Abacus FCF Small Cap Leaders ETF · CBOE:ABLS
Abacus FCF Small Cap Leaders ETF — TrimTabs Donoghue Forlines Risk Managed Innovation ETF — DFNV Webinar 2021
21 slides from Abacus FCF Small Cap Leaders ETF's conference presentation, 2021
Slide 1: TrimTabs Donoghue Forlines Risk Managed Innovation ETF: DFNV
TrimTabs Donoghue Forlines Risk Managed Innovation ETF: DFNV Investing for the Next Decade
Slide 2: Why Invest in DFNV?
Why Invest in DFNV? • Innovation as an investing factor has become core in equity portfolios • DFNV is engineered to select companies that provide long term alpha generation • Investors in Innovation prefer Bear Market drawdown protection and DFNV seeks to provide it
Slide 3: We Are in The Fourth Industrial Revolution
We Are in The Fourth Industrial Revolution 1700 1900 1960 2010 Innovation’s Impact on Economic Hyperconnectivity Activity Has Grown Over Time Genetics & Nanotechnology Internet Robotics & Automation Electricity Railways Automobile Computers Artificial Intelligence Steam Engine Telephone Source: Dono
Slide 4: The New Wave of Innovation is Widely Dispersed
The New Wave of Innovation is Widely Dispersed… Weight of Equity Market Capitalization by Sector Source: Global Financial Data; As of April 10, 2018
Slide 5: And Innovation is Now a Strategic Allocation
…And Innovation is Now a Strategic Allocation Source: Donoghue Forlines
Slide 6: Right Place, Right Time
Right Place, Right Time Source: Financial Times; as of November 10, 2020
Slide 7: R&D Intensity and Free Cash Flow are Crucial Success Factors
We Feel R&D Intensity and Free Cash Flow are Crucial Success Factors in Innovation Investing Free Cash R&D Free Flow Cash Intensity Identifying High Identifying Flow Innovative Quality Companies Companies R&D Intensity Free Cash Flow Source: Donoghue Forlines, Trim Tabs Innovation Score
Slide 8: DFNV Constructed to Balance Growth and Volatility
DFNV Constructed to Balance Growth and Volatility*… Source: Morningstar; As of 01/31/2021; Past performance does not guarantee future results. *The Nasdaq 100 is a widely followed growth/innovation index that has experienced severe drawdowns, which DFNV seeks to avoid. Index performance is not illus
Slide 9: Where Does DFNV Fit in Your Portfolio?
Where Does DFNV Fit in Your Portfolio? • The TrimTabs Donoghue Forlines Risk Managed Innovation ETF is a strategic allocation to investor portfolios that fits outside of traditional “style box” portfolio construction. Because technology is embedded in every sector of the new economy, innovation cann
Slide 10: Contact Information
Contact Information Donoghue Forlines LLC One International Place, Suite 310 Boston, MA 02110 (800) 642-4276 AdvisorRelations@donoghueforlines.com www.donoghueforlines.com Effective September 30, 2020 W.E. Donoghue & Co., LLC became Donoghue Forlines, LLC.
Slide 11: Disclosure
Disclosure Investing involves risk. Principal loss is possible. Holdings are subject to change and should not be considered a recommendation to buy or sell any security. Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other infor
Slide 12: Disclosure
Disclosure Free cash flow represents the cash a company has left over after investing in the growth of its business. Young, aggressive companies often have negative free cash flow, because they’re investing heavily in their futures. As companies mature, though, they should start generating free cash
Slide 13: Appendix
APPENDIX TrimTabs Donoghue Forlines Risk Managed Innovation ETF: DFNV Investing for the Next Decade
Slide 14: Index Construction
Index Construction • The starting universe is all US domiciled stocks (~4,000 in current database) • Our initial screen selects stock that have both positive R&D expense and free cash flow (Trailing 12 Months). Then we exclude extreme outliers for R&D intensity (R&D expense/Sales), which would corru
Slide 15: Bear Market Risk Management
"Bear Market” Risk Management… • The index will utilize a multi-dated moving average series that comprises the Exponential Moving Average Crossover Signal which will be applied to the Total Return Index of the Equity Portfolio to determine whether to be in a bullish or opportunistic status or to be
Slide 16: Comparative Factor Analytics
Comparative Factor Analytics Source: TrimTabs Asset Management, FactSet. Free Cash Flow (FCF) Strength is a proprietary indicator developed by TrimTabs Asset Management to measures a company's free cash flow conditions. Research and development intensity (RDI), is generally defined as expenditures b
Slide 17: Comparative Sector Analytics
Comparative Sector Analytics Source: TrimTabs Asset Management, FactSet. Free Cash Flow (FCF) Strength is a proprietary indicator developed by TrimTabs Asset Management to measures a company's free cash flow conditions. Research and development intensity (RDI), is generally defined as expenditures b
Slide 18: Investment Team
Investment Team • Duke University, BA, JD (NY Bar) John A. Forlines III • Current Professor – Behavioral Finance Chief Investment Officer • 16 Years - JP Morgan - Managing Director Portfolio Manager • Structured Products, PE, Equity Markets • 17 Years – CIO/Investment Manager • Philanthropy/Service
Slide 19: Top 10 Holdings ~ 22%
Top 10 Holdings ~ 22% (as of 01/31/2021) Ticker Description % Weight AAPL Apple Inc 4.03% AMZN Amazon.com, Inc. 3.24% PYPL PayPal Holdings Inc 2.10% AVGO Broadcom Inc 1.99% CSCO Cisco Systems, Inc. 1.83% ADBE Adobe Inc 1.81% ABBV AbbVie Inc 1.73% AMGN Amgen, Inc. 1.69% BMY Bristol-Myers Squibb Co 1.
Slide 20: Sector Allocations
Sector Allocations (as of 01/31/2021) % Weight Real Estate 0.00% Utilities 0.00% Communication Services 7.00% Information Technology 54.50% Financials 3.70% Healthcare 23.00% Consumer Staples 0.00% Consumer Discretionary 9.40% Industrials 2.40% Materials 0.00% Energy 0.00% 0.00% 10.00% 20.00% 30.00%
Slide 21: Strong Performance Relative to Category & Benchmark
Strong Performance Relative to Category & Benchmark Performance since inception (12/8/20- 12/31/20) is 3.84% at NAV and 3.95% at Market Price for DFNV. Source: Morningstar Direct; as of 1/31/20; Total, Daily Return; Inception = 12/8/20 Expense Ratio: 0.69%. The performance data quoted represents pas
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