TYLD: The Bond ETF for Value Investors

What should a value-oriented investor do when it comes to fixed income? Hang out in Treasury bills.

That’s according to Meb Faber, CEO and CIO of Cambria Investments, who just launched a pair of new exchange-traded funds. 

One of those ETFs is the Cambria Tactical Yield ETF (TYLD), a fund that holds fixed income securities and REITs based on their yield spreads relative to U.S. Treasury Bills. 

In this episode of Talk ETFs, Faber sits down with etf.com Senior Analyst Sumit Roy to discuss TYLD and his other new fund, the Cambria Micro and Small Cap Shareholder Yield ETF (MYLD). 
 
“When various sectors of the universe have historically narrow yield spreads relative to U.S. Treasury Bills, TYLD intends to invest up to 100% of its portfolio in U.S. Treasury Bills.” 
 
On the other hand, “when certain sectors of the universe demonstrate historically high wide yield spreads, TYLD intends to invest in those various fixed income sectors.” 
 
Currently, with yield spreads at low levels, TYLD is a T-bill ETF. But that can and will change in the future, says Faber.