In the rapidly changing landscape of investment management, staying ahead of the curve has become a necessity for Registered Investment Advisors (RIAs) and Broker-Dealer Representatives (BD Reps).
As technology transforms industries and reshapes investment philosophies, understanding where the true growth opportunities lie is of utmost importance.
Enter Roundhill Investments, a firm committed to thematic investing that offers advisors unique and groundbreaking investment strategies.Scott Martin,Managing Editor of The Wealth Advisor, recently had a conversation with Dave Mazza, Chief Strategy Officer, about what makes the company stand out.
Founded in 2018, Roundhill emerged on the premise that the investment management world needed a shift. "The industry needed to be focused actually on end objectives and on unique solutions," explained Mazza.
While thematic investing is often tagged as the latest fad, attractive to retail traders, Roundhill strives to distinguish itself by digging deeper.
It aims to separate the 'flash in the pan' themes from those with genuine long-term potential.
"What we try to do is ensure that if we're going to offer a theme, it's not just taking the NASDAQ 100 and re-weighting them," said Mazza.
This is a crucial factor for advisors, who are often confronted with questions from clients excited about the latest investment trends.
When a client asks, "Why am I not in AI? My friend is making a lot of money here," advisors working with Roundhill can respond with assurance, knowing that they are providing true exposure to growth companies, the disruptors of tomorrow.
"Our thematic ETFs, such as the Generative AI ETF (CHAT) and the Metaverse ETF (META), not only include well-known large-cap companies but also hidden gems among mid-cap and small-cap firms," Mazza added.
A core challenge for RIAs and BD Reps is keeping clients actively engaged with their portfolios.
One of the ways to do this is by introducing thematic investing solutions that not only align with the client’s objectives but also keep them invested in understanding their portfolios.
For instance, the Generative AI ETF (CHAT) offers a dedicated focus on advancements in generative artificial intelligence.
This theme is already bringing about an economic revolution in various sectors, which makes it an excellent way to engage clients today, rather than decades into the future.
But, it's not just about finding the right thematic ETFs; it’s about balancing them with solid risk management. Roundhill pays close attention to this, ensuring that their thematic ETFs are well-diversified.
"By incorporating mid-cap and small-cap companies, we mitigate concentration risk and provide a broader exposure to the theme," said Mazza.
So, what's the bottom line for RIAs and BD Reps considering dipping their toes into thematic investing?
One ticker symbol that stands out as a compelling option for first-time exposure is CHAT.
This Generative AI ETF focuses on current advancements in artificial intelligence, a sector poised for exponential growth.
By investing in CHAT, advisors can offer their clients a well-balanced, diversified portfolio that taps into one of the most transformative technologies of our time.
Roundhill Investments offers a pioneering approach to thematic investing that sets it apart from the crowd.
The firm has shown an unyielding commitment to providing strategies that go beyond market fads, offering genuine growth opportunities.
For advisors seeking to engage their clients and boost their portfolios, taking a closer look at Roundhill’s offerings, particularly the CHAT ETF, comes highly recommended.
