As we move into the second quarter of 2023, we are excited to invite you to view our webinar – Time for Quality: Choosing the Right Approach in Today’s Market.
This webinar is an excellent opportunity for you to learn about the Free Cash Flow Quality Model (FCFQM) (update: now called the Free Cash Flow Leaders Model), our flagship ETFs, and The FCF Institute.
The webinar took place on Thursday, April 20th at 1 PM EST, and lasted for approximately 30 minutes. We welcome your participation and encourage you to invite your colleagues who may be interested in this topic.
Definitions:
Free Cash Flow (FCF) represents the cash that a company is able to generate after accounting for capital expenditures.
Basis points – one hundredth of 1 percentage point.
ROA – metric that indicates a company’s profitability in relation to its total assets.
ROE – measure of the profitability of a business in relation to the equity.
Beta – measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole.
Alpha – measure of the active return on an investment, the performance of that investment compared with a suitable market index.
Information ratio – measures and compares the active return of an investment compared to a benchmark index relative to the volatility of the active return.
Indexes:
S&P500 – Standard and Poor’s 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States.
Russell 1000 – stock market index that tracks the highest-ranking 1,000 stocks in the Russell 3000 Index, which represent about 93% of the total market capitalization of that index.
Russell 2000 – Index is a small-cap U.S. stock market index that makes up the smallest 2,000 stocks in the Russell 3000 Index.
The Russell 3000® Index measures the performance of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The Index measures the performance of approximately 98% of the total market capitalization of the publicly traded U.S. equity market. It is not possible to invest directly in an index. Free cash flow is the cash that a company has available after subtracting operating expenditures and accounting for future organic growth. Upside/Downside Ratio is a technical indicator that shows the relationship between the volumes of advancing and declining issues on an exchange. Returns‐based style analysis is a statistical technique used in finance to deconstruct the returns of investment strategies using a variety of explanatory variables. The model results in a strategy’s exposures to asset classes or other factors, interpreted as a measure of a fund or portfolio manager’s style.
The MSCI All Country World Index ex USA is a market-capitalization-weighted index maintained by Morgan Stanley Capital International (MSCI). It is designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. The MSCI ACWI Ex-U.S. includes both developed and emerging markets.
