Oct 30, 2026 · 24 min
Three ETFs challenge the traditional 60/40 portfolio
Cambria Fund Profile – Asset Allocation Suite
The episode compares three single-fund approaches to global diversification, showing how philosophy, risk, fees, and implementation shape portfolio outcomes.
- 1GAA, GMOM, and TRTY package globally diversified asset allocation into single ETFs with ongoing rebalancing and portfolio management.
- 2The funds differ in philosophy, risk, implementation, and return potential rather than offering interchangeable versions of one strategy.
- 3Global diversification and low fees are presented as practical alternatives to relying primarily on a traditional 60/40 portfolio.
Don't miss
The episode’s most useful comparison is how GAA, GMOM, and TRTY pursue different combinations of diversification, risk, and return inside single ETFs.
The brief
Meb Faber frames simplicity as an investing advantage, then introduces three Cambria ETFs designed to provide globally balanced portfolios in a single fund.
GAA, GMOM, and TRTY handle rebalancing, tax harvesting, position changes, and ongoing deposits, reducing the maintenance burden of a diversified portfolio.
The central comparison is not convenience but construction: the funds use different philosophies and implementations, creating distinct risk and return profiles.
The discussion challenges traditional 60/40 thinking by emphasizing global diversification and low fees as practical portfolio design choices.
The episode’s key decision is whether a single ETF can provide the right balance of simplicity, diversification, risk, and return potential for an investor.
What was said on this episode
33 statements · 18 positive · 7 negative · 1 mixed · 7 neutral
Each Cambria fund automates rebalancing, tax harvesting, and position changes.
“Each fund does all the heavy lifting of rebalancing, tax harvesting, moving in and out of positions for you”
Listen at 0:53
GAA, GMOM, and TRTY provide simple access to global portfolios.
“We believe each one provides investors with a simple one-click way to own a powerful global portfolio.”
Listen at 1:56
U.S. stocks are historically expensive by Shiller-CAPE measures.
“U.S. stocks are once again among the most expensive they've ever been in history”
Listen at 5:12
High U.S. stock valuations may imply weak returns over the next decade.
“that doesn't necessarily bode especially well for the next decade's worth of returns.”
Listen at 5:40
Mega-cap technology companies comprise roughly one-third of the S&P 500.
“A small handful of mega-cap technology names now make up something like a third of the entire S&P 500”
Listen at 5:49
Investors should moderate return expectations for U.S. stocks and bonds.
“return expectations should be kept in check.”
Listen at 6:29
Global diversification may reduce the probability of outsized single-market losses.
“By diversifying away from holding just one country, we hope to lower the odds of outsized losses from a single market.”
Listen at 6:41
The global market portfolio historically outperformed 60/40 with lower volatility and drawdowns.
“found it produced greater returns than a 60-40 portfolio. Plus, it did this while lowering volatility and max drawdowns.”
Listen at 7:51
Global stocks, bonds, and real assets can produce broadly comparable long-term outcomes.
“as long as you have the right main ingredients, some global stocks, some global bonds, and some global real assets, we believe you're going to end up in the right ballpark.”
Listen at 9:10
The global market portfolio historically delivered high returns with low volatility.
“the global market portfolio approach came in among the highest returns with among the lowest volatility levels.”
Listen at 9:23
Expense ratios above 1% can substantially reduce long-term returns.
“paying upwards of 1% or more in expense ratio fees can absolutely kneecap your returns.”
Listen at 9:52
GAA’s gross and net expense ratio is 0.32%.
“all in 0.32%, which is the fund's gross and net expense ratio.”
Listen at 10:20
GAA adds factor overlays to its global market portfolio.
“we add overlays to our core investment set.”
Listen at 10:57
A global value tilt has historically increased returns.
“Our historical research suggests going global with the value tilt increases returns”
Listen at 11:42
GMOM uses a tactical momentum and trend-focused investment approach.
“GMOM differs quite a bit from GAA in that it uses a tactical approach focused on momentum and trend.”
Listen at 12:36
GMOM aims to improve risk-adjusted returns and avoid prolonged bear markets.
“with the intent of improving overall risk-adjusted returns with a particular focus on avoiding long bear markets”
Listen at 12:45
GMOM can allocate entirely to cash and short-term bonds.
“GMOM can sit 100% in cash and short-term bond investments.”
Listen at 13:48
Investments with strong momentum tend to continue in the same direction.
“historical market data suggests investments with strong momentum tend to continue moving in the direction of that momentum.”
Listen at 13:54
Sorting assets by momentum and trend historically improved risk-adjusted returns.
“our past research shows that historically, sorting assets by trailing momentum and trend has led to better risk adjuster returns.”
Listen at 14:04
Momentum and trend sorting has historically improved risk-adjusted returns.
“historically, sorting assets by trailing momentum and trend has led to better risk adjuster returns.”
Listen at 14:06
GAA and GMOM are expected to perform well over time.
“We believe both will do well over time”
Listen at 15:16
GAA and GMOM are expected to perform well but differently across market regimes.
“We believe both will do well over time, but their respective performance paths will behave differently across different market regimes.”
Listen at 15:16
Most active traders underperform long-term buy-and-hold strategies.
“market studies suggest most active traders underperform a long-term buy and hold strategy”
Listen at 16:22
TRTY combines buy-and-hold and momentum-trend approaches.
“Trinity does both.”
Listen at 17:10
TRTY targets approximately half its portfolio to momentum and trend following.
“The fund targets about half two momentum and trend-following approaches”
Listen at 17:11
The best investing strategy is not necessarily the theoretically strongest strategy.
“the best investing strategy isn't necessarily the one that looks best on paper”
Listen at 17:41
Trinity's blended strategy may reduce investor abandonment during downturns.
“We think the Trinity ETF, with its exposure to both buy and hold and momentum and trend, reduces the chances an investor jumps ship”
Listen at 17:53
Blending buy-and-hold with tactical strategies slightly lowers theoretical returns.
“blending the two means slightly lower theoretical returns than going all in on the single best-looking strategy.”
Listen at 18:09
GAA is intended as a diversified global buy-and-hold core with value tilts.
“GAA, a core approach for the investor who's looking for a buy and hold of diversified, globally allocated portfolio. complete with value tilts.”
Listen at 18:37
GMOM is intended for investors seeking tactical global momentum and trend exposure.
“GMOM, engineered for the investor that believes in a global portfolio, but looks for a more tactical momentum and trend following approach.”
Listen at 18:48
TRTY is intended for investors seeking blended buy-and-hold and tactical exposure.
“TRTY, built for those seeking a global portfolio, but want to pair the buy and hold philosophy behind GA with a tactical momentum and trend following approach of GMOM.”
Listen at 18:57
Each ETF handles rebalancing and signal-based position changes automatically.
“each ETF is set it and forget it. meaning you don't have to worry about rebalancing or moving in and out based on signals”
Listen at 19:08
The ETFs automate rebalancing and signal-based position changes.
“you don't have to worry about rebalancing or moving in and out based on signals because the underlying mechanics of the ETF does it for you.”
Listen at 19:10
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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