Behind the Ticker: Paul Marino on the DRGN and BOTT Themes ETFs

Why It Matters

These ETFs open regulated, low‑cost access to high‑growth AI and robotics sectors outside traditional U.S. funds, but investors must weigh the geopolitical and transparency risks inherent in China‑focused assets.

Key Takeaways

• DRGN ETF offers U.S. investors direct China AI exposure.
• Index uses equal weighting, semiannual rebalancing to limit concentration.
• BOTT ETF targets global humanoid robotics firms, not just U.S. players.
• Both funds avoid active selection, relying on rule‑based passive indexes.
• Investors must accept geopolitical and transparency risks inherent in China holdings.

Summary

In this episode of Behind the Ticker, Brad Roth interviews Paul Marino, chief revenue officer at Themes ETFs, to unpack two newly launched thematic ETFs – DRGN, a China‑focused generative AI fund, and BOTT, a global humanoid robotics fund. Marino explains how each product fills a distinct market gap: DRGN gives U.S. investors a regulated, low‑cost way to capture China’s rapidly expanding AI ecosystem, while BOTT aggregates worldwide robotics innovators that are largely absent from broad U.S. tech funds. The funds are built on rule‑based, passive indexes. DRGN’s index screens for mainland‑Chinese companies listed in the U.S. or Hong Kong that derive the majority of revenue from AI modeling, infrastructure, or applications, and applies an equal‑weighting scheme with semi‑annual rebalancing to prevent any single name from dominating. BOTT follows the Solactive Global Humanoid Robotics Index, selecting the 30 largest firms with positive twelve‑month returns across factory automation, semiconductors, and industrial machine parts, also using equal weighting. Both ETFs deliberately avoid active stock‑picking, letting the index criteria determine winners. Marino highlights practical safeguards: strict sanctions screening, reliance on publicly listed entities, and partnership with compliance specialist BIDA to monitor Chinese regulatory risk. He notes that liquidity can thin during Chinese New Year, and advises investors to conduct due diligence on the prospectus. An anecdote from Michael Saylor about early adoption of transformative technologies underscores the potential upside if humanoid robots move beyond niche applications. For advisors and investors, the two ETFs offer a complementary return stream to existing U.S. tech exposure, diversifying geographic and sector risk while tapping high‑growth themes. However, they also require comfort with geopolitical uncertainty, accounting transparency issues, and the inherent volatility of emerging‑technology markets.

Original Description

How does a background in investigative journalism lead to a career as a Chief Revenue Officer in the ETF space? In this episode of Behind the Ticker, Brad Roth sits down with Paul Marino of Themes ETFs to discuss the AI evolution underway in China, the reality of humanoid robotics, and how advisors are using thematic satellite allocations to enhance modern portfolios.

Paul brings 25 years of asset management experience (Federated, Pioneer, Victory Capital) to the table, arguing that the ability to structure a clear message is the most underrated skill in finance. The discussion dives deep into two high-conviction funds, the Themes China Generative Artificial Intelligence ETF (DRGN) and the Themes Robotics & Automation ETF (BOTT)

Highlights from this conversation include:

The "Sovereign AI" Thesis (DRGN): Why U.S. sanctions have forced China to build a completely independent, vertically integrated AI ecosystem—and why this creates a return stream structurally separate from U.S. Big Tech.

Beyond the Bipedal Robot (BOTT): Why humanoid robotics isn't just about Tesla’s Optimus. Roth and Marino explore the humanoid definition and the implications of automation.

Portfolio Construction: How advisors are using a core + satellite model to satisfy client interest in themes they see on CNBC and the WSJ.

The Themes ETFs Strategy: A look inside the firm’s entrepreneurial culture, their pure play index philosophy, and why they provide institutional-grade research for free.

You can listen to this conversation on Spotify as well as any of your preferred streaming platforms: https://open.spotify.com/episode/7gBEBMQ8GcLbPANHPtKF0m

And as always, follow along with the conversation and stay connected at: https://www.etf.com/sections/podcasts/behind-ticker-drgn-and-bott-etfs