EL SEGUNDO, Calif.,
March 15, 2021 /PRNewswire/
-- The Cambria ETF Trust and its investment manager, Cambria
Investment Management, LP, an independent, investment advisory firm
focused on quantitative asset management and alternative
investments, today, converted the Cambria Sovereign Bond
ETF (SOVB) to the Cambria Global Tail Risk ETF (FAIL). The
investment strategy of the fund seeks to mitigate significant
downside market risk in global ex-US equities. FAIL is listed on
the CBOE BZX exchange.
Meb Faber, the fund's portfolio
manager, said: "FAIL is a natural complement to our US-focused
Cambria Tail Risk ETF, and provides an alternative to traditional
inverse funds in hedging ex-US equity market risk."
The Cambria Global Tail Risk ETF (FAIL) utilizes a quantitative
approach to actively manage a portfolio of "out of the money" put
options purchased on broad ex-US stock market indices. FAIL's
strategy offers the potential advantage of buying more puts when
volatility is low and fewer puts when volatility is high. While a
portion of the fund's assets will be invested in the basket of long
put option premiums, the majority of fund assets will be invested
in intermediate term US Treasuries and TIPS, as well as short and
intermediate term ex-US sovereign bonds. As the fund is designed to
be a hedge against market declines and rising volatility,
Cambria expects the fund to
produce negative returns in most years with rising markets or
declining volatility.
About Cambria Investment Management
Cambria manages around
$975 million in assets,
enterprise-wide, as of 3/10/2021, for individual investors,
institutions, and registered investment advisors:
- Cambria Shareholder Yield ETF (SYLD)
- Cambria Global Tail Risk ETF (FAIL)
- Cambria Foreign Shareholder Yield ETF (FYLD)
- Cambria Global Value ETF (GVAL)
- Cambria Global Momentum ETF (GMOM)
- Cambria Global Asset Allocation ETF (GAA)
- Cambria Emerging Shareholder Yield ETF (EYLD)
- Cambria Value and Momentum ETF (VAMO)
- Cambria Tail Risk ETF (TAIL)
- Cambria Trinity ETF (TRTY)
- Cambria Cannabis ETF (TOKE)
- Cambria Global Real Estate ETF (BLDG)
Press Contact:
Tyler
Bradford
Hewes Communications
tyler@hewescomm.com
212-207-9454
Definitions:
Put option: A contract that gives the buyer the right, but not
obligation to purchase a security on or before a particular date at
a pre-determined price from a seller.
Long put option premium: Generally refers to buying put option
contracts. Buyers of put options pay what is referred to as a
'premium' when acquiring the contracts.
TIPS: Treasury Inflation Protected Securities. These are US
Treasury bonds that feature principal increases with inflation and
decreases with deflation, as measured by the Consumer Price
Index.
To determine if this Fund is an appropriate investment for
you, carefully consider the Fund's investment objectives, risk
factors, charges and expense before investing. This and other
information can be found in the Fund's full or summary prospectus
which may be obtained by calling 855-383-4636 (ETF INFO) or
visiting our website at www.cambriafunds.com. Read the prospectus
carefully before investing or sending money.
The Cambria ETFs are distributed by ALPS Distributors Inc., 1290
Broadway Suite 1000 Denver CO 80203, which is not affiliated with
Cambria Investment Management, LP, the Investment Adviser for the
Fund. Check the background of ALPS on
FINRA's BrokerCheck.
The Cambria Global Tail Risk ETF is actively managed.
Cambria Global TAIL Risk ETF investment objective: The Fund
seeks to provide income and capital appreciation.
An investment in the Fund involves risk. Some or all of these
risks may adversely affect the Fund's net asset value per share
("NAV"), trading price, yield, total return, and/or ability to meet
its objective. Cash redemption risk may require the fund to effect
redemptions, in whole or in part, for cash. Derivatives can be
volatile, and a small investment in a derivative can have a large
impact on the performance of the Fund as derivatives can result in
losses in excess of the amount invested. Options used by the Fund
to offset its exposure to tail risk or reduce volatility may not
perform as intended. The Fund may purchase options and invest in
other instruments that may be less liquid than other types of
investments. There is no assurance that the Fund will achieve its
investment objective. An investor may lose money by investing in
the Fund.
Diversification may not protect against market loss.
Prior to 3/15/2021, Cambria Global Tail Risk ETF (FAIL) operated
as Cambria Sovereign Bond ETF (SOVB). On that date, the investment
strategy and the objective also changed. Any performance prior to
3/15/2021 was achieved under the
previous investment strategy.
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SOURCE Cambria Investment Management, LP