ETF Edge on thematic and active ETFs outside of AI and trends to watch
Speakers
John Davies
— CIO, Astoria Portfolio Advisors
Nico Laqua
— CEO, Corgi
Summary
The episode discusses the revival of thematic ETFs and whether investors should look beyond AI. Corgi CEO Nico Laqua explains how AI and insurance float let Corgi launch low-fee ETFs at scale. Astoria's John Davi argues for active management in thematic, fixed income and non-large-cap areas and highlights strategies like AI adopters, buffered ETFs, international value and the ROE ETF while warning about S&P 500 concentration.
- Corgi uses AI to accelerate ETF filings and targets fees at a third to half of competitors, aiming to be the largest ETF issuer by number this year.
- Corgi's insurance business creates internal demand for fixed income, thematic and buffered ETFs.
- John Davi views many new AI thematic ETFs as marketing-driven and prefers an actively managed AI-adopters approach.
- Davi recommends buffered ETFs and actively managed fixed income inside a hedged-growth strategy.
- Davi says investors should rotate away from crowded MAG 7 and passive S&P 500 exposure toward international value and active non-large-cap areas.
- Davi highlights Astoria's ROE ETF as a sector-neutral, equal-weight value strategy with strong historical outperformance.
- The conversation frames active versus passive and fee compression as key ETF industry debates.
Ideas
Rotate from MAG 7 to international value
On the equity side, Davi says the setup is straightforward: rotate away from the crowded MAG 7 and tilt toward international value, while fixed income requires an active manager.
Rotate from MAG 7 to international value
On the equity side, Davi says the setup is straightforward: rotate away from the crowded MAG 7 and tilt toward international value, while fixed income requires an active manager.
ROE ETF outperforms as sector-neutral value
Davi highlights Astoria's ROE ETF, a sector-neutral S&P Eco8/Russell 1000-style equal-weight value small-cap strategy with only about 15% tech, and says it has shown roughly 30% outperformance versus comparable RSP/EQA strategies.
Active managers beat passive outside large caps
Davi argues the S&P 500 is historically concentrated and passive is crowded, so with dispersion and volatility high, active managers are now outperforming in midcap, small cap, active fixed income, emerging markets and overseas markets, and investors should tilt away from passive large-cap US equities.
Active managers beat passive outside large caps
Davi argues the S&P 500 is historically concentrated and passive is crowded, so with dispersion and volatility high, active managers are now outperforming in midcap, small cap, active fixed income, emerging markets and overseas markets, and investors should tilt away from passive large-cap US equities.
