Our good friend and Wall Street legend, Charles Biderman of TrimTabs, has launched a very interesting ETF, Trim Tabs Float Shrink ( ticker: TTFS), which screens its stocks based on their declining float (shares available to be freely traded) financed by free cash flow rather than debt. The three main screening characteristics the ETF uses in picking a stock are: 1) float shrink; 2) relative performance of free cash flow; and 3) a strong balance sheet measured by the leverage ratio.
Since its launch on October 5th, the Trim Tabs Float Shrink (TTFS) has outperformed the S&P500 (see chart below). It’s great to see a new ETF with some thought and research behind it and not just chasing the latest fad. It is also our kind of financial asset which provides a great balance between technicals and fundamentals.
Keep this one on your radar!
(click here if charts are not observable)