A NEW ETF DESIGNED TO OFFER
INVESTORS EXPOSURES TO
MEME STOCKS. YEAH, I MEAN
STOCKS IT WAS LAUNCHED BY OF
THE COMPANY ROUND HILL
INVESTMENTS EARLIER THIS MONTH
WHICH SAYS THE ETF IS THE FIRST
EXPLICITLY DESIGNED
TO TRACK THE PERFORMANCE OF
MEME STOCKS TTS LAUNCH COMES
AFTER A YEAR OF MANIA
SURROUNDING MEANS STOCKS AS
YOU NOW, BUT THE HYPE HAS
SLOWED DOWN A BIT WITH MEANS TO
COMPANIES LIKE AMC AND GAMESTOP
SEEING SIGNIFICANT DECLINES
JUST IN THE PAST WEEK HE
DISCUSSES THE VICE PRESIDENT OF
RESEARCH FOR ROUND HILL
INVESTMENTS.
STEPHANIE DOES AND WHY DID YOUR
COMPANY DECIDE TO CREATE THIS
MEME ETF.
>> YEAH AND THANKS FOR HAVING
ME ON WE'VE BEEN
WORKING ON THE MEME SINCE
AROUND APRIL THIS YEAR
FOLLOWING THAT MANIA IN STOCKS
LIKE GAMESTOP AND AMC IN THE
1ST QUARTER AND OUR GOAL HERE
IS REALLY TO GIVE INVESTORS
DIVERSIFIED EXPOSURE JUST
STOCKS THAT HAVE THE POTENTIAL
TO BECOME THE NEXT MEAN THE
COMBINATION
OF SENTIMENT ON SOCIAL MEDIA AS
WELL AS HIGH SHORT INTEREST.
SO WE CREATED THIS INDEX TO BE
PRETTY THOUGHTFUL. IN TARGETING
THESE NAMES AND LIKE YOU
MENTIONED, YOU KNOW THE
PERFORMANCE RECENTLY. HAS
STRUGGLED A BIT
YOU KNOW I THINK THAT'S JUST A
FUNCTION OF LIQUIDITY IN THE
SYSTEM. HOW ACCOMMODATIVE THE
FED IS AND THINGS WILL KIND OF
EBB AND FLOW AS AS THE YEAR
GOES ON
INTO NEXT.
>> YOU'RE NOW ETF IS DOWN AS WE
JUST
SAW AND THIS IS BEEN SITS ON
THROUGHOUT HILL AFRAID THAT THE
UNCERTAINTY AND VOLATILITY
AROUND MEME STOCKS WILL LEAD TO
A DOWNWARD TREND CAN EWING FOR
THE ETF OR DO YOU SEE SOME
BOUNCE BACK IN THE FUTURE.
>> FOR THE DEA ITSELF, YOU KNOW
THIS IS REALLY A VEHICLE FOR
PEOPLE TO EXPRESS THEIR VIEW ON
MEANS STOCKS WEATHER THEIR LONG
OR SHORT THE ETF WHETHER THEY
ARE LONG CALLS
LONG PUTTS ANYTHING IS KIND OF
FAIR GAME AND WE SEE THIS AS
MUCH AS
AND VOLATILITY. AS WITH BUT YOU
KNOW ALL THIS STUFF IS
I THINK PERSONALLY MEANS
STOCKS WE'LL SEE A RESURGENCE
OF IN Q ONE NEXT YEAR,
PARTICULARLY IF THE A NEW COVID
VARIANT THAT SOMETHING WORSE
THAN EXPECTED. PEOPLE ARE
LOCKED DOWN AND WE SEE A REPEAT
OF WHAT OCCURRED LAST
YEAR SO.
>> COMING OFF OF THE FED
CHAIR'S
ANNOUNCEMENT YESTERDAY HOW IS
THE MEME STOCK ETF DOING TO YOU
IS IT ARE YOU WORRIED AT ALL OR
ARE YOU BULLISH ON THIS.
>> YES, SO THE FED, THE
FED CHAIR HOWELL'S ANNOUNCEMENT
WAS INTERESTING THE INITIAL
REACTION I'M IN THE
MARKET WAS PRETTY POSITIVE EVEN
THE RHETORIC WAS MORE HAWKISH
THAN MARKET
PARTICIPANTS EXPECTED. CHAIR
POWELL CALLED FOR 3 HIKES NEXT
YEAR 3 TIMES THE YEAR AFTER
THAT AND A LOT OF SHOPS
ARE NOW AND SLOWING AND AN
ADDITIONAL 2 OR 3 HIKES ON TOP
OF THAT BEFORE WE GET TO SOME
SORT OF TURN ALL RIGHT SO I
THINK WHAT YOU'RE
SEEING TODAY. IN GROWTH STOCKS
IS A INDICATIVE
OF THAT. YOU KNOW THE DOW BEING
GREEN AND THEN AS THAT THING
DOWN CLOSE TO IS WHAT
YOU SEE WHEN THE FED IS BEING
MORE RESTRICTED THAN
ACCOMMODATIVE
BUT AGAIN I IT'S HARD TO SAY,
BUT I DO THINK THAT THE FED
WILL PROBABLY ADOPT A MORE
DOVISH TONE GOING FOR THE NEXT
YEAR JUST MARKET
REACTION CONTINUES.
