ETF Watch: Cambria Launches ETF With A Twist
The latest ETF to come to market isn’t exactly vanilla.
The ETF market is welcoming today a new dividend-focused fund with a twist.
The Cambria Core Equity ETF (CCOR) is an actively managed equity fund focused on dividend growers that seeks to have low correlation to the broader U.S. equity market, according to its prospectus.
CCOR invests in high-quality companies 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.” The strategy may also use options contracts to manage portfolio volatility and downside risk.
The ETF writes index call options to reduce volatility, and capture “steady cash flow,” and it buys index put options to protect the portfolio from market declines in the short term.
'Core Holding'
"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,” said David Pursell, the fund’s senior portfolio manager, in a release.
CCOR, which comes to market with nearly $100 million in seed money—one of the largest this year—also comes with an expense ratio of 1.05%, or costs $105 per $10,000 invested. The fund is listed on the NYSE Arca, and is Cambria's 11th ETF.
Contact Cinthia Murphy at [email protected]
