The Dave Portnoy-backed VanEck Vectors Social Sentiment ETF BUZZ hit a new milestone this week after it reached $500 million in net assets.
What Happened: The ETF managed to raise more than $500 million since its March 4 launch and ETFtrends.com President Tom Lydon told Fox Business such an accomplishment "rarely happens."
The ETF is designed to give investors exposure to a portfolio of stocks that "exhibit the highest degree of positive investor sentiment and bullish perception based on content aggregated from online sources."
The stocks in the portfolio do not need to be classified as "meme stocks" for their inclusion. Lydon also told Fox Business the ETF is "more of a modern technology portfolio" and it should perform in line with the broader Nasdaq 100 index -- regardless of Portnoy's influence.
Why It's Important: Portnoy himself agrees with Lydon's assessment. He previously told Fox Business he has "nothing to do" with the algorithm but said inclusion in the group is not limited to Reddit.
Ford Motor Company F, far from a "Reddit stock", is the ETF's top holding.
Investors looking to make "100% in a week" may want to stay away from the BUZZ ETF because "that's not what is for," according to Portnoy.
"It's a new-age, longer-term investment," he said.
The ETF trades around $24.61 at publication time.
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