Cambria, RevenueShares To Self-Index
Cambria, the one-fund issuer from El Segundo, Calif., and RevenueShares, the Philadelphia-based ETF trust that has a handful of U.S. equity ETFs and an ex-U.S. fund on the market, each filed for separate but very similar “exemptive” reliefs asking to bring self-indexing ETFs into play.
The Cambria filing named the issuer’s initial fund as the Cambria Foreign Shareholder Yield ETF, while the RevenueShares paperwork didn’t yet name a specific initial fund. However, from the prospectuses, it is clear that both firms aim to base any ETFs granted from these filings on indexes created in-house.
Self-indexing has been a hot-button issue in the ETF industry for some time now, with a recent SEC filing raising the added question of whether the transparency of publishing holdings daily is enough of a hedge against tinkering from those affiliated with both the fund and index.
However, both RevenueShares’ and Cambria’s strategies are far from plain vanilla, so the concern of “ reinventing the S'P 500 ” doesn’t play into either issuer’s filing.
The SEC decision from July lifted many restraints previously placed on self-indexed funds, making consequent filings like those from Cambria and RevenueShares an expected appearance on the regulatory pipeline. Both filings, though, do make mention of check-and-balances between affiliates of both fund and index.
RevenueShares did not name an initial fund in the filing for exemptive relief to self-index, but the issuer did concurrently file another prospectus proposing the RevenueShares Active Navellier Overall A-100 Fund, an active spin on the RevenueShares Navellier Overall A-100 ETF (RWV), the issuer’s most expensive ETF, at 60 basis points, with the least AUM, weighing in at $7.05 million, according to data collected by IndexUniverse.
The RevenueShares Active Navellier Overall A-100 ETF will be an alpha-seeking fund that focuses on North American equities, according to the prospectus.
The Cambria Foreign Shareholder Yield ETF, which doesn’t have a ticker or price tag, will hold securities from non-U.S. countries, including Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland and the United Kingdom.
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