Cambria has filed paperwork with the SEC for a “Cambria Foreign Shareholder Yield ETF.” The Cambria Foreign Shareholder Yield ETF seeks to preserve and grow capital from investments in the developed foreign equity market, and in particular in companies that will generate investment returns through the payment of dividends and through the appreciation of their share price.
PRINCIPAL INVESTMENT STRATEGIES
The Fund seeks to achieve its investment objective by investing, under normal market conditions, primarily in equity securities that provide a high “shareholder yield.” Cambria views equity securities as providing a high shareholder yield if they exhibit strong cash flows, as reflected by their payment of dividends to shareholders and their return of capital to shareholders in other forms, such as through net stock buybacks and net debt paydown. Cambria believes that, while any one of these measures of a company’s cash flows, in isolation, is inadequate to determine the attractiveness of its equity securities, considered together these measures have the potential to result in the construction of a portfolio of companies with better cash flows, stronger growth potential and higher yield characteristics. Considering these measures, which comprise shareholder yield, together, therefore may result in a more attractive investment portfolio. The Fund normally invests at least 80% of its total assets in equity securities of companies located in developed foreign markets. For these purposes, Cambria considers eligible investments generally to include common stocks, American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”) of companies in such markets. Cambria considers developed markets to include, but not be limited to, countries with companies represented in the S&P Developed Broad Market Index.
Securities held by the Fund may be denominated in both U.S. and non-U.S. currencies. The Fund may invest in securities of companies in any industry and of any market capitalization. Although the Fund generally expects to invest in companies with larger market capitalizations, the Fund may invest in small- and mid-capitalization companies.
The Fund is an actively managed ETF and thus does not seek to replicate the performance of a specific index. Rather, Cambria has discretion on a daily basis to actively manage the Fund’s portfolio in accordance with the Fund’s investment objective.
Cambria utilizes a quantitative model to identify which securities the Fund might purchase and sell and opportune times for purchases and sales. While the Fund will invest in approximately 100 of the top foreign developed equity securities as determined by their shareholder yield, market capitalization and other quantitative characteristics. The quantity of holdings in the Fund will be based on a number of factors, including the asset size of the Fund and the number of companies that satisfy Cambria’s quantitative measurements at any one time. Filters will be implemented to screen for companies that pass various market capitalization, sector concentration, and liquidity requirements. The Fund’s portfolio will be rebalanced to Cambria’s internal target allocations, developed pursuant to Cambria’s quantitative strategy, at least quarterly.
For the complete filing click: HERE