Cambria Investment Management, a leading quantitative asset management firm, announced a groundbreaking partnership with ETF Architect to launch the Cambria Tax Aware ETF (TAX).

TAX allows individual investors to seed the launch of the ETF with their separate account investments and exchange their existing investment holdings for the new, tax-efficient ETF. By leveraging ETF technology, Cambria and ETF Architect have created a streamlined and accessible solution that may address the challenges associated with traditional tax-loss harvesting strategies.

“We are thrilled to partner with ETF Architect to bring this innovative technology to market, as it was previously only accessible to accredited investors,” said Meb Faber, co-founder and CIO of Cambria. “We believe TAX offers investors a powerful tool to help optimize tax efficiency, especially for portfolios with significant embedded gains.”

TAX will focus on U.S. stocks with value and quality characteristics and low or no dividend yields. By strategically managing its holdings, the ETF aims to generate capital appreciation without distributing high dividend income or taxable gains.

“ETF Architect is committed to driving innovation in the ETF space,” added Wes Gray, majority owner and strategic advisor of ETF Architect. “We are excited to collaborate with Cambria to launch this pioneering product and provide investors with a more efficient and effective way to manage their tax obligations.”

TAX is expected to launch on NASDAQ in December and will join Cambria’s growing lineup of ETFs, which currently manage over $2.7 billion in assets under management. Cambria plans to follow TAX with a series of ETFs open to all investors and seeded with individual separate account contributions.

Source: Cambria

This is really interesting.

At first blush, it looks it'll effectively take the shape of an exchange fund that isn't arbitrarily diversified, illiquid, and egregiously expensive.https://t.co/xmBnCtyxlU

— Ben Johnson, CFA (@MstarBenJohnson) October 3, 2024