GAA Investment Case

Strategy Overview

The Cambria Global Asset Allocation ETF (NYSE: GAA) utilizes a quantitative approach to manage a diversified portfolio of global asset classes. The Cambria Global Asset Allocation ETF uses a buy and hold strategy that aims to reflect the market portfolio of investable assets.

Fund Description

The Cambria Global Asset Allocation ETF targets investing in approximately 29 ETFs that reflect the global universe of assets consisting of domestic and foreign stocks, bonds, real estate, commodities and currencies.

Why Invest in GAA

  • Classic Global Investment Approach - A long-held pillar of investing provides that investors should own securities that model the global market. The Cambria Global Asset Allocation ETF intends to invests in approximately 29 ETFs that Cambria identifies as the most liquid, least expensive, and easily recognizable ETFs in the world. Combined, these funds own over 20,000 underlying securities around the world.
  • Breaking the Market Capitalization Link - One challenge of investing is that market capitalization weighted indexes can be suboptimal ways to invest. GAA allows the investor to allocate to strategies, including value and momentum strategies, that have historically outperformed market weighted indexes.
  • Removing Emotional Decision Making - One of the difficulties of investing can be the ability to stay the course when markets are volatile. The Cambria Global Asset Allocation ETF is designed to remove any uncertainty by automatically rebalancing the portfolio back to target weightings every year.
  • Fees - High fees can be a big drag on investor returns. The Cambria Global Asset Allocation ETF is the first ETF to have a permanent 0% management fee.
  • Advantage of Active ETFs - Investors will receive the benefits and flexibility of the ETF vehicle, including the ability to be traded using limit and stop loss orders as well as on margin, intraday pricing, transparency of holdings, lower expense ratio, and a single-share investment minimum.

To determine if the Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and other information can be found in the Fund’s 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.

SYLD, FYLD, EYLD, MYLD, LYLD, TYLD, 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.

Investing involves risk, including potential loss of capital.

: Investments in sovereign and quasi-sovereign debt obligations involve special risks not present in corporate debt obligations. The issuer of the sovereign debt or the authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due, and the Fund may have limited recourse in the event of a default. Investments in commodities are subject to higher volatility than more traditional investments. The fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses. The use of leverage by the fund managers may accelerate the velocity of potential losses. The Fund employs a ‘momentum’ style of investing that emphasizes investing in securities that have had higher recent price performance compared to other securities. This style of investing is subject to the risk that these securities may be more volatile than a broad cross section of securities or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing or the overall stock market. Investments in smaller companies typically exhibit higher volatility. Diversification may not protect against market loss. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. The risk of investing in securities of ETFs, ETPs and investment companies typically reflect the risk of the types of instruments in which the underlying ETF, ETP or investment company invests. In addition, with such investments the Fund bears its proportionate share of fees and expenses of the underlying entity. As a result, the Fund’s operating expenses may be higher, and performance may be lower.

All Cambria ETFs are actively managed.

On June 1, 2020, SYLD’s and FYLD’s investment objective and investment strategy changed. FYLD and SYLD went from being passively managed to actively managed on that same date.

On July 1, 2020, GVAL’s and EYLD’s investment objective and investment strategy changed. GVAL and EYLD went from being passively managed to actively managed on that same date.