MarketWatch — This Actively Managed ETF Has a Novel Approach That Can Cut Risk

Posted by Vince Chen, CFA on June 11, 2019 · 1 min read

In June 2019, MarketWatch published a Deep Dive analysis of the TrimTabs All Cap US Free-Cash-Flow ETF (TTAC), focusing on the fund’s unique combination of active management and daily holdings transparency.

The article noted that unlike many new actively managed ETFs developed under SEC rules that don’t require daily holdings disclosure, TTAC publishes its holdings daily for full transparency. The fund’s active approach combines free cash flow analysis with balance sheet assessment to identify companies with sustainable buyback programs.

The fund — which later rebranded to become the Abacus FCF Leaders ETF (ABFL) — was highlighted for its potential to deliver the best of both worlds: active management’s potential for outperformance combined with the transparency and cost efficiency of the ETF structure.

Read the full article: MarketWatch — This actively managed ETF has a novel approach