Cambria launches actively managed US equity ETF

May 25th, 2017 | By | Category: Equities

Cambia Investment Management has launched the Cambira Core Equity ETF (NYSE Arca: CCOR) which actively manages a diversified portfolio of US equities and US equity options. The fund is listed on the NYSE Arca and will seek to provide performance in excess of the return on the S&P 500 Index.

Cambria launches actively managed US equity ETF

Mebane Faber, chief investment officer, Cambria Investment Management.

David Pursell, the fund’s senior portfolio manager, said: “CCOR was developed to be a core holding for all types of investors, as the strategy seeks to combine the long-term compounding benefits of stocks with the goal of improving risk management to minimize portfolio drawdowns.”

Under normal market conditions, at least 80% of the value of the fund’s net assets will be invested in equity securities. CCOR’s underlying holdings include high-quality companies across all industries and sectors that have prospects for long-term total returns as a result of their ability to grow earnings and their willingness to increase dividends over time.

CCOR also sells index put and call options to reduce volatility and increase return. In addition, CCOR buys index put options, which can protect investors from a significant market decline that may occur over a short period of time.  CCOR also uses proprietary models and analysis of historical portfolio profit and loss information to identify favourable option trading opportunities, including favourable call and put option spreads.

The fund currently has 59 holdings and is primarily exposed to the industrials (18.4%), information technology (16.2%), consumer staples (15.8%), health care (11.8%) and financials (11.7%) sectors.

The ETF has an expense ratio of 1.05%.

“The Cambria Core Equity ETF fits in well with the growing lineup of innovative ETF solutions for various types of investors, both individual and institutional, that Cambria has already launched,” said Meb Faber, Cambria’s chief investment officer.

CCOR is the 11th fund to be launched by Cambria and the firm currently has $427 million total assets in ETFs.

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