The Cambria ETF Trust and its investment manager, Cambria Investment Management, have launched the Cambria Core Equity ETF (CCOR), which actively manages a diversified portfolio of equities and options.
CCOR is listed on the NYSE Arca exchange and utilises a combination of several strategies to produce capital appreciation while reducing risk exposure across market conditions.
Under normal market conditions, at least 80 per cent of the value of the fund’s net assets will be invested in equity securities. CCOR’s underlying holdings include high-quality companies across all industries and sectors 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.
CCOR also sells exchange traded index put and call options to reduce volatility and increase return. In addition, CCOR buys index put options, which can protect investors from a significant market decline that may occur over a short period of time. CCOR also uses proprietary models and analysis of historical portfolio profit and loss information to identify favourable option trading opportunities, including favourable call and put option spreads.
David Pursell, the fund’s senior portfolio manager, says: “CCOR was developed to be a core holding for all types of investors, as the strategy seeks to says the long-term compounding benefits of stocks with the goal of improving risk management to minimise portfolio drawdowns.”
“The Cambria Core Equity ETF fits in well with the growing line-up of innovative ETF solutions for various types of investors, both individual and institutional, that Cambria has already launched,” adds Meb Faber, Cambria’s chief investment officer.
CCOR is the 11th fund to be launched on the Cambria ETF Trust.