Market Buzz ETF to Launch Thursday
Get ready for a new ETF that aims to capitalize on the market buzz created by individual investors using Reddit, Twitter and other online trading platforms. On Thursday VanEck Vectors will debut the BUZZ ETF, which consists of the top 75 large-cap stocks receiving the most positive chatter online according to an AI algorithm.
There is an index for that — the BUZZ NextGen AI US Sentiment Leaders Index, which has been endorsed by Dave Portnoy. Portnoy is the founder of Davey Day Trader Global (DDTG ), a YouTube channel he uses to live stream his market sentiment and trades online, and Barstool Sports, which produces online sports and pop-culture content.
On Tuesday Portnoy shared a video on Twitter previewing the BUZZ ETF launch on the NYSE, front-running a planned press release. “Twitter, social media, all of it is dictating stock prices,” announced Portnoy standing in front of a fake NYSE podium.
Later in the day, it was reported that Portnoy is a partial owner and director of Buzz Holdings ULC, the business entity that licenses the strategy to VanEck.
“Twitter, Reddit, Stocktwits and dozens of other platforms have established communities for investors to discuss stocks and as a result of so… [which] have become an alternative dataset for investors to scour and utilize for a performance edge,” accordingto Ed Lopez, ahead of ETF Product for Van Eck.
“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,” Lopez added.
