TAIL: With Bond-Equity Correlations Back To Positive, This ETF Is Set To Underperform (Rating Downgrade)
The Cambria Tail Risk ETF (TAIL) is facing a rating downgrade due to the return of positive correlations between bonds and equities. This shift suggests that the ETF may underperform in the current market environment. Investors are advised to consider the implications of these changes on their portfolios.
- ▪The Cambria Tail Risk ETF uses 10-year Treasuries to fund S&P 500 puts, adding duration risk.
- ▪Positive correlations between bonds and equities have returned, impacting the ETF's performance outlook.
- ▪The ETF is expected to underperform as a result of these market changes.
Opening excerpt (first ~120 words) tap to expand
{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://seekingalpha.com/"},{"@type":"ListItem","position":2,"name":"ETFs and Funds Analysis","item":"https://seekingalpha.com/etfs-and-funds"},{"@type":"ListItem","position":3,"name":"ETF Analysis","item":"https://seekingalpha.com/etfs-and-funds/etf-analysis"}]}{"@context":"https://schema.org","@type":"NewsArticle","mainEntityOfPage":{"@type":"WebPage","@id":"https://seekingalpha.com/article/4906086-tail-with-bond-equity-correlations-back-to-positive-this-etf-is-set-to-underperform-rating-downgrade"},"author":{"@type":"Person","name":"Binary Tree…
Excerpt limited to ~120 words for fair-use compliance. The full article is at All Articles on Seeking Alpha.
Discussion
0 commentsMore from All Articles on Seeking Alpha
