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).
“In traditional long-only strategies, investors are at risk of exposure to long bear markets. In times of increased volatility and bear cycles, GMOM shifts investors into potentially less volatile assets like cash and bonds when the high momentum ETFs are trading below their long-term trend metrics,” said Cambria in the statement.
GMOM is the second new ETF introduced by Cambria this year following the Cambria Global Value ETF (NYSEArca: GVAL), which debuted in March. [Cambria Adds Global Value ETF]
Cambria Global Momentum ETF Asset Allocation and Top Holdings
ETF Trends editorial team contributed to this article. Tom Lydon’s clients own shares of TLT.