Catching Investors By The 'TAIL' as the Chinese New Year Arrives

The Cambria Tail Risk ETF aims to protect investor wealth by mitigating downside market risks. It primarily invests in out-of-the-money put options and treasury bonds. Despite its hedging strategy, the fund has experienced negative returns since its 2017 launch due to rising markets. It holds $75 million in assets with a 59 basis point expense ratio. The fund is evaluated positively by Bloomberg, despite its actively managed status.

What is the primary goal of the Cambria Tail Risk ETF?

• To focus on emerging markets

• To invest in high-risk stocks

• To hedge against significant market downturns

• To maximize short-term profits

What type of financial instrument does the Tail Risk ETF primarily use as a hedge?

• Out-of-the-money put options

• Corporate bonds

• Call options

• Futures contracts

Where is the majority of the Tail Risk ETF's assets invested?

• In commodities

• In real estate

• In treasury bonds

• In technology stocks

What is the expense ratio of the Tail Risk ETF?

• 100 basis points

• 50 basis points

• 75 basis points

• 59 basis points

How does the Tail Risk ETF typically perform in years with rising markets?

• It often produces negative returns

• It remains stable

• It outperforms the S&P 500

• It produces positive returns