Pass on this ETF: Vaneck Vectors Social Sentiment ETF

Article Excerpt

VANECK VECTORS SOCIAL SENTIMENT ETF $15.00 (New York symbol BUZZ) follows the BUZZ NextGen AI US Sentiment Leaders Index. This index tracks the 75 large-cap U.S. stocks that it believes have the highest degree of “positive investor sentiment.” The fund aims to analyze millions of investment-related messages and posts on sites, like Reddit, Stocktwits and Twitter, using what it believes is sophisticated computer software. It then identifies those with the most “buzz.” The ETF theorizes that rising investor sentiment can drive stock performance, especially over short periods. The fund tries to capture this by reconstituting its portfolio every month. That’s when the stocks with the strongest positive sentiment replace the stocks with weaker sentiment. This fund started up on March 2, 2021. It has an asset base of $59.5 million and charges a fairly high management fee of 0.75%. Current top holdings include Coinbase, Tesla, Lucid, Meta Platforms, Nvidia, Gamestop and Apple. The ETF was very popular at the time of its launch. However, since its…