Cabana Asset Management (Cabana), a wholly owned subsidiary of The Cabana Group, LLC and an SEC registered investment adviser, has expanded it s offering with the launch of a new suite of Target Drawdown ETFs, in partnership with private label ETF advisor Exchange Traded Concepts (ETC).
Building on the proven track record of Cabana’s Target Drawdown Professional Series of separately managed accounts (SMAs), which are available exclusively through the firm’s financial professionals and RIA partners, the new family of Target Drawdown ETFs is built with the goal of maintaining and growing investor wealth over the long term by clearly defining risk in terms of the maximum expected percentage loss (“target drawdown”). There are five strategies in the initial suite of ETFs with target drawdown percentages ranging from 5 pre cent to 16 per cent.
Chadd Mason, CEO of The Cabana Group, says, “What we’ve experienced this year underscores the necessity of proper hedging, transparency, and risk mitigation as key parts of investor portfolios. It also makes clear the need to ensure that any strategy being put to use has a ‘real world’ track record and is backed by an experienced team that has lived and worked through times of significant market turbulence. We’ve built Cabana since 2008 with the goal of providing all of our clients, be they advisors or individuals, with rigorously tested, high-quality risk management tools, and we are thrilled to be bringing our strategies to market today in the low-cost, highly-liquid ETF wrapper.”
Cabana’s new suite of Target Drawdown ETFs seeks to limit downside risk and position for upside growth based on investor outlook and risk tolerance – from conservative to aggressive – and includes the following funds:
Cabana Target Drawdown 5 (TDSA): is the most conservative of the five ETFs in the series. It seeks to provide long-term growth within a targeted risk parameter of five percent (5 per cent) from peak to trough.
Cabana Target Drawdown 7 (TDSB): is one of five ETFs in the series. It seeks to provide long-term growth within a targeted risk parameter of seven percent (7 per cent) from peak to trough.
Cabana Target Drawdown 10 (TDSC): is one of five ETFs in the series. It seeks to provide long-term growth within a targeted risk parameter of ten percent (10 per cent) from peak to trough.
Cabana Target Drawdown 13 (TDSD): is one of five ETFs in the series. It seeks to provide long-term growth within a targeted risk parameter of thirteen percent (13 per cent) from peak to trough.
Cabana Target Drawdown 16 (TDSE): is the most aggressive of the five ETFs in the series. It seeks to provide long-term growth within a targeted risk parameter of sixteen percent (16 per cent) from peak to trough.
Each fund has a total annual fund expense ranging from 0.93 per cent to 0.95 per cent, and net expense ratios, after contractual fee waivers, of 0.67 per cent to 0.69 per cent.
Mason adds: “In looking at the ETF space, we see certain funds being marketed in a similar way, but investors may be surprised in the trade-off they’re making in those cases between risk and reward. Our strategies never use derivatives and never get ‘out of the market.’ When investors use derivatives, it is inevitable they will see slippage and erosion in alpha. Instead, we use asset class ETFs to express our views on those parts of the market that are going into or coming out of favour. Put simply, we’ve built our firm and the strategy behind these ETFs seeking to do the two things necessary to be a successful investor: avoid large losses and stay invested.”
newETFs.io respects the hard work of others and gives all credit to the remarkable folks at ETFexpress.com. This excerpt/article was pulled from their RSS feed; click here to view the original. Please note that on occasion, the RSS feed will not have the author. When this happens this site defaults the author to "News". Make no mistake, this excerpt/article was not created by newETFs.io, it was simply shared with you.