Los Angeles-based Cambria Investment Management has unveiled its seventh exchange-traded fund and first to target the fixed income space. Listed on the NYSE Arca, the newly launched Cambria Sovereign High Yield Bond ETF (SOVB) aims to deliver income and capital appreciation by investing in liquid sovereign and quasi-sovereign bonds with high yield characteristics.
Rather than adhering to traditional notions of emerging and developed markets, the strategy seeks the most attractively priced debt securities from a global opportunity set.
While traditional bond funds are often concentrated in the largest debtors, SOVB will hold a well-diversified portfolio with no single exposure over 10%.
“Foreign bonds are the largest asset class in the world, yet are dramatically under-represented in investor portfolios,” said Meb Faber, Chief Investment Officer at Cambria. “Moving away from a market-cap strategy and employing a value lens to foreign government bonds could help investors gain smarter access to income in a yield-starved environment.”
Eric Richardson, Chief Executive Officer at Cambria, added: “Financial advisors and high net worth individuals have come to rely on Cambria’s low-cost smart beta strategies. We’re pleased to further expand our suite of academically-driven funds to meet investors’ portfolio needs.”
The fund universe provides potential access to the bonds of 44 countries and will pay income on a quarterly basis.
Ongoing management fees of 0.59% apply.