Free Cash Flow

An upgrade
to management reporting

TrimTabs Family of Actively Managed Free Cash Flow ETFs

In an age where investors are focused on risk, free cash flow analysis can greatly help to mitigate the chance for misinterpreting a company’s financial health.

Financial Strength

Free Cash Flow generation along with cash in hand could help a company maintain liquidity to pay its current liabilities. Excess liquidity could be used to fulfill debt obligations to deleverage and improve a company’s balance sheet. When it comes to unexpected financial stress conditions, financial strength from strong Free Cash Flow could potentially provide a cushion to mitigate unforeseen consequences.

Cash Profitability

We believe the return of Free Cash Flow on capital – cash profitability - can be a more transparent indicator than the return of either the Generally Accepted Accounting Principles (GAAP) earnings, or the adjusted earnings per share, on capital.

 

Organic Growth

A positive trend in Free Cash Flow suggests that a company has organic growth in its underlying businesses. We believe organic growth is more attractive than growth through acquisitions, or financially engineered growth from leveraging up a balance sheet to buy back stock to create the appearance of earnings per share growth.

 

Press

The press has noticed. See what major publications are saying about our company.

Home

Investing involves risk. Principal loss is possible.

Please click here for TTAC and TTAI standardized performance.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling (toll free 800-617-0004).

Free Cash Flow (FCF) represents the cash that a company is able to generate after accounting for capital expenditures.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the statutory and summary prospectuses, a copy of which may be obtained by visiting the Fund’s website at www.trimtabsfunds.com/ttac, www.trimtabsfunds.com/ttai. Please read the prospectus carefully before you invest.

Quasar Distributors, LLC

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the entire market or a benchmark.

Diversification does not assure a profit nor protect against loss in a declining market.

Debt-asset ratio: The debt to total assets ratio is calculated by dividing a corporation’s total liabilities by its total assets.

Return on equity: Return on equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders’ equity. The formula for ROE is: ROE = Net Income/Shareholders’ Equity.

Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates.

The small business optimism index is compiled from a survey that is conducted each month by the National Federation of Independent Business (NFIB) of its members. The index is a composite of 10 seasonally adjusted components based on the following questions: plans to increase employment, plans to make capital outlays, plans to increase inventories, expect economy to improve, expect real sales higher, current inventory, current job openings, expected credit conditions, now a good time to expand, and earnings trend.

The price/earnings ratio (often shortened to the P/E ratio or the PER) is the ratio of a company’s stock price to the company’s earnings per share.

CapEx: Capital expenditure, or CapEx, are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability.

Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.

Fund holdings and allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Click here for TTAC and TTAI fund holdings.

References to other funds should not be interpreted as an offer of these securities.

The Russell 3000® Index measures the performance of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The Index measures the performance of approximately 98% of the total market capitalization of the publicly traded U.S. equity market. The Standard & Poor’s Stock Index (S&P 500) is an unmanaged index generally representative of the U.S. stock market, without regard to company size. It is not possible to invest directly in an index.

There is no guarantee that TTAC will achieve its investment objective. Investing involves risk, including the possible loss of principal. Because the Fund is an ETF (rather than a mutual fund), shares are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemable. Owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only, consisting of 25,000 shares. Brokerage commissions will reduce returns. Investments in the Fund include risks associated with small-and mid-cap securities, which involve limited liquidity and greater volatility than large-cap securities.

There is no guarantee that TTAI will achieve its investment objective. Investing involves risk, including the possible loss of principal. Because the Fund is an ETF (rather than a mutual fund), shares are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemable. Owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only, consisting of 25,000 shares. Brokerage commissions will reduce returns. Investments in the Fund include risks associated with small-and mid-cap securities, which involve limited liquidity and greater volatility than large-cap securities. Returns on investments in foreign securities could be more volatile than investments in domestic securities.

The S&P Developed Ex-U.S. BMI Index is a market capitalization weighted index that defines and measures the investable universe of publicly traded companies domiciled in developed countries outside the U.S. The Developed Index is float adjusted, meaning that only those shares publicly available to investors are included in the Developed Index calculation.

