6 ETFs designed to help investors capture the stock market zeitgeist, from Reddit buzz to space travel

hoto Illustration by Omar Marques/SOPA Images/SOPA Images/LightRocket via Getty Images

  • There’s a growing number of exchange-traded funds designed to capture the market zeitgeist and invest in popular themes.
  • “The rise of the so-called sentiment ETFs … makes a lot of sense in a socially distanced world,” Antoni Trenchev, co-founder and managing partner of Nexo, told Insider.
  • Insider provides a list of six sentiment- and specialty interest-driven ETFs available to investors right now.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

In an attempt to capture the stock market zeitgeist, investors have launched various investment vehicles to profit from the current buyers market.

Exchange-traded funds are designed to track an index, sector, commodity, or currency – and they’ve most recently turned their sights on investor sentiment. It’s an emerging trend that’s been driven in recent weeks by the GameStop stock mania that transpired on Reddit and upended Wall Street.

“Paradoxically, the pandemic actually led to an influx of new investors, many of whom are likely partaking in the ongoing ETF push,” Antoni Trenchev, co-founder and managing partner of Nexo, told Insider. “The rise of the so-called sentiment ETFs, for example, makes a lot of sense in a socially distanced world.”

He continued: “Instead of talking over beer in the pub, people are taking to Twitter and Reddit to share their attitudes towards stocks.”

Insider has compiled a list of six sentiment- and specialty interest-driven ETFs available to investors right now:

(1) BUZZ

Who’s it for? Those who love social media

The VanEck Vectors Social Sentiment ETF aims to scrape websites like Reddit, StockTwits, and Twitter to determine which stocks are garnering the most positive attention online. It started trading on March 4 and quickly saw $280 million in fund inflows. BUZZ, backed by Barstool Sports founder David Portnoy, passed $500 million in total net assets just two weeks after.

The portfolio is rebalanced monthly and composes of 75 US large-cap stocks that have the highest degree of positive investor sentiment and bullish perception. Virgin Galactic, the commercial spaceflight developer overseen by billionaire Richard Branson, is its largest constituent.

(2) FOMO

Who’s it for? Those who fear missing out

This ETF from the Collaborative Investment Series Trust aims to invest in current or emerging trends as a way to alleviate investors’ fears of missing the next big thing. It was filed with the US Securities and Exchange Commission on March 10.

FOMO will primarily invest in everything from emerging companies of any market capitalization to SPACs, to equity ETFs, fixed-income ETFs, volatility and inverse volatility ETFs, among others. The fund, advised by Connecticut-based Tuttle Tactical Management LLC, will follow “a proprietary tactical model” in managing assets.

Read more: JPMorgan says buy these 50 beaten-down stocks as traders continue to flee high-flyers and pile into cheaper names

(3) MVP

Who’s it for? Those obsessed with sports

This ETF consists of 36 sports-related holdings including sports teams, leagues, media companies, and even sports-related SPACs. It was launched on March 17 by Roundhill Investments and Huddle Up newsletter founder Joe Pompliano as the first ETF dedicated to professional sports teams and leagues.

MVP’s largest holding is Madison Square Garden Sports at 9.39% of the total ETF value. It also includes Formula One and WWE as well as Nike, Puma, Adidas, and MSG Networks.

(4) INFL

Who’s it for? Those willing to face inflation

This Horizon Kinetics Inflation Beneficiaries ETF aims to identify companies that would thrive in an inflationary environment. Considering inflation is the foremost fear for equity investors right now, this fund rests firmly in the market zeitgeist.

It launched in January 2021 and will consist generally of common stock, ownership units of publicly traded master limited partnerships, and units of royalty trusts.

(5) UFO

Who’s it for? Those invested in the space race

The Procure Space ETF – which says it’s the world’s first pure-play space ETF – aims to invest in companies engaged in space-related industries. ProcureAM CEO and co-founder Andrew Chanin told Insider said he wants the public to realize the importance of space discovery not only in daily things such as communicating, but also in more far-looking reasons such as military and economic advancements.

UFO, launched in 2019, holds Loral Space, Viasat, and Gilat, among others. It may have a competitor in the field soon via star stock picker Cathie Wood’s Ark Space Exploration ETF under the symbol ARKX. But Chanin is unperturbed.

“We see that as validation that we were first pure-play space industry and provided investors with this global exposure,” he said.

(6) HDRO

Who’s it for? Those interested in clean energy

The Defiance Next Gen H2 ETF, a hydrogen and fuel cell-based ETF, aims to track the most liquid, innovative hydrogen stocks in the marketplace. The ETF is focused on companies that put importance on clean energy and next-gen tech innovation.

Thus far, it has already accrued $2.85 million in net assets since its launch last week in March. HDRO composes of Plug Power, Ceres Power, and Ballad Power.

Read more: The CIO of a crypto hedge fund breaks down why bitcoin could rally as high as $400,000 in 2 years – and explains why he’s also bullish on DeFi and NFTs

Source: Read Full Article