The buzz is, this exchange-traded fund is raking it in.
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The ETF BUZZ, backed by Barstool Sports' Dave Portnoy, pulled in net assets of $503.1 million since its March 4 launch on the New York Stock Exchange, as tracked by VanEck, under its official name, the Vectors Social Sentiment ETF.
The firm tells FOX Business BUZZ is the sixth-fastest-growing ETF when compared to other U.S. ETFs over the same time frame. The faster-growing funds are those that already had sizeable assets at launches, such as the Franklin Liberty Core Bond ETF or iShares ESG MSCI USA Leaders ETF.
Tom Lydon, president of Global Trends Investments and editor and proprietor of ETFtrends.com, agrees that raising $500+ million in the short time frame “rarely happens” but tells FOX Business the fund is more traditional than it appears. “It's more of a modern technology portfolio and should perform in line with the Nasdaq 100 regardless of Davey Daytrader's influence,” he notes.
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Ahead of the fund’s launch, Portnoy, who says his "face and reputation" is behind the ETF, explained the companies in the fund don’t have to be the meme stocks that investors may associate with the Reddit community.
“It’s more of a long-term view and it doesn’t have to be a Reddit stock so to speak. It can be talked about anywhere,” he said during an interview on FOX Business. That includes Twitter or any place on social media for that matter.
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The fund holds stocks with market capitalizations of over $5 billion, including Draftkings, Tesla, American Airlines and Amazon. The ETF is pitched as “gaining an edge from social media” and uses artificial intelligence to scrape and track the top 75 large-cap stocks each month based on social media chatter.
The ETF was developed around Buzz Holdings, whose founder Jamie Wise said was launched as a research project related to the growing prevalence of online communities and individual investors who were looking for a forum to share and collaborate ideas.
FOX Business' Lucas Manfredi contributed to this report.