How to Buy VanEck Vectors Social Sentiment (BUZZ) ETF

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Contributor, Benzinga
May 5, 2021
Last update: 8:00PM (Delayed 15-Minutes)
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Vol / Avg.7.590K / 8.165KMkt Cap-
Day Range17.020 - 17.25052 Wk Range11.780 - 17.970

As Reddit influences social media sites on the market, what better way to play this than with an ETF? That’s exactly what VanEck had in mind when founding the BUZZ ETF, which owns stocks that get a high amount of mentions on social media. 

Interest in getting in on a new and trendy ETF? Learn how to buy the BUZZ ETF today!

How to Buy the (BUZZ) ETF Summary:

Go through this checklist when you’re ready to buy BUZZ. The BUZZ ETF is listed on the New York Stock Exchange (NYSE), so you can buy shares in the same way as for most other stocks. You can learn how to buy stocks in 3 main steps: 

  • Choose a brokerage: In order to buy shares of the BUZZ ETF, you need to open up your own brokerage account. Decide what type of investment strategies you want to pursue before starting your hunt for the best brokers.
  • Deposit funds: Once you get your account set up, you need to put money into it. Simply link your bank account with your brokerage and deposit funds that you can afford to trade.
  • Search for BUZZ and hit buy: The BUZZ ETF is listed on the NYSE, so you should have no problem buying shares. Simply search for the ticker symbol BUZZ on your brokerage and hit “buy.”

How to Buy BUZZ ETF

2021 seems to be the year of social media-influenced stocks, with companies such as Gamestop (NYSE: GME) going from $20 to $400 in January alone. Each day, a new social media-hyped stock appears that makes huge gains. In order to take advantage of this trend, VanEck Securities founded the BUZZ ETF to track these social media stocks. The fund includes the 75 stocks with the most bullish talk on social media.

You can usually invest in ETFs with less risk but the BUZZ ETF may be slightly different. BUZZ holds a collection of stocks prone to volatility. Having Dave Portnoy as a face of the ETF certainly helps drive interest, but keep these risks in mind before buying shares.  

Step-by-Step Guide:

  1. Pick a brokerage.

    The first step to becoming a BUZZ owner: Pick a brokerage to open an account with. Since almost every broker has moved away from charging commissions for trades, you can usually buy BUZZ with no additional fees.

    Starting thinking about things such as your time horizon and total net worth in order to define your individual investor profile. Once you do this, you can select a brokerage to open an account. 

    If you feel like you want to practice trading before risking your own money, be sure to choose a brokerage that offers paper trading. Pay attention to any promotional offers — you could end up getting free stocks!

  2. Decide how many shares you want.

    You now have a brokerage account setup and want to buy BUZZ. But how many shares of BUZZ should you buy? Keep your individual risk tolerance in mind to help you make this decision.

    It’s never a good idea to invest more than a few percent of your account into a single stock, much less a brand-new ETF. As a result, take a more conservative approach to BUZZ and buy less than you would if it was a blue-chip stock. Also, determine when you will take profits and when you will cut your losses.

    Once you answer some of these important questions, start looking for a good entry point into BUZZ.

  3. Choose your order type.

    You now have your brokerage account setup and know how many shares of BUZZ to buy. But what type of order will you use to buy your shares? You can choose from multiple order types and each one has a different use.

    If you use a market order, your order will execute immediately at the National Best Bid and Offer (NBBO) price. If you use a limit order, your order won’t execute until it can be filled at the price point you set.

    Limit orders allow you more control over your risk, so it may be a good idea to use when buying shares of BUZZ. Market orders are susceptible to price slippage so it may not be the best idea to use one for a brand-new ETF.

  4. Execute your trade. 

    Now that you have chosen an order type, all you need to do is execute your trade. Simply hit the “buy” button and your order will transmit to your broker. Once you get your order filled, you will see shares of BUZZ show up in your brokerage account.

Best Online Stockbrokers

Below is a list of best brokers to get you started.

BUZZ Stock History

VanEck Vectors Social Sentiment (BUZZ) ETF does not have an extensive history because shares just started to trade on March 4. VanEck forms this index by compiling a list of companies with at least a $5 billion market cap that also gets regular mentions across social media. Each month, they rank these companies by sentiment and then include the top 75 in the ETF. 

Pros to Buying BUZZ Stock

Social media continues to exert more and more influence over the stock market, setting up a great opportunity for the BUZZ ETF. Some benefits to look out for include:

  • Continued influence of social media: Over the last year, social media has had a massive influence on the stock market. With investors of all stripes stuck inside due to lockdowns, it provided the perfect storm for a social media stock surge. If this trend continues, BUZZ could see huge gains in 2021.
  • Dave Portnoy involvement: In 2020, new investors such as Dave Portnoy (Davey Daytrader) took full advantage of emerging social media trading trends. Countless other new market participants also joined, forming a trading army behind Dave called DDTG. If the influence of Dave Portnoy on Wall Street and American culture at large continues, the BUZZ ETF could see massive gains.

Cons to Buying BUZZ Stock

The influence of social media on the stock market has hit unprecedented levels, this does not ensure that this trend will continue. Some potential negatives to look out for include: 

  • Decline of social media influence: The BUZZ ETF scrapes social media to find investing trends and opportunities. This unique algorithm will lose its luster if social media stops moving stocks as much. If the influence of social media declines, watch out for the BUZZ ETF to decline in value.
  • Any hint of government regulation: A few weeks back, a congressional hearing occurred about the social media pump of GameStop (NYSE: GME). While no new regulations have emerged as a result, you never know what to expect coming out of Washington, D.C. If any new regulations get introduced concerning social media and the stock market, the BUZZ ETF could take a serious negative hit. 

Looking to Get Your BUZZ on?

The VanEck Vectors Social Sentiment (BUZZ) ETF provides investors with an easy opportunity to get in on the social media investing trend. By buying the top 75 trending social media stocks, the BUZZ ETF provides investors with a well-rounded exposure to this emerging area. As of publishing, BUZZ trades at around $24 per share.