The Exchange-Traded Fund (ETF) market, already one of the most exciting areas of investment management, just got a little bit more interesting. This March saw the launch of BUZZ, VanEck Vectors’ Social Sentiment ETF.
The aim of BUZZ is to track the performance of the BUZZ NextGen AI US Sentiment Leaders Index (BUZZTR). This index tracks the performance of the top 75 US stocks in terms of positive social media sentiment aggregated from social media, news articles, blog posts and other alternative datasets.
Given the capricious nature of social media sentiment, the BUZZ rebalances once a month, with the first rebalance having taken place on March 19.
John Lanaro, Global Head of ETFs at RIMES, commented: “The frequency with which BUZZ rebalances makes high-quality look-through data into the holdings of the fund a must-have for managers, and it also provides an interesting snapshot of what’s going on in the US economy. The latest rebalance, for instance, saw stocks from the aviation, oil and retail industries enter the fund, perhaps reflecting public sentiment that the economy is restarting and these sectors are due to pick up.”
|ACTIVISION BLIZZ||MARATHON OIL CORP|
|BLACKROCK INC||VERIZON COMMUNICATIONS INC|
|VISA INC-CLASS A SHARES||UNITED AIRLINES HOLDINGS INC|
|CATERPILLAR INC||MICRON TECHNOLOGY INC|
|CHEWY INC – CLASS A||DROPBOX INC-CLASS A|
|GILEAD SCIENCES INC||NORWEGIAN CRUISE LINE HOLDIN|
|INTEL CORP||COSTCO WHOLESALE CORP|
|ON SEMICONDUCTOR CORPORATION||OCCIDENTAL PETROLEUM CORP|
|INTL BUSINESS MACHINES CORP||TWILIO INC – A|
|STARBUCKS CORP||TARGET CORP|
|SIMON PROPERTY GROUP INC||TRADE DESK INC/THE -CLASS A|
“It remains to be seen how the fund performs over the long-term, but it really is a great example of some of the innovative approaches being taken by the industry today. RIMES can support firms looking to join the ETF boom by providing ETF holdings data and fund level information. We can also provide ETF to index linkage for decomposition transparency, insights and interaction.”
Contact RIMES to find out how we can help you streamline ETF data capture, eliminate costly internal processes and enable daily exposure insight, aggregation and reporting.
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