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(TTFS) TrimTabs Float Shrink ETF

Overview

How TTFS Works

The investment objective of the AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) seeks to generate long-term returns in excess of the total return of the Russell 3000® Index, with less volatility than the Index. TTFS is sub-advised by TrimTabs Asset Management ("Portfolio Manager"), a subsidiary of TrimTabs Investment Research (TrimTabs). The Fund seeks to achieve this objective by investing in stocks with liquidity and fundamental characteristics that are historically associated with superior long-term performance. Stock selection for TTFS is based on extensive historical research from TrimTabs, the leading independent institutional research firm focusing on stock prices as a function of supply and demand rather than value.

Fund Documents

Portfolio Manager Commentaries

TTFS Portfolio Statistics & Sector Allocation

as of 07/31/2014
  TTFS
Float Shrink 5.26%
Free Cash Flow Yield 8.67%
30-Day SEC Subsidized Yield 0.78%
30-Day SEC Unsubsidized Yield 0.60%
Price/Earnings (P/E) Ratio 16.05
Average Market Cap $48.18 Bil

Past Performance is not indicative of future results. TTFS statistics are for the actual TTFS security holdings as of the listed date, excluding cash. Float Shrink represents the percent change in shares outstanding. This is an average of all holdings in the portfolio as of the date shown. Free Cash Flow Yield is the free cash flow per share divided by the price of the stock. This is an average of all holdings in the portfolio as of the date shown. 30–Day SEC Yield (Standardized Yield) is an annualized yield that is calculated by dividing the investment income earned by the Fund less expenses over the most recent 30-day period by the current maximum offering price. The Subsidized Yield reflects fee waivers and/or expense reimbursements recorded by the Fund during the period. Without waivers and/or reimbursements, yields would be reduced. The Unsubsidized Yield does not adjust for any fee waivers and/ or expense reimbursements in effect. If the Fund does not incur any fee waivers and/or expense reimbursements during the period, the 30-Day Subsidized Yield and 30-Day Unsubsidized Yield will be identical. P/E Ratio is the current ratio of the companies price to earnings. Average Market Cap represents the average market cap of all holdings in the portfolio.

TTFS Sector Allocation (as of 06/30/2014)

TTFS in the News

The following reprints should not be construed as an offer to sell or a solicitation of an offer to buy shares of any other funds. They are provided for informational purposes for AdvisorShares only.
07/11/2014 - Sterman, David. "The Absolute Best Way To Choose The Right ETFs." http://www.streetauthority.com/exchange-traded-funds- etfs/absolute-best-way-choose-right-etfs-30467490
05/15/2014 - Dutram, Eric. "Inside the ETF That Uses Supply and Demand to Pick Stocks." http://www.zacks.com/stock/news/133549/pick-stocks-using-supply-demand-with-this-etf
04/16/2014 - Bojinov, Stoyan. "TrimTabs Insights: What “Float-Shrink” Means to Investors." http://etfdb.com/2014/trimtabs-insights-what-float-shrink-means-to-investors/
03/24/2014 - Fox Business. "Buybacks shrinking stock pool." http://video.foxbusiness.com/v/3365607847001/buybacks-shrinking-stock-pool/?playlist_id=3166411554001#sp=show-clips&v=3365607847001
12/31/2013 -

AdvisorShares Press Release, AdvisorShares Announces December 2013 Distributions

Performance -Month-End

TTFS Performance History (%) as of 06/30/2014
 NAVMarket Price ReturnRussell 3000 Index
1 Month 1.01 1.022.51
3 Months 3.35 3.284.87
YTD 5.72 5.786.94
1 Year 25.18 25.0025.22
2 Years 25.09 24.9823.33
Since Inception
(10/04/2011, Annualized)
28.3528.3825.81

Performance -Quarter-End

TTFS Performance History (%) as of 06/30/2014
 NAVMarket Price ReturnRussell 3000 Index
1 Month 1.01 1.022.51
3 Months 3.35 3.284.87
YTD 5.72 5.786.94
1 Year 25.18 25.0025.22
2 Years 25.09 24.9823.33
Since Inception
(10/04/2011, Annualized)
28.3528.3825.81

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized.

The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. One cannot invest directly in an index.

Fund Distributions

Ex-DateRecord DatePay DateCash DivST Cap GainLT Cap GainReturn of CapitalTotal Distribution
12-24-14
12-29-14
12-31-14
-----
12-24-13
12-27-13
12-31-13
$0.154$0.00$0.00$0.00$0.154/per share
12-24-12
12-27-12
12-31-12
$0.213$0.123$0.00$0.00$0.336/per share
12-23-11
12-28-11
12-30-11
$0.014$0.00$0.00$0.00$0.014/per share
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Why Invest in TTFS

  • For Core Diversification - Allocating to a liquidity supply/demand focused US Core allocation can further diversify your manager risk and potentially reduce overall portfolio risk. TTFS can provide an alternative core allocation that may replace or complement market cap, fundamental, dividend or other index weighting methodologies you employ in your portfolio allocation.
  • To achieve Alpha by Following the Best Informed Market Participants: The Companies Themselves - Top insiders at a firm know more about its fundamentals than the investing public. These insiders can influence the price of their employers’ shares by timing equity issuance and stock buybacks to their advantage. Supply and demand also dictates that stocks should perform best when their float is shrinking. All else being equal, if the same amount of money is chasing a smaller float, then the share price increases. TTFS’ stock selection algorithm is based on this premise.
  • For a Smarter Way to Buy U.S. Equities - Most quantitative ETFs focus on easily available price, volume, and earnings data. Since data on the supply and demand for stocks is scattered across so many sources, most strategies ignore stock market liquidity. The Portfolio Manager believes that stock prices are a function of liquidity rather than value. Dollar Cost Averaging into TTFS may represent a smarter way for long term investors to gain exposure to U.S. equities.

