Bringing you live news and features since 2006 

TrimTabs launches All Cap International Free Cash Flow ETF


TrimTabs Asset Management (TTAM), a New York City-based investment manager focused on free cash flow-centric strategies, has launched the TrimTabs All Cap International Free-Cash-Flow ETF, TTAI.

TAI is the second free cash flow-centric ETF to be added to the TrimTabs lineup, after TTAC, the TrimTabs Float Shrink ETF, which focuses on domestic companies generating strong free cash flow and reducing share counts.

With TTAI, TrimTabs is bringing its algorithmic approach to the international free cash flow area. “We’re thrilled to be able to expand our free cash flow offerings to encompass non-US based companies as well,” says Charles Biderman, Founder of TrimTabs Asset Management. “When used in conjunction with one another, TTAI and TTAC will allow investors to customize their domestic and international free cash flow exposure, all within one product suite.”

“The proprietary algorithm is the engine that drives the whole investment process, and we are now able to survey all global equities to find those that meet our criteria,” says Ted Theodore (pictured), Chief Investment Officer at TrimTabs Asset Management.

TTAI is primarily focused on generating long-term gains that exceed those of the S&P Developed Ex-US Index. It does so by selecting approximately 85 companies in non-US developed markets—including Europe, Asia, South Asia, and Canada—that are both generating free cash flow, reducing their share count without the use of leverage, and maintaining healthy balance sheets.

“Free cash flow is an extremely powerful, useful metric when it comes to evaluating a company,” Biderman adds, “which is why it’s integral to TTAI’s methodology.”

The firm writes that while managements have enormous discretion in how they report sales, earnings, assets, and liabilities, free cash flow is significantly less likely to be subject to some of the financial gimmickry inherent in much of today’s accounting practices. It enables closer scrutiny of underlying corporate fundamentals, making it easier to identify quality companies with growing cash reserves.

Another pillar of TTAI’s investment methodology is a focus on share reductions. 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 is 0.59 per cent, which is less than the average of what other actively managed international ETFs charge based on the average fee of its peer group, the firm says. “As an actively managed ETF, TTAI offers investors the potential to achieve ‘alpha,’ while maintaining low fees.”

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by