Actively-managed Fund will feature low 0.59% expense ratio…
Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free cop
TrimTabs Asset Management (TTAM), a New York Citybased investment manager focused on free cash flow-centric strategies, today launched the TrimTabs Float Shrink ETF under the ticker (BATS: TTAC). This follows AdvisorShares’ decision to replace TrimTabs as the Sub-Advisor for TTFS as of June 30th 2016. In less than 90 days, TrimTabs is ready to begin rolling out their new line of free cash flow products.
With TTAC, TrimTabs is bringing its proven proprietary algorithmic approach to a new ETF. “We’re extremely excited to be able once again to offer our proven methodology to investors,” said Charles Biderman, Founder and CEO of TrimTabs Asset Management.
“The proprietary algorithm is the secret sauce that helps make the whole thing tick, helping us implement the Fund’s active methodology,” said Ted Theodore, Portfolio Manager at TrimTabs Asset Management.
TTAC is primarily focused on generating long-term gains that exceed those of the Russell 3000 Index. It does so by selecting approximately 100 companies that are both generating free cash flow and reducing their share count without the use of leverage.
“Free cash flow is the gold standard when it comes to evaluating a company,” Biderman added, “which is why it’s integral to TTAC’s methodology.” Free cash flow is a particularly powerful indicator of a company’s financial health, enabling closer scrutiny of underlying corporate fundamentals, and making it easier to identify quality companies with growing cash reserves. While managements have enormous discretion in how they report sales, earnings, assets, and liabilities, free cash flow is much less likely to be subject to the same financial gimmickry.
Another pillar of TTAC’s investment methodology is a focus on share reductions, also known as “float shrink.” Companies execute share reductions by lowering the amount of shares outstanding, most commonly through stock buybacks, though this can also be accomplished with other corporate actions. This can prove advantageous for investors holding the stock in question, as they end up holding a “larger piece of the pie.” TrimTabs takes an extra step by ensuring that companies executing buybacks are only doing so with free cash flow, not through additional leverage.
The Fund’s expense ratio will be 0.59%, amongst the lowest management fees available for an actively-managed ETF. This is a dramatic reduction from the 0.99% fee that TrimTabs was required to charge under AdvisorShares. As an actively managed ETF, TTAC offers investors the potential to achieve “alpha,” while maintaining low fees.
Source: ETFWorld.com
WMCR
Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index)
Lascia un commento