Another important element to the buyback ETF equation is sector weights. Like its rivals, TTFS is heavy on technology and consumer discretionary (those sectors combined for 42% of the ETF’s weight at the end of January).
Tech “has added $24.3 billion in new buyback capacity YTD, the second highest among all sectors. We have many mega-cap companies from this sector now actively engaged in float shrink as those IT companies evolved from high-growth companies into slower-growth but more mature companies now paying dividends and buying back shares,” according to TTFS Portfolio Manager Minyi Chen. [A Selective Approach to Buyback ETFs]
TrimTabs Float Shrink ETF
Tom Lydon’s clients own shares of TTFS.