Cambria and ETF Architect Launch Cambria Tax Aware ETF (TAX) with $27 Million

Rhea-AI Summary

Cambria Investment Management and ETF Architect have launched the Cambria Tax Aware ETF (TAX) on NASDAQ with an initial $27 million in assets. The ETF focuses on U.S. stocks with value and quality characteristics and low or no dividend yields, aiming to generate capital appreciation while minimizing taxable distributions. The fund was seeded through exchanges of separate account holdings from individual investors and advisors.

The ETF leverages technology to address traditional tax-loss harvesting challenges, joining Cambria's ETF lineup which manages over $2.7 billion. The companies plan to launch additional tax-optimized ETFs accessible to all investors.

Positive

• Initial launch with substantial $27M in assets
• Joins existing strong ETF lineup with $2.7B AUM
• Innovative tax-optimization strategy previously to accredited investors

Negative

• None.

Insights

Financial Analyst

The launch of the Cambria Tax Aware ETF (TAX) with $27 million in initial assets represents a significant development in democratizing tax-efficient investing. The fund's strategic focus on value and quality stocks with low dividend yields addresses a important market gap. With Cambria's existing $2.7 billion AUM providing credibility, this product launch could capture substantial market share in the growing tax-efficient ETF space. The ability to seed the fund through direct conversion of separate account holdings demonstrates innovative use of ETF technology for tax optimization. This launch timing aligns well with increasing investor demand for tax-efficient investment vehicles, particularly as concerns about future tax rates grow.

Tax Expert

This ETF represents a breakthrough in tax-efficient investing for retail investors. The strategy of focusing on low or no dividend yields while targeting capital appreciation effectively minimizes taxable events during the holding period. The ability to convert existing separate account holdings into ETF shares through the seeding process is particularly innovative, potentially allowing for tax-efficient portfolio transitions. The structure addresses common pain points in traditional tax-loss harvesting, which can be complex and time-consuming for individual investors. This democratization of institutional-level tax management strategies could significantly impact how retail investors approach tax-aware investing.

Innovative ETF enables individual investors to access tax optimization previously only available to accredited investors

MANHATTAN BEACH, Calif.--(BUSINESS WIRE)-- 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.

The Fund is managed using proprietary investment strategies and processes. There can be no guarantee that these strategies and processes will produce the intended results and no guarantee that the Fund will achieve its investment objective. This could result in the Fund’s underperformance compared to other funds with similar investment objectives.

There is no guarantee dividends will be paid. Diversification may not protect against market loss.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241218944874/en/

Tyler Bradford

Hewes Communications

Office: 212-207-9454

tyler@hewescomm.com

Source: Cambria Investment Management

FAQ

What is the initial asset size of the Cambria Tax Aware ETF (TAX)?

The Cambria Tax Aware ETF (TAX) launched with $27 million in initial assets.

How does the Cambria Tax Aware ETF (TAX) minimize tax impact for investors?

TAX focuses on stocks with low or no dividend yields and employs strategic holdings management to generate capital appreciation while minimizing taxable distributions.

What is the total AUM of Cambria's ETF lineup including the new TAX fund?

Cambria's ETF lineup manages over $2.7 billion in assets under management.

What exchange is the Cambria Tax Aware ETF (TAX) trading on?

The Cambria Tax Aware ETF (TAX) trades on the NASDAQ exchange.

What investment characteristics does the Cambria Tax Aware ETF (TAX) target?

TAX targets U.S. stocks with value and quality characteristics, specifically focusing on those with low or no dividend yields.