The underlying index would focus on the most talked about stocks, understand the level of conversation, pick the 100 most mentioned stocks, rank the picks using a proprietary scoring model and end up with 25 stocks that exhibit the most positive insight scores on a monthly basis. Components are weighted by the so-called insight score and no security makes up more than 15% of the portfolio.
Among the fund’s current top picks, Alphabet (NasdaqGS: GOOGL) makes up 13.0% of BUZ’s underlying portfolio, followed by Apple (NasdaqGS: AAPL) 8.8%, Walt Disney (NYSE: DIS) 7.3%, Valeant Pharmaceuticals (NasdaqGS: VRX) 5.5% and Tesla Motors (NasdaqGS: TSLA) 5.0%.
For more information on smart-beta strategies, visit our smart-beta category.
Financial advisors who are interested in learning more about the social media strategy can register for the Tuesday, May 24 webcast here.