Updated: Apr 24, 2021
ETFs have newfound attention for their diversification leaving them less exposed to fluctuating markets. That is because an ETF is an aggregate of many individual stocks grouped under one ticker, to enjoy rapid growth, stability from diversification, and the *occasionally* appealing dividend yield.
Here we introduce the newest ETF which has just recently entered the public markets under ticker symbol $BUZZ.
Hereunder is what the creator of the ETF David Portnoy had to say about its integration. …
“Portnoy On BUZZ ETF: Portnoy said the index for the ETF is searching social media and overall public sentiment, not just for the so-called Reddit stocks.
"It's doing its best to judge public sentiment," Portnoy said.
The index for the BUZZ ETF has been around for over five years and outperformed the S&P 500. The past success is a strong indicator of how good the algorithm could be, the two said during the interview.
Portnoy said of the 75 stocks in the index, 50 of them would be stocks he would’ve owned over the last year or two: "For me to put my name on it, I have to believe in it."
Portnoy cautioned investors that the ETF is not set to have wild returns and is much more of a long-term hold.
“This is a new way to crowdsource," he said.
Portnoy said he's a good face for the ETF and underlying index. Portnoy believes in the idea of the ETF and said he wouldn't be involved if he had not seen the results the index has had, the algorithm and a list of the holdings.
"The number one currency that I have is my credibility," he said.
Portnoy told Cramer he bought $2 million in shares of BUZZ at the market open today.
BUZZ Price Action: Portnoy said he was told BUZZ was the fastest-selling first day ETF of all time in the U.S.
Shares of BUZZ closed Thursday at $23.53, trading between $22.97 and $24.96 on its first day on the market.”
We urge you to trade ETFs on Questrade as they do not charge commissions for them, hence enjoy compound interest at no commission cost to purchase!
** Not financial advice **