“I don’t want to touch those companies with a ten-foot pole,” Biderman added.
Incidentally, 57 of TTFS’s holdings have been acquisitions targets, which helped bolstered overall returns. The interest suggests that buyers enjoy acquiring firms with tidy balance sheets. On average, 1.3 TTFS holdings per month have been acquired since the ETF launched.
Additionally, the recently launched FCFI focuses on international companies taken from ten foreign markets with attractive free cash flows.
FCFI also equally weights its country and currency diversification. For instance, the ETF includes a 10% tilt toward Canada, Germany, U.K., Hong Kong, Japan, France, Switzerland, Netherlands, South Korea and Australia. [Looking for International Cash Generators? This ETF Has Them]
The strategy includes a “global equal weighting exposure to international markets with faster economic growth and reduction of single-country risk,” Biderman said.
Financial advisors who are interested in learning more about the TrimTabs strategies can listen to the webcast here on demand.
Full disclosure: Tom Lydon’s clients own shares of TTFS.