Cambria Global EW 3 ETF and 351 ETF Conversions (GEX) | Meb Faber

Watch on YouTube ↗  |  August 19, 2026 at 14:45  |  51:32  |  Meb Faber Show
Speakers
Meb Faber — Co-Founder & CIO, Cambria Investment Management

Summary

Meb Faber discusses the current market environment, highlighting the extreme valuation of US large caps and the relative attractiveness of foreign, value, and small-cap stocks. He introduces the 351 ETF exchange process, which allows investors with concentrated stock positions to diversify tax-efficiently into ETFs like the upcoming Cambria Global EW 3 ETF (GEX). The webinar also covers Cambria's broader ETF lineup, emphasizing strategies like shareholder yield, tax-aware investing, and trend following.

  • US equities are approaching bubble territory with the Schiller CAPE ratio nearing 45.
  • Foreign stocks, small caps, and value stocks offer much cheaper valuations and are beginning to rebound.
  • The 351 ETF exchange allows investors to swap concentrated, highly appreciated stock positions for a diversified ETF without triggering immediate capital gains taxes.
  • Cambria is launching the Global EW 3 ETF (GEX) to provide a low-cost, non-market-cap-weighted global equity portfolio.
  • Shareholder yield strategies (SYLD, FYLD, EYLD) historically outperform traditional dividend strategies by accounting for share buybacks and avoiding share issuance.
  • Tax-aware investing (TAX) avoids dividend-paying stocks to maximize after-tax compounding for taxable accounts.
  • Traditional portfolios often lack sufficient exposure to foreign stocks, real assets (like REITs and commodities), and trend-following strategies.
Ideas
Meb Faber Co-Founder & CIO, Cambria Investment Management 0:29
Foreign and small cap value are rebounding.
Foreign stocks, emerging market stocks, value, and small caps are much cheaper than the US market and are starting to rebound, offering explosive returns after years of underperformance.
EEM Value stocks IWM VXUS HIGH
Meb Faber Co-Founder & CIO, Cambria Investment Management 0:55
Small caps enter their strongest seasonal period.
Small caps and small cap value are entering their best 12-month and 6-month periods of the presidential cycle, with January historically being the biggest month of returns.
Small cap value MED
Meb Faber Co-Founder & CIO, Cambria Investment Management 1:51
High CAPE ratios signal poor future returns.
The US stock market is entering bubble territory with the Schiller CAPE ratio approaching 45; historically, markets closing a year at a CAPE of 40 have never produced above-average 10-year real returns.
SPY QQQ MAGS HIGH
Meb Faber Co-Founder & CIO, Cambria Investment Management 9:45
GEX avoids expensive market cap weighted concentrations.
The Cambria Global EW 3 ETF (GEX) breaks the market cap link, avoiding concentration in the most expensive top positions by offering a more balanced portfolio of global large-cap companies for a low 25 basis point fee.
GEX HIGH
Meb Faber Co-Founder & CIO, Cambria Investment Management 16:09
Avoiding dividends maximizes after-tax compounding returns.
For taxable investors focused on compounding, targeting stocks with low to no dividend yield via the TAX ETF is vastly more tax-efficient than high dividend strategies that force investors to pay taxes on reinvested dividends.
TAX HIGH
Meb Faber Co-Founder & CIO, Cambria Investment Management 23:19
TAIL hedges against US stock market downturns.
The Cambria Tail Risk ETF (TAIL) offers a thoughtful approach to tail risk hedging by sitting in 10-year bonds and buying laddered puts on the stock market, serving as a good solution if US stocks perform poorly.
TAIL MED
Meb Faber Co-Founder & CIO, Cambria Investment Management 27:16
Shareholder yield outperforms traditional dividend growth strategies.
Shareholder yield strategies historically outperform high dividend yield and dividend growth strategies because they incorporate buybacks and avoid companies that dilute shareholders through share issuance.
SYLD FYLD EYLD HIGH
Meb Faber Co-Founder & CIO, Cambria Investment Management 32:46
TYLD tactically targets fixed income yield spreads.
The Cambria Tactical Yield ETF (TYLD) provides a strategic value approach to fixed income by only moving into the risky sleeves of the bond market when there is enough yield spread, avoiding broad fixed income that lacks sufficient yield.
TYLD MED
Meb Faber Co-Founder & CIO, Cambria Investment Management 34:35
TRTY combines buy-and-hold with trend following.
The Cambria Trinity ETF (TRTY) forms an ideal all-in core allocation by combining half buy-and-hold global asset allocation with half trend following.
TRTY MED
Meb Faber Co-Founder & CIO, Cambria Investment Management 36:50
VAMO provides hedged equity exposure for protection.
The Cambria Value and Momentum ETF (VAMO) serves as a satellite fund for nervous investors who want equity exposure but want to be hedged; it can hedge up to 100% of the portfolio with futures based on market valuation.
VAMO MED
Meb Faber Co-Founder & CIO, Cambria Investment Management 38:12
Global REITs provide essential real asset diversification.
Global REITs are putting up great returns and serve as a necessary real asset component that is typically missing from traditional US-only allocations.
BLDG MED
Meb Faber Co-Founder & CIO, Cambria Investment Management 43:42
GVAL targets the cheapest global equity markets.
The Cambria Global Value ETF (GVAL) breaks the market cap link by top-down selecting the cheapest third of global countries based on valuation metrics (CAPE, cash flow, dividends, book) and buying the top stocks in those markets.
GVAL HIGH
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This Meb Faber Show video, published August 19, 2026, features Meb Faber discussing EEM, Value stocks, IWM, VXUS, Small cap value, SPY, QQQ, MAGS, GEX, TAX, TAIL, SYLD, FYLD, EYLD, TYLD, TRTY, VAMO, BLDG, GVAL. 12 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Meb Faber  · Tickers: EEM, Value stocks, IWM, VXUS, Small cap value, SPY, QQQ, MAGS, GEX, TAX, TAIL, SYLD, FYLD, EYLD, TYLD, TRTY, VAMO, BLDG, GVAL