MANHATTAN BEACH, Calif.--(BUSINESS WIRE)--Cambria Investment Management, a leading quantitative asset management firm, today announced a groundbreaking partnership with ETF Architect to launch the Cambria Tax Aware ETF (TAX).
TAX allows individual investors to seed the launch of the ETF with their separate account investments and exchange their existing investment holdings for the new, tax-efficient ETF. By leveraging ETF technology, Cambria and ETF Architect have created a streamlined and accessible solution that may address the challenges associated with traditional tax-loss harvesting strategies.
"We are thrilled to partner with ETF Architect to bring this innovative technology to market, as it was previously only accessible to accredited investors," said Meb Faber, co-founder and CIO of Cambria. "We believe TAX offers investors a powerful tool to help optimize tax efficiency, especially for portfolios with significant embedded gains."
TAX will focus on U.S. stocks with value and quality characteristics and low or no dividend yields. By strategically managing its holdings, the ETF aims to generate capital appreciation without distributing high dividend income or taxable gains.
"ETF Architect is committed to driving innovation in the ETF space," added Wes Gray, majority owner and strategic advisor of ETF Architect. "We are excited to collaborate with Cambria to launch this pioneering product and provide investors with a more efficient and effective way to manage their tax obligations."
TAX is expected to launch on NASDAQ in December and will join Cambria's growing lineup of ETFs, which currently manage over $2.7 billion in assets under management. Cambria plans to follow TAX with a series of ETFs open to all investors and seeded with individual separate account contributions.
About Cambria
Cambria Investment Management, LP ("Cambria" or the "Company") is a registered investment advisor that was formed in 2006. Cambria is an independent, privately owned investment advisory firm focused on quantitative asset management and alternative investments. The Company's mission is to preserve and grow capital by producing above-average absolute returns with low correlation to traditional assets and manageable risk. Cambria investment portfolios and ETFs cover equity-focused strategies, global asset allocation, tail risk, hedged equity, and thematic strategies. The firm manages 16 different ETFs and had over $2.7 billion in assets under management as of 9/30/2024: Cambria Shareholder Yield ETF (SYLD), 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 Global Tail Risk ETF (FAIL), Cambria Tail Risk ETF (TAIL), Cambria Trinity ETF (TRTY), Cambria Cannabis ETF (TOKE), Cambria Global Real Estate ETF (BLDG), Cambria Micro and Small Cap Shareholder Yield ETF (MYLD), Cambria Tactical Yield ETF (TYLD), Cambria Chesapeake Pure Trend ETF (MFUT), and Cambria Large Cap Shareholder Yield ETF (LYLD).
About ETF Architect
ETF Architect is on a mission to lower barriers to entry in the ETF market by delivering an affordable, easy-to-use, and transparent solution. Via their EA Series Trust, the firm partners with fund managers (hedge, mutual, SMA), registered investment advisors (RIAs), and family offices who want to leverage the material tax and operational efficiencies of the ETF structure. The firm currently manages over $12B in assets across 57 different ETFs.
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.
SYLD, FYLD, EYLD, MYLD, TYLD, LYLD, TAIL, FAIL, VAMO, GMOM, TRTY, GAA, BLDG, TOKE and GVAL are distributed by ALPS Distributors, Inc., 1290 Broadway, Suite 1000, Denver, CO 80203. MFUT is distributed by Foreside Fund Services, LLC. ALPS, Foreside, and Cambria are not related.
There is no guarantee that the Fund will achieve its investment goal. Investing involves risk, including the possible loss of principal. High yielding stocks are often speculative, high risk investments. The underlying holdings of the fund may be leveraged, which will expose the holdings to higher volatility and may accelerate the impact of any losses. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and the Fund’s performance. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Investments in smaller companies typically exhibit higher volatility. Narrowly focused funds typically exhibit higher volatility.
The Fund is managed using proprietary investment strategies and processes. There can be no guarantee that these strategies and processes will produce the intended results and no guarantee that the Fund will achieve its investment objective. This could result in the Fund’s underperformance compared to other funds with similar investment objectives.
There is no guarantee dividends will be paid. Diversification may not protect against market loss.
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.
1031 Exchange: IRC Section 1031 provides an exception to taxable gains at the time of sale of a business or investment property and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.