Cambria launches CAPE Global Value ETF

[Guest ajc]

I think this might turn out to be an interesting idea for someone who perhaps has relatives or colleagues who don't want to/can't manage money actively:

 

 

http://www.valuewalk.com/2014/03/cambria-cape-global-value-etf/

 

The Cambria ETF Trust and its investment manager, Cambria Investment Management, LP, today launched the Cambria Global Value ETF (Ticker: GVAL), a passively managed, strategic-beta ETF that tracks the Cambria Global Value Index. The fund, listed on the NYSE Arca exchange, is comprised of 100 stocks that represent the world’s eleven most undervalued developed and emerging countries, as determined by the index provider.

 

In an upcoming research book by Mebane Faber, Cambria’s Chief Investment Officer, titled Global Value: How to Spot Bubbles, Avoid Crashes, and Earn Big Returns in the Stock Market, Mr. Faber shows that investors and analysts are often misguided when assessing a country’s return potential. A more accurate picture of a country’s investment value should be calculated by factoring for long-term valuation metrics, such as the cyclically adjusted price earnings ratio. Smoothing earnings out over time can identify the countries likely to see the greatest growth and help investors avoid overvalued areas that may present a bubble market.

 

The fund will invest in approximately 10 stocks from each of the countries included in the index. The countries currently included are Greece, Russia, Ireland, Hungary, Spain, Austria, Brazil, Czech Republic, Israel, Italy and Portugal. The fund will rebalance annually.

 

 

There's some more on Meb Faber and Global CAPE valuations here, at http://mebfaber.com/