AdvisorShares TrimTabs Float Shrink ETF (TTFS) Earns Five-Star Morningstar Rating

AdvisorsharesAdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), announced today that the AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) has received a Five-Star Morningstar Rating™ for both its three-year and overall risk adjusted performances from inception through October 31, 2014 out of 347 funds in Morningstar’s Mid-Cap Blend category.

TTFS is managed by TrimTabs Asset Management (TrimTabs), a Sausalito, Calif.-based SEC registered investment advisor affiliated with TrimTabs Investment Research, the renowned independent institutional research firm founded by Charles Biderman that focuses on equity market liquidity.

In pursuing its investment strategy, TTFS invests in companies that shrink their equity float—the total number of shares publicly available for trading—while growing free cash flow and reducing leverage on their balance sheets. These are important attributes that differentiate TTFS from a passive approach to buyback investing. Utilizing a quantitative algorithm, the manager screens approximately 3,000 U.S. companies on a daily basis and then invests in their highest ranked 100 stocks for TTFS’ equal-weighted portfolio. TrimTabs’ liquidity research shows that companies using free cash flow to shrink the trading float of shares create a potentially profitable supply and demand imbalance as more money chases fewer shares, and TTFS’ performance reinforces that notion. Since its inception on October 4, 2011, and through October 31, 2014, TTFS has outperformed the Russell 3000® Index.

TTFS Performance – Quarter End (as of 9/30/2014)

Since Inception, Annualized (10/4/2011)

YTD

3-Mo

1-Mo

NAV

26.07%

6.71%

0.94%

-1.90%

Market Price

26.09%

6.75%

0.92%

-1.90%

Russell 3000® Index              23.40%                         6.95%            0.01%              -2.08%
Outperformance vs. Benchmark

  2.69%

   

 

TTFS Performance – Through Three Years (as of 10/31/2014)

 

Since Inception, Annualized   (10/4/2011)

YTD

1-Year

2-Year

3-Year

NAV

26.58%

10.09%

17.89%

26.27%

22.11%

Market Price

26.57%

10.09%

17.76%

21.81%

22.10%

Russell 3000® Index

23.80%

 9.90%

16.07%

22.36%

19.77%

Outperformance vs. Benchmark

 2.77%

 

Morningstar compares each ETF’s risk-adjusted return, with at least a three-year history, to the open-end mutual fund rating breakpoints for each of its respective categories. Consistent with the open-end mutual fund ratings, TTFS earned its five-star ranking as being in the top 10% of funds – that includes both ETFs and mutual funds – in the Mid-Cap Blend category. 

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