If there's one thing investors have likely learned over the past year, it's just how quickly bullishness can send stocks into the stratosphere. There's no better example of that than GameStop (NYSE:GME), which faces an uncertain future with consumers able to buy video games online, potentially rendering the retailer obsolete at some point. But its shares took off this year as Reddit forums generated a lot of excitement surrounding the stock, sending it up more than 1,000% at one point.
Tracking what's hot and what's not is no easy task. But there is a new ETF, the VanEck Vectors Social Sentiment ETF (NYSE American:BUZZ) that can help you with that. No, it doesn't include GameStop as it focuses on large cap stocks. CEO Jamie Wise confirmed that "this is not a Reddit meme stock ETF."
Instead, it includes more established, stable companies with higher valuations that aren't as volatile. However, it does still scour information from Reddit, Twitter (NYSE:TWTR), and StockTwits to gauge what people are saying about a stock and whether there is positive sentiment around it.
The ETF is rebalanced every month and the maximum weight of a stock in the fund is no higher than 3%, and so even if there is one volatile holding, it won't be enough to send your investment on a roller coaster ride.
The top stocks in its holdings today include Ford Motor (NYSE:F), DraftKings (NASDAQ:DKNG), Twitter (NYSE:TWTR), Facebook (NASDAQ:FB), and Amazon (NASDAQ:AMZN). One of the riskier, more volatile stocks in the ETF is American Airlines Group (NASDAQ:AAL), which faces an uncertain future amid the pandemic.
