“Top insiders at a firm know more about its fundamentals than the investing public. These insiders can influence the price of their employers’ shares by timing equity issuance and stock buybacks to their advantage,” according to a fact sheet on the ETF. “Supply and demand also dictates that stocks should perform best when their float is shrinking. All else being equal, if the same amount of money is chasing a smaller float, then the share price increases. TTFS’ stock selection algorithm is based on this premise.”
Aside from shareholder-friendliness as measured by float shrink, the portfolio manager TrimTabs also screens companies based on profitability and balance sheet strength. TTFS in actively managed ETF.
Finally, NFO holds about $130 million of assets and levies a net expense ratio of 0.65%. It follows the Sabrient Insider Sentiment Index. The benchmark selects stocks that reflect favorable corporate insider buying trends and recent earnings estimate increases by Wall Street analysts.
PowerShares Buyback Achievers
