“Utilizing a quantitative algorithm, the manager screens approximately 3,000 U.S. companies on a daily basis and then invests in their highest ranked 100 stocks for TTFS’ equal-weighted portfolio. TrimTabs’ liquidity research shows that companies using free cash flow to shrink the trading float of shares create a potentially profitable supply and demand imbalance as more money chases fewer shares, and TTFS’ performance reinforces that notion. Since its inception on October 4, 2011, and through October 31, 2014, TTFS has outperformed the Russell 3000 Index,” according to AdvisorShares.
As of Jan. 31, TTFS allocated 22% of its weight to the technology sector and 20% to consumer discretionary stocks. The materials, financial services and health care sectors also had double-digit allocations in the fund as of Jan. 31, according to issuer data.
TrimTabs Float Shrink ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of TTFS.