On Tuesday, Cabana Asset Management, a wholly-owned subsidiary of The Cabana Group, LLC and an SEC-registered investment adviser providing risk-managed investment products to investors, advisors, and institutions, announced the expansion of its ETF lineup with the launch of the Cabana Target Leading Sector ETFs, CLSC, CLSM, and CLSA, in partnership with private label ETF advisor Exchange Traded Concepts.
The Target Leading Sector ETF suite seeks long-term growth opportunities by allocating capital to a mix of broad asset class ETFs in response to changing economic conditions. There are three ETFs in the initial suite, each geared towards a distinct investor risk tolerance, ranging from conservative to moderate to aggressive.
Like the first suite of Cabana ETFs that launched in late 2020 (the Target Drawdown ETF Series, which was one of the largest ETF launches of the year as the fund family came to market with approximately $1 billion in assets), the Target Leading Sector funds are powered by the firm’s proprietary Cyclical Asset Reallocation Algorithm (“CARA”). CARA uses a combination of fundamental and technical data to seek to identify changes within the economic cycle and construct underlying portfolios made up of asset classes that may be deemed attractive across all market conditions. Although the Sub-Adviser (Cabana Asset Management) anticipates that it will purchase or sell securities based on the signals provided by CARA, the Sub-Adviser maintains full decision-making power and may override CARA.
Also, similar to last year’s launch, this new fund family will come to market with a significant initial asset base, in this case, approximately $500 million. This launch comes on the heels of Cabana passing the $2 billion mark in assets under management and advisement as of July 1, 2021.
Chadd Mason, CEO of The Cabana Group, commented: “The response we received when we launched our initial family of Target Drawdown ETFs last year was overwhelming, and we’re equally as optimistic about the rollout of our Target Leading Sector funds today. While our Target Drawdown ETFs focus primarily on loss mitigation and maintaining well-defined risk parameters, the Target Leading Sector ETFs focus instead on providing access to those sectors of the economy that appear poised for superior investment return and growth. The combination of the two suites of ETFs provides investors and advisors with a powerful set of tools to navigate the markets with an eye on long-term capital preservation and growth.”
The new suite of Target Leading Sector ETFs includes:
- Cabana Target Leading Sector Conservative (CLSC)
- Cabana Target Leading Sector Moderate (CLSM)
- Cabana Target Leading Sector Aggressive (CLSA)
All three funds are actively managed and come to market at an expense ratio of 0.69% after fee waivers.
Mason added that: “Different investors have different needs, which is why we’ve built these funds to incorporate varying levels of risk tolerance. That combination of active management and the ability to tailor an approach based on appetite for risk is something we think investors and advisors will find very appealing.”
Cabana’s unique investment approaches are available to advisors and investors in the form of separately managed accounts (SMAs), collective investment trusts (CITs), a hedge fund, and these ETFs.
For more information on these funds, visit www.cabanaetfs.com.