BKDV vs VAMO

BKDVBBNY Mellon Dynamic Value ETF

VAMOCCambria Value and Momentum ETF

In short

BKDV BNY Mellon's 2024 swing at active value: roughly 90 hand-picked US stocks, priced below what the typical active equity fund charges. A young fund with a very old asset manager behind it.

VAMO Most value funds just ride out the storm. VAMO owns roughly 100 cheap US stocks, then can short stock index futures to hedge up to 100% of that book when its model reads the market as overvalued or downtrending.

Stated mandate

BKDV The fund seeks long-term capital appreciation and invests principally in common stocks.

VAMO The Fund seeks income and capital appreciation through investments in the U.S. equity market. It normally invests at least 80% of net assets in U.S.-listed equities deemed undervalued using valuation measures such as CAPE.

Why people hold it

• BKDV At 0.60% a year, it undercuts the 0.65% median for active US equity funds. Not index-cheap, but you aren't paying a premium for the stock picking.
• Roughly 90 holdings, so every name has to earn its slot. This is a concentrated value book chasing long-term capital appreciation, not a closet index wearing a value label.
• Sits in the top quartile of its active US equity peer group, helped by downside behavior that has been steadier than most rivals over its short life.
• Already a billion-dollar-plus fund despite launching in 2024, backed by one of the oldest names in US asset management.

• VAMO The hedge is the product: up to 100% of the long portfolio can be offset with index futures when Cambria's valuation and trend models turn unfavorable.cambriafunds.com
• Stock picking is rules-based, not vibes. Undervalued US names screened on measures like the cyclically adjusted P/E, with no sector above 25% of the fund.sec.gov
• Live since 2015 from Meb Faber's Cambria, a rare ETF that bolts an outright short overlay onto a value screen. Income is part of the mandate; it pays quarterly.cambriafunds.com
• Risk metrics screen better than most active US equity funds in its peer group, which is what you would expect from a portfolio that can turn its market exposure off.

Worth knowing

• BKDV Launched November 2024. The risk picture rests on about a year of live data, and short records tell you less than long ones.
• Systematic peers cost a fraction of this: DFAU charges 0.12%, AVLC 0.15%. The active premium here is several times their fee.
• Moderately traded rather than one of the busiest tickers in the category, so spreads can run wider than on big index products.

• VAMO 0.65% a year sits right at the median for active US equity funds, but core factor rivals like DFAU (0.12%) and AVLC (0.15%) charge a fraction of that.
• Shorting carries its own bill: borrowing and short dividend costs fall outside the management fee, and a hedge that is on during a rally works against the longs.sec.govcambriafunds.com
• A small fund that trades thinly, so spreads matter more here than with a mega-cap index fund.

Full BKDV profile⁠

Full VAMO profile⁠