FMD Capital Management

Posts Tagged: sphb

Understanding High Beta ETFs

Written by David Fabian, October 31st, 2017

One important dynamic of portfolio construction and risk management is understanding how your stocks fluctuate in relation to the broader market. This factor is often referred to as “beta,” which is essentially the historical volatility of a stock or fund in relation to a benchmark such as the S&P 500 Index.

The higher the measured beta of your holdings, the greater price fluctuations they will have in comparison to the benchmark. A high beta score doesn’t necessarily mean that your investments will outperform on the upside or underperform on the downside. It simply means they have exhibited characteristics of outsized moves or over-reactions in the past.

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It’s a Risk Adverse World Out There

Written by David Fabian, August 19th, 2015

Investors have been pulling back on the risk handle for some time now and shedding areas of their portfolio that may be susceptible to heightened volatility. Virtually anything connected to the energy or materials sectors has been torched this year. That extends to emerging market countries and high yield bonds, which have also felt the effects of the commodity crash. Read more

Observations of Risk, Reward, and Expectations Using ETFs

Written by David Fabian, November 12th, 2014

The concept of symmetry when it comes to risk is something that most investors overlook.  I have found that most people hone in on one aspect of an investment that looks attractive or dismal rather than taking a holistic approach to their analysis. Read more

3 (More) Mistakes To Avoid With Your ETF Portfolio

Written by David Fabian, September 18th, 2014

A little over a year ago I wrote a well-received article about the 5 mistakes to avoid with your ETF portfolio. The tips ranged from not falling in love with your ETFs to trade execution and tax consequences.

Fast forward to today and the ETF universe has expanded in a number of ways that warrant some additional advice in a number of key areas. I share these thoughts as a consequence of my daily research and experience so that you can be better prepared to analyze your holdings and make informed decisions about your ETF portfolio. Read more

Measuring Investors’ Appetite for Risk Using ETFs

Written by David Fabian, August 12th, 2014

Each individual investor has a unique appetite for risk that should be respected when constructing a portfolio of ETFs to weather the market’s machinations. While some investors are more aggressive or trading oriented, others might lean towards a conservative mix of assets to meet their goals. Both styles should be embraced despite the tendency to not understand the risk-taking mentality of the opposite group.

But how do you define risk in the market on an intra-day basis using ETFs?  Read how at