Alpha is a measure of performance on a risk-adjusted basis.

Active investing has higher management fees because of the manager’s increased level of involvement while passive investing has lower management and operating fees. Investing in both actively and passively managed mutual funds involves risk and principal loss is possible. Both actively and passively managed mutual funds generally have daily liquidity. There are no guarantees regarding the performance of actively and passively managed mutual funds. Actively managed mutual funds may have higher portfolio turnover than passively managed funds. Excessive turnover can limit returns and can incur capital gains.

A put is an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

A call is an option contract giving the owner the right, but not the obligation, to buy a specified amount of an underlying security at a specified price within a specified time.

The put-call ratio is an indicator ratio that provides information about the relative trading volumes of an underlying security’s put options to its call options.

Implied volatility is the estimated volatility, or gyrations, of a security’s price and is most commonly used when pricing options.

Chicago Board Options Exchange (CBOE) VIX of VIX (VVIX) is a measure of the volatility of the Chicago Board Options Exchange (CBOE) Volatility Index (VIX).

The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ.

Earnings growth is not representative of the fund’s future performance.

Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales.

The NASDAQ US Buyback Achievers™ Index is comprised of United States (US) securities issued by corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing 12 months. Please click here for standardized performance.

The S&P Composite 1500 combines three leading indices, the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600 to cover approximately 90% of the U.S. market capitalization.

The Standard & Poor’s 500, often abbreviated as the S&P 500, or just the S&P, is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. Please click here for standardized performance.

The various debt instruments sold by the U.S. Treasury come with different maturities of up to 30 years. Treasury bills are short-term bonds that mature within a year, while the Treasury notes have maturity dates of 10 years or less. The longest-term instruments are Treasury bonds, which offer maturities of 20 and 30 years.

Wealthmanagement.com 20 best performing active ETFs was published on 11/6/2018. Active ETFs are defined as those ETFs that do not track an underlying index or commodity price.

The Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index.

The Purchasing Managers’ Index (PMI) is an indicator of economic health for manufacturing and service sectors.

The STOXX Europe 600, also called STOXX 600, SXXP, is a stock index of European stocks designed by STOXX Ltd.. This index has a fixed number of 600 components representing large, mid and small capitalization companies among 17 European countries, covering approximately 90% of the free-float market capitalization of the European stock market (not limited to the Eurozone).

Active Share is a measure of the percentage of stock holdings in a manager’s portfolio that differs from the benchmark index.

Active Share: 86.87%

Smart beta emphasizes capturing investment factors or market inefficiencies in a rules-based and transparent way.

The Russell 1000 Index is a stock market index that tracks the highest-ranking 1,000 stocks in the Russell 3000 Index, which represent about 90% of the total market capitalization of that index.

Russell 1000 Growth Index measures the performance of the large capitalization growth sector of the U.S. equity market.

Gross Domestic Product (GDP).

A per ten thousand sign or basis point is one hundredth of a percent or equivalently one ten thousandth.

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

Research and development(R&D)

Credit Quality weights by rating are derived from the highest bond rating as determined by Standard & Poor’s (“S&P”), Moody’s or Fitch. Bond ratings are grades given to bonds that indicate their credit quality as determined by private independent rating services such as S&P, Moody’s and Fitch. These firms evaluate a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade. In limited situations when none of the three rating agencies have issued a formal rating, the Advisor will classify the security as nonrated.

The NASDAQ-100 is a stock market index made up of 103 equity securities issued by 100 of the largest non-financial companies listed on the NASDAQ.

The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalization companies across 17 countries of the European region: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The MSCI AC Asia Pacific Index captures large and mid cap representation across 5 Developed Markets countries* and 9 Emerging Markets countries in the Asia Pacific region. With 1,372 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

The Bloomberg Dollar Spot Index (BBDXY) tracks the performance of a basket of 10 leading global currencies versus the U.S. Dollar.