Cambria Fixed Income Trend ETF (CFIT)

Overview

The Cambria Fixed Income Trend ETF (FIGX) employs a trend-following strategy across various fixed income sectors, aiming to generate positive returns regardless of the overall direction of the bond market. It actively allocates capital based on price trends, using a quantitative approach to identify opportunities in U.S. Treasuries, corporate bonds, mortgage-backed securities, and other debt instruments. It offers a dynamic approach to fixed income investing.

Reputation and Reliability

Cambria Investment Management is known for its innovative approach to ETF design and management, particularly in the field of quantitative and tactical strategies. They have a solid reputation for providing access to alternative investment strategies through the ETF wrapper.

Management Expertise

Cambria's management team consists of experienced professionals with backgrounds in quantitative finance and asset allocation, enabling the team to navigate fixed income market dynamics effectively.

Goal

The primary goal of FIGX is to achieve positive total returns by actively managing a portfolio of fixed income instruments based on trend-following signals.

Investment Approach and Strategy

Strategy: FIGX does not track a specific index. It uses a quantitative, trend-following strategy to allocate capital among various fixed income sectors.

Composition FIGX invests in a diversified mix of fixed income securities, including U.S. Treasuries, corporate bonds, mortgage-backed securities, and other debt instruments.

Market Share: Data on FIGX's precise market share within the broader actively managed fixed income ETF landscape is not readily available as it is a niche product.

Total Net Assets (AUM): 52600000

Key Competitors

• AGFiQ US Market Rotation ETF (RORO)
• Simplify Interest Rate Hedge ETF (PFIX)
• IQ MacKay Municipal Insured ETF (MMIN)

Competitive Landscape

The actively managed fixed income ETF market is competitive. FIGX differentiates itself through its trend-following strategy. Compared to passive ETFs, FIGX offers the potential for higher returns in trending markets, but may underperform in choppy or range-bound environments. Compared to other actively managed funds, FIGX's trend-following approach is unique. Its main disadvantage is potential underperformance relative to traditional bond strategies during periods without clear trends.

Historical Performance: Historical performance data should be obtained from official fund documents and financial websites.

Benchmark Comparison: Comparing FIGX's performance to a broad fixed income benchmark (e.g., Bloomberg Barclays U.S. Aggregate Bond Index) and to other actively managed fixed income funds is essential for gauging its effectiveness.

Expense Ratio: 0.59

Average Trading Volume

Average trading volume can vary, but investors should check recent figures to assess liquidity and the ease of entering or exiting positions.

Bid-Ask Spread

The bid-ask spread should be monitored to understand the cost of trading the ETF.

Market Environment Factors

Economic indicators (interest rates, inflation), sector growth prospects (corporate credit spreads), and overall market conditions (risk appetite) affect FIGX's performance.

Growth Trajectory

Growth trends depend on the efficacy of the trend-following strategy and market conditions. Changes to strategy and holdings are disclosed in fund prospectuses and factsheets.

Competitive Edge

FIGX's competitive advantage lies in its unique trend-following approach to fixed income investing. It offers a dynamic strategy that aims to capitalize on market trends, providing potential for outperformance in specific market environments. Its active management provides flexibility to adapt to changing market conditions. The fund diversifies across various fixed income sectors. This can make it a potentially valuable option for investors seeking active fixed income strategies.

Volatility

FIGX's historical volatility can be assessed by examining its standard deviation of returns over various time periods.

Market Risk

Specific risks include interest rate risk, credit risk, and the risk that the trend-following strategy may not perform as expected.

Ideal Investor Profile

The ideal investor for FIGX is one who understands and accepts the risks associated with active management and trend-following strategies, and is seeking potentially higher returns than traditional fixed income investments.

Market Risk

FIGX is suitable for investors with a higher risk tolerance who are looking for active fixed income exposure and who understand that the trend-following strategy may not always outperform passive benchmarks.

Cambria Fixed Income Trend ETF employs a quantitative trend-following strategy across various fixed income sectors. It offers potential for positive returns regardless of the bond market direction. It is an actively managed fund seeking to capitalize on market trends but may not always outperform passive benchmarks. Ideal investors should understand and accept associated risks and be seeking higher returns than traditional fixed income investments.

Data Sources:

• Cambria Investment Management
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and risk tolerance. Past performance is not indicative of future results.