FCF US Quality ETF (TTAC US) – Portfolio Construction Methodology

The investment philosophy governing the actively managed FCF US Quality ETF seeks to outperform a broad US equity universe with lower fundamental risk by emphasizing free cash flow strength. The fund invests primarily in equity securities of US companies across the market-cap spectrum, subject to listing, liquidity and diversification standards, and may hold cash or cash equivalents for risk management and trading efficiency. The adviser applies a proprietary free cash flow quality model to the US universe, ranking stocks on normalized free cash flow metrics, earnings quality, balance sheet strength and capital allocation behaviour to derive a quality score for each issuer. Portfolio construction emphasizes higher ranked names, with weights scaled by free-float market capitalization and quality scores to tilt toward stronger generators while controlling single-issuer and sector exposures. Rebalancing and sell decisions follow model updates, fundamental deterioration, corporate actions and changes in liquidity or trading costs.

To explore TTAC in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/TTAC_US