In a recent episode of Behind the Ticker, Kirsten Chang, Director of Editorial and Content at VettaFi, shared insights into her journey from CNBC to her current role, as well as details about the upcoming Exchange ETF Conference, the largest ETF industry event of the year. With over a decade of experience at CNBC—working on Squawk Box, covering markets from the floor of the NYSE with Bob Pisani, and helping launch ETF Edge—Chang transitioned to VettaFi to further develop her own voice and contribute to the growing ETF landscape.

Chang explained that VettaFi is more than just the organizer of the Exchange conference. It serves as an index provider, a data analytics firm, and a digital distribution company focused on bridging the gap between advisors and ETF issuers. With over 4,000 ETFs available in the market, VettaFi helps investors and financial professionals sift through the noise by offering research, webcasts, and educational content. Through its partnerships with asset managers, the firm provides timely insights on ETF flows, market trends, and new product developments.

The discussion then shifted to the Exchange ETF Conference, now taking place in Las Vegas after years in Miami. Chang highlighted that the conference is designed to offer advisors actionable insights and analysis, with sessions covering everything from private credit and hedge fund-led multi-asset ETFs to the explosive growth of active ETFs. The event brings together the biggest names in the industry, including keynote speakers like David Kelly and Ian Bremmer, and features panels on thematic investing, ESG trends, crypto, AI, and international equities. With record-breaking fixed income ETF flows and the continued rise of AI-related investments, the conference aims to provide a roadmap for advisors navigating today’s markets.

Chang also emphasized Exchange’s focus on networking and community building, calling it the must-attend event for anyone in the ETF space. She shared details on new initiatives like the Putt for Pink charity event benefiting Susan G. Komen, a March Madness basketball connect-four game hosted by State Street, and an interactive app that allows attendees to schedule meetings and customize their experience.

In a recent episode of Behind the Ticker, Adam Patti, founder and CEO of VistaShares, discussed the launch of the VistaShares Artificial Intelligence Supercycle ETF (ticker: AIS) and how it differentiates itself in the growing AI investment space. With over two decades in the ETF industry, Patti previously founded IndexIQ, one of the earliest issuers of liquid alternative ETFs, which was later acquired by New York Life. After spending several years outside the industry, Patti partnered with John McNeil of DVX Ventures to launch VistaShares, focusing on building high-quality thematic ETFs with a more thoughtful and targeted approach.

Patti explained that AIS is designed to provide pure exposure to the AI supercycle by focusing exclusively on the infrastructure driving artificial intelligence, particularly in data centers and semiconductors. Unlike many AI-themed ETFs that hold broad tech exposure dominated by the "Magnificent Seven" stocks, AIS takes a supply chain-driven approach, investing in companies that manufacture the essential components—such as GPUs, VRAMs, cooling systems, and fiber optic networks—needed to power AI. By analyzing the bill of materials for AI data centers and semiconductors, VistaShares identifies companies with substantial AI-driven revenue, ensuring that the fund is directly tied to AI growth rather than being diluted by large-cap tech names with only partial AI exposure.

AIS follows a rules-based, actively managed strategy that combines systematic supply chain analysis with an active overlay. The core portfolio is constructed based on a transparent, rules-driven methodology—one that VistaShares has filed for a patent on—ensuring that holdings are determined by their relevance to AI infrastructure rather than arbitrary weightings. The fund undergoes a semi-annual rebalance, but Patti emphasized that the active overlay allows for adjustments in response to new developments in the rapidly evolving AI space. The investment committee, which includes AI industry practitioners such as former Tesla president John McNeil and AI entrepreneur Sonny Madra, helps identify emerging trends, new players, and risks within the AI ecosystem before they become widely recognized.

Patti also highlighted the global nature of the AI supply chain, with AIS holding companies from the U.S., Taiwan, China, and Europe. Currently, about 60% of the portfolio is U.S.-based, with the remainder distributed across key AI manufacturing hubs. Looking ahead, VistaShares has the flexibility to expand the portfolio’s focus, potentially incorporating consumer-facing AI applications and energy solutions as the industry matures. However, for now, the fund remains centered on AI infrastructure, which Patti believes is still in the early stages of exponential growth, as evidenced by record-breaking capital expenditures from major tech firms.

For investors and advisors looking to incorporate AIS into portfolios, Patti suggested a 3-5% allocation within a core equity strategy, positioning it as a high-conviction growth satellite.

n a recent episode of Behind the Ticker, Emma Harper, a research analyst at Sage Advisory, shared insights from the firm’s 2024 ETF Stewardship Report, which evaluates how ETF providers engage with companies, vote on shareholder proposals, and integrate sustainability and governance practices. With a background in finance and research, Harper plays a key role in Sage's analysis of responsible investment strategies, ensuring the firm’s investment decisions align with best stewardship practices. Sage Advisory, which manages approximately $28 billion in assets, focuses on institutional and retail clients, blending investment management with rigorous research.

Harper explained that Sage’s annual stewardship report examines ETF providers' voting and engagement practices, governance structures, and transparency efforts. The report analyzes how asset managers influence corporate behavior through proxy voting, engagement strategies, and sustainability considerations. One key aspect of the research is assessing whether providers have dedicated stewardship teams and clearly defined voting policies. Given that ETF holders delegate their ownership rights to fund issuers, understanding how these rights are exercised is crucial for fiduciary responsibility.

A major trend identified in the 2024 report is a decline in transparency among ETF providers, particularly in response to regulatory scrutiny and political pressures. Harper noted that while early versions of the report saw growing disclosures from asset managers, recent years have shown a more cautious, legalistic approach to describing stewardship activities. Additionally, there is a widening divide between active and passive ETF managers, with active managers generally exhibiting stronger stewardship practices. Passive managers, on the other hand, tend to rely more on third-party proxy advisors and have less direct engagement with portfolio companies.

Harper also highlighted concerns about the concentration of voting power among a few major ETF providers, such as BlackRock, Vanguard, and State Street. These firms control trillions of dollars in assets and exercise substantial influence over corporate governance. The report found that larger providers tend to support management more often than smaller firms, which raises questions about their commitment to shareholder advocacy. Harper emphasized that investors should carefully evaluate ETF issuers’ stewardship policies, particularly as issues like ESG, artificial intelligence, and cybersecurity become more relevant in corporate decision-making.