Welcome to episode 5, where we hear from Dave Mazza, the Chief Strategy Officer for Roundhill Investments. Dave talks about the newest ETF offering from Roundhill, CHAT. CHAT is an active ETF which will rank the top generative Ai companies and identify the best opportunities in the space. He also talks about Roundhill’s approach to launching products, how they go about marketing, and what’s coming next from the firm. More on Roundhill Investments and the CHAT ETF is available at www.roundhillinvestments.com
Deeper Dive: Insights from the Full Conversation
Beyond the headline strategy, the full conversation between Brad and Dave Mazza covered several additional themes worth highlighting for advisors and investors.
On Process and Philosophy
So primarily the coming soon funds are related to our big ETFs. So what's great about that strategy is you can apply it to a variety of sectors and industries. For many years, you know, we've heard from investors today, hey, I'd love some precision in home builders who I'd love some precision in airlines or defense that not that they can't get that exposure, but they don't want anything else. They just want the big cats or the real-pure place there.
Right, if you look at some existing sector and industry ETFs, it's really watered down exposure. That certainly has paid off from a performance standpoint by focusing just on the larger banks. But really the theory there is giving people precision. The same can be said about big T, which is our big technology ETF. And that is just focused really on the family stocks. And again, the idea there is not about trying to be niche or that. It's about giving that precision exposure.
Market Context and Positioning
So we have a few core channels that we market through. And social media is a great one for us. Whether that's Twitter or LinkedIn or other channels that we're looking at, and also just being in the press through traditional media as well. I think the opportunity to spread your wings, the opportunity to get your message out there as wide as possible, is paramount. The ETF market is great because there's so much choice now for whether you're a retail investor, financial advisor, in any way, shape or form, or a true institution.
And we give that a score. So the more, the more it's mentioned, the higher it is relatively simple. Now, that's not just it, right, because what we don't want is just companies who are loading up and we saw this with blockchain, right, who are changing their name, right, or just throwing an AI and they have nothing to do with it. So the real research comes with what we call this sector score. And that's where we are identifying and looking at companies more from a fundamental basis, traditional fundamentals, I should say, this is a quantitative approach.
And we know through the research, the quantitative research that we do, looking at fundamentals, their revenue is actually coming and they said it on their call and so much is going to come from chipset power generative AI. So low in behold, it has a high rank on the transcript score, high rank on the sector score, high rank in the portfolio.
Notable Insights
"So it is brand new, we are going to learn all about how it works and how it operates, and I think you are going to get not only an education in the difference between AI and generative AI, but also some of the companies they are looking at and how they are building this index."
"I think the opportunity to spread your wings, the opportunity to get your message out there as wide as possible, is paramount."
Key Takeaways
- The conversation explores important themes in energy relevant to today's advisor landscape.
- The conversation explores important themes in energy relevant to today's advisor landscape.
- The conversation explores important themes in energy relevant to today's advisor landscape.
What This Means for Advisors
For financial advisors evaluating options for client portfolios, this conversation with Dave Mazza highlights important considerations around energy. Understanding the strategy behind each fund—not just the ticker—helps advisors make more informed allocation decisions and better communicate the rationale to clients.
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 Dave Mazza, including additional nuances and details, listen on Spotify, Apple Podcasts, or watch on YouTube.