Cambria Tail Risk ETF (TAIL)
BATS BATS Primary Summary
TAIL Chart
TAIL: With Bond-Equity Correlations Back To Positive, This ETF Is Set To Underperform (Rating Downgrade)
To offset the costly 'bleed' of buying S&P 500 put options, the Cambria Tail Risk ETF invests the majority of its capital in 10-year Treasuries instead of short-term T-Bills. This introduces a duration risk of roughly 7.5 years, making the fund highly sensitive to interest rate fluctuations. Because of its heavy exposure to 10-year Treasuries, TAIL's net asset value (NAV) declines when interest rates rise.
TAIL: VXZ May Be A Better Hedge, With A Caveat
The Cambria Tail Risk ETF offers downside protection for a stock portfolio via S&P 500 put options and U.S. Treasuries. TAIL outperforms inverse S&P 500 ETFs (SH, SDS) on risk-adjusted returns when used to hedge a core stock portfolio. The mid-term VIX futures ETF delivers superior risk-adjusted returns vs. TAIL but requires monitoring due to VIX futures complexity.
TAIL Risk Is Unfolding As We Speak
The president's tariff wars have caused a bear market without fundamental economic changes, making TAIL ETF a crucial hedge. TAIL ETF, with its long bond position and S&P 500 puts, has performed well, compensating for SPY losses and outperforming other ETFs. TAIL is a buy-and-hold hedge, unlike other instruments, offering balanced portfolio risk reduction and long-term stability.
Cambria Tail Risk ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
 Daren Blonski Fermata Advisors LLC | 37,252 | $395,988.76 | $393,567.38 | -$2,421.38 | -0.61% |
 John Mezzasalma Mezzasalma Advisors LLC | 34,150 | $408,174.6 | $360,794.75 | -$47,379.85 | -11.61% |
 cullen roche Orcam Financial Group | 18,500 | $301,290 | $195,267.5 | -$106,022.5 | -35.19% |
| RFA Resurgent Financial Advisors LLC Resurgent Financial Advisors LLC | 10,494 | $126,123.29 | $110,554.29 | -$15,569 | -12.34% |
| EM Erin Mccann Simplicity Wealth LLC | 10,400 | $121,784 | $109,564 | -$12,220 | -10.03% |
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Cambria Tail Risk ETF Profile
| BATS Exchange | US Country |
Overview
The described fund operates within the financial sector, specializing in investment strategies that focus on mitigating risks associated with the volatility of domestic equities. By actively managing its assets, the fund aims to achieve its investment objectives through a mix of cash holdings, U.S. government bonds, and a strategic use of put options. This approach targets maintaining a balance between growth and protection against significant market downturns, emphasizing the stability and security of the invested capital. The fund is designed for investors seeking to preserve capital while aiming for consistent returns in fluctuating market conditions.
Products and Services
- Cash and U.S. Government Bonds
The fund invests in cash and U.S. government bonds as a foundational strategy to ensure capital preservation and provide a stable return. These investments are considered low-risk and are an essential part of the fund's strategy to protect against market volatility and downturns.
- Put Option Strategy
The fund utilizes a put option strategy to manage the risk associated with significant negative movements in the value of domestic equities. By allocating approximately one percent of the fund's total assets each month towards purchasing put options, the fund aims to provide a safety net against drastic market declines. This strategy allows the fund to potentially benefit or mitigate losses during downturns, aligning with the overall objective of capital preservation amidst volatility.
