The VanEck Social Sentiment ETF, launched with the support of Barstool Sports founder Dave Portnoy, debuted on the New York Stock Exchange on Thursday and could boost notable movements in various industrial and technology stocks in the coming weeks, he argues. Jim Cramer.
The Buzz ETF, as it is often referred to, is made up of 75 shares – each with a minimum market capitalization of $ 5 billion – that were chosen by an algorithm based on its positive sentiment on social media. It will begin trading on the NYSE under the symbol BUZZ and is managed by VanEck Associates Corp.
The 75 shares will be rebalanced each month, with substitutions added and low-performing shares removed, based on what its founders call the highest degree of “positive investor sentiment”, obtained from the study of around 15 million shares. posts on various social media networks.
TheStreet founder Jim Cramer said on Thursday that the ETF and its stock selection technique is “fascinating” and will likely move many of the 75 names within it if traders accept Portnoy’s call to invest in it.
“Social media and mobile technology have fundamentally changed the way we relate to stocks,” said the ETF website. “There are a ton of online conversations every day. Changing sentiment and our collective views clearly impact its value.”
The ETF itself fell 1.11% to $ 24.13 at the start of Thursday’s trading session, compared to a 0.17% drop in the Nasdaq Composite Index.
Twitter (TWTR) – Get report the shares, the largest allocation in the ETF at 3.52%, were marked 1.5% lower at $ 69.70 each, but have risen more than 77% in the last six months.
The second largest online sports betting group DraftKings (DKNG) – Get report, was marked 1.3% lower at $ 64.90, a move that cuts its six-month gain to about 80%.
Ford Motor Co. (F) – Get report, the third largest allocation, rose 0.2% to $ 12.20 each and increased 77.5% in the last six months.
Other holdings at EFT include Facebook (FB) – Get report (at 3% of total holdings), Amazon (AMZN) – Get report (2.94%), Apple (AAPL) – Get report (2.9%) and Tesla (TSLA) – Get report (2.75%).