Episode 401: Eduardo Repetto & Caitlin Ebanks - Opening the Avantis CAGE - The Rational Reminder Podcast Recap

Podcast: The Rational Reminder Podcast

Published: 2026-03-19

Guests: Eduardo Repetto, Caitlin Ebanks

What Happened

Eduardo Repetto from Avantis Investors and Caitlin Ebanks of CIBC join the discussion on the launch of Canadian-listed ETFs by Avantis in partnership with CIBC. These ETFs hold securities directly and offer asset allocation products, making factor investing as accessible as market cap investing in Canada, albeit with slightly higher fees due to increased costs in the region.

Avantis has successfully amassed over $125 billion in assets under management within six and a half years. Repetto likens the launch of Avantis to running a restaurant, where strategy, service, and competitive pricing are crucial. He humorously contrasts low-quality investment products with 'gas station sushi' and advocates for ETFs over mutual funds, calling mutual funds outdated like payphones.

The partnership with CIBC was chosen for their extensive reach and focus on clients, allowing Avantis to manage portfolios while CIBC handles operations such as reporting and regulatory compliance. The Canadian ETF lineup mirrors US strategies, but with Canadian-specific products due to differing regulations and market demands.

The CAGE ETF, a notable product in Canada, shifts focus towards companies with high profitability and low price, especially in small and mid-caps. It aims for a 1.5-2% expected value addition with a 3-4% tracking error. This strategy involves a 15% underweight in low expected return companies and a 15% overweight in high expected return companies, showcasing a more aggressive tilt compared to core strategies.

Caitlin Ebanks emphasizes the commitment to the suite of eight Canadian ETFs, without a set AUM threshold for viability. Avantis continues to refine its strategies with tweaks to momentum filters and profitability measures, maintaining a high standard for any changes. There is also a focus on better predicting future profitability growth.

The CAGE ETF offers Canadian investors a more tax-efficient investment option by holding Canadian-based ETFs, eliminating the need for multiple ETFs and currency conversions. This evolution in financial products brings more intelligent and efficient investment tools to the Canadian market, reflecting a positive trend towards better financial management.

Avantis also emphasizes their emerging markets strategy, which is recognized as the largest actively managed emerging market ETF globally. They publish a monthly ETF field guide in the US and are working on a similar version for the Canadian market, providing investors with valuable insights and guidance.

Key Insights