Increased corporate buybacks in recent months along with a low exposure to energy companies has enabled the TrimTabs Float Shrink ETF (TTFS) to outperform the S&P 500, said the fund’s portfolio manager Minyi Chen. Chen added that the companies that are cutting their buyback programs due to the stronger dollar or lower oil prices are being offset in his fund by companies increasing their buyback counts. He said a foreign profits repatriation deal in Washington would be good for his fund but he is not counting on a political deal to make it happen anytime soon. Finally, Chen said its okay for Microsoft and Apple to sell debt to buy repurchase shares, but only because they have fortress balance sheets.
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