Soon, meme stock investors might not have to scroll through Reddit and Twitter hoping to find the next GameStop.
On Thursday, Roundhill Financial filed a plan with the U.S. Securities and Exchange Commission to launch the Roundhill MEME ETF (MEME). The fund would track an index that includes stocks of companies with elevated levels of social media activity and short interest — both factors that go into making a meme stock. It would rebalance based on those levels of activity and interest every two weeks, and trade on the New York Stock Exchange.
An exchange-traded fund (ETF) is a basket of securities, like stocks, that can be bought and sold on an exchange like a stock. The MEME ETF is the latest attempt to capture investors’ obsession with meme stocks, which made a big splash earlier this year when an army of retail traders banded together to pump up GameStop’s stock price and sink hedge funds that were short-selling the stock. Since then, AMC, BlackBerry and others have also garnered attention on social media platforms like Reddit, solidifying themselves as meme stocks alongside the video game retailer.
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