The TrimTabs International Free-Cash-Flow ETF (NYSEArca: FCFI), which debuted in June 2015, is closing on Oct. 31.
“Shareholders may sell their holdings in the Fund prior to the Closing Date and customary brokerage charges may apply to these transactions. However, from November 1, 2016 through November 4, 2016 (the “Liquidation Date”), shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for the Fund’s shares during this time period. When the Fund commences liquidation of its portfolio, which is expected to occur on or about October 28, 2016 the Fund will be increasing its cash holdings and, as a consequence, not tracking its underlying index, which may not be consistent with the Fund’s investment objective and strategy,” according to a statement issued by TrimTabs.
FCFI TrimTabs Intl Free-Cash-Flow Index, which holds international companies with the highest free cash flow yield. Free cash flow yield is calculated by dividing the amount of free cash per share a company generates by its share price.
Last month, TrimTabs Asset Management has re-launched its popular float shrink exchange traded fund strategy, TrimTabs Float Shrink ETF under the ticker (BATS: TTAC).
[related_stories]The new TrimTabs FLoat Shrink strategy will bring its proven proprietary algorithmic approach to ETF investors.
“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.
SEE MORE: TrimTabs Looks to Launch Another Float Shrink ETF
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)
