In this episode, we are joined joined by Andrew Chanin, Co-Founder and CEO of ProcureAM. They discuss Andrew's background in financial services and how he came to found Procure, focusing on their decision to build their own ETF infrastructure and unique suite of product.Andrew provides an overview of Procure's two flagship ETFs - UFO, which offers exposure to the global space industry, and FIXT, which provides exposure to disaster recovery stocks. He explains the methodology behind the construction of each ETF's index, highlighting the diversified mix of space and disaster recovery related companies.They delve into the investment case for the space industry, examining key innovations like reusable rockets that are bringing down launch costs and opening up opportunities. Andrew outlines the growing government and defense interest in space given its strategic importance. He also discusses where a niche thematic ETF like UFO can fit in an investment portfolio.Overall, Andrew provides insightful perspective on bringing differentiated ETF products to market and the process behind developing focused thematic exposures. Tune in to learn more about ProcureAM's unique offerings in the evolving ETF landscape. For more information on ProcureAM visit Procureetfs.com
Deeper Dive: Insights from the Full Conversation
Beyond the headline strategy, the full conversation between Brad and Andrew Chanin covered several additional themes worth highlighting for advisors and investors.
On Process and Philosophy
Today we have Andrew Chan and he is the founder of Procure Asset Management. Andrew has a ton of experience in the ETF industry, and today we talked about his two products that he has brought to market UFO, which is a space exploration ETF in invest in the industries which make space in space travel in space technology. All possible even as simple as me delivering this podcast to you over the internet. We also talk about his other ETF fixed FIXT, which is a disaster restoration ETF.
I'm Brad Roth, Chief Investment Officer of Thor Financial Technologies, and portfolio manager of THLV, the Thor Low Volatility ETF. Behind the Ticker, uncovers the inner workings of the ETF industry. We will interview portfolio managers and ETF service providers to dive deep into their work lives and their businesses. We will learn the inner workings of their strategies and what drives them as they continue to grow their company. Many of these individuals are entrepreneurs, and will have unique and compelling insights to share as much goes on behind the Ticker.
Market Context and Positioning
Certainly we do outsourced the Ovarious roles portfolio management and others, but being able to have the time exempt of relief, having our own separate trusts was something that was really important to me and having someone as experience as Bob Tall, which helped build what was essentially the predecessor to I shares as well as having launched ETFs, numerous countries around the world working with Barriers, regulators and exchanges to help them build up their own capabilities to open up their markets for the ETF industry.
What was your reasoning behind going your own route? It's definitely more expensive, but for somebody with so much experience in the ETF business, why did you think that that was just a better route? So there is a lengthy, federal rolling in Southern District of New York related to my experience as a white label client. Unfortunately, the judge ruled that essentially our products were stolen from us. The risks of that, the learning experiences from working, not saying that every platform is going necessarily do that, but having had the experience happen to me was something that I couldn't look back and put myself in the same position and being able to build our own infrastructure.
We had all the skills that we had all the knowledge needed to be able to do it on our own and it really made sense, especially given the first experience I had. Sorry to hear about that. We thought a lot of the same things as well as we wanted ownership over the firm and the brand and the infrastructure. I think it goes a long way, especially for somebody who wants to get additional products out to market quickly and own that process.
Notable Insights
"I believe that cost savings is possibly the biggest innovation for the industry."
Key Takeaways
- He also discusses where a niche thematic ETF like UFO can fit in an investment portfolio.Overall, Andrew provides insightful perspective on bringing differentiated ETF products to market and the process behind developing focused thematic exposures.
- Tune in to learn more about ProcureAM's unique offerings in the evolving ETF landscape.
- The conversation explores important themes in portfolio construction relevant to today's advisor landscape.
What This Means for Advisors
For financial advisors evaluating options for client portfolios, this conversation with Andrew Chanin highlights important considerations around crypto & digital assets. Understanding the strategy behind each fund—not just the ticker—helps advisors make more informed allocation decisions and better communicate the rationale to clients.
The themes of crypto & digital assets and growth investing discussed in this episode are particularly relevant in the current market environment, where advisors are increasingly looking for differentiated solutions that go beyond traditional benchmarks.
Listen to the Full Episode
This article is based on an episode of Behind the Ticker, hosted by Brad Roth, Founder and CIO of THOR Financial Technologies. For the full conversation with Andrew Chanin, including additional nuances and details, listen on Spotify, Apple Podcasts, or watch on YouTube.