With more than half of the S&P500 constituents now in a bear market (down >20% from 252-day high), investors are being more selective and vigilant with their allocation decisions. At FCF Advisors, we offer a suite of investment solutions to fit your allocation needs:
Core Equities: Stay allocated to high quality companies producing free cash flow and away from the concentration risks embedded in most passive global core strategies. While recession fears are high and growing, our flagship FCF Quality strategies provide investors with exposure to global core equities. (FCF US Quality ETF (TTAC) & FCF International Quality ETF (TTAI))
Inflation Hedge: To combat soaring consumer prices, many investors are allocating to Real Assets. The equity securities of companies owning and operating assets such as REITs, toll roads and cell towers impact our lives every day. That said, end user demand for these essential goods and services tends to be relatively sustainable and inelastic throughout a cycle. Backed by tangible, hard assets, these high quality companies tend to generate returns linked to inflation as many of their cash flows are tied to contractual inflation escalators. At FCF Advisors, we built a multi-asset strategy to hedge investors’ inflation concerns. (Donoghue Forlines Yield Enhanced Real Asset ETF, (DFRA))
Geopolitical Uncertainty: Energy markets were tight before the Ukraine-Russia War. Now they are in a crisis, with key prices for oil, natural gas, and coal up from 100%-500% since early 2021. Western responses aimed at pain relief such as stimulus checks, subsidies, and price controls will only add to inflationary pressures. The war has accelerated the forces of deglobalization which has led to shorter and more secure supply chains. This means greater capital expenditures and higher costs – adding to inflation and squeezing profit margins. A possible solution to combat supply chain concerns is our multi-asset real asset strategy. (Donoghue Forlines Yield Enhanced Real Asset ETF, (DFRA))
Innovation and Disruption: This theme is absolutely top of mind for many investors, however, markets have been punishing unprofitable companies. That said, at FCF Advisors we built a strategy to give investors exposure to innovative companies (R&D intensity) that can fund their innovation from free cash flow – the Free Cash Flow Profitability factor. (Donoghue Forlines Risk Managed Innovation ETF, (DFNV))
Generated from our data and research infrastructure, our Free Cash Flow Quality Model aims to identify Quality companies with strong and sustainable profitability that will consistently outperform the market. We use the outputs from this model to provide a broad array of investment solutions. Free Cash Flow Profitability is the most important component of our model as it has the highest 1-month correlation to forward returns over the last 20 years vs. both traditional Quality measures such as ROE, ROA and Gross Margin; and other major factors such as value and momentum. Investors can access our strategies via ETFs, SMAs, model delivery, and through more than 50 fully customizable indexes. To learn more about FCF Advisors and our strategies please visit our websites www.fcf-advisors.com and www.fcf-funds.com.
The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 18006170004 . Read it carefully before investing.
There is no guarantee that TTAC will achieve its investment objective. Investing involves risk, including the possible loss of principal. Because the Fund is an ETF (rather than a mutual fund), shares are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemable. Owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only, consisting of 25,000 shares. Brokerage commissions will reduce returns. Investments in the Fund include risks associated with small and midcap securities, which involve limited liquidity and greater volatility than large cap securities.
The FCF US Quality ETF is distributed by Quasar Distributors, LLC.
Free Cash Flow (FCF) represents the cash that a company is able to generate after accounting for capital expenditures.
Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders’ equity.
The term return on assets (ROA) refers to a financial ratio that indicates how profitable a company is in relation to its total assets. Corporate management, analysts, and investors can use ROA to determine how efficiently a company uses its assets to generate a profit.