BUZZ already has support from some big names. Jim Cramer says that the ETF ‘resonates’ with him.
The VanEck Association is expected to launch VanEck Vectors Social Sentiment ETF (NYSE: BUZZ) on Thursday, March 4. The ETF will monitor online chatter about the BUZZ NextGen AI US Sentiment Leaders Index. The Index will include the 75 most-favorably mentioned companies on the web with a market cap of no less than $5B. A few stocks listed on the Buzz index include DraftKings (NASDAQ: DKNG), Twitter Inc (NYSE: TWTR), Facebook Inc (NASDAQ: FB), Ford Motor Company (NYSE: F), and Amazon.com Inc (NASDAQ: AMZN).
The ETF’s algorithm, created by Buzz Holdings ULC, selects stocks with the most positive online buzz by scouring social media platforms, news sites and blogs.
Ed Lopez, head of ETF product for VanEck, said in a statement:
“Twitter (TWTR) – Get Report, Reddit, Stocktwits and dozens of other platforms have established communities for investors to discuss stocks. As a result of soaring online engagement, they have become an alternative dataset for investors to scour and utilize for a performance edge […]BUZZ empowers individual investors to potentially benefit from the predictive insights gained by measuring the collective convictions about stocks, ultimately building the benchmark for social sentiment.”
BUZZ offered by VanEck already has support from some big names. TheStreet.com’s Jim Cramer tweeted that the ETF ‘resonates’ with him. Nobel laureate economist Robert Shiller noted that searching through media sources is vital to understanding economic trends.
Barstool Sports founder Dave Portnoy announced during an impromptu press briefing that he was part of the project and was putting his “face and reputation behind it”. He is also a shareholder in Buzz Holdings ULC, the company that developed the algorithm.
“David Portnoy is a shareholder of BUZZ Holdings, ULC, the parent company of the BUZZ NextGen AI US Sentiment Leaders Index. He represents the Index and has no affiliation with VanEck. He does not provide investment advice on behalf of VanEck. There is no affiliation with VanEck and Barstool Sports,” VanEck revealed in a statement.
Sprott Asset Management firm created a similar ETF in 2016. The fund did not attract enough assets and ended up closing after three years in operation. Recent mainstream interest in the stock market, however, may work to BUZZ’s advantage.
Mercy Mutanya is a Tech enthusiast, Digital Marketer, Writer and IT Business Management Student.
She enjoys reading, writing, doing crosswords and binge-watching her favourite TV series.
