Mebane Faber’s Cambria Investments today introduced the Cambria Global Momentum ETF (NYSEArca: GMOM), an actively managed fund that uses an ETF of ETFs approach.
The Cambria Global Momentum ETF is Cambria’s successor product to the AdvisorShares Morgan Creek Global Tactical ETF (NYSEArca: GTAA), which California-based Cambria stopped sub-advising in June. [Cambia, AdvisorShares Part Ways on Tactical ETF]
GMOM “is comprised of 17 holdings which represent the top 33% of a universe of approximately 50 ETFs. The holdings are selected on measures of trailing momentum and trend. By sorting through a basket of domestic and foreign stocks, bonds, real estate, commodities and currencies, the strategy targets aggressive returns while still managing risk and volatility,” according to a statement issued by Cambria.
The new ETF, managed by Faber and Eric Richardson, charges 0.94% per year and is rebalanced monthly. GMOM’s monthly rebalancing enables the fund to stay invested in ETFs that are displaying strong momentum traits over a roughly 12-month time frame. GMOM is not limited by geography or asset class.
The ETF “intends to target investing in the top 33% of a target universe of approximately 100 ETFs based on measures of trailing momentum and trend. The portfolio begins with a universe of assets consisting of domestic and foreign stocks, bonds, real estate, commodities and currencies,” according to Cambria.
GMOM’s top-10 holdings include the Vanguard Extended Duration Treasury ETF (NYSEArca: EDV), iShares Global Healthcare ETF (NYSEArca: IXJ), iShares MSCI Frontier 100 ETF (NYSEArca: FM) and the iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT).