Pass on this ETF

Article Excerpt

VANECK VECTORS SOCIAL SENTIMENT ETF $14.55 (New York symbol BUZZ) holds 75 stocks, each with at least a $5 billion market cap and generating social media attention. The fund tracks the BUZZ NextGen AI U.S. Sentiment Leaders Index. It aims to use computer-based analytics to harness the collective conviction of millions of investors. The premise is that investor sentiment has proven to be an important factor in stock performance—and that sentiment can be tracked by monitoring millions of online interactions. The index tracks the performance of the 75 large-cap U.S. stocks showing the highest degree of what it sees as positive investor sentiment. Millions of investment-related messages, news articles, blog posts and more on websites like Reddit, Stocktwits, Twitter, and others are analyzed to identify these stocks. Current top holdings include Snap, Tesla, Coinbase Global, Netflix, Twitter, Amazon.com Apple, Palantir Technologies and Gamestop. The $70.4 million ETF launched on March 2, 2021. The expense ratio is 0.75%. Computer modelling techniques, like those that this VanEck ETF uses, makes this…