What You May Not Know About Cambria ETFs

The ETF world is full of articles touting the advantages of mega-firms like Vanguard, BlackRock, and State Street. These companies have set the bar high for delivering exceptionally transparent, diversified, low-cost, and liquid vehicles to every American investor.

Nevertheless, many ETF shareholders have yet to identify with the broad array of smaller firms that are pushing the envelope in terms of their innovative funds. These companies often escape notice because of their smaller regional size that is dwarfed by the industry titans. I’m talking about issuers such as Alpha Architect, Davis, Elkhorn, O’Shares, Reality Shares, and the focus of today’s article: Cambria Investment Management.

The one thing each of these firms has in common is they seek out sound investment strategies backed by evidence-based research or a proven index methodology. Their funds may also offer closer identification with investors that are looking for sound tactical exposure or differentiation in the form of a reliable ETF wrapper.

Without further preamble, here is my take on one of the smaller firms that is doing it right…

Cambria was co-founded by Mebane Faber and Eric Richardson, who develop and manage the individual ETF strategies produced by the firm. The company has nine ETFs currently available for trading with a host of others that are currently in registration. According to data from ETF.com, the firm has $417 million in total assets spread amongst its suite of funds.

The flagship strategy is the Cambria Shareholder Yield ETF (SYLD), which I have mentioned on the blog before. SYLD is classified as an actively managed ETF that owns a basket of 100 U.S. stocks demonstrating the characteristics of paying cash dividends, repurchasing shares, or paying down debt on their balance sheets. These stocks are actively trying to return profits to shareholders in the form of sound financial management (shareholder yield) rather than just focusing on a single factor like high dividend payouts or share buybacks.

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