FREE CASH FLOW

When it comes to investing, we’re always looking for high-performing, quality companies. It’s become notoriously difficult to parse corporate earnings reports, attempting to make sense of balance sheets and income statements, which can be subject to financial engineering. This is why we focus on one of the most important and reliable financial metrics there is: free cash flow.

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. It is the lifeblood of companies that helps indicate overall health. Through years of research and experience, TrimTabs Asset Management has been recognized for its vigilance in focusing on free cash flow.

The only reason to start a business is to grow cash. Ultimately, it’s not to create earnings per share or revenue growth. It’s to create free cash flow after all expenses.

— Charles Biderman founder of TTAM

OUR APPROACH

At TrimTabs, it is our firm belief that investors should be able to access alpha-oriented strategies that aim to outperform the broad market without paying high management fees.

The implementation of our philosophy—in other words, our process—is grounded in our decades of research. Because the investment challenge is so complex and, typically, volatile, this research is based on strict quantitative principles. As we apply our analysis, we utilize a disciplined, rules-based approach. At the day-to-day level, the process does allow some discretion with regard to portfolio turnover and tax effects. Additionally, we monitor allocations to industries, sectors, and capitalization segments. These avenues of discretion also allow us to respond quickly to changing underlying market conditions. Nonetheless, one of our prime missions is to minimize surprises for our clients. We are dedicated to providing investors a steady application of our proven, quantitative philosophy.

A LETTER FROM TED THEODORE, CHIEF INVESTMENT OFFICER

At TrimTabs, it is our sincere belief that investors shouldn’t have to pay an arm and a leg to gain access to professional active management, which, in our case, focuses on high quality companies with great free cash flow. That’s why we’re committed to keeping our fees low across our entire family of alpha-oriented strategies, delivering those cost savings directly to investors. I’ve been in the ETF business for a good long while—since their early days 20 years ago—and while there are certainly a good number of ways to put together a portfolio, for my money, free cash flow takes the prize, which is why I'm thrilled to offer our free cash flow fund and strategies to you. We seek to provide affordable investment options to you. Please have a look around—get to know our fund better! You can start by downloading one of our investment cases or whitepapers. And by all means, please don’t hesitate to reach out if you have any questions regarding our fund or strategies.

Ted Theodore

Vice Chairman & Chief Investment Officer

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

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

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. It is not possible to invest directly in an index.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at www.trimtabsfunds.com/etf. Please read the prospectus carefully before you invest. Quasar Distributors, LLC, is the distributor for TTAC.

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.