Cambria Global Tactical ETF (Trend Following ETF from Mebane Faber)

An email today from Mebane Faber:

“Hey Michael, Finally our trend following ETF launched today on the NYSE (ticker: GTAA)! A bit excited…but glad it is finally here.”

More:

“Essentially, GTAA will utilize a trend-following strategy that is based on a quantitative model to actively manage the portfolio and no effort will be made to forecast future market direction or conditions. Instead, the managers will look to capture these trends as and when they appear. Such a philosophy is the crux of many trend-following strategies because the managers do not believe they can forecast future markets accurately, so they instead focus efforts on spotting a change in trends and capitalizing on them.”

Thanks Mebane!

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You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content.

8 thoughts on “Cambria Global Tactical ETF (Trend Following ETF from Mebane Faber)

  1. I just finished reading their prospectus and it was pretty disappointing. They take no short positions. Instead of being short, they are in cash. This deficiency will likely lead to out-performance of the equity indexes, but under-performance compared to trend following CTAs.

  2. Hmm, I wonder if this ETF will be so successful and popular that it will stop producing above average risk adjusted returns???

  3. I did a study trading the SSO on my Buy Signals and then trading SDS with the proceeds on each Sell Signal and discovered that I would have been worse off than just trading the SSO and going to cash, from 8-27-07 to the present. I would have thought that the Crash would have given positive returns on the Shorts.

  4. I think it was Ed Seykota who said it is about three times more difficult to make money shorting than it is taking long positions. If the markets didn’t have a long term upward trend then, yes, shorting may help.

    I use 25 ETF’s in my trend trading system but I will only hold a maximum of two inverse ETF’s (PSQ and RWM). That is what works for me.

    Fred

  5. SDS is a double short ETF, those seem to have some correlation problems with the underlying. Did you try using SH, which is a single short SP500, in your backtesting? That may have some different results….

  6. Jim,

    Ditto what Aaron says…I played a double short and a double long natural gas ETF against each other and caught some excellent short-term trends. When the smoke cleared, however, my bankroll was down 2%.

    I went back to futures and did much better.

    I think there are ETF corrrelation and slippage issues on the doubles and triples that we have to watch out for.

    Cheers

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