Downside-Mitigation Focused ETF Reaches $300 Million in Assets
LOS ANGELES, Aug. 12, 2020 /PRNewswire/ -- Cambria Investment Management, an independent, privately owned investment advisory firm and ETF provider focused on quantitative asset management and alternative investments today announced that Cambria Tail Risk ETF (TAIL), was named Alternative ETF of the Year at the 2020 Fund Intelligence Mutual Fund Industry and ETF Virtual Awards.
The awards, which recognize outstanding business leaders, the best creative minds, and the top performers across US asset management, were presented virtually on July 23rd.
"All of us at Cambria are thrilled that TAIL has been recognized by Fund Intelligence as the Alternative ETF of the year, and it's gratifying that others see its innovative and low-fee approach can play an important role in hedging against an equity market pullback," said Meb Faber, co-founder and the Chief Investment Officer of Cambria Investment Management. "With today's historically high equity market valuations, TAIL's active approach has clear value for advisors and independent investors alike."
Cambria also announced that the Cambria Tail Risk ETF surpassed $300 million in assets in July 2020.
The Cambria Tail Risk ETF seeks to mitigate significant downside market risk. TAIL is engineered to hedge against significant US equity market drawdowns through managed exposure to US Treasuries and a ladder of "out of the money" put options purchased on the U.S. stock market. TAIL also offers the potential advantage of buying more puts when volatility is low and fewer puts when volatility is high. While a portion of the fund's assets are invested in the basket of long put option premiums, the majority of fund assets will be invested in intermediate term US Treasuries. As the fund is designed to be a hedge against market declines and rising volatility, Cambria expects the fund to produce negative returns in the most years with rising markets or declining volatility.
Cambria Investment Management, LP ("Cambria" or the "Company") is a SEC registered investment advisor that was formed in 2006. Cambria is an independent, privately owned investment advisory firm focused on quantitative asset management and alternative investments. The Company's mission is to preserve and grow capital by producing above-average absolute returns with low correlation to traditional assets and manageable risk. Cambria investment portfolios and ETFs span conservative low volatility to aggressive high volatility market products. The firm manages 11 different ETFs and SMAs with over $700 million in assets under management: Cambria Shareholder Yield ETF (SYLD), Cambria Foreign Shareholder Yield ETF (FYLD), Cambria Global Value ETF (GVAL), Cambria Global Momentum ETF (GMOM), Cambria Global Asset Allocation ETF (GAA), Cambria Emerging Shareholder Yield ETF (EYLD), Cambria Value and Momentum ETF (VAMO), Cambria Sovereign Bond ETF (SOVB), Cambria Tail Risk ETF (TAIL), Cambria Trinity ETF (TRTY), and Cambria Cannabis ETF (TOKE).
Put option: A contract that gives the buyer the right, but not obligation to purchase a security on or before a particular date at a pre-determined price from a seller.
Long put option premium: Refers to being "long" or purchasing put options.
To determine if this Fund is an appropriate investment for you, carefully consider the Fund's investment objectives, risk factors, charges and expense before investing. This and other information can be found in the Fund's full or summary prospectus which may be obtained by calling 855-383-4636 (ETF INFO) or visiting our website at www.cambriafunds.com. Read the prospectus carefully before investing or sending money.
The Cambria ETFs are distributed by ALPS Distributors Inc., 1290 Broadway Suite 1000 Denver CO 80203, which is not affiliated with Cambria Investment Management, LP, the Investment Adviser for the Fund. Check the background of ALPS on FINRA's BrokerCheck.
The Cambria Tail Risk ETF is actively managed.
An investment in the Fund involves risk. Some or all of these risks may adversely affect the Fund's net asset value per share ("NAV"), trading price, yield, total return, and/or ability to meet its objective. Cash redemption risk may require the fund to effect redemptions, in whole or in part, for cash. Derivatives can be volatile, and a small investment in a derivative can have a large impact on the performance of the Fund as derivatives can result in losses in excess of the amount invested. Options used by the Fund to offset its exposure to tail risk or reduce volatility may not perform as intended. The Fund may purchase options and invest in other instruments that may be less liquid than other types of investments. There is no assurance that the Fund will achieve its investment objective. An investor may lose money by investing in the Fund.
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SOURCE Cambria Investment Management, LP