Q: Follow-up on your answer to the question on this ETF: is this a buy and hold strategy or there is a certain way of using it? Please feel free to elaborate and deduct points as appropriate
5i Research Answer:
FMCO has a good long term record. Generally, we would see it more as a buy and hold, but......it is all equities so if one is concerned about the market it is not the best to hold as a 'defensive' position. It will decline in a market correction. Momentum can go out of favour as well. BUT.....any shifts of course would be a form of market timing, and if one wants equity exposure in general we would be comfortable owning this 'through the cycle'.