The ETF’s strategy is also tax efficient, Biderman argues. [New AdvisorShares ETF Based on TrimTabs Research]
The fund is less than a year old, launching in October 2011.
“The fund is loosely based on three quantitative factors: changes in shares outstanding, cash flow, and leverage. The definitions and even the descriptions of the factors in various marketing material provided by the fund company is very limited, so we consider this fund to be more of a black box,” Morningstar says in an analyst report on TTFS. “In the current environment of low interest rates, we think investors should consider strategies that focus on dividend-paying firms or firms that buy back shares.”
PowerShares Buyback Achievers (NYSEArca: PKW) is an ETF with a similar strategy.
TrimTabs Float Shrink ETF
Tisha Guerrero contributed to this article.