Cambria Investment Management, an El Segundo, Calif.-based money
management firm, today is launching the first ETF in a lineup of
funds that will serve up access to yield-rich equities both in the
U.S. and abroad. It will be the company's first solo effort after
teaming up with AdvisorShares on "GTAA," a global tactical ETF.
The Cambria Shareholder Yield ETF (NYSEArca:SYLD) will invest
primarily in U.S. equities that serve up "high shareholder yield,"
the fund's prospectus said. That yield is measured by a company's
cash flows, as reflected by their payment of dividends, and their
return of capital to shareholders.
SYLD is designed to be a portfolio of equities from companies
that show solid cash flows, strong growth potential and higher
yields relative to their peers. While it will focus roughly on 100
securities, it may at times also include "limited" foreign and
emerging market American depositary receipts. The fund will have an
annual expense ratio of 0.59 percent, or $59 for every $10,000
Cambria is no stranger to the world of
. It serves as advisor to the Cambria Global Tactical ETF
(NYSEArca:GTAA), a fund brought to market by Bethesda, Md.-based
AdvisorShares in October 2010 that has gathered some $60 million in
assets. GTAA is an actively managed fund of funds that uses index
ETFs to execute its strategy of seeking exposure across many asset
classes, including equities, bonds, real estate, commodities and
But SYLD marks the first fund rollout the company's had since it
requested permission to market its own actively managed ETFs back
in mid-2011. And the launch comes at a time when several ETF
providers are looking for ways to tap into investor demand for
income-generating strategies, given that yields in the fixed-income
space are compressed by the Federal Reserve's policies.
Striking Out On Its Own
SYLD, which also employs market capitalization, sector
concentration and liquidity screens in the construction of its
portfolio, is one of four ETFs Cambria detailed in a prospectus
last updated with regulators on May 6. The registration statements
became effective on May 7.
All of these ETFs have a strong focus on yield, and two of them
are essentially developed-market and emerging-market takes on
The ETFs, apart from SYLD, include:
- The Cambria Foreign Shareholder Yield ETF (NYSEArca:FYLD),
with an annual expense ratio of 0.69 percent, will invest in
developed-country companies that provide high shareholder yield
as measured by cash flows and return of capital, just as SYLD.
Cambria said in the filing it will primarily look at countries
included in the S&P Developed Broad Market Index
- The Cambria Emerging Shareholder Yield ETF (NYSEArca:EYLD),
meanwhile, will invest in emerging market companies that fit the
"high shareholder yield" criteria, with the main universe being
those countries included in the S&P Emerging Broad Market
Index. The fund, too, will cost 0.69 percent.
- The Cambria Global Income And Currency Strategies ETF
(NYSEArca:FXFX)-the fourth strategy included in the filing-will
invest in securities that provide income and exposure to global
currencies, particularly those of developed economies, and will
cost 0.79 percent.
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