Corgi Funds, an AI-driven asset manager, is making significant waves in the ETF industry with an ambitious plan to launch approximately 500 exchange-traded funds within its first year of operation. This aggressive strategy positions Corgi to challenge established players like BlackRock, which took decades to achieve a similar number of ETF offerings. The company, parented by San Francisco-based Corgi Insurance—a Y Combinator-backed AI insurance startup founded in 2024—has raised over $268 million as of its Series B funding round in May.
Corgi's approach, dubbed the "spaghetti cannon approach" by some analysts, involves casting a wide net of products, hoping that a few will attract substantial assets to support the others. Despite skepticism from experts about the sustainability and capital intensity of this volume-driven strategy, Corgi does not foresee closing any of its funds, especially not in the first year or two, to avoid "launch suicide." Edward Rumell, head of distribution at Corgi Funds, emphasizes their focus on offering low-cost products, believing they can provide better options at cheaper rates.
The firm's existing portfolio includes 187 ETFs launched this year, accounting for roughly one in five of all US ETF launches during the same period. More than half of Corgi's total assets under management (AUM) of approximately $811 million at the end of July is concentrated in the Corgi Lithography & Semiconductor Photonics ETF (EUV), holding $417.38 million. Corgi is offering some buffer ETFs at 30 basis points, significantly lower than the 80-90 basis points typically seen from larger competitors.
