“The proprietary algorithm is the secret sauce that helps make the whole thing tick, helping us implement the Fund’s active methodology,” Ted Theodore, Portfolio Manager at TrimTabs Asset Management, said in a press release.
TTAC will try to generate long-term returns in excess of the total return or outperform the Russell 3000 Index, with less volatility than the benchmark index, by selecting 100 companies that are both generating free cash flow and diminishing share count without the use of leverage.
Moreover, the ETF also focuses on share reduction, “float shrink” or buybacks, where companies execute share reductions by diminishing the amount of shares outstanding. The float shrink strategy helps provide further value to the investor as people end up holding a “larger piece of the pie.”
For more information on new fund products, visit our new ETFs category.
TrimTabs International Free-Cash-Flow ETF (NYSEArca: FCFI)