The VanEck Social Sentiment ETF, launched with the support of Barstool Sports founder Dave Portnoy, debuted on the New York Stock Exchange on Thursday and could make significant moves in various technological and industrial stocks in the coming weeks. Jim Cramer on.
The Buzz ETF, as it is often called, consists of about 75 stocks – each with a minimum market value of $ 5 billion – selected by an algorithm based on their positive sentiment on social media. It will start trading on the NYSE under the symbol BUZZ and is managed by VanEck Associates Corp.
The 75 shares will be rebalanced each month, with replacements added and underperforming shares removed, based on what the founders call the highest “positive investor sentiment” obtained from the study of about 15 million posts in various social media networks .
The founder of TheStreet, Jim Cramer, said on Thursday that the ETF and its stock selection technique are ‘captivating’ and are likely to move many of the 75 names in it if traders take Portnoy’s call to invest in it.
“Social media and mobile technology have fundamentally changed the way we deal with equities,” reads the ETF’s website. “There are a lot of online chats every day. The changing sentiment and our shared views clearly affect its value.”
The ETF itself was 1.11% lower at $ 24.13 early in the first trading session on Thursday, down 0.17% for the Nasdaq Composite Index.
Twitter (TWTR) – Get report Shares, the largest allotment in the ETF, with 3.52%, were 1.5% lower at $ 69.70 each, but have risen more than 77% over the past six months.
The online largest sports betting group DraftKings is the second largest company (DKNG) – Get report, was 1.3% lower at $ 64.90, a move that reduced its six-month profit to about 80%.
Ford Motor Co. (F) – Get report, the third largest award, rose 0.2% to $ 12.20 each and rose 77.5% over the past six months.
Other possessions in the EFT include Facebook (FB) – Get report (at 3% of total ownership), Amazon (AMZN) – Get report (2.94%), Apple (AAPL) – Get report (2.9%) and Tesla (TSLA) – Get report (2.75%).