FMD Capital Management

Posts Tagged: vanguard

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

3 Dividend Growth ETFs You Should Get To Know

Written by David Fabian, August 11th, 2017

Dividend growth stocks are public companies that have shown a track record of successive year-over-year increases in their dividend payments to shareholders.  They represent an attractive way for income investors to augment and further diversify their portfolios away from a strict high yield focus.

One of the easiest ways to own this group is through a low-cost and liquid exchange-traded fund.  If you’ve been around the ETF space for a while, you have probably heard of the Vanguard Dividend Appreciation ETF (VIG) or the ProShares S&P 500 Dividend Aristocrats ETF (NOBL).  Both funds own a basket of stocks with dividend growth characteristics and have proven to be sound investment vehicles in their own ways. Read more

Asia ETFs Showing Strong Trend Signals

Written by David Fabian, July 18th, 2017

International stocks have made a big run through the first half of 2017 and one region that’s spearheading the charge is Asia.  Countries like Japan, India, South Korea, and Taiwan continue to exhibit dominant momentum driven by a combination of technical and fundamental factors.  The depreciation of the U.S. dollar versus regional foreign currencies is one of the more prominent stories driving this thrust, in addition to favorable corporate growth forecasts.

An excellent market capitalization weighted benchmark for tracking the Pacific Rim is the Vanguard FTSE Pacific ETF (VPL).  This low-cost index fund has exposure to over 2,200 securities spread throughout the Asia region.

Read the complete article on NASDAQ.com

2017 Mid-Year ETF Review And Market Update

Written by David Fabian, July 05th, 2017

2017 is already halfway in the books and it has been a banner start for exchange-traded funds (ETFs).  These prior six months saw nearly $250 billion flow into ETF coffers as both stock and bond indexes surged to new heights.  That type of fund flow would typically be indicative of a tremendous full calendar year.  However, as the bull market steams ahead, investors are throwing their weight behind the minimal cost, diversification, transparency, and liquidity that ETFs are famous for.

The biggest recipients of this new money are BlackRock and Vanguard, who easily dominate the competition. These industry titans are the only two companies represented in the top 10 ETFs by net asset flows through June 30.

Read the complete article at NASDAQ.com

Taking A Tour Through Europe ETFs

Written by David Fabian, May 02nd, 2017

The concept of investing in European stocks seems difficult to stomach considering the decade of lost returns versus their U.S. counterparts.  A new post by Michael Batnick, Director of Research for Ritholtz Wealth Management, details the difficult 10-year journey for this foreign investment class.  The U.S. has simply been the star outperformer on the global stage for so many consistent years that the home-bias phenomenon has been taken to a new level.

According to their research, U.S. stocks now make up 80% of the average U.S. investor’s equity portfolio.  The remaining 20% is likely split among a variety of European, Asian, and emerging market exposure.  This overweight exposure towards a high-flying asset class ultimately leaves many investors susceptible to being caught off guard as the pendulum swings in the opposite direction.

Read the complete article at NASDAQ.com