Cambria ETF Trust Converts Cambria Sovereign Bond ETF (SOVB) to Cambria Global Tail Risk ETF (FAIL)
EL SEGUNDO, Calif., March 15, 2021 /PRNewswire/ -- The Cambria ETF Trust and its investment manager, Cambria Investment Management, LP, an independent, investment advisory firm focused on quantitative asset management and alternative investments, today, converted the Cambria Sovereign Bond ETF (SOVB) to the Cambria Global Tail Risk ETF (FAIL). The investment strategy of the fund seeks to mitigate significant downside market risk in global ex-US equities. FAIL is listed on the CBOE BZX exchange.
Meb Faber, the fund's portfolio manager, said: "FAIL is a natural complement to our US-focused Cambria Tail Risk ETF, and provides an alternative to traditional inverse funds in hedging ex-US equity market risk."
The Cambria Global Tail Risk ETF (FAIL) utilizes a quantitative approach to actively manage a portfolio of "out of the money" put options purchased on broad ex-US stock market indices. FAIL's strategy 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 will be invested in the basket of long put option premiums, the majority of fund assets will be invested in intermediate term US Treasuries and TIPS, as well as short and intermediate term ex-US sovereign bonds. As the fund is designed to be a hedge against market declines and rising volatility, Cambria expects the fund to produce negative returns in most years with rising markets or declining volatility.
About Cambria Investment Management
Cambria manages around $975 million in assets, enterprise-wide, as of 3/10/2021, for individual investors, institutions, and registered investment advisors:
- Cambria Shareholder Yield ETF (SYLD)
- Cambria Global Tail Risk ETF (FAIL)
- 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 Tail Risk ETF (TAIL)
- Cambria Trinity ETF (TRTY)
- Cambria Cannabis ETF (TOKE)
- Cambria Global Real Estate ETF (BLDG)
Press Contact:
Tyler Bradford
Hewes Communications
[email protected]
212-207-9454
Definitions:
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: Generally refers to buying put option contracts. Buyers of put options pay what is referred to as a 'premium' when acquiring the contracts.
TIPS: Treasury Inflation Protected Securities. These are US Treasury bonds that feature principal increases with inflation and decreases with deflation, as measured by the Consumer Price Index.
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 Global Tail Risk ETF is actively managed.
Cambria Global TAIL Risk ETF investment objective: The Fund seeks to provide income and capital appreciation.
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.
Diversification may not protect against market loss.
Prior to 3/15/2021, Cambria Global Tail Risk ETF (FAIL) operated as Cambria Sovereign Bond ETF (SOVB). On that date, the investment strategy and the objective also changed. Any performance prior to 3/15/2021 was achieved under the previous investment strategy.
SOURCE Cambria Investment Management, LP
Related Links
http://www.cambriainvestments.com
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