VAMO Investment Case

Strategy Overview

The Cambria Value and Momentum ETF (NYSE: VAMO) utilizes a quantitative approach to actively manage a portfolio of domestic equities. Value factors have long been emphasized by investors as key predictors of a company’s strength. Likewise, momentum factors have historically been complementary to a portfolio sorted on value. Value and Momentum combines the two factors and additionally can tactically hedge the equity portfolio with strict risk control methods that are completely systematic. The manager believes that a focus on all three factors – value, momentum, and tactical hedging, produces a portfolio of companies that offer strong characteristics, with the potential added benefit of lower volatility and protecting against market downturns.

Fund Description

The Cambria Value and Momentum ETF (the “Fund”) seeks to preserve and grow capital from investments in the U.S. equity markets. Specifically, VAMO invests in 100 stocks with market caps greater than US $200 million that rank among the highest in value factors, as well as momentum factors. The Fund then has the ability to hedge up to 100% of the portfolio based on top down objective assessments of stock valuations and market trends.

Why Invest in VAMO

  • Classic Investment Approach - Two long-held pillars of investing provide that investors should buy the assets of cheap companies (value) that exhibit trailing outperformance over a medium term timeframe (momentum). The VAMO portfolio intends to invest in the top 100 stocks of what Cambria identifies as the least expensive stocks with the best momentum characteristics in the United States.
  • Combining Top Down Hedging - One challenge of investing is that a long only exposure can expose the investor to long bear markets. VAMO allows the investor to hedge the equity portfolio when the market is expensive or in a downtrend, or both. The Fund will scale the hedges up and down on a weekly basis.
  • Removing Emotional Decision Making - One of the difficulties of investing is the ability to stay the course when markets are volatile. The Cambria Value and Momentum ETF rebalances monthly, and hedges updated weekly, with systematic rules for entry and exit long-held pillar of investment success provides that investors should buy the stocks of companies that exhibit strong free cash flows and return that cash to investors in the form of dividend yield. The VAMO portfolio has the potential benefit of investing in classic value companies that are also buying back their stock and reducing their debt.
  • Diversification - The fund offers a broad portfolio of US companies of different sizes, industries and sectors, providing investors with a diversified equity portfolio. The manager employs maximum sector percentage caps to ensure that the portfolio is not concentrated in any one sector.
  • 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, and transparency of holdings, lower expense ratio, and a single-share investment minimum, all underlying Cambria’s actively managed, risk-controlled portfolio design.

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.

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.

Investing involves risk, including potential loss of capital.

VAMO: The Fund may hedge up to 100% of the value of the fund's long portfolio. The Fund may use derivatives to attempt to effectuate such hedging during times when the advisor believes that the U.S. equity market is overvalued from a valuation standpoint, or model identifies unfavorable trend and momentum in the U.S. equity market. The primary risk of derivative instruments is changes in market value of securities held by the Fund and of the derivative instruments relating to those securities may not be proportionate. Derivatives are often more volatile than other investments and may magnify the Fund's gains or losses.

VAMO is actively managed.

As of 12/31/2025 VAMO received a 3-star overall rating, 3 years a 2-star rating, 5 years a 5-star rating, and 10 years a 2-star rating based on risk adjusted returns out of 139, 139, 103, 60 funds respectively in the Equity Hedged category.

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