Social media has become an ingrained facet of everyday life, reflecting people’s various opinions on the spot. As a way to harness the freely available information, a new exchange traded fund strategy hones in on online investment discussions and identifies trending stocks.
On the upcoming webcast this Tuesday, The Social Media Index: Today’s Market Sentiment Indicator, Jamie Wise, CEO and Founder of Buzz Indexes, and Jeremy Held, Director of Research & Investment Strategy at ALPS Portfolio Solutions, will discuss a social media insights strategy and how advisors can benefit from crowd sourcing social media users.
Specifically, the recently launched Sprott BUZZ Social Media Insights ETF (NYSEArca: BUZ), which tries to reflect the performance of the BUZZ Social Media Insights Index, identifies U.S. stocks that rank highest in terms of positive insight. These positive factors may include bullish investor perception, brand value perceptions and breadth of discussion from mentions on social media and other online media.
Related: Top 10 ETFs held by Millennials, Gen Xers, Boomers
The social media ETF would try to identify social momentum or prevailing trends of the masses as an indicator for future price momentum.
[related_stories]