Cambria Shareholder Yield ETF

SYLD

Market cap $917M

Cambria Shareholder Yield ETF holds 100 stocks with high shareholder yield, a factor combining dividends, buybacks and debt reduction. SYLD is focused on small and mid-caps, with significant exposure in consumer discretionary and financials. SYLD has strong value characteristics and has outperformed a mid-cap benchmark since inception, even though it has lagged for 12 months.

Meb Faber talks to Kirk Spano about shareholder yield, ETFs, and what tends to happen at the end of secular booms. A slightly less strong USD and foreign and emerging markets.

The Cambria Shareholder Yield ETF is recommended for the next decade due to its focus on high shareholder yield through dividends, buybacks, and debt reduction. Shareholder Yield prevents inefficient use of free cash flows by management, offering a compelling long-term investment case with higher returns and lower drawdowns. SYLD is well-positioned for valuation compression with a lower PE ratio and better value metrics compared to the S&P 500 and mid-cap value category.

Cambria Shareholder Yield ETF is an actively managed fund selecting 100 securities from a universe of approximately 3,000 U.S. securities based on their shareholder yield, value, quality, and momentum characteristics. Since its strategy change on June 1, 2020, the SYLD ETF has delivered an outstanding 147% total return, trouncing peers like VFVA and FMDE. However, its recent results aren't very impressive. The reason is that SYLD is a niche product, likely best suited to periods of economic recovery, like the period immediately following the Q1 2020 pandemic crash.

SYLD has rallied so far in 2024 but has also underperformed the S&P 500 in 2024 amid relative weakness in areas away from megacap tech. The betting market predicts an 80% chance of a Fed rate cut in September, and lower interest rates could help companies with high total shareholder yields. SYLD remains a compelling value with the potential for equity market rotation favoring the total shareholder yield factor, and I point out key price levels on the chart to monitor.

Cambria Shareholder Yield ETF implements a systematic strategy based on dividends, buybacks, debt paydowns and value. The SYLD ETF current portfolio is focused on small and mid-caps, and it is well-diversified across 5 major sectors and 99 companies.

Cambria Shareholder Yield ETF focuses on high-cash distribution companies returning cash to investors through dividends, buybacks, and debt paydown. SYLD targets an equal-weight portfolio of around 100 companies, historically trading at a discount. The strategy considers dividend payments, net share repurchases, and net debt paydown to select companies with strong free cash flow characteristics.

The first week of the year can often be a slow one for the ETF industry, with few new ETFs or closures to be seen.

DIVB is an equity index ETF that focuses on U.S. equities with above-average dividend payments and share buyback programs. SYLD is a better option than DIVB, with a cheaper valuation and stronger performance track-record. An overview of DIVB, and comparison to SYLD, follows.

SYLD is a buy-rated ETF that focuses on companies returning cash to shareholders through dividends, buybacks, and net debt reduction. Global corporate buyback announcements have fallen dramatically, but actual share repurchase activity has increased. SYLD is a value fund with significant exposure to the Energy and Financials sectors, and its technical situation suggests a 'hold' call.