ANNOUNCED TO CLOSE 10/31/2016
TrimTabs Asset Management begun trading the TrimTabs International Free-Cash-Flow ETF (NYSE Arca: FCFI) on Tuesday, June 02, 2015.
Here is a synopsis of the new ETF:
|Symbol: FCFI||Exchange: NYSE Arca|
|Name: TrimTabs International Free-Cash-Flow ETF||Net Expense Ratio: 0.69%|
The TrimTabs International Free-Cash-Flow ETF seeks to track the performance (before fees and expenses) of its underlying index, the TrimTabs Intl Free-Cash-Flow Index.
The TrimTabs Intl Free-Cash-Flow Index is designed to measure the top 10 international companies with the highest free cash flow yields in 10 international markets: Canada, Germany, United Kingdom, Hong Kong, Japan, France, Switzerland, Netherlands, South Korea, and Australia.
All countries are equally weighted, with a 10% allocation to each.
Index Top Consituents (06/01/15):
|ZURICH INSURANCE GROUP AG||2.33%|
|SWATCH GROUP AG/THE-BR||2.08%|
|REED ELSEVIER NV||1.77%|
|ROYAL DUTCH SHELL PLC-A SHS||1.75%|
|DELTA LLOYD NV||1.65%|
FCFI Home Page
TrimTabs refers that FCFI is the very first ETF to provide investors with the opportunity to invest exclusively in a stock portfolio that offers exposure to international companies with the highest free cash flow yields, and correspondingly healthy balance sheets.
Also according to FCFI’s Fact Sheet:
‘Free cash flow is essentially the cash that a company has on hand after subtracting operating expenditures. This cash is discretionary, available to be spent however a firm chooses; to pursue new opportunities such as developing new products, making acquisitions, or issuing a dividend. Free cash flow yield can be thought of as a company’s free cash flow divided by its market capitalization. It is important because it is a strong indicator of healthy balance sheets and cash flow positions. Thus, it can be viewed as a reliable metric for determining the quality of a company and may be one of the best ways to invest in global growth.
Since free cash flow yield is a metric derived directly from a company’s cash flow, it is an excellent indicator of a company’s profitability. A high free cash flow yield indicates correspondingly high profitability, and the stocks of highly profitable companies in turn tend to generate higher returns, potentially providing greater investment performance.