Investors should take a look at buyback exchange traded funds as the markets head toward one of the busiest periods of the year for company stock repurchases.
November is the busiest month of the year for buybacks among S&P 500 companies, reports David Wilson for Bloomberg.
About 13% of annual spending occurs during the month of November on average for 2007 and 2009 through 2014, according to Goldman Sachs data.
That could mean the time is right for the TrimTabs Float Shrink ETF (NYSEArca: TTFS), one of the largest and most successful equity-based actively managed ETFs.
“What makes TTFS attractive is that its focus extends beyond buybacks. While share count reduction is an integral part of the fund’s methodology, the TTFS management team also considers how a company is funding its buybacks and its ability to generate free cash flow,” reports TheStreet.com.
The free cash flow is the leftover cash after accounting for operating expenditures, research and development, capital expenditures and new business ventures, along with adding back depreciation and non-cash charges.