FAYETTEVILLE, Ark.--(BUSINESS WIRE)--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, today announced the expansion of its Exchange Traded Fund (“ETF”) lineup with the launch of the Cabana Target Leading Sector ETFs, in partnership with private label ETF advisor Exchange Traded Concepts (“ETC”).
The Target Leading Sector ETF suite seeks long-term growth opportunities by allocating capital to a mix of broad asset class ETFs in response to changing economic conditions. There are three ETFs in the initial suite, each geared towards a distinct investor risk tolerance, ranging from conservative to moderate to aggressive.
Like the first suite of Cabana ETFs that launched in late 2020 (the Target Drawdown ETF Series, which was one of the largest ETF launches of the year as the fund family came to market with approximately $1 billion in assets), the Target Leading Sector funds are powered by the firm’s proprietary Cyclical Asset Reallocation Algorithm (“CARA”). CARA uses a combination of fundamental and technical data to seek to identify changes within the economic cycle and construct underlying portfolios made up of asset classes that may be deemed attractive across all market conditions. Although the Sub-Adviser (Cabana Asset Management) anticipates that it will purchase or sell securities based on the signals provided by CARA, the Sub-Adviser maintains full decision-making power and may override CARA.
Also similar to last year’s launch, this new fund family will come to market with a significant initial asset base; in this case, approximately $500 million. This launch comes on the heels of Cabana’s having passed the $2 billion mark in assets under management and advisement as of July 1, 2021.
Chadd Mason, CEO of The Cabana Group, commented, “The response we received when we launched our initial family of Target Drawdown ETFs last year was overwhelming, and we’re equally as optimistic about the roll out of our Target Leading Sector funds today. While our Target Drawdown ETFs focus primarily on loss mitigation and maintaining well-defined risk parameters, the Target Leading Sector ETFs focus instead on providing access to those sectors of the economy that appear poised for superior investment return and growth. The combination of the two suites of ETFs provides investors and advisors with a powerful set of tools to navigate the markets with an eye on long-term capital preservation and growth.”
The new suite of Target Leading Sector ETFs 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 come to market at an expense ratio of 0.69%, respectively, after fee waivers.
Added Mr. Mason, “Different investors have different needs, which is why we’ve built these funds to incorporate varying levels of risk tolerance. That combination of active management and the ability to tailor an approach based on appetite for risk 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 (SMAs), collective investment trusts (CITs), a hedge fund, and through these ETFs.
All Cabana ETFs are utilized within Cabana’s premium Target Drawdown Professional Series SMAs, which are available exclusively through Cabana’s 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 “Cabana Asset Management”), Cabana Institutional, LLC, and Cabana Financial, LLC and shares common ownership with Cabana Black, LLC. The Cabana Group, LLC’s services include wealth management, portfolio construction, retirement plan solutions, tax and estate planning, business development, insurance, annuities and sub-advisory money management. Over the past five years, the company has been recognized several times as one of the fastest-growing companies in Arkansas and one of the fastest-growing registered investment advisers in the country by publications like Inc. Magazine and Financial Advisor magazine. Investment advisory services are provided by Cabana Asset Management. The firm’s signature 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 the Global Investment Performance Standards (GIPS ®). For more information about The Cabana Group visit www.thecabanagroup.com or submit a request to firstname.lastname@example.org. For additional disclosures on awards and rankings, please visit https://thecabanagroup.com/awards-disclaimers.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with 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.
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Investing involves risk, including possible loss of principal. There is no guarantee the Funds will meet or maintain their objective. To the extent the Funds investments are concentrated in 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 Funds investments were more broadly diversified.
The Funds rely heavily on CARA, a proprietary model developed by the Sub-Adviser, as well as data and information supplied by third parties. To the extent the model does not perform as intended, the Funds strategy may not be successfully implemented and the Fund may lose value. The Sub-Adviser’s judgments about the markets, the economy, or companies may not anticipate actual market movements, economic conditions or company performance, and these judgments may affect the return on your investment. In addition, although the Sub-Adviser seeks to manage volatility within the Funds portfolio, there is no guarantee that the Sub-Adviser will be successful.
New funds have limited operating histories for investors to evaluate and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies.