Cambria Launches Tax-Aware ETF, With More to Come
The fund will trade under the ticker TAX and is being offered in partnership with ETF Architect.
Cambria Investment Management has partnered with ETF Architect to launch a new tax-aware exchange-traded fund strategy that aims to allow investors to efficiently deploy capital from separate account investments.
The Cambria Tax Aware ETF, which will trade under the ticker TAX, offers a streamlined and accessible solution that may address the challenges associated with traditional tax-loss harvesting strategies, according to the announcement.
The ETF will initially be seeded by investors looking to trade their holdings in for shares in the ETF, so that they can diversify tax free. Once initially seeded, the ETF will trade on an exchange like any other ETF and is open to public investors.
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 is expected to launch on Nasdaq in December and will join Cambria’s existing lineup of ETFs, which currently manage over $2.7 billion in assets. Cambria plans to follow TAX with a series of additional ETFs open to all investors and seeded with individual separate account contributions.
“We are thrilled to partner with ETF Architect to bring this innovative technology to market, as it was previously only accessible to accredited investors,” said Meb Faber, co-founder and CIO of Cambria, in a statement. “We believe TAX offers investors a powerful tool to help optimize tax efficiency, especially for portfolios with significant embedded gains.”
Pictured: Meb Faber