Eduardo Repetto & Caitlin Ebanks - Opening the Avantis CAGE - The Rational Reminder Podcast Recap

Podcast: The Rational Reminder Podcast

Published: 2026-03-19

Duration: 3341

Guests: Eduardo Repetto, Caitlin Ebanks

What Happened

Eduardo Repetto of Avantis Investors and Caitlin Ebanks from CIBC discussed the launch of Avantis ETFs in Canada which simplifies factor investing for Canadians. This move marks a significant step in making sophisticated investing strategies accessible through a single ETF, reducing barriers like high fees and complex structures.

Avantis, with over $125 billion in assets under management, has partnered with CIBC to bring these products to the Canadian market, emphasizing a client-first approach with competitive fees. The strategic partnership, initiated in 2019, is centered around maintaining low fees, making factor investing more feasible for a broader range of investors.

The new ETF lineup, which includes U.S. equity, emerging market equity, and international small value strategies, offers a cost-effective alternative with management fees at 19 basis points. These products are slightly more expensive than their U.S. counterparts due to higher operational costs in Canada.

The decision to use ETFs over mutual funds was driven by the trend toward low-cost, transparent investment vehicles. ETFs are seen as the future, providing better shareholder protections and eliminating operational cost uncertainties from fees.

CAGE, the all-equity asset allocation ETF, is designed to simplify portfolio construction for DIY investors by incorporating factor tilts. It targets an outperformance range of 1.5-2% over market cap-weighted ETFs, with a tracking error of 3-4%.

Eduardo Repetto highlighted the importance of maintaining product quality, avoiding what he terms 'gas station sushi', a metaphor for low-quality investment products. Caitlin Ebanks expressed enthusiasm about the suite of eight ETFs, citing Avantis' track record of consistent returns as a key factor in their expected success.

Key Insights

• Avantis' entry into the Canadian market with CIBC is a major step in making factor investing more accessible, reducing fees and simplifying implementation for investors.
• The partnership between Avantis and CIBC began in 2019, with a focus on maintaining low fees and aligning on client-first principles, which are crucial for attracting Canadian investors.
• CAGE, Avantis' asset allocation ETF, aims to simplify DIY investing with expected outperformance of 1.5-2% and tracking error of 3-4%, focusing on factor tilts for enhanced returns.
• The decision to launch ETFs instead of mutual funds in Canada was influenced by the trend towards low-cost, transparent investment vehicles, providing better protection and lower operational costs for investors.