The VanEck Vectors Social Sentiment ETF (NYSEArca:BUZZ) launched earlier this month and it gives investors a way to tap into what's popular in the markets.
The funds rebalances every month based on which stocks the company's algorithm says has the highest scores in terms of positive sentiment. The ETF isn't overly risky as its holdings are currently made up of fairly safe investments, including big names like Apple (NASDAQ:AAPL), Walt Disney (NYSE:DIS), and Amazon (NASDAQ:AMZN), which account for three of the fund's top five holdings.
But there is another exchange-traded fund (ETF) coming out that may appeal to investors looking to be a bit more risk-taking and aggressive. Collaborative Investment Series Trust is coming out with a fear of missing out (FOMO) ETF that will soon be available.
It promises to tap into emerging trends and will involve higher-risk investments, including SPACs and even inverse ETFs. That aggressiveness will come at a cost, however, as Matthew Tuttle, who manages the fund, admits there will be lots of trading and rebalancing will occur on a weekly basis,"We want to ride momentum, but also whatever has had its butt kicked, we want to buy into that as well. Having countertrend methodologies smooths out sudden moves in the other direction."
The FOMO ETF is not going to be suitable for many investors as the fees alone could make it unattractive. Combine that with high-risk strategies and investors may end up with anything but a stable or consistent return. However, for investors who want someone else to track the latest trends and meme stocks, FOMO could be a great option.
