What You May Not Know About Cambria ETFs

SYLD is on the cusp of celebrating its fourth anniversary and has delivered sound results to-date. The returns since inception are similar to that of a broad-market benchmark such as the SPDR S&P 500 ETF (SPY).

In my opinion, this ETF has a great deal of potential as a long-term equity strategy with the potential for outperformance over varying market cycles. It’s also worth noting that SYLD has an international brother in the Cambria Foreign Shareholder Yield ETF (FYLD). As you can imagine, the strategy is roughly the same with the exception that it’s focused on developed markets outside the United States. Both funds charge an annual expense ratio of 0.59%.

One of the core tenets of the Cambria family is a focus not just on a home country bias, but also diversifying around the globe. One example of that thesis is the Cambria Global Asset Allocation ETF (GAA). This “fund of funds” style ETF owns a basket of other underlying ETFs spread across domestic and international stocks, bonds, real estate, and commodities. Think of it as owning the entire global public investment market in a single vehicle.

It’s also the first ETF to not charge a management fee or expense ratio. The only on-going costs are the underlying expenses of the ETFs that GAA owns, which are around 0.25%. That’s rock bottom pricing for a solid and extremely diverse mix of assets.

In a similar structure, the Cambria Global Momentum ETF (GMOM) seeks to own a basket of underlying assets in stocks, bonds, commodities, or currencies showing top measures of momentum. This actively managed fund shifts its holdings to target the top one-third of a universe of 50 potential ETFs to try and capture the funds demonstrating the strongest trends in the current environment. The strategy is based on research conducted by Mebane Faber demonstrating that quantitative analysis of momentum and trend can lead to outperformance.

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