TrimTabs Brings Another ETF Flavor to The Market

TrimTabs Asset Management is launching the TrimTabs Float Shrink ETF under the ticker  (TTAC) - Get Report  this week. This follows AdvisorShares' decision to replace TrimTabs as the Sub-Advisor for the AdvisorShares Wilshire Buyback ETF (TTFS) at the end of June. TTAC is primarily focused on generating long-term gains that exceed those of the Russell 3000 Index. It hopes to do 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," said Biderman. "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." TTAC is also focused 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. TTAC's expense ratio will be 59 basis points, compared to 90 basis points currently being charged for the AdvisorShares TTFS.