Experts weigh in on meme stocks, Robinhood consumer impact
Interactive Brokers chairman Thomas Peterffy and former SEC branch chief Lisa Braganca on how meme stocks and the Robinhood settlement impact brokerage behavior and consumers.
GameStop and AMC are loved by retail investors and the Reddit trading community, and now the exchange-traded fund industry wants in on the action.
An application for The Roundhill Meme ETF is sitting with the Securities and Exchange Commission after being filed late last month and aims to track the performance of the so-called "meme stocks."
|AMC||AMC ENTERTAINMENT HOLDINGS INC||47.83||+3.81||+8.66%|
The passive managed fund, according to the filing, notes that at least 80% of the fund’s assets will be invested in meme stocks defined as such in the filing:
- Meme stocks are equity securities, including American depositary receipts
- Exhibit a combination of elevated social media activity (i.e., the number of times a company or its ticker is mentioned on specific social media platforms)
- High short interest (i.e., the number of an issuer’s shares that have been sold short but which have not yet been covered or closed out), both of which are indicators of market sentiment
Source: SEC Filing
CLICK HERE TO READ MORE ON FOX BUSINESS
Roundhill is a "registered investment adviser and ETF sponsor focused on thematic and sector-specific investing," according to the firm. Due to the quiet period, Roundhill told FOX Business it is restricted from commenting until the fund is live on Nov. 21, 2021, pending SEC approval.
BARSTOOL SPORTS DAVE PORTNOY BACKS NEW SOCIAL MEDIA ETF
AMC, which is among the more high-profile meme names, has seen its shares rise over 2,156% this year, often experiencing volatile sessions.