Eric Richardson, Cambria’s Chief Executive Officer, will co-manage the new ETF along with Faber.
SYLD is Cambria’s first in-house ETF, although Faber and Richardson are the portfolio managers for Cambria Global Tactical ETF (NYSEArca: GTAA), a fund in the AdvisorShares family. The ETF holds $59 million in assets, according to Morningstar.
Cambria, which was founded in 2006, has also filed to launch Cambria Foreign Shareholder Yield ETF, Cambria Emerging Shareholder Yield ETF and Cambria Global Income and Currency Strategies ETF.
The firm specializes in quantitative strategies and manages separate accounts and private funds for high net worth individuals and institutions.
Cambria branching out into ETFs has been an “interesting test because of the broad reach,” Faber said. “ETFs are the perfect structure for that because of their low costs, and the tax efficiency is important for active strategies.”
He said the plan is for the firm to introduce four to eight new ETFs in the next few years.
“We have a lot of ETF ideas, and we want to have control over the ability to bring those ideas to the market,” Faber noted. “Getting your own exemption to launch ETFs is a long and arduous process. It took us about 16 months but we think it was time well spent.”
Note: Mebane Faber is a featured speaker at the Alts Virtual Summit, the leading Alternative Investment conference for financial advisors. Register here. Attendance is for financial advisors only. Accepted for 7 CFP & CIMA Board credits!