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TTAC: FCF-Centered Strategy Is Powerful, Though Not Invincible

Apr. 02, 2022 3:46 AM ETFCF US Quality ETF (TTAC)3 Comments
Vasily Zyryanov profile picture
Vasily Zyryanov


  • TTAC harnesses the power of its proprietary FCF model filtering out companies with lackluster profitability, while also reducing exposure to those with poor ESG scores.
  • In the current iteration, TTAC is heavy in IT, with only modest exposure to the value factor; quality of the holdings is nothing short of impressive.
  • TTAC has outperformed IWV since March 2021, though has lagged DTSL. 2022 YTD and 3-year total returns are softer.
  • I am of the opinion that TTAC is a Hold.

Cash flow statement on folder on office desk, cashflow

valiantsin suprunovich/iStock via Getty Images

Today, we will be discussing yet another cash flow-focused investment vehicle with a note on the FCF US Quality ETF (BATS:TTAC), an actively managed fund with a basket of scrupulously selected stocks exhibiting quality

This article was written by

Vasily Zyryanov profile picture
Vasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (3)

Go woke go broke.
Jeffrey LiveforMore profile picture
For all of their fancy proprietary models TTAC is not doing as good as SPY. ESG is a woke score and is worthless. Buy the index and forgetta 'bout it.
I am a fan of FCF, but they need to ignore the fadish ESG nonsense.
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