Roundhill Names Dave Mazza Chief Executive

Roundhill Investments, the nearly $1 billion ETF issuer whose funds invest in niches like the metaverse, sports betting and marijuana, has named David Mazza Chief Executive Officer barely a year after he joined the firm.

Mazza, who had been serving as chief strategy officer, will lead the company as it "enters the next phase of its growth trajectory," Roundhill co-founder and former CEO Will Hershey said in a statement. 

Founded in 2018, New York-based Roundhill has over the past year doubled its lineup to 14 exchange traded funds, primarily so-called thematic ETFs, which hold $958 million in assets under management. The company last year embarked on a plan to expand its lineup after most of its products were launched into fast-growing sectors that had stalled.

“Roundhill is embarking on the next phase of growth, and that primarily manifests as diversifying our products from simply offering equity thematics to other areas that are of interest to investors and traders today," Mazza, 41, told etf.com. He declined to offer specific areas of expansion, saying Hershey and co-founder Tim Maloney will focus on product development while he manages operations and strategy. 

Roundhill's Metaverse, MAG7 and Weight-Loss Funds

Its largest fund, the $421.8 million Roundhill Ball Metaverse ETF (METV), hasn't budged in size over the past year, while at the same time its price jumped 34%, according to ETF.com data. It's second-largest fund, the $213.2 million Roundhill Magnificent Seven ETF (MAGS), has gained 61% since it launched a year ago. 

Among its funds, it also runs the Roundhill Sports Betting & iGaming ETF (BETZ), which invests in online gaming and betting companies, and the marijuana and hemp fund, the Roundhill Cannabis ETF (WEED).

Mazza had also served as head of ETF investment strategy and research at Oppenheimer Funds and State Street Group. Prior to joining Roundhill, he was Head of Product at ETF issuer Direxion. 

Roundhill's lineup expansion has focused largely on emerging tech themes, such as its $145 million artificial intelligence focused ETF, the Generative AI & Technology ETF (CHAT) and its Magnificent Seven ETF.

The firm has also hopped on the covered call and leveraged fund trend, launching a double supercharged version of its flagship Magnificent Seven fund, the Roundhill Daily 2X Long Magnificent Seven ETF (MAGX). They also recently launched the S&P 500 ODTE Covered Call Strategy ETF (XDTE), which utilizes zero-days-to-expire options. 

These kinds of risky trading vehicles are meant for “sophisticated traders” the company said of the 2x daily Mag 7 fund, not necessarily buy-and-hold long term investors. By expanding their leveraged lineup, the company appears to be signaling an expansion of its investor base beyond longer term investors. 

Mazza said Roundhill won't "sit back and copy" other companies' funds, citing its March filing for an ETF that focuses on companies involved in weight loss and anti-obesity drugs.

"We understand that there's only so much mindshare that investors have so we want to ensure that we can deliver the most unique or differentiated product possible," he said. 

Contact Lucy Brewster at [email protected].