05:11
+19 C°
Traffic jam:   0
$
73.1904
86.8624

New exchange-traded fund trading started

6 March 2021
2334
2 min.
8
New exchange-traded fund trading started

New exchange-traded fund

The BUZZ ETF reflects the performance of the BUZZ NextGen AI index, whose portfolio of 75 US stocks is compiled by artificial intelligence algorithms based on "online chatter". Analysts predict its high popularity.

A new exchange-traded fund (ETF) formed by major New York investment firm VanEck, full name: ETF VanEck Vectors Social Sentiment (BUZZ), began trading on the NYSE on Thursday.

Exchange-traded ETFs are securities that most often reflect the performance of an index (a 'basket' of stocks) created by an investment company. ETFs are traded on the market like ordinary shares.

The VanEck Vectors Social Sentiment passively managed ETF features the BUZZ NextGen AI US Sentiment Leaders Index, which consists of 75 US stocks of companies with at least $5 billion in capitalization that show the most positive investor sentiment. Artificial intelligence algorithms are used to select BUZZ stocks, which analyse more than 15 million online posts a month from various media sources and social networks. The algorithms check whether a comment is positive, negative or neutral and then rank each stock based on the degree of positive sentiment and breadth of discussion.

With no stock exceeding 3% of the mass of the index, the selection of stocks changes every month.

According to documentation filed with the SEC, stocks in the BUZZ index had a weighted average market capitalisation of $297.2bn as of 31 January, meaning that the index probably consists of stocks from many of the big tech companies that contributed to the market's record growth last year.

Stock manipulation on social media

The global scandal about the manipulation of shares in GameStop and others on the advice of investors on the website Reddit has demonstrated the power of media and social media to influence the stock market.

However, according to Jamie Wise, CEO of Buzz Holdings and creator of BUZZ NextGen AI, Reddit is just one of the many sources that go into computer analysis.

That said, limiting the selection to companies with a market capitalisation of at least $5bn excludes stocks such as Gamestop, Express or AMC Entertainment, and helps reduce the potential for manipulation of the stocks that make up the index.

Persons1 and Companies7 in the news

Founder of BUZZ Indexes
1 place
Express
1 place
Reddit
2 place
VanEck
3 place
Buzz Holdings
4 place
GameStop
6 place
Section:

Discussion

Rating companies
Apple
78 Mention
Tesla
78 Mention
Nasdaq
76 Mention
Amazon
67 Mention
Dow Jones
62 Mention
Facebook
52 Mention
Microsoft
43 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director