What's in a Meme ETF?
A non-clickbait look into a few clickbait tickers.
A wave of new investors has flocked to the market during the post-pandemic market boom, and investment firms have been actively trying to get in front of them. Some have taken to social media to dole out investing content. Take, for example, this TikTok from Fidelity about mutual funds. From a marketing perspective, it makes sense to leverage these platforms to reach younger investors. But does turning online chatter about today’s hottest stocks into an actual portfolio make sense? Some asset managers think so, and they’ve launched a number of funds that try to leverage insights from their investors and social media platforms into market-beating returns. This article will dissect four of these exchange-traded funds: Are they worth a shout-out, or they should go on the blocked list? The lineup features VanEck Social Sentiment ETF (BUZZ), Tuttle Capital Management FOMO ETF (FOMO), SoFi Social 50 ETF (SFYF), and the recently filed but yet-to-be-launched Roundhill MEME ETF.
Lan Anh Tran does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.