TTAC Profile
The FCF US Quality ETF is an actively managed fund that leverages proprietary, systematic stock selection models to build its portfolio. The fund focuses on identifying high-quality U.S. companies based on their free cash flow metrics. The Advisers proprietary models analyze a broad universe of stocks to pinpoint those with superior free cash flow characteristics, which are essential indicators of financial health and operational efficiency.
The ETF selects approximately 150 of the highest-ranked securities based on these models, applying a unique reweighting strategy to the portfolio. Unlike traditional market capitalization-weighted portfolios, which allocate more weight to larger companies, the FCF US Quality ETF uses a modified market capitalization approach. This log-weighted method increases the exposure to companies with the strongest free cash flow rankings, while still maintaining a level of issuer diversification that enhances the overall risk-return profile.
By focusing on companies with robust free cash flow, the fund aims to invest in businesses that demonstrate strong financial performance and resilience. Free cash flow is a critical metric that reflects a company's ability to generate cash after capital expenditures, which is often a sign of operational efficiency and potential for sustainable growth. The fund's systematic approach ensures that investment decisions are based on quantitative analysis rather than subjective judgments.
In summary, the FCF US Quality ETF offers a differentiated investment strategy by emphasizing companies with exceptional free cash flow characteristics. Its systematic stock selection and unique portfolio reweighting methods are designed to capture high-quality investment opportunities while enhancing diversification. This approach provides investors with exposure to financially strong U.S. companies and aims to deliver superior risk-adjusted returns based on rigorous quantitative analysis.
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