ETF Chart of the Day: Absolute Returns | ETF Trends

Cambria Global Tactical ETF (NYSEArca: GTAA) launched nearly one year ago, and the exchange traded fund has attracted approximately $164 million in assets under management since inception.

Issued by AdvisorShares, which is familiar in the industry as pioneers in actively managed ETFs, GTAA is designed to deliver absolute returns while reducing overall volatility and downside risk. [ETF Spotlight: Cambria Global Tactical]

The fund managers invest in ETFs, so the fund itself is essentially a “fund of funds” ETF, and utilizes varied asset classes including equities, fixed income, real estate, commodities, and currencies.

Fund managers Mebane Faber and Eric Richardson actually authored a book titled “The Ivy Portfolio” that describes the investment process that GTAA employs, and the idea of “The Ivy Endowment Fund Portfolio” methodology has been popularized in recent years by David Swensen’s Yale University endowment fund.