>> NOW IF WE CAN JUST PUT THE
GRAPHIC UP ONE MORE TIME FOR
THIS NEXT QUESTION WE WANT TO
SEE WHAT THE STOCKS ARE IN THIS
ETF AND WHEN I WANT YOU TO TELL
ME HOW YOU CAME TO CHOOSE
THESE PARTICULAR STOCKS WHEN IT
COMES TO THIS MEANS YOU CAN SEE
THAT DIGITAL WORLD ACQUISITION
THAT'S
ON TOP A COMPANY LIKE AMD I
MEAN SIDE I SUPPOSE ROCHA'S IN
THEIR SNAPPED SO TELL ME WHY
IT'S IN THIS ORDER. WHY CHOSE
THESE. SURE SO THAT'S A GREAT
QUESTION. SO.
>> AS YOU CAN SEE EVERYTHING IS
CLOSE TO
4% WEIGHT AND WE REBALANCE THE
FUND BIWEEKLY SO WE TARGET AN
EQUAL WEIGHT OF 25 STOCKS, 4%
EACH. SO ANY DEVIATION THAT YOU
SEE THERE IS JUST A RESULT
PRICE PERFORMANCE IN BETWEEN
THE BALANCES WERE
NOT TAKEN A MORE BULLISH OR
BEARISH VIEW ON ANY OF THESE
PARTICULAR NAMES THAT ARE DOING
A SYSTEMATIC WAY
AND INCLUDING STUFF LIKE
GAMESTOP AND AMC WHICH YOU CAN
SEE THERE BECAUSE THEY FALLEN
IN PRICE BUT COME NEXT
REBALANCE IF THEY STILL FOLLOW
OR CRITERIA. THEY WILL
IN THE INDEX AGAIN AT A
4% WEIGHT. NOW TO GET INTO HOW
THE INDEX ITSELF IS
CONSTRUCTED. WE
START WITH SENTIMENT SO WE TAKE
THE 50 MOST MENTION NAMES ON
SOCIAL
MEDIA AND COLLECT THOSE AND
THEN FROM THOSE NAMES. WE LOOK
AT THE 25 NAMES THAT HAVE THE
HIGHEST TRIM INTEREST WE GET
THE SHORT INTEREST.
DAILY AND WHICH IS DIFFERENT
THAN WHAT THE STREET TYPICALLY
SEES WHICH ONCE EVERY 2 WEEKS
SO IN REAL TIME YOU CAN SEE
KIND OF WHAT NAMES ARE BEING
THE MOST HIGHLY SHORT AND THE
INDEXES, INCLUDING THOSE
THOSE TOP 25 NAMES ON AND
PEOPLE WAIT BASIS SO SENTIMENTS
REALLY THE FIRST SCREEN BECAUSE
YOU CAN'T HAVE A MEANS THAT
WEEKEND ON TALKING ABOUT RACIAL
MEDIA
YEAH EXACTLY AND THEN THE
SECOND SCREEN BELOW THAT IS
SHORT INTEREST WHICH IS WHAT
MAKES OUR PRODUCT YOU NEED FOR
SOME OF THE OTHER. FUNDS
FOCUSED ON THIS CATEGORY.
THE ABILITY FOR THESE
UNDERLYING NAMES TO GET SHORT
SQUEEZE VIA THEIR HIGH SHORT
INTEREST.
>> SO KIND OF 3RD PARTY
APPLICATIONS ARE USING A BIG
ONE THAT COMES TO MIND I THINK
A BUZZ SUMO I THINK YOU SEE
USING LIKE SOCIAL FLOW OR
SOCIAL PLACES
LIKE THAT MAY WREAK GOOGLE
KEYWORDS THINGS LIKE THAT SO
WHAT 3RD PARTY APPLICATIONS ARE
USING TO FIND OUT THE CENTER
BECAUSE THINGS CHANGE SO
QUICKLY AND WHAT
WOULD YOU HOW TO RISE AS I SAID
I WAS JUST A STRONG SENTIMENT
IS IT HER LIFE'S PREVIEWS PER
SHARES WORDS COMING FROM WHAT
WHAT ARE SOME OF THE FACTORS
ARE YOU CONSIDERING.
>> SO ON THE SENTIMENT WE USE
FROM CULPEPER QUANTITATIVE YOU
CAN CHECK THEM OUT
ON TWITTER THEY PROVIDE OUR
SENTIMENT I BELIEVE CURRENTLY
THERE ARE ONLY LOOKING AT
ROB MENTIONS I DON'T THINK THE
MACHINE LEARNING IS THE AREA TO
DISTINGUISH AT LEAST WITH ANY
SORT ALPHA BETWEEN POSITIVE AND
NEGATIVE SENTIMENT ON FORMS
STREET SO THAT'S THE SENTIMENT
SIDE AND ON THE SHORT INTEREST
SIDE WE ARE LEVERAGING A FIRM
CALLED S 3 PARTNERS
WHICH LIKE I MENTIONED PROVIDES
THE ONLY A SHORT INTEREST AS A
PERCENT OF THE COMPANY'S FLOW.
>> ALL RIGHT, IT'S ALL