For those wondering how Cambria makes money on GAA without a true expense ratio, the firm is able to defray some of the ETF’s costs by allocating a portion of its weight to other Cambria ETFs. Naysayers might call that self-serving, but the strategy is proving effective, not to mention the other Cambria ETFs held by GAA do not combine for an outsized percentage of the fund’s weight.
The Cambria Global Value ETF (NYSEArca: GVAL), Cambria Shareholder Yield ETF (NYSEArca: SYLD) and the Cambria Foreign Shareholder Yield ETF (NYSEArca: FYLD) combine for less than 8% of GAA’s weight, but good news is those ETFs are up an average of 4.4% this year.
GAA’s stake in GVAL helps the former extend the favorable valuation theme because the latter allocated a combined 26% of its weight to Brazilian, Russian and Greek stocks at the end of the fourth quarter. Based on CAPE, those are three of the most attractively markets in the world.
Cambria Global Asset Allocation ETF