There’s a brand-new VanEck Vectors Social Sentiment ETF hitting the stock market this Thursday…
I’m willing to bet many of you already know who Dave Portnoy is. But for those of you who don’t, he’s a social media celebrity known as “Davey Day Trader,” and founder of Barstool Sports.
Well, this new VanEck Vectors Social Sentiment ETF, known as “BUZZ,” will track social media buzz driven by platforms like Reddit and Twitter. And even though he’s not exactly part of it, Portnoy said the new social sentiment ETF plans to use the algorithm created by the company he’s part owner of to manage its capital.
Because it’s getting so much media attention, I thought I’d give you some in-depth analysis of this brand-new ETF so you can see what all the buzz is about.
This new ETF, will reportedly hold 75 large-cap U.S. stocks that are getting the most positive social media attention, and have a market cap of $5 billion. The fund will rebalance each month.
But if a stock has a market cap of $5 billion, then it’s not really a large-cap stock. If the new VanEck Vectors Social Sentiment ETF wanted to track large-cap stocks, it should look at stocks with market caps of $25 billion to $50 billion.
I mean, you’ll find stocks with a market cap of $5 billion on the Russell 2000. So I don’t agree that this new ETF only tracks large caps.
And the most important thing to note is the smaller the stock, the more volatile it’ll be…
So if this new ETF starts mixing stocks that have a market cap of $5 billion with ones that hold $30 billion, you’re not going to get a great representation of what the S&P 500 is doing. It’ll be the Russell 2000 or Midcap Index instead.
So the real question is how much volatility and holdings does it actually have?
To get more detail about the new VanEck Vectors Social Sentiment ETF, check out my short video and leave your thoughts in the comments section below.
And as always, don’t forget to subscribe to my YouTube channel if you haven’t already so you can be notified as soon as I post my next video!
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In fact, new research has uncovered a disturbing truth about corporate America and certain “legal” tactics they’ve been using to force the rise of their own stocks.
But after months and months of investigations, one former Wall Street insider is finally ready to reveal the details he discovered…
And it could benefit amateur investors everywhere.