TrimTabs Asset Management (TTAM), a fast-growing ETF provider with a focus on free cash flow as a leading quality metric, has launched two new funds – The TrimTabs Donoghue Forlines Risk Managed Innovation ETF (DFNV), and The TrimTabs Donoghue Forlines Tactical High Yield ETF (DFHY)TTAM will be launching both funds in partnership with Donoghue Forlines, a tactical investment firm with a long track record of providing risk-managed portfolio solutions. DFNV aims to track the performance of the TrimTabs Donoghue Forlines Risk Managed Free Cash Flow Innovation Index. The rules-based Index seeks to provide risk-managed exposure to US publicly traded companies with both strong free cash flow and strong research and development spending.
“We’re very excited to be launching an ETF designed to capture not only the most innovative companies but specifically that subset of innovators that is simultaneously generating consistent free cash flow, something our research has long found to be a signal of potential outperformance,” says Bob Shea, CEO & Chief Investment Officer with TTAM. “Our proprietary algorithm, which utilizes a free cash flow innovation score in powering this fund, is well complemented by the tactical asset allocation model that our partners at Donoghue Forlines bring to the table.”
DFHY is designed to track the performance of the TrimTabs Donoghue Forlines Tactical High Yield Index. This index also follows a rules-based strategy that employs a tactical overlay driven by a technical signal to determine a bullish or defensive posture. Should market conditions warrant defensive positioning, the tactical overlay will trigger a move that will shift 80 per cent of the portfolio into intermediate-term US Treasury ETFs. When a more bullish posture is indicated, the Index and Fund will shift to positions in High Yield Fixed Income ETFs.
“Though DFHY is our first fixed income ETF, it fits well with the overall TTAM approach and philosophy,” adds Shea. “We’re very pleased to be providing this powerful new tool for investors that can help them take some of the guesswork out of the income sleeve of their respective portfolios.”
“We’ve long made use of ETFs in building tactical, risk-managed solutions for all types of investors, and we’re very pleased to be partnering with TTAM in bringing these new ETFs to the marketplace,” says John A Forlines, III, Chief Investment Officer with Donoghue Forlines. “We’re confident that investors and advisors will find these differentiated approaches to be extremely useful as they search for opportunities in the equity universe and tactical approaches to navigating fixed income.”
These two new funds join TTAM’s existing family of ETFs, which have been renamed as of November 18th to better reflect the funds’ unique and proprietary focus on Free Cash Flow to evaluate and invest in Quality companies.
The funds have been renamed as follows:
TTAC is now the TrimTabs US Free Cash Flow Quality ETF (TTAC); and
TTAI is now the TrimTabs International Free Cash Flow Quality ETF (TTAI).
These changes do not affect the funds’ underlying strategies or implementation in any way.
“These are small but important changes to the names of our existing ETFs,” says Shea. “In conversations with advisors and other investors, it has become apparent that our focus on free cash flow clearly resonates with them as they delve into the unique mix of quantitative research and active management that we can bring to their respective portfolios. Additionally, our strategies can play a key role for investors looking to add Quality equity exposure. Now, the names of our funds better reflect these objectives.”