Cambria Funds added new multi-asset ETF that incorporates a wide range of asset categories, with a focus on diversification, value investing and trend following.
The recently launched Cambria Trinity ETF (Cboe: TRTY) has a 0.66 expense ratio.
The Cambria Trinity ETF tries to reflect the performance of the Cambria Trinity Index, which is designed to provide diversified exposure to all of the major asset classes in the various regions, countries, and sectors around the globe and absolute positive returns with lower volatility and risk compared to global equity markets, according to the fund’s prospectus.
The fund acts as an ETF-of-ETFs and may include exposure to equity and fixed income securities, along with real estate, commodities, listed derivatives and currencies. Other ETP exposures pursue shareholder yield and managed futures strategies, which involve dividend investing and short sales, respectively.
TRTY is also incorporates a smart beta play, focusing on factors like value, momentum and trend investing. Momentum and trend following strategies try to invest in assets when their prices are in an uptrend or when prices are increasing over a specified time period relative to the prices of other assets. It also sells or shorts assets when their prices are in a downtrend relative to the prices of other assets.
The underlying index allocates approximately 16% of its portfolio to equity securities, 24% to fixed income securities, 44% to trend following strategies and 16% to other asset classes such as currencies and real assets, including commodities, listed derivatives and real estate.
Current holdings include Cambria Global Momentum ETF (NYSEArca: GMOM) 33.5%, Vanguard Intermediate-Term Government Bond ETF (NASDAQ: VGIT) 7.8%, Cambria Value and Momentum ETF (NYSEArca: VAMO) 7.8%, Vanguard Total Bond Market ETF (NasdaqGM: BND) 5.9%, Cambria Sovereign High Yield Bond ETF (NYSEArc: SOVB) 5.8%, PowerShares DB Optimum Yield Diversified Commodity Strategy Portfolio (NasdaqGM: PDBC) 4.0%, WisdomTree Managed Futures Strategy (WTMF) 3.9%, JPMorgan Managed Futures ETF (NYSEArca: JPMF) 3.9%, Cambria Shareholder Yield ETF (NYSEArca: SYLD) 3.9% and Cambria Global Value ETF (NYSEArca: GVAL) 3.9%.
For more information on new fund products, visit our new ETFs category.