“The broad multiasset diversification helps smooth out poor performance by any one asset class,” Strauts added.
It should be noted that during extreme market conditions, like that of 2008, the fund will switch to a large cash position to diminish the risk of substantial capital loss.
The active ETF’s current holdings include U.S. stocks 34%, international stocks 9%, commodities 0%, fixed income 38%, foreign currencies 6% and cash 13%.
Cambria Global Tactical ETF
For more information on active funds, visit our actively managed ETFs category.
Max Chen contributed to this article.