Debuting on Wall Street is an exchange-traded fund that provides with exposure to meme assets to investors, as well as all the popular investments provided by social media.
“FOMO can shift exposure to whatever happens to be trending at the time. It rebalances weekly so it can stay in harmony with market trends, and it weights holdings appropriately.” stated Matthew Tuttle, the fund’s developer and Tuttle Capital CEO, in light of the fund’s ticker symbol being based on the famous acronym for “Fear of missing out”. This acronym is a largely shared belief on different social media sites, in which users are constantly afraid of missing out on the most recent trending investments, that may well be in the middle of a parabolic move higher.
A new market dynamic with social media activity currently being utilized by some as a predictive utensil for the movement for the values and other assets, most known in famous stocks like MC Entertainment AMC, +19.96% and GameStop GME, +16.34%, has been created by the unexpected rise and obvious strength of the market trading movement.
Additionally, Crypto have caught the eye of individual investors as have some SPACs, the most remarkable being a huge following for Bill Ackman’s PSTH, -1.43% (Pershing Square Tontine Holdings). By acquiring shares in GBTC, -4.85% (Grayscale Bitcoin Trust), amidst other investments that are set to Crypto, FOMO will provide with crypto exposure.
“The Covid lockdowns have energized the retail investor to look beyond traditional market-cap weighted index investments into the thematic space,” declared Tuttle.
In addition to Tuttle’s ETF, other funds are trying to capitalize on Reddit-influenced investors. VanEck launched the VanEck Vectors Social Sentiment ETF BUZZ, +0.55% back in March, said to provide with exposure to stocks with “the most bullish investor sentiment and perception.”
The founder of Barstool Sports – Dave Portnoy, is a shareholder in the corporation that formed the index that carries the VanEck fund.
Returns for BUZZ have been up 1.74% since the debut in March, in contrast against returns of at the minimum 11% for the SPX, -0.21% (S&P 500 Index) and DJIA, -0.24% (Dow Jones Industrial Average) and a profit of over 7% for the COMP, -0.03% (Nasdaq Composite Index). These returns, making reference to the ticker symbol for the VanEck social-sentiment ETF, show to be less-than impressive.
With FOMO’s cost ratio being 0.9%, it will cost an investor $9 in yearly fees for each $1,000 invested. BUZZ’s cost ratio is 0.75%.