TrimTabs Asset Management (TTAM), the fast-growing ETF provider with a focus on free cash flow as a leading quality metric, today announced the launch of two new exchange-traded funds (ETFs):
- The TrimTabs Donoghue Forlines Risk Managed Innovation ETF (DFNV); and
- The TrimTabs Donoghue Forlines Tactical High Yield ETF (DFHY)
TTAM has launched 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 U.S. 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,” said 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% of the portfolio into intermediate-term U.S. 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,” added 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,” said 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).
Please Note: 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,” said 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.”
Both funds have significant track records, with TrimTabs looking forward to TTAC’s fifth anniversary in 2021. More information on both funds can be found at trimtabsfunds.com.
About TrimTabs Asset Management
TrimTabs Asset Management (TTAM) was founded in 2008 on the belief that investors should be able to access alpha-oriented strategies that aim to outperform the broad market without paying high management fees. TrimTabs’ investment products are based on 30 years of TrimTabs Investment Research and built around the firm’s proprietary Free Cash Flow-driven quantamental investment process. For more information, visit https://trimtabsfunds.com/
About Donoghue Forlines:
Donoghue Forlines is a Boston-based tactical investment firm that has specialized in active risk-managed portfolios since 1986. We offer a full suite of proactive strategies designed to help advisors and their clients de-risk when market circumstances warrant it, enabling them to stay disciplined to meet their investment objectives.
The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-800-617-0004. Read it carefully before investing.
Investing involves risk, and principal loss is possible. There is no guarantee that the Funds will achieve their investment objectives. Returns on investments in foreign securities could be more volatile than investments in domestic securities. Investment in lower-rated and non-rated fixed income securities presents a greater risk of loss to principal and interest than higher-rated securities. Passive funds that seek to track an index may hold the component securities of the underlying index regardless of the current or projected performance of a specific security or the relevant market as a whole, which could cause the fund returns to be lower than if the fund employed an active strategy.
Regarding the TrimTabs Donoghue Forlines Tactical High Yield ETF and TrimTabs Donoghue Forlines Risk Managed Free Cash Flow Innovation ETF:
The information in this communication is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This communication is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice.
Shares of any ETF are bought and sold at market price (the current price at which shares are bought and sold, not NAV (the dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding). They may trade at a discount or premium to NAV, are not individually redeemed from the Fund, and brokerage commissions will reduce returns.
The TrimTabs ETFs are distributed by Quasar Distributors, LLC.
Free Cash Flow (FCF) represents the cash that a company is able to generate after accounting for capital expenditures.
Chris Sullivan/Julia Stoll