TTAC Stock Recent News

Sometimes, bold contrarian calls can be more bold than profitable, but when an active manager gets it right, the results can really pay off. One such success story lies with the FCF US Quality ETF (TTAC).

VettaFi's vice chairman Tom Lydon discussed the FCF US Quality ETF (TTAC) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Free cash flow is the key ingredient to TTAC.

While Google parent Alphabet reported lackluster earnings after the closing bell on Tuesday, the tech giant did report strong free cash flow for Q3. Alphabet reported more than $16 billion in free cash flow for the quarter that ended September 30.

Net income for Wall Street's largest banks – JPMorgan Chase, Morgan Stanley, Citigroup, and Wells Fargo – tumbled in the third quarter as volatile markets stymied investment activity. The Federal Reserve has been raising interest rates at an aggressive clip to tamp down record-high inflation.

With earnings season set to kick off this week – and analysts being bearish in their forecasts – now may be a good time to consider that quarterly reports may not always properly represent a company's profitability.

Both COWZ and TTAC use free cash flow to filter in high-quality stocks from the Russel 1000 and Russell 3000 indices, respectively. Also, as actively-managed ETFs, they have proved to be less volatile than ETFs, which track the Russell indexes more passively.

Free cash flow is the cash a company generates after its cash outflows to pay expenses or support operations. FCF Advisors specializes in free cash flow investment strategies, primarily through its Free Cash Flow Quality Model.

Although often compared with one another, the FCF US Quality ETF (TTAC) and the iShares Edge MSCI USA Quality Factor ETF (QUAL) have some fundamentally different approaches to how they construct their portfolios. And as a result, have quite different returns.

While earnings have long been the yardstick for determining a company's profitability, they can also be misleading. After all, the bankruptcies of Enron and WorldCom in the early 2000s demonstrated that strong GAAP earnings don't necessarily mean a company is sustainably profitable.

Accounting practices can present a distorted picture of a publicly traded company's profitability. Plus, earnings reports tend to be historically backward-looking.