Cambria Tail Risk ETF - Not A Hedge In A Rising Rates Environment

May 31, 2022 2:30 AM ETCambria Tail Risk ETF (TAIL)TAIL1 Comment
Binary Tree Analytics
5.19K Followers

Summary

  • TAIL is an ETF which aims to mitigate significant downside market risk.
  • The ETF's portfolio is a mix of treasuries and S&P 500 put options.
  • TAIL is down more than -5% on a year-to-date basis.
  • This article covers macro portfolio construction from our suite of products - we focus on macro portfolio construction, CEFs, and yield-producing options strategies, targeting overall returns of 9%+.
Risk chart

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Thesis

Cambria Tail Risk ETF (BATS:TAIL) is a vehicle that aims to protect an investor's portfolio from significant downside market risk. As per the ETF's literature:

The Fund intends to invest in a portfolio of “out of the money” put options purchased

This article was written by

5.19K Followers
With an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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