The Pomp Podcast
#526: Raj Lala on Innovative Technology ETFs
- Raj Lala's background: Started as a telemarketer for investment advisors, built multiple companies (hedge fund of funds, later sold to major asset manager), ran WisdomTree Canada before founding Evolve ETFs in 2016 focused on disruptive technology themes.
- Bitcoin ETF structure: Evolve offers physical Bitcoin (not futures-based) held in registered accounts like RRSPs and TFSAs; uses CME futures pricing as reference rate to avoid premium/discount issues that plagued closed-end funds trading 10–30% above NAV.
- Cybersecurity thesis: Non-discretionary corporate spending; 3.5 million job vacancies; cybercrime will cost global economy $10 trillion; 75% of cybersecurity work outsourced due to talent shortage.
- Cloud computing adoption: Only ~40% of data migrated to cloud; legacy system migrations ongoing; three pillars tracked (PaaS, IaaS, SaaS); Amazon Web Services, Microsoft Azure, Google control ~55% market.
- Electric vehicles and e-sports: EVs facing range anxiety and charging infrastructure gaps despite 75% battery cost reduction in five years; e-gaming has 3 billion players and multiple revenue streams (in-game purchases, brand sponsorships, tournaments, media rights).
- Canadian ETF market constraints: Difficult to sell Canadian-listed funds to US investors; US investors easily buy US-listed ETFs, creating competitive disadvantage for Canadian issuers competing on quality.