5 Key Attributes

  1. Liquidity-based Philosophy - The Portfolio Manager believes that, like the prices of any tradable good, the prices of stocks are driven by supply and demand. The Portfolio Manager believes that stocks should perform best when their outstanding shares decrease over the past 120 days (float shrink.) All else being equal, if the same amount of money is chasing a smaller number of shares, then the share price increases. Corporate insiders have better information than the general public, which allows them to time their issuance and repurchases of stock.
  2. Fundamentals Filtering - The portfolio manager invests in companies that finance float shrink via free cash flow relative to peers rather than debt issuance. The portfolio manager looks for three main characteristics in its stock picks: shareholder-friendliness (measured by float shrink), profitability (measured by free cash flow relative to other securities) and solid balance sheet (measured by leverage ratio).
  3. Equal-Weighted Investing - TTFS initially invests equally in the stocks that meet its investment criteria; it is not market capitalization weighted. As a result, TTFS over weights small-cap stocks and mid-cap stocks relative to traditional, market cap weighted indices.
  4. Extensive Stock Screening - The Portfolio Manager screens approximately 3,000 companies on a daily basis and invests in the 100 highest ranked stocks that possess the best liquidity characteristics – companies shrinking the float, increasing free cash flow and not increasing their leverage ratio.
  5. TrimTabs Research - TrimTabs has an institutional focus. Since TrimTabs’ founding in 1990 they have provided research for some of the top 50 hedge funds in the world. Other TrimTabs clients include mutual fund companies, sell-side institutions, funds of hedge funds, sovereign wealth funds, and high net worth individuals. TTFS’ stock selection is based on TrimTabs’ extensive research.

About the Portfolio Managers

Charles Biderman – Chief Executive Officer/Portfolio Manager
After earning his MBA from Harvard Business School, Mr. Biderman began his career as Alan Abelson’s assistant at Barron’s. He founded TrimTabs Investment Research in 1990 in Santa Rosa, California. TrimTabs Investment Research developed into the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity. The premise of TrimTabs Investment Research’s approach is that stock prices are a function of liquidity rather than fundamental value.

Mr. Biderman holds a BA from Brooklyn College and an MBA from Harvard Business School. Mr. Biderman is interviewed regularly on CNBC and Bloomberg and is quoted frequently in the financial media, including Barron’s, The Wall Street Journal, Forbes, and Investor’s Business Daily. He is the author of TrimTabs Investing: Using Liquidity Theory to Beat the Stock Market (John Wiley & Sons, 2005). He holds a BA from Brooklyn College and an MBA from Harvard Business School.

Minyi Chen, CFA - Executive Vice President/Portfolio Manager
Mr. Chen joined TrimTabs in 2008. He is the Vice President of TrimTabs Investment Research and Portfolio Manager of TrimTabs Float Shrink ETF. He is responsible for the management of quantitative research, marketing, technology, sales and operations. Mr. Chen began his career as an international finance manager at ZTE Corporation, a prominent provider of telecommunications solutions in 2005.

Born in Shanghai, Mr. Chen holds a B.A. from Shanghai International Studies University in China and a M.B.A from Northwestern Polytechnic University in California. He is a Chartered Financial Analyst (CFA) charterholder. Mr. Chen speaks English and Chinese.

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Fund Basics

  • Symbol

    TTFS

  • Exchange

    NYSE Arca

  • Inception Date

    10/04/2011

  • CUSIP

    00768Y818

  • Indicative Value

    TTFS.IV

  • Options

    No

Manager Minutes, July 2014

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Price History

As of: 07/31/2014
NAV$50.37Closing Price$50.40
Change$-0.90Change$-0.90
Shares Outstanding2,850,000Volume25,843
4PM Bid/Offer Midpoint$50.40Premium/Discount$0.03
Assets Under Management$143,552,816.96
Premium/Discount Historical Data

 

Top Holdings

As of: 07/31/2014
Ticker Name Weight
TWX TIME WARNER INC 1.17%
URS URS CORP 1.15%
XRX XEROX CORP 1.11%
MPC MARATHON PETROLEUM CORP 1.10%
HPQ HEWLETT-PACKARD CO 1.07%
LMT LOCKHEED MARTIN CORP 1.07%
LYB LYONDELLBASELL INDU-CL A 1.07%
EBAY EBAY INC 1.07%
NWL NEWELL RUBBERMAID INC 1.07%
WDC WESTERN DIGITAL CORP 1.06%

Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times. Holdings and allocations are subject to risks and to change. A holding identified with an "MM" at the end of its name indicates it is a Money Market fund.

Fees & Expenses

  • Management Fee

    0.99%

  • Other Expenses

    0.91%

  • Gross Expense Ratio

    1.90%

  • Fee Waiver and/or Expense Reimbursement

    0.91%

  • Net Expense Ratio

    0.99%*

  • *The Advisor has contractually agreed to keep net expenses from exceeding 0.99% of the Fund’s average daily net assets for at least a year from the date of the Prospectus and for an indefinite period thereafter subject to annual reapproval of the agreement by the Board of Trustees.