Episode summary
Webinar Replay: Cambria Global EW 2 ETF and 351 ETF Conversions (GEQ) | Meb Faber
The Meb Faber Show
· · Hosts: Meb Faber · Guests: Meb Faber
Summary
The webinar argues that the biggest investment story right now is the unwind of U.S. market concentration and the growing case for diversification into global, equal-weighted, and factor-based portfolios. Meb Faber says the last decade of multiple expansion made U.S. large caps a one-way trade, but he thinks the next few years could favor foreign markets, real assets, and strategies that avoid market-cap weighting. He frames this as a “bull market in diversification,” not necessarily a crash in U.S. stocks, but a relative rotation that could last years.
A major focus is Cambria’s 351 ETF conversion process, which lets investors contribute appreciated securities into a newly launched ETF without an immediate taxable sale. Faber explains the rules, including diversification requirements for contributed portfolios, and says the process is meant for long-term reallocations, not quick trades. He says the new Cambria Global EW 2 ETF, GEQ, is designed as an alternative to market-cap-weighted global equity exposure and expects it to be launched in June, with a similar fall opportunity likely later.
He also contrasts 351s with direct indexing and exchange funds, saying ETFs can be simpler and may pass through short-lending revenue. More broadly, he says investors should first minimize fees and taxes, then diversify globally, add real assets, and consider trend following as a portfolio diversifier.
Key takeaways
- Meb Faber says market-cap weighting is especially risky now because U.S. stocks are highly concentrated and valuation-agnostic.
- He expects the 351 ETF conversion structure to become much more mainstream in 2026 as advisers look for tax-aware diversification tools.
- Faber says GEQ is aimed at investors who want global equity exposure without simply loading up on the largest U.S. names.
- He argues that investors should first reduce fees and taxes, then build global exposure, real assets, and trend-following diversifiers.
- Faber says the new global 351 portfolio could take over a year to reach full cruising altitude, depending on what assets are contributed.
Notable quotes
“I think 2026 will be the year this really hits the mainstream”
“we're setting up for a situation, I think, that could last years, if not a decade or more, where everything else starts to rebound relative to the US”
“The challenge for market cap weight is it has no tether to value, right”
“this allows for a transfer of assets and this has been in the tax code for like a hundred years”
How the episode opens
Everybody here today should know who we are, I imagine, and probably already know about the topic we're covering today, but we're going to cruise through it pretty quick. Um, you can find a lot more resources here at our ETF website, Cambria Funds. So, everything we covered today, there's PDFs, there's videos, all that good stuff.
You can find info on our 20 ETFs uh as well there and some of the research. We got our our free service. I imagine everyone signed up for it, but the idea farm really great resource for um institutional research is getting better and better.
The website is now built out, y'all. So, there's like 5 10 years of archives of the best research as well as podcasts. Um we still post on the blog.
at the podcast. We we recorded two banger conversations yesterday that will be out in the next few weeks. We got a really great lineup in the next month.
Friday, I think is Mike Wilson and then following Owen Lamont and Randy Cohen of Harvard. Really, really heavy big heavyweights uh that you guys should uh definitely tune into. Um update on us.
You know, we're we're kind of grown up you guys. Uh this is going to be year 20 at the end of the year. We're open to ideas for parties.
What should we do to celebrate? Can't believe it. It's been 20 years.
Um started launching ETFs in 2013 and and that's our main biz now. Assets are now over 4 bill across all sorts of different strategies and subcategories. You know, the oldest of course being shareholder yield, but little sprinklings of all sorts of different ideas.
And and again, you guys can find info on all these uh through your local rep as well as on our website, and we're happy to talk about them.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- etf conversion
- cambria global ew 2
- geq launch
- actively managed etf
- international small-cap risk
Companies and tickers mentioned
- GEQ
- Cambria Global EW 2 ETF
- Cambria
- ALPS Distributors Inc.
Watch the episode
Watch “Webinar Replay: Cambria Global EW 2 ETF and 351 ETF Conversions (GEQ) | Meb Faber” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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The Meb Faber Show, this episode and its artwork belong to The Idea Farm. Octagon is not affiliated with the show; this page is an independent summary.
