A new ETF has hit the market, and it is not typical. The VanEck Vectors Social Sentiment ETF, trading as “BUZZ” on the NYSE is available as of Thursday.
BUZZ is getting a lot of news after Dave Portnoy promoted it on social media.
The ETF will take the unique approach of using an algorithm to analyze 75 large-cap stocks that are being discussed the most on social media.
So where does Dave Portnoy fit in?
Although Portnoy is not a part of ETF, he is now partial owner into the company that made the algorithm and that licenses the strategy to the ETF.
This fund is very different from your usual ETF. There are managed funds sure, but this one will constantly move positions to track trends of online discussions. And given the news about Reddit’s incredible power and influence during the GameStop short squeeze, investors might be very interested in such an automated strategy.
The VanEck ETF is not investing as we are used to, that’s for sure. So it will be fun, interesting and hopefully profitable to see where this goes.