LOS ANGELES, Dec. 10, 2014 /PRNewswire/ -- The Cambria ETF Trust and its investment manager, Cambria Investment Management, LP, today launched the Cambria Global Asset Allocation ETF (Ticker: GAA). This marks the first ETF on the U.S. market to charge a permanent 0% management fee. GAA trades on the NYSE Arca exchange.
GAA is comprised of other underlying ETFs and seeks to replicate a true global market portfolio, investing in a basket of U.S. and foreign equities, bonds, real estate, commodities, and currencies. Rather than utilize a traditional market capitalization methodology, the portfolio tilts towards strategies such as value and momentum factors. Through GAA's 29 underlying ETF positions, holders of GAA will be diversified in over 20,000 individual securities.
GAA's underlying holdings consist of ETFs from several leading fund advisors, including Vanguard, BlackRock, State Street, WisdomTree, and Schwab. GAA will also feature an initial allocation to three of Cambria's existing ETFs: Shareholder Yield, Foreign Shareholder Yield, and Global Value. The underlying ETFs are selected on the basis of several measures, including expense ratio, liquidity, and investment strategy. The total expense ratio for the underlying holdings is 0.29%.
"Most of Wall Street charges far too much and delivers far too little," said Meb Faber, Cambria's Chief Investment Officer. "Our goal is to provide low-cost alternatives to traditional buy-and-hold portfolios."
Eric Richardson, Cambria's Chief Executive Officer, added, "The investing landscape is rapidly changing. New technology platforms are offering investors access to tax-efficient, low-cost products, and now Cambria is excited to be launching an innovative core portfolio option with an extremely competitive fee structure. GAA is the first ETF to feature a permanent zero management fee."
ABOUT CAMBRIA INVESTMENT MANAGEMENT, LP
Cambria Investment Management, LP, based in Los Angeles, California, is a SEC registered investment management firm employing a disciplined multi-asset, global quantitative research process. Cambria provides investment management services to high net worth individuals and institutions through separately managed accounts, private funds, and public exchange-traded funds. Cambria is also the investment manager of the Cambria Shareholder Yield ETF (NYSE:SYLD), Cambria Foreign Shareholder Yield ETF (NYSE:FYLD), Cambria Global Value ETF (NYSE: GVAL) and Cambria Global Momentum ETF (NYSE: GMOM). Global diversification through asset allocation, coupled with prudent risk management, is the foundation of Cambria's investment philosophy. www.cambriainvestments.com and www.cambriafunds.com.
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 SEI Investments Distribution Company, which is not affiliated with Cambria Investment Management, LP, the Investment Adviser for the Fund.
ETFs are subject to commission costs each time a "buy" or "sell" is executed. Depending on the amount of trading activity, the low costs of ETFs may be outweighed by commissions and related trading costs. Shares are bought and sold at market price (closing price) not net asset value (NAV) are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times.
There is no guarantee that the Fund will achieve its investment goal. Investing involves risk, including the possible loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from social, economic, or political instability in other nations. These risks are especially high in emerging markets. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. Investments in commodities are subject to higher volatility than more traditional investments. The fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. The use of leverage by the fund managers may accelerate the velocity of potential losses. The Fund employs a "momentum" style of investing that emphasizes investing in securities that have had higher recent price performance compared to other securities. This style of investing is subject to the risk that these securities may be more volatile than a broad cross-section of securities or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing or the overall stock market. Investments in smaller companies typically exhibit higher volatility. Diversification may not protect against market loss.
Buying and selling shares will result in brokerage commissions. Brokerage commissions will reduce returns.
There are special risks associated with margin investing. As with stocks, you may be called upon to deposit additional cash or securities if your account equity declines.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cambria-launches-global-asset-allocation-etf-with-a-000-management-fee-300007758.html
SOURCE Cambria Investment Management, LP