The Cambria Emerging Shareholder Yield ETF (EYLD) is an actively managed fund that launched on July 14, 2016. Its core strategy involves a quantitative, value-oriented approach to emerging markets, utilizing a diversified, equal-weight allocation across its portfolio. This methodology aims to capture robust returns by focusing on companies with strong shareholder yield characteristics, such as dividends and share buybacks, while mitigating concentration risk.
Historically, EYLD has demonstrated superior performance compared to the iShares MSCI Emerging Markets ETF (EEM) since its inception. Furthermore, it has consistently outpaced key competitors in the sector since 2019, showcasing its effectiveness in navigating the complex landscape of emerging markets. Despite some recent periods of underperformance, the ETF maintains a compelling investment thesis due to its strong underlying value characteristics. When compared to EEM, EYLD exhibits superior value metrics, suggesting that it invests in fundamentally sound companies at attractive valuations. Importantly, this value focus does not come at the expense of growth, as EYLD maintains comparable earnings growth rates to EEM, indicating a balanced approach to investment selection. While EYLD does have significant exposure to Chinese markets, similar to EEM, it is a point of consideration for investors sensitive to geopolitical risks.
EYLD represents a well-structured opportunity for investors looking to gain exposure to emerging markets with a focus on shareholder returns and value. Its strategic allocation and consistent historical outperformance highlight its potential as a valuable component of a diversified investment portfolio. By emphasizing shareholder yield and maintaining a disciplined, quantitative approach, EYLD aims to provide resilient returns in dynamic global markets.