Mebane Faber's new ETF
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Mebane Faber's new ETF
Just got an email alert from Mebane Faber about Cambria's new "fund of funds" ETF GAA.
http://finance.yahoo.com/news/cambria-l ... 00383.html
Many of you probably recall GTAA that he started back in 2010 - it never gained much interest and the fees were high. The new ETF will be using value and momentum strategies with annual rebalancing. Here's the current portfolio:
The tricky point about new ETF is the 0% management fee. The ER of 0.29% only includes the expenses of the underlying ETFs. I could understand if this were simply an index fund, although even index funds have expenses. But how in the world can you make money with 0 fee in an actively-managed ETF? Unless 0.29% is cut from the ETF assets AFTER the underlying fund fees are paid I don't see how else this can work.
http://finance.yahoo.com/news/cambria-l ... 00383.html
Many of you probably recall GTAA that he started back in 2010 - it never gained much interest and the fees were high. The new ETF will be using value and momentum strategies with annual rebalancing. Here's the current portfolio:
The tricky point about new ETF is the 0% management fee. The ER of 0.29% only includes the expenses of the underlying ETFs. I could understand if this were simply an index fund, although even index funds have expenses. But how in the world can you make money with 0 fee in an actively-managed ETF? Unless 0.29% is cut from the ETF assets AFTER the underlying fund fees are paid I don't see how else this can work.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
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Re: Mebane Faber's new ETF
Does he have a good or great record with his investing strategies?
Re: Mebane Faber's new ETF
I have respect for Meb Faber's work, he seems like a smart person and has interesting ideas on his blog.Reub wrote: Does he have a good or great record with his investing strategies?
I've kept an eye on GTAA mainly with the hopes that he'd beat the market , but since inception (Nov 2010):
GTAA: 2.1%
TLT: 22.5%
SPY : 71.7%
It looks like from the website someone else is now managing GTAA: http://advisorshares.com/fund/gtaa
Some interesting commentary about the fund: "the failed promise of market timing"
http://www.moneysense.ca/invest/the-fai ... ket-timing
Permanent portfolio ETFs over the same period-
PRPFX: -0.5%
PERM: -1.8%
"Thanks, give me the gold" - Kyle Bass
Re: Mebane Faber's new ETF
John Hussman seems like a very bright guy as well. Unfortunately his investment strategy has been absolutely wrong.
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Re: Mebane Faber's new ETF
But he'll look like a genius in the downturn. I believe that if Hussman can't pull it off, then no one else will. At least not available to retail investors.Reub wrote: John Hussman seems like a very bright guy as well. Unfortunately his investment strategy has been absolutely wrong.
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Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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Re: Mebane Faber's new ETF
Implementing via others so far: no.Reub wrote: Does he have a good or great record with his investing strategies?
Last edited by MachineGhost on Sun Dec 14, 2014 11:06 pm, edited 1 time in total.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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Re: Mebane Faber's new ETF
The usual dreck and conflation. You don't compare a GTAA to the S&P anymore than you do the PP.Mike59 wrote: Some interesting commentary about the fund: "the failed promise of market timing"
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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Re: Mebane Faber's new ETF
It's a semi-passive "set it and forget it" fund like the PP in that it'll only need to be rebalanced every year or two, so there's no point in charging a management fee. If it attracts enough assets, the fund will not lose money, probably by lending out securities or whatever financial kickbacks schemes Wall Street typically engages in.foglifter wrote: The tricky point about new ETF is the 0% management fee. The ER of 0.29% only includes the expenses of the underlying ETFs. I could understand if this were simply an index fund, although even index funds have expenses. But how in the world can you make money with 0 fee in an actively-managed ETF? Unless 0.29% is cut from the ETF assets AFTER the underlying fund fees are paid I don't see how else this can work.
I'll probably throw a percent his way and see if he can perform on his own now instead of hooking up with Wall Street. GTAA charged an expense ratio of over 1.5%!
Last edited by MachineGhost on Sun Dec 14, 2014 11:08 pm, edited 1 time in total.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Re: Mebane Faber's new ETF
Faber mentioned in an interview (can't remember which one) that GAA will funnel a percentage of its funds into the other Cambria ETFs which are money makers. He claimed that once GAA is over $100 million then it will become profitable.