FMD Capital Management

Posts Tagged: passive

Meet The New State Street Portfolio ETFs

Written by David Fabian, October 24th, 2017

The investment management fee wars just escalated to a new level with the announcement that State Street is dropping expenses and re-naming 15 of its diversified exchange-traded funds. This transformed group will be dubbed the “SPDR Portfolio” series and is aimed squarely at the likes of Vanguard, BlackRock, and Charles Schwab in testing the ultimate boundaries of minimalist fund costs.

The new average expense ratio across all 15 SPDR portfolio ETFs is an astounding 0.06%, with several offerings being listed for as low as 0.03%. That’s just $30 per year in embedded expenses for every $100,000 invested and marks a strong advancement for ETF portfolio construction. State Street has also partnered with TD Ameritrade to make these funds commission-free to trade on their brokerage platform, further maximizing the total return of these funds for shareholders.

Read the complete article at NASDAQ.com

What A Time To Be Alive

Written by David Fabian, October 12th, 2017

This morning I saw the graphic below posted on social media as a marketing tool for the new Schwab 1000 Index ETF (SCHK).  The intent of this message is to point out the advantageous expense ratio of SCHK in relation to its competition.  The fund charges just 5 basis points per year to own the 1,000 largest stocks in the United States. Read more

Marrying Active and Passive Management

Written by David Fabian, October 03rd, 2017

One of the latest stories making the rounds on social media is that Warren Buffett is willing to wager (once again) that an index fund can beat active management over a 10-year time horizon.  Buffett made this bet with a prominent hedge fund manager nearly a decade ago with the proceeds going to a charity of the winners choosing.  He handily beat his first opponent and now another contender wants to take a shot at “The Oracle of Omaha”.  Read the complete post here on CNBC for all the details on this potential match-up.    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