Roundhill Investments has announced the launch of the Roundhill MEME ETF designed to offer investors exposure to meme stocks by providing investment results that closely track the performance, before fees and expenses, of the Solactive Roundhill Meme Stock Index (“MEME Index”).
The MEME ETF is the first ETF explicitly designed to track the performance of meme stocks, such as GameStop. The nature of the MEME Index, which focuses on stocks that are both highly shorted and subject to increased retail sentiment — as well as the fund’s high turnover, given its biweekly rebalances — means that MEME may experience significantly greater volatility than conventional equity ETFs or mutual funds.
The MEME Index consists of 25 equal-weighted U.S.-listed equity securities that exhibit a combination of elevated social media activity and high short interest. Short interest is calculated by the percentage of a security’s float which is currently sold short. Social media activity and short interest data are supplied by third-party data providers. The index is rebalanced biweekly in order to best attempt to capture trending stocks as they emerge.
As of launch, the MEME ETF portfolio includes GameStop, AMC Entertainment, BlackBerry, and Digital World Acquisition Corp, among others.
MEME has an expense ratio of 0.69%.
For more information on the MEME ETF and a full list of holdings, please visit https://www.roundhillinvestments.com/etf/meme/.
For more news, information, and strategy, visit ETF Trends.
About Roundhill Investments:
Roundhill Investments is a registered investment adviser focused on offering innovative financial products designed to offer exposure to investment themes that appeal to the next generation of investors. To learn more about the company, please visit roundhillinvestments.com.
Investors should consider the investment objectives, risk, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the MEME ETF please call 1-855-561-5728 or visit the website https://www.roundhillinvestments.com/etf/meme/. Read the prospectus and summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Meme stocks are stocks whose trading volume increases not necessarily because of a company’s performance, but because of social media attention which may result from a variety of factors unrelated to the company’s performance, financial position, or other business fundamentals. As a result, meme stocks are prone to high volatility which may be a result of panic selling. Because meme stocks are heavily dependent on investor sentiment and opinion, they may be overpriced in comparison to the company’s fundamentals, resulting in losses to the Fund. The Fund’s investment strategy relies heavily on social media analytics, which are relatively new and untested. “Social media” is an umbrella term that encompasses various activities that integrate technology, social interaction and content creation. Investing in companies based on social media analytics involves the potential risk of market manipulation because social media posts may be made with an intent to inflate, or otherwise manipulate, the public perception of a company stock or other investment. Investments made in small and mid-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors.
Fund investments will be concentrated in an industry or group of industries, and the value of Fund shares may be more risky and fall more than diversified funds. Depositary receipts, including ADRs, involve risks similar to those associated with investments in foreign securities, such as changes in political or economic conditions of other countries and changes in the exchange rates of foreign currencies and may not provide a return that corresponds precisely with that of the underlying shares. The Fund may invest in equity securities of SPACs, which raise assets to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. government securities, money market securities, and cash. Because SPACs have no operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the entity’s management to identify and complete a profitable acquisition. There is no guarantee that the SPACs in which the Fund invests will complete an acquisition or that any acquisitions that are completed will be profitable. As an ETF, the fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Due to the costs of buying or selling Shares, including brokerage commissions imposed by brokers and bid/ask spreads, frequent trading of Shares may significantly reduce investment results and an investment in Shares may not be advisable for investors who anticipate regularly making small investments. The Fund is a recently organized investment company with no operating history. Please see the prospectus for details of these and other risks.
Roundhill Financial Inc. serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of the companies or individuals referenced herein.
SOURCE Roundhill Investments