Jan. 17, 2022, 12:28 p.m. EST

Has Investing in the Social Sentiment (BUZZ) ETF Paid Off for Investors?

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    GameStop Corp. Cl A (GME)
  • X
    AMC Entertainment Holdings Inc. Cl A (AMC)

or Cancel Already have a watchlist? Log In

Jan 17, 2022 (Baystreet.ca via COMTEX) -- When the VanEck Vectors Social Sentiment ETF (nyse arca:BUZZ) launched last year, the fund had a lot of appeal for investors who didn't want to miss out on the next big meme stock. The fund focuses on "positive investor sentiment and bullish perception." It aggregates data from a variety of sources, including social media and news articles. But has that strategy paid off for investors?

On March 4, 2021, the fund began trading at a price of $24.40. If you were to invest $10,000 into the ETF at the time, you would have been able to own roughly 410 units of it. At the end of last week, the fund closed at a price of just $21.36. That investment would now be worth around just $8,758, resulting in a 12% loss. And that's without factoring in its management fee which costs 0.75%.

A big part of the reason for the downfall is that growth stocks, in general, have fared poorly since the fund's launch. For example, Cathie Wood's ARK Innovation ETF (nyse arca:ARKK) has performed even worse, crashing by a monstrous 41% over the same time frame. Despite the inherent risk off going on investor sentiment, which can be rapidly changing, the BUZZ ETF has been a much more stable investment than relying on Cathie Wood's picks.

For now, BUZZ has been a decent buy in comparison. It's still risky since both GameStop /zigman2/quotes/203755179/composite GME +9.35% and AMC Entertainment Holdings /zigman2/quotes/200235402/composite AMC +10.16% are in the fund. But with a weight of less than 3% apiece, even if those stocks go overboard, that won't necessarily send the fund crashing. For growth investors, BUZZ can be a great alternative to the overhyped ARK Innovation ETF.

COMTEX_400674217/2559/2022-01-17T12:27:52

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/203755179/composite
US : U.S.: NYSE
$ 100.38
+8.58 +9.35%
Volume: 2.61M
May 17, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$7.01 billion
Rev. per Employee
$500,892
loading...
/zigman2/quotes/200235402/composite
US : U.S.: NYSE
$ 12.90
+1.19 +10.16%
Volume: 38.18M
May 17, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$6.05 billion
Rev. per Employee
$101,458
loading...

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.