ETF Watch: TrimTabs Plans Barrage Of Cash Flow Funds

January 19, 2017

A recent filing from TrimTabs outlines the firm’s ambitious plans to launch 14 actively managed ETFs constructed around TrimTabs’ free-cash-flow-based strategy.

The general methodology is essentially the same for each fund, but they rely on different selection universes defined by various S&P indexes. The methodology is designed to select companies that demonstrate the largest reductions in shares, the strongest free-cash-flow growth and the largest decreases in leverage over a six-month period. The firm combines the rankings of companies from all three criteria, and from there the top stocks are selected, with their weights in the portfolio based on their composite rankings.

The prospectus notes that the fund’s managers can adjust the weightings of individual stocks as they see fit.

The 14 funds are as follows:

  • TrimTabs US Large Cap Free-Cash-Flow ETF (TTLC)
  • TrimTabs US Mid Cap Free-Cash-Flow ETF (TTMC)
  • TrimTabs US Small Cap Free-Cash-Flow ETF (TTSC)
  • TrimTabs All Cap International Free-Cash-Flow ETF (TTAI)
  • TrimTabs International Large Cap Free-Cash-Flow ETF (TTIL)
  • TrimTabs International Mid Cap Free-Cash-Flow ETF (TTIM)
  • TrimTabs International Small Cap Free-Cash-Flow ETF (TTIS)
  • TrimTabs Global All Cap Free-Cash-Flow ETF (TTGA)
  • TrimTabs Global Large Cap Free-Cash-Flow ETF (TTGL)
  • TrimTabs Global Mid Cap Free-Cash-Flow ETF (TTGM)
  • TrimTabs Global Small Cap Free-Cash-Flow ETF (TTGS)
  • TrimTabs Emerging Free-Cash-Flow ETF (TTGE)
  • TrimTabs Global Healthcare Free-Cash-Flow ETF (TTHC)
  • TrimTabs Global Information Technology Free-Cash-Flow ETF (TTTG)

Currently TrimTabs only has one listed ETF, the Trim Tabs Float Shrink ETF (TTAC); the actively managed ETF uses a similar methodology to those of the proposed funds in the filing. TTAC has less than $10 million in assets under management.

The filing included tickers for each fund, but did not provide expense ratios. All of the products are slated to list on the Bats exchange. Bats Global Markets is the owner of ETF.com.

Contact Heather Bell at [email protected].

 

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