What You Should Know:

  • The portfolio managers are Mebane Faber and Eric Richardson of Cambria, which also oversees separately managed accounts. The pair co-authored The Ivy League Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets
  • GTAA has an expense ratio of 0.99%.
  • Asset allocations include: Commodities 10%, Real Estate 16%, Fixed Income 11%, Cash & Cash Equivalents 22%, Foreign Currencies 10%, U.S. Stocks 17% and Foreign Stocks 13%.
  • The fund will hold a diversified portfolio of 50 to 100 ETFs.
  • “The portfolio is designed to produce absolute returns by following a systematic trend-following strategy that employs very wide diversification of holdings,” says Morningstar analyst Timothy Strauts in a profile of the ETF.
  • “The active risk-management strategy should limit drawdowns in bear markets,” he adds. “GTAA is one of the most heavily traded active ETFs on the market today.”

The Latest News:

  • While small in comparison to the $2 trillion in the hedge-fund industry, GTAA is attracting investor interest as an alternative way to protect and preserve assets, with its low correlation and low fees, writes Murray Coleman for Barron’s.
  • “The ETF fulfills a useful niche by offering a possibly lower-cost option for trend-following investors,” writes Morningstar analyst Samuel Lee in a look at innovative ETFs.

For past stories in this series, visit our ETF Spotlight category.

Cambria Global Tactical ETF

Max Chen contributed to this article.

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