Written by David Fabian, August 31st, 2017
If there’s one thing investors love, it’s consistency and reliability. Two attributes that deftly describe the trend of exchange-traded funds that track low volatility stocks.
This unique category of the ETF universe has rapidly expanded in recent years through a combination of persistent fund flows and sector momentum. The factors that ultimately shape low volatility indexes have proven to offer attractive characteristics for conservative investors that want equity exposure without the downside risk of a typical broad-based benchmark. Read more
Written by David Fabian, October 11th, 2016
Income investors are typically comforted by the reliability of monthly dividends. This consistent stream of payments is common among bond funds as a steady source of passive income. However, there are much longer gaps in the cash flow cycle from the majority of stock-focused ETFs that pay quarterly dividends. This creates a lumpy pattern over the course of a calendar year that may be inconsistent with fixed budgets and other financial projections.
Fortunately, there are a variety of stock-focused ETFs that have set out to solve this issue by declaring smaller monthly payments rather than larger quarterly deposits. This creates a smoother flow of income and allows for easier forecasting of spendable portfolio yield. The following list of funds are some of the larger and more established offerings in this group.
Read the complete article at NASDAQ.com
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
Written by David Fabian, April 26th, 2016
Low volatility ETFs have become an increasingly popular tool for investors to access a subset of stocks with historical trends of minimal price fluctuations versus their peers. While these funds have existed for half a decade now, they have recently seen a huge influx of capital in relation to other stock-focused strategies.
According to ETF.com fund flow data, the iShares MSCI USA Minimum Volatility ETF (USMV) has added $4.4 billion in new asset since the start of 2016. That ranks as the second highest year-to-date asset accumulation of any U.S.-based exchange-traded fund. Not far behind is the iShares MSCI EAFE Minimum Volatility ETF (EFAV), which has added $1.9 billion this year as well. This is likely due to the heightened concern for another dip in stock prices alongside the successful relative performance story that these indexes have been able to generate.
Written by David Fabian, February 17th, 2016
This article is the first in a series co-authored by David Fabian (fmdcapital.com) and Aaron Jackson (jacksonstocks.com). Each week we will be unlocking the secrets to some of the most talked-about exchange-traded funds in the market. The goal is to better understand what you own or elevate new ideas to the forefront of your watch list.
Many investors have been caught off guard this year with the sharp drop in stocks combined with a rush to safety in traditional defensive asset classes. This week we will be reviewing a trio of diversified ETFs designed to hold stocks with lower historical price fluctuations than traditional market-cap weighted benchmarks. These tools can be useful for more conservative investors that are seeking to maintain an allocation to stocks with the goal of mitigating downside risk. Read more