ETF Trends publisher Tom Lydon discussed the Cambria Tail Risk ETF (Cboe: TAIL) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.
TAIL tries to provide income and capital appreciation from investments in the U.S. markets while protecting against downside risk, according to a prospectus sheet. The active ETF will invest in cash and U.S. government bonds, and utilizing a put option strategy to manage the risk of a significant negative movement in the value of domestic equities, or more commonly known as tail risk, over rolling one-month periods.
Tail risk refers to the normal distributions beyond three standard deviation, or more skewed distributions.
For more podcast episodes featuring Tom Lydon, visit our podcasts category.