Cabana Asset Management Launches New Line of Target ETFs from Major Sectors with Large Initial Assets – Expected at $ 500 Million
FAYETTEVILLE, Arche .– (COMMERCIAL THREAD) –Cabana Asset Management (“Cabana”), a wholly owned subsidiary of The Cabana Group, LLC and an SEC-registered investment adviser providing risk-managed investment products to investors, advisors and institutions, announced today hui expanding its line of exchange traded funds (“ETF”) with the launch of Cabana Target Leading Sector ETFs, in partnership with private label ETF advisor Exchange Traded Concepts (“ETC”).
The Target Leading Sector ETF lineup seeks long-term growth opportunities by allocating capital to a mix of broad asset class ETFs in response to changing economic conditions. The initial suite includes three ETFs, each focused on a distinct risk tolerance for investors, ranging from conservative to moderate to aggressive.
Like the first Cabana ETF lineup launched in late 2020 (the Target Drawdown ETF series, which was one of the biggest ETF launches of the year as the fund family entered the market with approximately $ 1 billion in assets, Target Leading Sector funds powered by the company’s proprietary Cyclical Asset Reallocation (“CARA”) algorithm. CARA uses a combination of fundamental and technical data to seek to identify changes within the economic cycle and build underlying portfolios made up of asset classes that can be found attractive in all markets Although the sub-advisor (Cabana Asset Management) anticipates that it will buy or sell securities based on signals provided by CARA, the sub-advisor retains full decision-making power and may override CARA.
Also similar to last year’s launch, this new family of funds will enter the market with a large initial asset base; in this case, about $ 500 million. This launch follows Cabana’s crossing of the $ 2 billion mark in assets under management and advice on July 1, 2021.
Chadd Mason, CEO of The Cabana Group, commented: âThe response we received when we launched our first family of Target Drawdown ETFs last year has been overwhelming, and we are equally optimistic about the roll-out of our Target Leading Sector funds today. While our Target Drawdown ETFs focus primarily on mitigating losses and maintaining well-defined risk parameters, Target Leading Sector ETFs instead focus on accessing sectors of the economy that appear poised for a return on. superior investment and growth. The combination of the two ETF suites provides investors and advisers with a powerful set of tools to navigate the markets with an eye on long-term capital preservation and growth. ”
The new Target Leading Sector ETF range includes:
- Cabana Target Leading Sector Conservative (ticker: CLSC);
- Cabana Target Leading Sector Moderate (ticker: CLSM); and
- Cabana Target Leading Sector Aggressive (ticker: CLSA).
All three funds are actively managed and enter the market at an expense ratio of 0.69%, respectively, after fee waivers.
Mr. Mason added, âDifferent investors have different needs, which is why we built these funds to incorporate different levels of risk tolerance. This combination of active management and the ability to adapt a risk appetite based approach is something we think investors and advisors will find very appealing. ”
Cabana’s unique investment approaches are available to advisors and investors in the form of Separately Managed Accounts (SMA), Collective Investment Trusts (CITs), Hedge Funds and through these ETFs.
All Cabana ETFs are used in Cabana’s Premium Target Draw Professional Series SMAs, which are available exclusively through Cabana Financial Professionals and Partner Advisors.
For more information on these funds, please visit: www.cabanaetfs.com.
About the Cabana group
The Cabana Group, LLC is the parent company of Cabana LLC (d / b / a âCabana Asset Managementâ), Cabana Institutional, LLC and Cabana Financial, LLC and shares common ownership with Cabana Black, LLC. Cabana Group, LLC’s services include wealth management, portfolio construction, retirement planning solutions, tax and estate planning, business development, insurance, annuities and sub-advised financial management. Over the past five years, the company has been repeatedly recognized as one of Arkansas’ fastest growing companies and one of the nation’s fastest growing registered investment advisers by publications such as Inc. Magazine and Financial Advisor. Investment advisory services are provided by Cabana Asset Management. The company’s Target Drawdown investment approach is available to individual investors, advisors and businesses as separately managed accounts, collective investment trusts and ETFs. Cabana Asset Management claims compliance with Global Investment Performance Standards (GIPSÂ®). For more information on The Cabana Group, visit www.thecabanagroup.com or submit a request to [email protected] For additional information on rewards and rankings, please visit https://thecabanagroup.com/awards-disclaimers.
Investors should carefully consider investment objectives, risks, fees and expenses before investing. To obtain a prospectus or summary prospectus containing this and other information about the Fund, please call 866-239-9536 or visit www.cabanaetfs.com. Read the prospectus or summary prospectus carefully before investing.
Distributed by Foreside Fund Services, LLC
Investing involves risks, including the possible loss of capital. There can be no assurance that the Funds will achieve or maintain their objective. To the extent that the investments of the Funds are concentrated or have significant exposure to a particular issuer, sector, industry or asset class, the Funds may be more vulnerable to adverse events affecting these groups than if the investments of the Funds were more widely diversified.
The Funds rely heavily on CARA, a proprietary model developed by the sub-advisor, as well as data and information provided by third parties. To the extent that the model does not work as expected, the Fund’s strategy may not be implemented successfully and the Fund may lose value. The judgments of the sub-advisor about the markets, economy or companies may not anticipate actual market movements, economic conditions or the performance of the company, and such judgments may affect the return on your investment. In addition, although the sub-advisor seeks to manage volatility within the Fund portfolio, there can be no assurance that the sub-advisor will be successful.
New funds have limited operating histories that investors can assess and newer and smaller funds may not attract enough assets to make investments and efficiency gains.