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Cambria Tail Risk ETF (TAIL) Hits New 52-Week High

Sweta Jaiswal, FRM

For investors looking for momentum, Cambria Tail Risk ETF TAIL is probably a suitable pick. The fund just hit a 52-week high — up roughly 22.8% from its 52-week low of $19.22/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

TAIL in Focus

The fund seeks to mitigate significant downside market risk. The fund intends to invest in a portfolio of "out of the money" put options purchased on the U.S. stock market. It charges 59 bps in fees and has an AUM of $87.1 million.

Why the Move?

The concerns over slowing global economic growth due to the coronavirus outbreak have started escalating. On Mar 9, stocks plunged and trading was halted for the first time in 23 years. Going on, the Dow Jones Industrial Average declined 7.8%. Meanwhile, the S&P 500 fell 7.6%, marking its worst day since 2008. As a result, the demand for funds like TAIL is rising.

More Gains Ahead?

It seems like the fund will remain strong with a positive weighted alpha of 19.54, which gives cues of further rally.

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Cambria Tail Risk ETF (TAIL): ETF Research Reports
 
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