Join the Swarm of Retail Investors Driving Sentiment. New ETF from VanEck Captures Opportunities in the Digital Discussions Reshaping the Market.
VanEck has launched the VanEck Vectors® Social Sentiment ETF (BUZZ), enabling investors to gain exposure to large-cap U.S. stocks reflecting the most bullish investor sentiment. This ETF tracks the BUZZ NextGen AI US Sentiment Leaders Index (ticker: BUZZTR), which ranks stocks based on online social sentiment analysis through Natural Language Processing. With an expense ratio of 75 bps, BUZZ joins VanEck's equity suite alongside the VanEck Vectors Morningstar Wide Moat ETF (MOAT), offering insights into stocks poised for growth and value opportunities.
- Launch of BUZZ ETF provides unique exposure to large-cap stocks based on social sentiment analytics.
- BUZZ ETF leverages predictive insights from a broad dataset of online opinions.
- BUZZ ETF has an expense ratio of 75 bps, making it an attractive investment option.
- BUZZ joins a strategic suite with MOAT, enhancing investment diversification.
- Investments in BUZZ are subject to high volatility and risks linked to social media analytics.
- Limited historical performance for BUZZ Index may pose risks for investors.
VanEck today announced the launch of VanEck Vectors® Social Sentiment ETF (BUZZ) which provides investors value-added exposure to large cap U.S. stocks with the most bullish investor sentiment and perception.
“We are experiencing a monumental moment within the history of the retail investor—Twitter, Reddit, Stocktwits and dozens of other platforms have established communities for investors to discuss stocks and as a result of soaring online engagement they have become an alternative dataset for investors to scour and utilize for a performance edge,” said Ed Lopez, Managing Director, Head of ETF Product for VanEck. “BUZZ empowers individual investors to potentially benefit from the predictive insights gained by measuring the collective convictions about stocks, ultimately building the benchmark for social sentiment.”
BUZZ seeks to track as closely as possible, before fees and expenses, the price and yield performance of the BUZZ NextGen AI US Sentiment Leaders Index (ticker: BUZZTR) (the “Index”). This Index, which is rebalanced monthly, is made up of the 75 large cap U.S. stocks that exhibit the highest degree of positive investor sentiment and bullish perception based on content aggregated from online sources including social media, news articles, blog posts and other alternative datasets. Millions of stock-specific messages and posts are filtered through an analytics model using Natural Language Processing technology to determine what the online community is saying about these stocks and whether the sentiment is positive, negative or neutral on a collective basis. The Index’s proprietary model then scores and ranks each stock based on the degree of positive sentiment and breadth of the discussion. The stocks with the highest scores are selected for inclusion and weighted according to their rank.
“The real power of the Index is its ability to distill millions of diverse opinions into actionable stock picks. It can identify stocks poised for strong future growth potential as well as stocks that could be considered contrarian and discounted value opportunities,” added Lopez.
“We created the BUZZ Index in 2015 because we saw the potential of the data. Alternative data sets like this are also what sophisticated institutional investors are now pouring over to find an edge.” Said Jamie Wise, CEO of Periscope Capital, a Toronto-based hedge fund manager. “VanEck is the ideal provider to help make this kind of strategy accessible to the masses and we’re excited to be working with them on this new ETF.”
BUZZ, which has an expense ratio of 75 bps, joins a strategic equity ETF suite that also includes VanEck’s “moat-focused” family of funds, such as the VanEck Vectors Morningstar Wide Moat ETF (MOAT®), a
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Important Disclosures
An investment in VanEck Vectors® Social Sentiment ETF (BUZZ) may be subject to risks which include, among others, risks related to social media analytics, investing in equity securities, medium-capitalization companies, information technology, communication services, consumer discretionary, health care and industrials sectors, market, operational, high portfolio turnover, index tracking, authorized participant concentration, new fund, absence of prior active market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and concentration risks which may make these investments volatile in price or difficult to trade. Medium-capitalization companies may be subject to elevated risks.
BUZZ NextGen AI US Sentiment Leaders Index (the “BUZZ Index”) is a product of BUZZ HOLDINGS ULC (“BUZZ Holdings”), and has been Licensed to Van Eck Corporation for use in connection with the VanEck Vectors Social Sentiment ETF. “BUZZ” is a trademark of BUZZ Holdings, which have been licensed by Van Eck Associates Corporation for use in connection with the BUZZ Index. VanEck Vectors Social Sentiment ETF is not sponsored, endorsed, sold or promoted by BUZZ Holdings or its shareholders, including Periscope Capital Inc., or the licensor of the BUZZ Index, and/or their respective affiliates and third party licensors. BUZZ Holdings makes no representation or warranty, express or implied, to the owners of the VanEck Vectors Social Sentiment ETF or any member of the public regarding the advisability of investing in securities generally or in VanEck Vectors Social Sentiment ETF, particularly or the ability of the BUZZ Index to track general market performance. Licensor’s only relationship to the Licensee is the licensing of the Index which is determined and composed by Licensor without regard to Licensee or the Product(s). Licensor has no obligation to take the needs of the Licensee or the owners of the Product(s) into consideration in determining or composing the Index. Licensor shall not be liable to any person for any error in the Index nor shall it be under any obligation to advise any person of any error therein. BUZZ Holdings is not an investment advisor and the inclusion of a security in the BUZZ Index is not a recommendation by BUZZ Holdings to buy, sell, or hold such security, nor should it be considered investment advice.
An investment in VanEck Vectors Morningstar Wide Moat ETF (MOAT®) may be subject to risks which include, among others, investing in equity securities, consumer discretionary, consumer staples, financials, health care, industrials and information technology sectors, medium-capitalization companies, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversification and concentration risks, which may make these investments volatile in price or difficult to trade. Medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
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