July 15th, 2017

We’ve finally hit peak “FANG”.  The acronym used to describe a handful of high growth stocks including Facebook, Amazon, Netflix, and Google.  It’s a way for market watchers and CNBC aficionados to easily reference these big winners without overtaxing their jaw muscles.

All four of these household names have gained more than 30% over the last 52-weeks.  Their momentum has become so unstoppable that someone felt it would be a good idea to create an ETF geared specifically towards this theme. Read more

Sector Rotation: Sell Tech and Buy Energy?

Written by David Fabian, June 15th, 2017

Every year brings with it new challenges with respect to sector leaders and laggards.  This is particularly acute for investors that own individual stocks or that like to add tactical exposure via sector-focused ETFs.  Sometimes you are in the sweet spot and other times you miss the mark entirely.

That scenario perfectly encapsulates the recent divergence between the top and bottom performing sectors this year.  Technology has been the big outperforming growth theme that has been driven by tremendous momentum and enthusiastic sentiment.  Conversely, energy stocks have languished by the wayside as falling oil and natural gas prices weigh on valuation prospects.  Read more

2017 Outlook: Reading The Trends In Emerging Market ETFs

Written by David Fabian, December 10th, 2016

Investors are likely feeling emboldened by the strength of stocks as we close out the final month of 2016.  Bullish enthusiasm can be infectious and now the race is on to determine which sectors or regions will be the top-performing areas of the market in 2017.  While there is no way to know where the winner will be ahead of time, there is one noteworthy area that has piqued my interest – emerging markets. Read more

It’s Been A Volatile Year For Natural Resource ETFs

Written by David Fabian, December 06th, 2016

A simple screen for the year’s top-performing unleveraged ETFs reveals the unabashed strength of natural resource stocks as a standout group.  Much of this momentum can be attributed to a combination of the rebound in commodities paired with an extremely beaten down industrial complex. In a year where the unexpected has become the norm, this sector has risen to the top despite its skeptics and also experienced some volatile bumps along the way.

As we head into the final stretch of 2016, the strongest ETFs are primarily made up of companies with a metals and mining focus.

Read the complete article at NASDAQ.com

Face-Off: Two Active ETFs For Momentum Investors

Written by David Fabian, September 20th, 2016

Owning stocks with a high degree of momentum has been a strategy that many investors have sought to capture over time.  This single factor is often described as a security that has higher recent performance than that of its peer group.  Put simply, stocks that are showing strong trends tend to maintain that outperformance as more investors become aware of the story.  Relative performance is often reason enough to lure in more buyers and extend the existing motion that is already in place.

It should come as no surprise that there are a number of exchange-traded funds that seek to isolate this factor in a diversified basket of stocks.  The first generation of which are based on passive indexes with rules-based criteria to identify top performers.

Read the complete article at NASDAQ.com