An Active ETF Strategy to Navigate Market Highs and Low Volatility

The Cambria ETF Trust and Cambria Investment Management added an actively managed core high quality equity exchange traded fund strategy that also helps investors access cheap volatility to hedge against eventual market pullbacks.

On Wednesday, Cambria rolled out the Cambria Core Equity ETF (NYSEArca: CCOR). CCOR has a 1.05% expense ratio.

The Core Equity ETF will be managed by Cambria Investment Management’s David Pursell, Mebane T. Faber and Eric W. Richardson.

“CCOR was developed to be a core holding for all types of investors, as the strategy seeks to combine the long-term compounding benefits of stocks with the goal of improving risk management to minimize portfolio drawdowns,” David Pursell, the fund’s Senior Portfolio manager, said in a note.

CCOR will try to seek capital appreciation and capital preservation with a low correlation to the broader U.S. equity market by primarily investing in U.S. equity securities that offer current dividends. The strategy focuses on high-quality companies that show prospects of long-term total returns as a result of their ability to grow earnings and willingness to increase dividends over time.