08 Jan, 2021 16:15 am

Looking For Share Buyback Benefits? Try This ETF

Looking For Share Buyback Benefits? Try This ETF
Market Analysis by (Tezcan Gecgil/ covering: US Small Cap 2000, Boeing Co, Microsoft Corporation, JPMorgan Chase & Co. Read (Tezcan Gecgil/'s Market Analysis on

Corporate America loves dividends and share repurchases as “[b]etween 2010 and 2019, US firms distributed $4 trillion in dividends and $6 trillion in buybacks.” In fact, “[s]ince 1997, share repurchases have surpassed cash dividends and become the dominant form of corporate payout in the US” The S&P 500® Buyback Index measures “the performance of the top 100 stocks with the highest buyback ratios in the S&P 500.Many market participants regard share repurchases as a controversial topic.In the past decade, for instance, most airlines including American Airlines (NASDAQ: AAL AAL ), Delta Air Lines (NYSE: DAL DAL ), United Airlines (NASDAQ:UAL), Southwest Airlines (NYSE: LUV LUV ), as well as Boeing (NYSE: BA BA ) spent billions in share repurchases.

It is unlikely that US businesses will stop share repurchases in the near term.59% The TrimTabs US Free Cash Flow Quality ETF (NYSE: TTAC ) is an actively-managed fund that focuses on companies that buy back shares and also generate high free cash flow (FCF).

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