Cambria unveils global multi-asset ETF of ETFs

Sep 13th, 2018 | By | Category: Alternatives / Multi-Asset

Cambria Funds has listed the Cambria Trinity ETF (TRTY US) on Cboe BZX.

Cambria unveils global multi-asset ETF of ETFs

The ETF offers a global multi-asset investment proposition.

The passively managed fund seeks to capture the returns attributable to value and momentum factor risk premia.

The ETF is unconstrained in its investment approach, selecting from a wide range of geographic and asset class exposures accessed via in-house and third-party ETFs.

The ETF tracks the proprietary Cambria Trinity Index which covers three distinct investment pillars – global bonds, global stocks and global real assets – which is where it gets its name.

The index utilizes a balanced, systematic approach to asset allocation, aiming for a low-turnover portfolio through the use of a buy-and-hold strategy. Investments are generally selected for their exposure to shareholder yield or managed futures strategies, while the approach also favours a trend-following overlay.

The largest constituent is currently the Cambria Global Momentum ETF with a weight of 33%. However, the ETF also has notable allocations to ETFs from Vanguard, WisdomTree, and JP Morgan. In total it currently offers exposure to 17 ETFs. The strategy may also short ETFs with significant downwards momentum.

The prospectus notes the exposures are broken down by equities (16%), fixed income (24%), trend following strategies (44%) and the remainder (16%) in asset classes such as currencies, commodities and real estate.

The fund charges a 0% management fee but investors in the strategy do bear the acquired fund fees. The estimated the expense ratio is 0.66%. Income is distributed to investors on a quarterly schedule.

Cambria currently offers 11 ETFs which represent some $700 million in assets under management.

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