AdvisorShares Investments will begin trading in the Cambria Global Tactical ETF on 26 October.
GTAA is sub-advised by Cambria Investment Management, a Los Angeles, California-based investment manager.
Cambria will invest in underlying ETFs spanning all the major world asset classes including equities, bonds, real estate, commodities, and currencies.
The fund will use a quantitative approach with strict risk management controls to actively manage GTAA’s portfolio in an attempt to control downside losses and protect capital. GTAA will do this by following a trend-based model using multiple asset classes and will either be invested or will get defensive by going into cash for a particular asset class.
Noah Hamman, chief executive and founder of AdvisorShares, says: "Cambria has done an outstanding job developing research and education related to a GTAA strategy via their popular white paper, ‘A Quantitative Approach to Tactical Asset Allocation,’ and their recent book, ‘The Ivy Portfolio.’ We are very excited to be able to offer this risk-managing strategy to investors in an actively managed ETF."
Mebane Faber, chief investment officer of Cambria Investment Management, adds: "We are very excited to launch GTAA as we believe that investors need to be more proactive in managing their risk. Investors will appreciate the fact that we make no effort to forecast future market trends or direction, but rather attempt to capture profits in these trends when and where they develop."