ETF Watch: TrimTabs Resurfaces With New Fund

Two more ETFs are making their way onto the Bats Global Markets exchange—one a new take on a fund that was first offered through AdvisorShares, and the other an active take on oil futures.

TrimTabs Float Shrink ETF (TTAC)

TrimTabs is launching today an ETF under its own exemptive relief that’s similar to a fund it used to offer under AdvisorShares—the TrimTabs Float Shrink ETF (TTFS). TTFS is now managed by Wilshire after having been renamed the AdvisorShares Wilshire Buyback Fund (TTFS), and it will now compete with the newcomer TTAC.

But like TTFS, TTAC will select its components from the Russell 3000 based on how much they have seen their leverage and free float shrink and their free cash flow grow during the preceding 120-day period. The potential components are ranked via an algorithm based on those three qualities, with the fund's managers selecting the top 80-100 of the highest-ranked stocks.

The fund is listed on Bats, which owns ETF.com.

ProShares K-1 Free Crude Oil Strategy ETF (OILK)

ProShares is launching today OILK, an actively managed ETF that will provide exposure primarily to the West Texas Intermediate (WTI) crude oil futures markets without investors receiving a K-1 tax form. This is the first crude oil fund designed for investors not to be sent K-1 forms. It achieves that with exposure indirectly via a Cayman Islands subsidiary. OILK will provide shareholder tax reporting information on the more standard 1099 forms. The fund will mainly hold first-, second- and third-month WTI crude oil futures contracts that will be selected at the manager’s discretion based on liquidity and the costs of the positions.

The manager will seek to keep a lid on exposure to contango and negative roll yield, two things that are known to impact oil futures.

“Many investors want to invest in crude oil with the convenience of an ETF, but all other crude oil ETFs involve complicated tax reporting,” said Michael Sapir, co-founder and CEO of ProShares Advisors LLC, the advisor to ProShares. “OILK is the only U.S. ETF that lets investors get crude oil exposure but skip the K-1 tax form.”

The fund is listed on Bats.

ETF Closure

ETF Traded Concepts has shuttered the CrowdInvest Wisdom ETF (WIZE) only about four months after it came to market. The fund planned to last trade on Sept. 27.

Contact Cinthia Murphy at [email protected]