Roundhill Investments’ “Meme” stock ETF just made a comeback two years after it was shuttered, aimed at providing retail investors with exposure to trending meme stocks.
New Actively Managed ETF
The fund made its debut on the NYSE on Wednesday, trading under Roundhill Meme Stock ETF (NYSE:MEME) and the ticker symbol “MEME.” This marks a resurgence of the fund with the same name that was shuttered two years ago, amid flagging investor interest, according to a report by Reuters.
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The new fund will be actively managed, capable of rebalancing its portfolio as frequently as once a week to truly capture the movements and volatility of these stocks.
This is in sharp contrast to its previous iteration, when it was a passive fund that primarily relied on social media mentions and short interests to craft its portfolio.
According to the fund documents, it will now be filtering stocks based on their implied volatility, with 30 of the top names with the wildest swings being considered for inclusion. Of these, the fund can choose to invest in 13 to 25 times at any given time.
Fund Surges After Hours
The fund has an expense ratio of 0.69%, and currently has 25,000 shares outstanding, with just $250,000 in assets under management.
Its portfolio currently includes some of the most active stocks in recent months, such as Opendoor Technologies Inc. (NASDAQ:OPEN), Plug Power Inc. (NASDAQ:PLUG), Applied Digital Corp. (NASDAQ:APLD) and QuantumScape Corp. (NYSE:QS), among a dozen others.
The fund was down 1.85% on Wednesday, closing at $9.81, but has since surged 11.26% after hours, right after its official launch.
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