Dividend ETFs may be more popular, but funds focused on companies returning capital to shareholders via buybacks are among the top performers of 2013. Among the group is the PowerShares Buyback Achievers ETF (PKW), and AdvisorShares TrimTabs Float Shrink ETF (TTFS).
PKW - with expenses of 0.71% after a fee waiver - only buys companies who have repurchased at least 5% or more of its outstanding shares in the past year. TTFS - with expense ratio of 0.99% - too focuses on smaller floats and adds profitability and balance sheet strength to its algorithm. The two have outperformed the DVY by more than 1000 bps YTD.