However, key-person risk and questionable recent changes result in a Below Average Parent rating.
Cambria focuses on active, systematic-equity, and asset-allocation strategies that differentiate it from larger ETF firms. The firm's ETF lineup is unique, with a focus on yield-, momentum-, and value-oriented funds as well as more-specific options such as its Cannabis ETF. The firm's largest fund is Cambria Shareholder Yield ETF with USD 1.2 billion in assets under management, representing 46% of firmwide assets. The funds are priced well. Cambria hasn't merged or liquidated funds but repurposed two since it entered the ETF business in 2013. It has also registered, but not yet launched, additional ETFs, and it's unclear when they will be available.
Co-founder, majority owner, CEO, and CIO Meb Faber maintains a public profile that drives a notable investor following, resulting in considerable key-person risk at the firm. Although Faber is largely detached from the operational aspects of the small firm, he sets its direction and is one of three investment professionals who support Cambria's strategies (and serves as the only named portfolio manager on all but three of its 15 ETFs). Cambria added Toroso Investments as a subadvisor to its suite of ETFs in September 2023. Toroso quickly morphed into Tidal Investments, a subsidiary of Tidal Financial Group, following a private equity deal in November 2023. Toroso and Tidal's co-founder and CIO Michael Venuto had been an independent trustee on Cambria's three-person ETF board since 2019. Venuto abstained from voting on the Toroso hire and resigned from the board. Although Cambria's choice of subadvisor is reasonable, the decision nonetheless raises questions.