Free Cash Flow Is King: The TrimTabs ETF Approach

Let's Talk ETFs

TrimTabs portfolio manager Janet Flanders Johnston joins the latest episode of Let's Talk ETFs to discuss why her focus on free cash flow, balance sheet quality and reduced share float size has led to outperformance in the two funds she manages, the US All-Cap Free Cash Flow ETF (TTAC) and the International All-Cap Free Cash Flow ETF (TTAI).
Topics covered:
2:00 - Background: how did Janet first get into a career as a professional fund manager?
4:45 - Understanding Trimtabs' approach to stock selection: It's all about free cash flow
6:30 - Balance sheet quality, reduced share count as factors
9:00 - How does active management overlay with TrimTabs' data-driven screening system?
15:45 - Description of fund management process: The case of top holding Zoetis (ZTS)
19:30 - Tax management with regard to the funds
22:30 - Discussion of Netflix (NFLX): The perfect short opportunity?
28:00 - Development of TTAI
29:15 - Why is an ETF (EWY), vs. individual holdings in that ETF, a top holding of TTAI?
31:00 - What's your approach to U.K. equities with regard to Brexit?
33:45 - What is driving TTAI's outperformance this year?
36:00 - Can Trimtabs approach be used as a predictor on a macroeconomic scale?
37:00 - Assessment of the trend of smaller share floats
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