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Stock Buyback Pace Remains Strong Says Float Shrink Fund Manager

The pace of stock buybacks remains strong which bodes well for the TrimTabs Float Shrink ETF, said the fund's portfolio manager Minyi Chen.

The pace of stock buybacks remains strong which bodes well for the TrimTabs Float Shrink ETF, said the fund's portfolio manager Minyi Chen. The TTFS, which holds 100 companies that buy back shares with free cash flow, has significantly outperformed the S&P 500 over the past 2 years. Chen said the IT and consumer discretionary sectors have been biggest areas for buybacks over the past year. Finally, Chen said that rising interest rates will benefit this strategy because companies with strong free cash flows do not depend too heavily on borrowing money to finance operations or buy back shares.

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