New low-cost ETF entrants like Corgi are disrupting established issuers by copying popular themes at half the price, using a high-volume Hollywood box office strategy.

16:43right? >> Well, for them it's a it's like a a balance. >> It's a it's a correlation thing, right? On one day, and you can structure a portfolio like that. One day my memory stocks are up, the other day my uh anti- AI stocks. >> By the way, if the FBI is listening, I'm not promoting uh ETFs here. This is not a Please don't buy it. I really don't

17:01buy You know what's different about 2026 though? It's not just the number of new issues. It's the number of new issuers. At least for example. Do you have you ever heard of a company called Corgi? >> I'm aware of it. I have no idea who they are or where they come from. >> So I only just found out about it. It's kind of recently. Tell us their story.

17:18>> So okay, so Corgi and if they're listening, I apologize if I butcher their backstory. They are a Y Combinatorbacked company. I don't know Y Combinator. Silicon Valley money. Uh >> wait, sorry. Y Combinator back an ETF company. >> Yeah, something like that. >> That used to be a badge of honor. Now they have an option class of 9,000 companies. I don't know. All right, whatever. >> That's where the money comes from.

17:39>> Yeah. >> And the folks there are basically saying we still think fees in certain segments are too high, >> levered ETFs and thematic ETFs. So they are going to launch everything under the sun and they're just going to try and scale it up. So they're they did 30 different thematic ETFs. everything that we know memory. >> They're just they're cop they're copying the most popular funds but for a lower

18:00price >> for half the cost about 35 basis points. >> What a great pitch and they don't have to make money. They just have to sell it to some other scale it up. Yeah, >> they right. >> Um and it's kind of the Hollywood box office approach. I release 10 films in a year. >> Seven are flops, three are hits. >> And the hits will pay for the flops.

18:17>> The hits pay for the flops. And they're doing it with lever ETFs too. Uh single stock and index base, but at 50 basis points. Lever ETFs are usually what 90 to 120. The other ETF issuers look at them like, "Guys, what are you doing? We have great businesses. Why are you wrecking our business?" >> I think there's a little consternation. I applaud them for trying to do

18:35something different on the fees basis, but you know, it's also a distribution game. If you don't have the distribution, then you're not going anywhere. >> There used to be ETF conferences. >> Yeah. >> I feel like this would be a knife fight. >> Oh, it's definitely a knife fight. >> Like if like if we were all at the Diplomat Hotel and this was 2016, >> this could get this could get ugly. And

18:51it's it's interesting because they're their themataphones are actively managed, but I think it's probably more AI managed than portfolio managers. You know, >> how's the performance or it's too soon? >> They're too soon. Okay. >> They're too soon. They have one now. They also have a Photonix ETF that I might have one. Do institutions care that they've never heard of Corgi? Would they ever trade it >> or does it need it needs three years?