Most Innovative New Income ETFs

January 13, 2014

3. Cambria Shareholder Yield ETF (SYLD | B-44)

SYLD is an actively managed fund that invests in U.S.-listed equities that have strong cash flow as characterized by dividends, shares buybacks and net debt paydown.

The ETF was Cambria’s first solo effort after teaming up with AdvisorShares on another fund.

The fund added a new wrinkle to the dividend-yield trend, adding share buybacks and a net debt screen to the methodology.

“At a time when share buybacks are one of the most pervasive trends in the market, SYLD is right in the sweet spot of the market,” Baiocchi said.

In an interview at the time of the launch, Cambria’s founder and Chief Executive Officer Mebane Faber told IndexUniverse: “Dividends are great, and the evidence has been that dividend-paying stocks—and higher-dividend-yielding stocks—have outperformed the broad market both in the U.S. and around the world for as long as anyone has been calculating returns. But dividends are only one of five things a company can do with its cash when it’s making money.”

SYLD has an annual expense ratio of 0.59 percent, or $59 for each $10,000 invested. The fund has rallied 17 percent since it came to market on May 14, 2013.

SYLD_PerfORMANCE_Since_Inception

 

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