Buzz ETF Tracks Stocks Based on Social Media Relevance
Jason McCullough — March 23, 2021 — Business
References: cnbc & investwithbuzz
BUZZ ETF (Exchange-Traded Fund) is the first of its kind that tracks stocks not on moving prices, but those that are getting the most social media hype.
This ETF is based on the 'Buzz NextGen AI U.S. Sentiment Leaders Index.' Coming quickly after the Reddit investment craze that saw Gamestop (GME) shares skyrocket at the expense of Hedge Fund Managers who had shorted the company, these so-called ‘Reddit Stocks’ are not immediately considered for the new BUZZ ETF. Instead, they must meet the criteria of having at least a $5 billion dollar market cap, in addition to being consistently mentioned on social media over the past year.
Of the potential companies who meet these criteria, the top 75 go into the index which is then re-evaluated each month. This ETF is now available and is already backed on social media by President of Barstool Sports Dave Portnoy, who is also a part-owner of Buzz Holdings.
This ETF makes it easier for those who might want to invest but don’t think they know enough about the stock market to get started. With the rise in personal finance apps like Wealthsimple and Robinhood throughout the pandemic era, this first-of-its-kind social media-based ETF seems like the clear next step in the evolution of personal finance and investment.
Image Credit: InvestWithBuzz.com
This ETF is based on the 'Buzz NextGen AI U.S. Sentiment Leaders Index.' Coming quickly after the Reddit investment craze that saw Gamestop (GME) shares skyrocket at the expense of Hedge Fund Managers who had shorted the company, these so-called ‘Reddit Stocks’ are not immediately considered for the new BUZZ ETF. Instead, they must meet the criteria of having at least a $5 billion dollar market cap, in addition to being consistently mentioned on social media over the past year.
Of the potential companies who meet these criteria, the top 75 go into the index which is then re-evaluated each month. This ETF is now available and is already backed on social media by President of Barstool Sports Dave Portnoy, who is also a part-owner of Buzz Holdings.
This ETF makes it easier for those who might want to invest but don’t think they know enough about the stock market to get started. With the rise in personal finance apps like Wealthsimple and Robinhood throughout the pandemic era, this first-of-its-kind social media-based ETF seems like the clear next step in the evolution of personal finance and investment.
Image Credit: InvestWithBuzz.com
Trend Themes
1. Social Media-based Investment - The BUZZ ETF is the first of its kind that tracks stocks based on social media relevance, and this trend highlights an opportunity for more investment platforms to integrate social media data analysis into their models.
2. Sentiment Analysis - The BUZZ NextGen AI U.S. Sentiment Leaders Index uses sentiment analysis to track social media mentions of stocks, and this trend presents opportunities for companies to use similar technology to analyze consumer sentiment and other social media metrics.
3. Personal Finance Apps - The rise of personal finance apps like Wealthsimple and Robinhood, combined with the BUZZ ETF's popularity on social media, indicates an opportunity for the development of more personal finance apps that cater to social media-savvy investors.
Industry Implications
1. Finance - The finance industry can benefit from the disruptive potential of social media-based investment platforms by integrating social media data analysis into their investment strategies.
2. Technology - The technology industry can capitalize on the sentiment analysis trend by developing more advanced data analysis tools that incorporate machine learning and artificial intelligence algorithms.
3. Media and Entertainment - The popularity of social media-based investment platforms, combined with the involvement of Barstool Sports and other media figures, indicates an opportunity for the media and entertainment industry to increase its presence in the world of finance and investing.
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