Innovative ETF enables individual investors to access tax optimization previously only available to accredited investors
Cambria Investment Management, a leading quantitative asset management firm, and ETF Architect, a leading partner with fund managers launching ETFs, today announced that the Cambria Tax Aware ETF (TAX) has begun trading on NASDAQ.
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.
The ETF launched with $27 million, seeded by individual investors and advisors exchanging separate account 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’re thrilled with the strong initial interest in TAX from both investors and advisors,” said Meb Faber, co-founder and CIO of Cambria. “Beyond the tax benefits of the seeding process, the fund’s focus on value, quality, and tax efficiency makes it an attractive option for a wide range of investors. We look forward to collaborating with ETF Architect to continue developing innovative, tax-advantaged investment solutions.”
TAX joins Cambria's growing lineup of ETFs with over $2.7 billion in assets under management. Cambria and ETF Architect plan to follow TAX with a series of ETFs open to all investors and seeded with individual separate account contributions.
“We’re excited about the future of innovation in the ETF space, particularly for tax-optimized strategies,” said Wes Gray, majority owner and strategic advisor of ETF Architect. “Partnering with Cambria, a firm committed to both innovation and investor outcomes, aligns perfectly with ETF Architect’s mission.”
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 17 different ETFs and had over $2.7 billion in assets under management as of 11/30/2024: 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), Cambria Large Cap Shareholder Yield ETF (LYLD),and Cambria Tax Aware ETF (TAX).
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, GVAL, and TAX 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.
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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.
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