The Cambria ETF Trust and its investment manager, Cambria Investment Management, launched the Cambria Shareholder Yield ETF (SYLD). The offering is an actively managed ETF comprised of U.S. stocks that have historically ranked among the highest in paying cash dividends, engaging in share buybacks and paying down debt. These three factors are collectively known as “shareholder yield,” the company said.
Research conducted by Cambria’s Chief Investment Officer Mebane Faber showed that focusing solely on dividends may result in suboptimal performance results for investors. Instead, a more holistic investment approach consisting of the three shareholder yield components produced a portfolio of companies that possess stronger free cash flow characteristics and generated higher shareholder yields than their dividend-only counterparts.