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.
Currently, top holdings in GTAA are largely fixed income ETFs, including Pimco Enhanced Short Maturity Strategy ETF (NYSEArca: MINT), Vanguard Total Market Bond (NYSEArca: BND), Vanguard Short Term Bond (NYSEArca: BSV), iShares Barclays 7-10 Year Treasury (NYSEArca: IEF), iShares Barclays 1-3 Year Treasury (NYSEArca: SHY) and iShares Barclays 3-7 Year Treasury Bond (NYSEArca: IEI).
Since inception, GTAA is down 4.87% and trades about 28,000 shares on an average daily basis. Liquidity in the fund however is adequate, despite the lower daily trading volume as the underlying holdings of the fund are all ETFs that have robust liquidity in their own right, so it is simply a matter of executing trades properly for the investor or portfolio manager who is interested in utilizing this fund.
Cambria Global Tactical ETF
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