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3 ETFs To Consider For The Next Meme Stock Rally

Published 19/06/2024, 14:01
© Reuters.  3 ETFs To Consider For The Next Meme Stock Rally
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Benzinga - by Surbhi Jain, .

Meme stocks are back in the spotlight with the resurgence of Keith Gill, aka Roaring Kitty, on social media after a three-year break. His return reignited interest in meme stocks like GameStop Corp (NYSE:GME), AMC Entertainment Holdings Inc (NYSE:AMC), and others, causing a significant surge in their prices.

For investors looking to ride this wave, here are three ETFs to consider:

VanEck Social Sentiment ETF (NYSE:BUZZ) The VanEck Social Sentiment ETF offers exposure to large-cap U.S. stocks that show high positive sentiment on social media.

It tracks the BUZZ NextGen AI US Sentiment Leaders Index and includes stocks like GameStop and AMC. With an asset base of $67.2 million and an annual fee of 0.75%, BUZZ is a prime choice for those looking to capitalize on the meme stock frenzy driven by social media hype.

Also Read: GameStop, AMC, Tesla: Expert Sizes Up Short Interest In 3 Favorite Retail Investor Stocks

SoFi Social 50 ETF (NYSE:SFYF) SoFi Social 50 ETF focuses on the top 50 most widely held U.S. stocks on the SoFi Invest platform.

This ETF gives investors exposure to stocks that are popular among retail traders, often driven by social sentiment. Key sectors include consumer cyclical, technology and communications. SoFi Social has $17.1 million in assets and charges 0.29% in annual fees, making it an attractive option for those looking to invest in trending stocks.

Amplify Transformational Data Sharing ETF (NYSE:BLOK) The Amplify Transformational Data Sharing ETF, while primarily focused on blockchain technology, includes companies that are significant players in the digital finance and meme stock arena.

The ETF has $702.8 million in assets and charges 0.76% in annual fees.

With holdings in companies such as MicroStrategy Inc (NASDAQ:MSTR) and Coinbase Global Inc (NASDAQ:COIN), the ETF offers indirect exposure to the meme stock phenomenon. Its diversified approach can provide a balanced risk for investors interested in the volatility of meme stocks.

The meme stock resurgence driven by Roaring Kitty signals another potential rally. While these ETFs offer exposure to the high-risk, high-reward world of meme stocks, investors should be mindful of the inherent volatility and speculative nature of these investments. It’s crucial to do thorough research and consider one’s risk tolerance before diving into the meme stock market.

Read Next: EXCLUSIVE: What Matters Most To Retail Investors At GameStop’s Annual Shareholders Meeting – Roaring Kitty, Crypto, Or Turnaround?

Photo: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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