ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Cabana Launches ETF Suite Worth Over $1B in Assets
News
Share

Cabana Launches ETF Suite Worth Over $1B in Assets

Aaron NeuwirthSep 17, 2020
2020-09-17

Cabana Asset Management entered the ETF industry today with a splash, launching with an ETF suite worth over $1 billion in assets under management.

Cabana has partnered with private label ETF advisor Exchange Traded Concepts (ETC) to launch the suite of Target Drawdown ETFs.

The new funds will be seeded this week with more than $1 billion in assets across the suite, a significant asset base for a new family of products.

Cabana Asset Management is a wholly-owned subsidiary of The Cabana Group, LLC, which is a SEC-registered investment adviser providing risk-managed investment products to investors, advisors, and institutions.

Building on the proven track record of Cabana’s Target Drawdown Professional Series of separately managed accounts (SMAs), which are available exclusively through the firm’s financial professionals and RIA partners, the new family of Target Drawdown ETFs is built with the goal of maintaining and growing investor wealth over the long term by clearly defining risk in terms of the maximum expected percentage loss (“target drawdown”).

There are five strategies in the initial suite of ETFs with target drawdown percentages ranging from 5% to 16%.

The Cabana Group CEO Chadd Mason said this year’s market environment has underscored the necessity of proper hedging, transparency, and risk mitigation as key parts of investor portfolios.

“It also makes clear the need to ensure that any strategy being put to use has a ‘real world’ track record and is backed by an experienced team that has lived and worked through times of significant market turbulence,” Mason said. “We’ve built Cabana since 2008 with the goal of providing all of our clients, be they advisors or individuals, with rigorously tested, high-quality risk management tools, and we are thrilled to be bringing our strategies to market today in the low-cost, highly-liquid ETF wrapper.”

Mason added the reason they came to market in the ETF industry is based on personal experiences shining the light on some problems with this industry as a whole – namely how portfolios are constructed, and how they’re communicated, in addition to how risk is really defined.

Cabana, which is one of the nation’s fastest-growing RIAs, utilizes a disciplined, rules-based strategy that seeks to manage expectations, minimize loss, and keep clients invested for long-term success. The firm’s proprietary Cyclical Asset Reallocation Algorithm (CARA) uses a combination of fundamental and technical data to help identify the current stage of the economic cycle and allocate to assets that are deemed attractive at that point in the cycle. CARA is designed to mitigate risk by incorporating inverse and non-correlated asset classes, as well as through reallocation in response to changing macroeconomic conditions.

Mason added, “A big part of what we’re trying to do is get people to participate in investing – this beautiful thing that is an equal opportunity for everyone in the world. If we can get people engaged, we can change lives.”

Cabana’s Target Drawdown Suite

Cabana’s new suite of Target Drawdown ETFs seeks to limit downside risk and position for upside growth based on investor outlook and risk tolerance – from conservative to aggressive – and includes the following funds:

  • Cabana Target Drawdown 5 (TDSA): is the most conservative of the five ETFs in the series. It seeks to provide long-term growth within a targeted risk parameter of five percent (5%) from peak to trough.
  • Cabana Target Drawdown 7 (TDSB): is one of five ETFs in the series It seeks to provide long-term growth within a targeted risk parameter of seven percent (7%) from peak to trough.
  • Cabana Target Drawdown 10 (TDSC): is one of five ETFs in the series. It seeks to provide long-term growth within a targeted risk parameter of ten percent (10%) from peak to trough.
  • Cabana Target Drawdown 13 (TDSD): is one of five ETFs in the series. It seeks to provide long-term growth within a targeted risk parameter of thirteen percent (13%) from peak to trough.
  • Cabana Target Drawdown 16 (TDSE): is the most aggressive of the five ETFs in the series. It seeks to provide long-term growth within a targeted risk parameter of sixteen percent (16%) from peak to trough.

Each fund has a total annual fund expense ranging from 0.93% to 0.95%, and net expense ratios, after contractual fee waivers, of 0.67% to 0.69%.

“Our strategies never use derivatives and never get ‘out of the market,’’ he said. "When investors use derivatives, it is inevitable they will see slippage and erosion in alpha. Instead, we use asset class ETFs to express our views on those parts of the market that are going into or coming out of favor. Put simply, we’ve built our firm and the strategy behind these ETFs seeking to do the two things necessary to be a successful investor: avoid large losses and stay invested.

“There are many approaches to successful investing, but what we are most proud of is our client-focused message. Building products that people understand and can be easily communicated to clients, whether they are sophisticated or not, encourages them to engage in the process. If you can minimize losses and essentially do what you say your portfolio is intended to do, it empowers the client to stay invested for the long term.”

Cabana’s Target Drawdown investment approach is available to advisors and investors in the form of separately managed accounts (SMAs), collective investment trusts (CITs), a hedge fund, and now a suite of ETFs.

This article originally appeared on ETFTrends.com.


Content continues below advertisement

» Popular Pages

  • Tickers
  • Articles

May 26

Main Management Market Note: May 26, 2023

May 26

Family Offices Embrace Crypto, While Needing Support

May 26

ETF Issuer League: Avantis, Summit Up, Global X

May 26

Active ETFs Positioned Better for Opportunities in High-Yield Bonds

May 26

Insurers Own Major Stakes in Fixed Income ETFs

May 26

Cash Flow Kings at Home With These ETFs

May 26

Counter U.S. Default Risk With Foreign Equity ETF AVDE

May 26

Vangaurd's EM Bond ETF Surprises With Fixed Income Protection

May 26

The Economy Matters: PCE, GDP, Durable Goods & Employment Numbers

May 26

SPYI Captures Huge Single Day Nvidia Pop, Enhances Income

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

JEPI

JPMorgan Equity Premium...

VTI

Vanguard Total Stock Market...

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

TLT

iShares 20+ Year Treasury...

BND

Vanguard Total Bond Market...

XLP

Consumer Staples Select...

BOTZ

Global X Robotics &...


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X