TTAI Profile
The FCF International Quality ETF focuses on providing investors with exposure to a carefully selected portfolio of international companies distinguished by their strong financial health and superior free cash flow metrics. Under normal market conditions, the fund's investment strategy involves selecting approximately 150 of the highest-ranked securities based on proprietary models developed by Systematic Models. These models assess and rank companies according to their free cash flow performance, which is a key indicator of financial stability and operational efficiency.
Once the top securities are identified, the fund applies a modified market capitalization, log-weighted approach to the portfolio construction. This method reweights the selected securities to enhance exposure to firms with the most robust free cash flow rankings. By doing so, the fund aims to capture significant investment opportunities within the international market while avoiding excessive concentration in any single security or sector. This approach promotes issuer diversification, which is intended to reduce risk and improve overall portfolio stability compared to traditional market capitalization-weighted strategies.
The focus on free cash flow as a primary selection criterion reflects the fund's commitment to investing in companies that exhibit strong financial fundamentals and the ability to generate excess cash after capital expenditures. Free cash flow is a critical measure of a company's financial health, as it indicates the capacity to invest in growth opportunities, return capital to shareholders, and weather economic downturns. The ETF's methodology ensures that only those companies with the strongest free cash flow profiles are included in the portfolio.
By leveraging Systematic Models' proprietary ranking system and applying a strategic reweighting methodology, the FCF International Quality ETF aims to deliver a high-quality investment solution that balances strong financial metrics with diversified exposure. This approach is designed to appeal to investors seeking to capitalize on international opportunities while maintaining a focus on financial robustness and lower portfolio risk.
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